Third Quarter 2026
Filed Oct 21, 2026United Rentals Announces Record Third Quarter Results and Raises Full-Year 2026 Guidance
Third-quarter rental revenue, net income, adjusted EBITDA and both segment rental-revenue lines reached quarterly records, with broad margin expansion and raised 2026 revenue, adjusted EBITDA, capital expenditure and operating-cash-flow outlooks.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended September 30, 2026GAAP | $4.89B | – | – |
| Equipment rentals revenue, three months ended September 30, 2026GAAP | $4.32B | – | 17.8% |
| Sales of rental equipment, three months ended September 30, 2026GAAP | $348M | – | 4.5% |
| Sales of new equipment, three months ended September 30, 2026GAAP | $84M | – | – |
| Contractor supplies sales, three months ended September 30, 2026GAAP | $47M | – | – |
| Service and other revenues, three months ended September 30, 2026GAAP | $98M | – | – |
| Gross profit, three months ended September 30, 2026GAAP | $2.05B | – | – |
| Total equipment rentals gross margin, three months ended September 30, 2026GAAP | 42.0% | – | 240 bps |
| Operating income, three months ended September 30, 2026GAAP | $1.41B | – | – |
| Net income, three months ended September 30, 2026GAAP | $920M | – | 31.2% |
| Net income margin, three months ended September 30, 2026GAAP | 18.8% | – | 220 basis points |
| Diluted earnings per share, three months ended September 30, 2026GAAP | $14.77 | – | – |
| Earnings per share - adjusted, three months ended September 30, 2026non-GAAP | $15.55 | – | – |
| EBITDA, three months ended September 30, 2026non-GAAP | $2.27B | – | – |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $2.33B | – | 19.8% |
| Adjusted EBITDA margin, three months ended September 30, 2026non-GAAP | 47.6% | – | 160 basis points |
| Used equipment sales GAAP gross margin, three months ended September 30, 2026GAAP | 44.8% | – | – |
| Used equipment sales adjusted gross margin, three months ended September 30, 2026non-GAAP | 46.3% | – | – |
| OEC recovery rate on fleet sold, three months ended September 30, 2026other | 51.4% | – | – |
| Free cash flow, three months ended September 30, 2026non-GAAP | $272M | – | – |
| Total revenue, nine months ended September 30, 2026GAAP | $13.29B | – | – |
| Equipment rentals revenue, nine months ended September 30, 2026GAAP | $11.58B | – | 13.3% |
| Gross profit, nine months ended September 30, 2026GAAP | $5.25B | – | – |
| Operating income, nine months ended September 30, 2026GAAP | $3.42B | – | – |
| Net income, nine months ended September 30, 2026GAAP | $2.20B | – | – |
| Diluted earnings per share, nine months ended September 30, 2026GAAP | $35.19 | – | – |
| Earnings per share - adjusted, nine months ended September 30, 2026non-GAAP | $37.98 | – | – |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $6.15B | – | – |
| Adjusted EBITDA margin, nine months ended September 30, 2026non-GAAP | 46.3% | – | – |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | $4.93B | – | 25.4% |
| Free cash flow, nine months ended September 30, 2026non-GAAP | $1.42B | – | 19.2% |
| Gross rental capital expenditures, nine months ended September 30, 2026other | $4.75B | – | – |
| Fleet productivity, three months ended September 30, 2026other | 6.5% | – | – |
| Fleet productivity, nine months ended September 30, 2026other | 4.2% | – | – |
| Return on invested capital, 12 months ended September 30, 2026other | 12.3% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| General Rentals reportable segment equipment rentals revenue, three months ended September 30, 2026Rental gross margin increased by 170 basis points year-over-year to 38.4%, primarily due to efficiencies in depreciation, labor and benefits, repairs and maintenance, and delivery expenses. | $2.61B | – | 8.8% |
| Specialty reportable segment equipment rentals revenue, three months ended September 30, 2026Rental gross margin increased by 250 basis points year-over-year to 47.6%, primarily due to efficiencies in depreciation, labor and benefits, repairs and maintenance, and delivery expenses. | $1.70B | – | 34.7% |
| General Rentals reportable segment equipment rentals revenue, nine months ended September 30, 2026Reportable segment equipment rentals gross margin was 36.1%, compared with 34.8%. | $7.26B | – | 7.3% |
| Specialty reportable segment equipment rentals revenue, nine months ended September 30, 2026Reportable segment equipment rentals gross margin was 44.9%, compared with 44.7%. | $4.33B | – | 25.1% |
2026 Outlook outlook
- Revenue$18.0 billion to $18.2 billion
- NoteAdjusted EBITDA: $8.3 billion to $8.4 billion
- NoteNet rental capital expenditures after gross purchases: $3.75 billion to $4.05 billion, after gross purchases of $5.2 billion to $5.5 billion
- NoteNet cash provided by operating activities: $6.25 billion to $6.85 billion
- NoteFree cash flow excluding restructuring related payments: $2.15 billion to $2.45 billion
- NotePayments for purchases of rental equipment: $(5,150)-$(5,550)
- NoteProceeds from sales of rental equipment: $1,350-$1,550
- NotePayments for purchases of non-rental equipment and intangible assets, net of proceeds from sales and insurance proceeds from damaged equipment: $(300)-$(400)
- NoteThe company expects to complete $1.5 billion of share repurchases in 2026.
Capital returns
- Returned $1.496 billion to shareholders year-to-date, comprised of $1.125 billion via share repurchases and $371 million via dividends paid.
- During the nine months ended September 30, 2026, the company completed its prior $2.0 billion share repurchase program and commenced its new $5.0 billion share repurchase program.
- The Board of Directors declared a quarterly dividend of $1.97 per share, payable on November 25, 2026 to stockholders of record on November 11, 2026.
- A 1% excise tax on net repurchases totaled $10 million year-to-date through September 30, 2026.
What drove it
- Rental revenue increased 17.8% year-over-year primarily due to a 7.9% increase in average original equipment at cost, a 6.5% increase in fleet productivity, and a 4.9% contribution from ancillary and re-rent revenue.
- Rental gross margin expansion reflected efficiencies in depreciation, labor and benefits, repairs and maintenance, and delivery expenses in both general rentals and specialty rentals.
- Adjusted EBITDA margin expansion also reflected a reduction in SG&A expenses as a percentage of revenue and an increase in the proportion of revenue from equipment rentals.
- Management cited customer confidence, customer backlogs and momentum across large projects in support of raised guidance.
Concerns
- Growth in lower-margin ancillary and re-rent revenues partially offset the benefits of improved rental operating efficiencies.
- Restructuring charge was $15 million in the third quarter and $66 million for the nine months ended September 30, 2026.
- The nine-month results include a pre-tax gain of $53 million, primarily reflected in other income, net, from the sale of part of the scaffolding business.
- Free cash flow excluding restructuring related payments guidance excludes restructuring related payments, which cannot be reasonably predicted for the 2026 outlook.
What to watch
- Delivery of the raised 2026 total revenue outlook of $18.0 billion to $18.2 billion and adjusted EBITDA outlook of $8.3 billion to $8.4 billion.
- Fleet productivity, average OEC growth and the contribution from ancillary and re-rent revenue.
- Sustainability of general rentals and specialty rentals gross-margin expansion.
- Execution of $5.2 billion to $5.5 billion of forecast gross rental equipment purchases and $1.5 billion of expected 2026 share repurchases.
Balance sheet and cash flow
- Cash and cash equivalents were $153 million at September 30, 2026, compared with $459 million at December 31, 2025.
- Total liquidity was $2.615 billion as of September 30, 2026.
- Short-term debt and current maturities of long-term debt were $1,607 million, and long-term debt was $13,064 million, at September 30, 2026.
- Net leverage ratio was 1.8x at September 30, 2026, compared with 1.9x at December 31, 2025.
- Payments for purchases of rental equipment were $4.339 billion for the nine months ended September 30, 2026.
- Proceeds from sales of rental equipment were $1.028 billion for the nine months ended September 30, 2026.
- Purchases of other companies, net of cash acquired, were $527 million for the nine months ended September 30, 2026.
Analysis
United Rentals reported record third-quarter operating results. Total revenue was $4.893 billion and equipment rentals revenue was a quarterly-record $4.316 billion, up 17.8% year-over-year. Rental growth reflected a 7.9% increase in average OEC, 6.5% fleet productivity and a 4.9% contribution from ancillary and re-rent revenue. Specialty rentals was the principal source of segment growth, with revenue up 34.7% to $1.704 billion, while general rentals revenue rose 8.8% to $2.612 billion.
Profitability expanded faster than revenue. Net income rose 31.2% to $920 million and net income margin increased 220 basis points to 18.8%. Adjusted EBITDA increased 19.8% to $2.331 billion and its margin expanded 160 basis points to 47.6%. Total equipment rentals gross margin increased 240 basis points to 42.0%, with general rentals margin up 170 basis points to 38.4% and specialty margin up 250 basis points to 47.6%. Management attributed the gain to efficiencies in depreciation, labor and benefits, repairs and maintenance, and delivery expenses, partially offset by mix toward lower-margin ancillary and re-rent revenue.
Cash generation remained strong alongside elevated fleet investment. Nine-month operating cash flow increased 25.4% to $4.934 billion and free cash flow increased 19.2% to $1.421 billion, while gross rental capital expenditures were $4.746 billion. The company held $153 million of cash and cash equivalents, had total liquidity of $2.615 billion and reduced net leverage to 1.8x from 1.9x at December 31, 2025. It returned $1.496 billion to shareholders year-to-date through $1.125 billion of repurchases and $371 million of dividends.
The company raised its full-year outlook for total revenue, adjusted EBITDA, net rental capital expenditures after gross purchases and net cash provided by operating activities. The free-cash-flow outlook excluding restructuring-related payments remained $2.15 billion to $2.45 billion. The key operating focus is whether fleet productivity, specialty growth and margin efficiencies continue while the company executes $5.2 billion to $5.5 billion of forecast gross rental equipment purchases. Reported nine-month income also included a $53 million pre-tax gain from the sale of part of the scaffolding business, and restructuring charges were $66 million for the nine months ended September 30, 2026.
Management, verbatim
“We continued to lean into growth across both our general rentals and specialty businesses with the momentum from the first half of the year carrying through the quarter.”
Matthew Flannery, chief executive officer
“Our raised guidance reflects this, and is supported by our customers’ confidence, their backlogs, and the momentum we see across large projects.”
Matthew Flannery, chief executive officer
Not in the filing
stated, not guessed- Prior-quarter comparisons were not reported for the presented revenue, earnings, margin, cash flow and segment metrics.
- GAAP operating margin was not reported.
- A full-year 2026 GAAP net income, GAAP EPS, operating income, gross margin, operating expenses or tax-rate outlook was not reported.
- A full-year 2026 adjusted EPS outlook was not reported.
- Total debt, net debt and availability under the ABL facility and accounts receivable securitization facility were not separately reported as defined liquidity components.
- A prior earnings-release outlook was not provided; therefore no actual-versus-prior-guidance comparison is presented.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.