United Rentals revenue for the second quarter of 2022 was $2.771 billion, including rental revenue of $2.462 billion. Rental revenue was 26.2 percent higher than Q2 2022.
“Our record second quarter results reflect our strong execution in a robust demand environment,” said Matthew Flannery, CEO, in a prepared statement. “We’ve entered our busiest season with excellent momentum and the benefit of an effective capital allocation strategy, including seven bolt-on acquisitions and 24 Specialty cold-starts through June. We’re also on track to invest $3 billion in fleet this year and complete our share repurchase program this quarter, all supported by our cash generation and balance sheet.”
The jump in rental revenue was attributed to strong demand. Year-over-year, fleet productivity increased 11.3 percent, and average original equipment at cost (“OEC”) increased 13.6 percent.
Used equipment sales in the quarter decreased 15.5 percent year-over-year, generating $164 million of proceeds compared with $194 million for the same period last year.
Net income for the quarter increased 68.3 percent year-over-year to a second quarter record of $493 million, primarily due to higher gross margins from rental revenue and used equipment sales, reductions in selling, general and administrative (‘SG&A”) expense and non-rental depreciation and amortization as a percentage of revenue and lower net interest expense, excluding debt redemption losses.
General rentals segment had a 21.9 percent year-over-year increase in rental revenue to a second quarter record of $1.787 billion. Rental gross margin increased by 280 basis points to 38.7percent, primarily due to better fixed cost absorption on higher revenue.
Specialty rentals segment rental revenue increased 39.2 percent year-over-year, including the impact of the May 2021 acquisition of General Finance Corporation (“General Finance”), to a second quarter record of $675 million. On a pro forma basis, including the standalone, pre-acquisition revenues of General Finance, Specialty rental revenue increased 29 percent year-over-year.
Source: United Rentals
