United Rentals third-quarter rental revenue set a record for that time period, the company said, at $2.7 billion, 20 percent higher than the same period in 2021. The company said the results “reflect the broad-based strength of demand.”
“Our strong third quarter results reflect the momentum we’ve sustained throughout this year, and particularly in our busiest season,” said Matthew Flannery, CEO, in a prepared statement. “Once again, our team did an outstanding job meeting customer needs safely and efficiently as we continued to lean into growth. We’re guiding to higher full year revenue and adjusted EBITDA, as well as an increase in rental capex, based on the sustained demand we see in our end-markets and the strength of our core rental results.
“While there are clearly cross-currents in the economy, virtually all key nonresidential construction indicators remain encouraging, including customer sentiment. In addition, we see substantial opportunities next year across federally funded infrastructure projects, industrial manufacturing, energy, and power.”
Total revenue for the quarter was $3.1 billion, providing net income of $606 million, up 48 percent compared to Q3 2021. Margin increased 410 basis points to 19.9 percent.
General rentals segment revenue increased 18.7 percent over 2021 to a Q3 record of $1.9 billion. Rental gross margin increased by 130 basis points to 41 percent. Specialty rentals segment rental revenue increased 23.2 percent over 2021 to a third quarter record of $790 million. Rental gross margin increased by 70 basis points to 52.2 percent.
Used equipment sales in the quarter decreased 1.1 percent compare to Q3 2021, and generated $181 million of proceeds at a GAAP gross margin of 61.9 percent. This compares with $183 million at a GAAP gross margin of 45.9 percent for the same period last year. The gross margin increases were primarily due to higher pricing on used equipment sales, the company said.
Fleet productivity, which URI defines as an “interplay of rental rates, time utilization and mix,” increased 8.9 percent in the quarter compared to the same period in 2021.
Source: United Rentals
