United Rentals shares slide after quarterly earnings miss

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United Rentals (NYSE:URI [https://seekingalpha.com/symbol/URI]) shares fell 5.2% in extended trading Wednesday after the equipment rental giant reported third-quarter earnings that missed Wall Street’s profit estimates.

The company reported adjusted earnings of $11.70 per share, below analysts’ consensus estimate of $12.29. However, total revenue rose 5.8% year-over-year to $4.23 billion, topping Wall Street’s forecast of $4.16 billion.

Net income for the quarter fell to $701 million, or $10.91 a share, compared with $708 million, or $10.70 a share, a year earlier. Wall Street’s estimate for GAAP earnings was $11.54 a share.

“Our third-quarter results were again supported by our unrelenting focus on being the partner of choice to our customers,” Chief Executive Matthew Flannery said in a statement. “Our updated guidance reflects the momentum we expect to carry through the rest of the year.”

RAISED OUTLOOK

United Rentals (NYSE:URI [https://seekingalpha.com/symbol/URI]) raised its 2025 full-year revenue guidance to a range of $16.0 billion to $16.2 billion, up from $15.8 billion to $16.1 billion previously. The company also boosted its gross rental capital spending plan to as much as $4.2 billion, citing continued strength in construction and industrial demand.

The firm now expects adjusted earnings before interest, taxes, depreciation and amortization between $7.325 billion and $7.425 billion, maintaining a similar midpoint to prior guidance. Year-to-date, the company generated $3.93 billion in operating cash flow and $1.19 billion in free cash flow, while returning $1.63 billion to shareholders through share buybacks and dividends.

SEGMENT PERFORMANCE

Rental revenue, the company’s largest segment, climbed to $3.67 billion, with general rentals up 3.1% to $2.4 billion and specialty rentals up 11.4% to $1.27 billion. Adjusted ebitda increased 2.2% to $1.95 billion, though margins compressed to 46.0% due to higher depreciation and inflation-related cost pressures.

CAPITAL ALLOCATION AND LIQUIDITY

United Rentals (URI [https://seekingalpha.com/symbol/URI]) ended the quarter with a net leverage ratio of 1.86 times and total liquidity of $2.45 billion, including $512 million in cash. The board declared a quarterly dividend of $1.79 a share, payable November 26 to shareholders of record on November 12.

Flannery highlighted that the company’s “one-stop-shop model and industry-leading technology” continue to differentiate United Rentals (URI [https://seekingalpha.com/symbol/URI]) in both construction and industrial markets.

MORE ON UNITED RENTALS

* United Rentals: Solid Fundamentals Outweigh Short-Term Margin Pressures [https://seekingalpha.com/article/4821032-united-rentals-solid-fundamentals-outweigh-short-term-margin-pressures]
* United Rentals: Strong End Market Outlook, Margins Turning Corner Could Drive Further Upside [https://seekingalpha.com/article/4816580-united-rentals-strong-end-market-outlook-margins-turning-corner-could-drive-further-upside]
* United Rentals: Overvalued Even With A Tax Law Windfall (Rating Downgrade) [https://seekingalpha.com/article/4804724-united-rentals-overvalued-even-with-tax-law-windfall]
* United Rentals Non-GAAP EPS of $11.70 misses by $0.59, revenue of $4.23B beats by $70M [https://seekingalpha.com/news/4507105-united-rentals-non-gaap-eps-of-11_70-misses-by-0_59-revenue-of-4_23b-beats-by-70m]
* United Rentals Q3 2025 Earnings Preview [https://seekingalpha.com/news/4506183-united-rentals-q3-2025-earnings-preview]