United Rentals upgrades 2024 forecasts

(Photo: United Rentals)

United Rentals has upgraded its forecast for the 2024 financial year to the tune of $300 million (€279 million), reflecting its acquisition of Yak Access and Yak Mat earlier this year.

The company had initially predicted revenues of between $14.6 billion (€13.5 billion) and $15.1 billion (€14 billion).

The company said that it could now reach as much as $15.4 billion (€14.3 billion), buoyed by the completion of the purchase of the temporary roadway rental business. 

Elsewhere, the company expects capital expenditure to be somewhere between the $2 billion (€1.8 billion) and $2.3 billion (€2.1 billion) mark, up from its previous forecast of between $1.9 billion (€1.7 billion) and $2.2 billion (€2 billion).

Matthew Flannery, chief executive officer of United Rentals, said the company is pleased with its start to 2024; “Our acquisition of Yak last month provides another excellent example of our strategy to grow our specialty rental business, differentiate our one-stop-shop capabilities and capitalize on both secular growth and cross-selling opportunities.”

The revision was announced as part of its financial results for the first quarter of 2024, which revealed a 7% increase in revenues when compared with the first three months of 2023.

Total revenue reached $3.4 billion (€3.1 billion), while rental revenue increased by 7% to $2.9 billion (€2.6 billion).

Meanwhile, its specialty division saw the biggest increase at 19%, accounting for $859 million (€798 million) in Q1 of 2024.

Adjusted EBITDA for the quarter increased 5.6% year-over-year to a first quarter record of $1.5 billion (€1.3 billion). 

Flannery said, “2024 is playing out as we expected, with our updated full-year guidance reflecting the addition of Yak. As we enter our busy season, we are excited by both the immediate opportunities we see, particularly on large projects, and the longer-term outlook.”