United Rentals ups CapEx as momentum continues

United Rentals has increased its gross fleet spending outlook for the full year to between $5.2 and $5.5 billion – up from $4.85-$5.25 billion. The company reported that momentum in the first half year had continued in the third quarter.

The company has also increased its outlook on total annual revenues to between $18.0 and $18.2 billion, from $17.5-$17.8 billion.

Rental revenue in the quarter to 30 September rose by 17.8% to $4.32 billion, reflecting a larger fleet and strong demand. Total revenue was up 15.7% at $4.89 billion.

A United Rentals depot. (Image; United Rentals)

Its specialty rentals segment saw a 34.7% increase year-on-year, rising to $1.7 billion while general rentals was 8.8% higher at 2.61 billion. Specialty rentals revenues represented 35% of the total in the third quarter. 

Matthew Flannery, chief executive officer of United Rentals, said, “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.”

He said United was “uniquely positioned” to outperform the industry through its footprint, one-stop-shop offering, service levels, technology and commitment to safety.

“Our raised guidance reflects this, and is supported by our customers’ confidence, their backlogs, and the momentum we see across large projects,” said Flannery.

United’s raised outlook follows a similar announcement this week by EquipmentShare, which is also benefiting from activity in major projects.