United Rentals posted rental revenue of $2.732 billion for the third quarter of 2022 ended September 30, compared to $2.277 billion for the third quarter of 2021, a 20-percent jump.
Total revenue for United Rentals was $3.051 billion for the third quarter of 2022, compared to $2.596 billion for the same period a year ago, a 17.5-percent increase.
Sales of used rental equipment was flat year over year, $183 million a year ago, compared to $181 million in 2022.
Sales of new equipment declined, from $47 million in the third quarter of 2021 to $32 million this year, a 31.9-percent drop.
Sales of contractor supplies increased from $29 million in Q321 to $32 million in the just-concluded quarter, a 10.3-percent hike.
Fleet productivity increased 8.9 percent year over year. Adjusted EBITDA was $1.521 billion, at a margin of 49.9 percent.
“Our strong third quarter results reflect the momentum we’ve sustained throughout this year, and particularly in our busiest season,” said Matthew Flannery, United Rentals CEO. “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 non-residential 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. We expect to deliver another year of profitable growth, strong cash flow, and attractive returns for our shareholders.”
United Raises capex guidance
United has raised its guidance, especially in terms of net capex. Previously the company expected net rental capital expenditures to be in a range between $1.85 billion and $2.05 billion, but now the company expects net capex to be in a range between $2.25 billion and $2.45 billion.
For the first nine months of 2022, rental revenue was $7.369 billion compared to $5.895 billion in the first nine months of 2021, a 25-percent uptick. Total revenue increased from $6.940 billion in the first nine months of 2021 to $8.346 billion in 2022, a 20.3-percent hike. Sales of rental equipment unsurprisingly declined, as it did with most companies because of the longer lead times caused by supply-chain difficulties. United Rentals sold $644 million in used equipment for the first nine months of 2021 but only $556 million so far this year, a 13.7-percent decrease. Sales of new equipment declined from $153 million a year ago to $115 million so far this year, a 24.8-percent drop.
Based in Stamford, Conn., United Rentals is No. 1 on the RER 100.