Photo by United Rentals
United Rentals Equipment Construction 2022

United Rentals Jumps 18.8 Percent in Fourth Quarter Rental Revenue; Tops $11 Billion Total for 2022

Jan. 26, 2023
Total revenue was $3.296 billion compared to $2.776 for the fourth quarter of 2021, an 18,7-percent jump.

United Rentals posted $2.747 billion in equipment rental revenue for the fourth quarter of 2022, compared to $2.312 billion in the fourth quarter of 2021, an 18.8-percent increase. Total revenue was $3.296 billion compared to $2.776 for the fourth quarter of 2021, an 18,7-percent jump. Sales of used rental equipment was $409 million in Q422 compared to $324 million in the fourth quarter of 2021, a 26.2-percent rise.

For the full year, total revenue topped $11 billion, coming in at $11.642 billion compared to $9.716 billion in 2021, a 19.8-percent increase. Equipment rental revenue was $10.116 billion for the year compared to $8.207 billion a year ago, a 23.2-percent hike.

Fleet productivity increased 5.9 percent year-over-year in the fourth quarter, including the impact of the acquisition of Ahern Rentals in the quarter. Net income was $639 million at a margin of 19.4 percent. Adjusted EBITDA was $1.647 billion at a margin of 50 percent.

“Our fourth quarter results capped an outstanding year, during which we set records for revenue, profitability, margins and returns,” said Matthew Flannery, CEO of United Rentals. “These achievements are a testament to our team’s commitment to our customers. With the Ahern integration on track, and a world-class combination of people, process and technology, we’re positioned to raise the bar again in 2023.

“Our guidance reflects our expectations for another year of strong growth, and our ability to convert this growth into compelling returns. The introduction of our dividend program reflects the strength and resiliency of our operating model and our ability to generate cash across the cycle, while continuing to invest in growth. Combined with the restart of our share repurchase program, we expect to return approximately $1.4 billion of cash to our shareholders this year as we continue to drive long-term value creation.”

The general rentals segment had an increase of 19.1 percent year-over-year in rental revenue to a fourth quarter record of $2.023 billion. Rental gross margin increased by 140 basis points to 41.6 percent, primarily because of better fixed cost absorption on higher revenue.

The specialty rentals segment rental revenue increased 18.1 percent year over year to a fourth quarter record of $724 million. Rental gross margin increased by 410 basis points to 49.3 percent, primarily because of better cost performance and fixed cost absorption on higher revenue.

Big jump for ROIC

Return on invested capital increased 240 basis points year over year, and 50 basis points sequentially to a record 12.7 percent for the full year.

United Rentals now has 1,462 rental locations in North America, 27 in Australia, 13 in Europe and 19 in New Zealand. In North America, United operates in 49 states and in every Canadian province. The company’s fleet now has a total original cost of $19.6 billion.

Based in Stamford, Conn., United Rentals is No. 1 on the RER 100.