6 things we learnt from United Rentals’ Q2 results

As the largest equipment rental company in North America, United Rentals’ results are closely watched as a bellwether for the region’s construction industry. With many rental firms privately owned and not obliged to publish their figures, the company’s earnings offer a rare insight into market conditions. In June, its nearest rival, Ashtead Group – owner of Sunbelt Rentals and the world’s second-largest player – reported a 5% drop in annual pre-tax profits despite higher rental revenues.

Here are six things we learned from United Rentals’ latest results:

1. Large scale infrastructure and energy demand drives profits

Demand from large-scale infrastructure, industrial and energy projects across the US helped drive profits at United Rentals in the three months to the end of June 2025, offsetting inflationary pressures in delivery, labour and depreciation costs, the company reported on 23 July. It also benefited from a widely reported US$52 million merger termination payment after its planned high profile purchase of H&E Equipment Services was cancelled.

2. Specialty rentals continue to deliver double-digit growth
United Rentals’ specialty rentals segment posted a 14% year-on-year increase in rental revenue to reach a record $1.15 billion. Demand was particularly strong from large projects requiring specialist equipment and technical expertise, with power and HVAC, trench safety, and matting leading the way. Rental gross margin fell 220 basis points to 45.8% as delivery and labour costs rose, but CEO Matthew Flannery said specialty rentals remain a “key growth engine” for the business.

3. General rentals show steady gains
The general rentals division also reached a second-quarter record, with $2.27 billion in rental revenue, up 2.7% year-on-year. Healthy activity levels in core construction markets underpinned the gains, although margins slipped 120 basis points to 35.1%, due to inflationary cost pressures.

4. Guidance raised on revenue and cash flow strength
Full-year 2025 revenue guidance has been raised to $15.8–$16.1 billion, $100 million higher at the midpoint than previous forecasts. Adjusted EBITDA is now expected at $7.3–$7.45 billion, boosted by ancillary revenue growth and the merger termination benefit. Free cash flow projections have been lifted by around $400 million to $2.4–$2.6 billion.

5. Shareholder returns accelerated
United Rentals has completed a $1.5 billion share repurchase programme and begun another of the same size. Planned buybacks for the year have been increased by $400 million to $1.9 billion, and total authorisation expanded to $2.0 billion, leaving $350 million of capacity into early 2026. Year-to-date, $902 million has been returned to shareholders through buybacks and dividends.

6. Market backdrop: opportunities and risks
The company reported that its Q2 growth comes amid a mixed US construction market. Infrastructure projects backed by federal funding and clean energy incentives are buoying civil engineering and industrial builds, while high borrowing costs continue to dampen parts of the residential sector. Tariffs and trade tensions remain a potential headwind, with the company warning of possible upward pressure on equipment purchase costs.

Flannery said the company was “carrying momentum into the remainder of the construction season,” driven by specialty rentals and large-scale project activity.