How 5 of the biggest US rental companies are navigating 2025 economic uncertainty

Stock markets around the world rallied this week as the US and China agreed to a temporary reduction in trade tariffs.

For major US corporations concerned about the impact of new import tariffs on the domestic economy, the news is likely to come as a relief after weeks of economic uncertainty. 

With this in mind, International Rental News gathered together the key first quarter financial updates from five companies - Herc Rentals, United Rentals, WillScot Mobile Mini, and H&E Rentals to find out how they have been performing so far in 2025 and what they expect for the rest of the year.

Herc Rentals

Performance so far: Revenues at Herc Rentals grew 7% year-on-year to US$861 million for the first quarter of 2025, including an increase in equipment rental revenue of $20 million. However, the company posted a net loss of $18 million, compared to net income of $65 million in Q1 2024 - much of which the company attributed to $74 million of transaction costs related to Herc’s acquisition of H&E Rentals. Adjusted EBITDA earnings remained flat at $339 million, with an EBITDA margin of 39.4%, down from 42.2% a year earlier.  Adjusted net income fell 45% to $37 million, or $1.30 per diluted share.

Image: Herc Rentals

Rental fleet OEC (original equipment cost) stood at $6.9 billion, with average fleet size up 9% year-on-year and average fleet age unchanged at 47 months. Net rental CapEx was $93 million, down from $120 million in Q1 2024.

Outlook for 2025: CEO Larry Silber said in the company’s Q1 earnings call that the firm was operating in “a macro environment characterised by divergent trends between strengthening national accounts from large projects and challenges in local markets related to prolonged, elevated interest rates.” He added “If you don’t have other opportunities to pivot to, it’s definitely a challenging local operating environment.”   

The company reaffirmed its full-year 2025 guidance (excluding Cinelease), including:

• Rental revenue growth: 4% to 6%
• Adjusted EBITDA: $1.575 billion to $1.650 billion
• Net rental CapEx: $400 million to $600 million
• Gross CapEx: $700 million to $900 million

Impact of tariffs: Silbur added: “When it comes to tariffs, we don’t expect any direct impact to our procurement costs in 2025. We’ve sourced the vast majority of our fleet domestically and orders and pricing for this year have already been secured. Regarding any indirect impact that might stand from our customers’ tariff exposure, again, it’s too early to tell. But for the national account projects already underway, and those that are scheduled to launch this year, as far as we know now, there have been no changes to existing plans.”

United Rentals

Photo: United Rentals

Performance so far: United Rentals posted a 7% increase in rental revenues for Q1 2025, reaching US$3.1 billion, while total revenues rose 6.7% to $3.7 billion. However, the company reported that net income for the quarter stood at $518 million, a 4.4% decrease compared with the year-ago period.

The company reported that its abortive attempts to acquire H&E Rentals had led to it receiving a $64 million break-up fee and a $39 million net merger termination benefit. Adjusted EBITDA reached $1.6 billion.

Its speciality segment continued to outperform, growing 22% to $1.04 billion, and now accounting for roughly 33% of total annual revenues. CapEx for the period was $707 million, with full-year investment expected between $3.65 billion and $3.95 billion.

The company’s Board approved a new $1.5 billion share repurchase programme, with $1.25 billion expected to be completed in 2025 and the remainder in 2026.

Outlook for 2025: United reaffirmed its full-year revenue guidance of $15.6 billion to $16.1 billion.

Impact of tariffs: The company said that it expected little impact from tariffs in 2025 on its own capital expenditure because purchase prices for the year had already been locked in.  The company added that economic uncertainty was fuelling demand for its fleet.

“Any time there’s uncertainty, that tends to favour rental over ownership,” chief financial officer, Ted Grace, said on the company’s Q1 earnings call. “We never advocate for uncertainty but there obviously are a couple of things that the macro is trying to struggle with. So I’d say at the margin that’s also going to benefit rental.”

WillScot Mobile Mini

Photo: WillScot

Performance so far: WillScot generated US$560 million in revenue in Q1 2025, down from $587 million in the same period last year.

Meanwhile income from continuing operations fell 26% to $56.2 million from $76.3 million a year earlier.

Gross profit margin was 53.7%, and net income was $43 million, with diluted earnings per share of $0.23. The company delivered adjusted EBITDA of $229 million, representing a 40.9% margin.

The company’s modular space and portable storage units saw average monthly rate increases of 5.2% and 1.9%, respectively, helping to offset a decrease in units on rent.

Net cash provided by operating activities was $207 million, producing adjusted free cash flow of $145 million. WillScot returned $45 million to shareholders through share repurchases and a quarterly dividend.

Outlook for 2025: WillScot reaffirmed its full-year outlook for 2025, maintaining its revenue, adjusted EBITDA, and net CAPEX guidance.

The company said it is confident in achieving its financial milestones, including $3 billion in revenue, $1.5 billion in adjusted EBITDA, and $700 million in adjusted free cash flow over the next three to five years. The company invested $62 million in net CapEx during the first quarter, focused on supporting growth in new product lines. 

Impact of Tariffs: CEO Brad Soultz said that quoting activity in the 30 days since Liberation Day was actually up 10% compared with the previous year across all product categories and cancellation rates in Q2 were lower than the previous year. “[These are] logical concerns that are on our mind but we haven’t actually observed any data yet that tells us those things are happening. And in terms of the progress through the course of the year, to the extent that we see any slowdowns or changes in customer behaviour, we’re watching it carefully and we’re encouraged with the order book in the year to date.”

H&E Rentals

Performance so far: H&E Rentals reported a 7.2% decline in equipment rental revenues for Q1 2025, down to $274.0 million, reflecting weaker demand from local markets and a seasonally softer quarter.

Total revenues for the company, which is set to be acquired by Herc Rentals in a $5.3 billion deal, fell by 14.0% to $319.5 million, down from $371.4 million in Q1 2024.

Adjusted EBITDA earnings stood at $131.2 million, a decrease of 18.9% from $161.7 million in 2024. The company posted a loss from operations of $5.8 million, which included $9.8 million in transaction expenses related to the planned merger with Herc Rentals.

Despite the challenges, H&E said it remains optimistic about the merger, which it believes will strengthen its operating resilience through a broader network of markets, geographies, products, and customer solutions. The company expects the merger to close by mid-2025.

Outlook for 2025: H&E Rentals said it continues to move forward with its expansion strategy, opening four new branches in Q1 2025, including locations in Florida, Georgia, Arkansas, and St. Louis West. Additionally, a second facility in Iowa was opened.

The company views these additions, along with its existing footprint, as critical for competing effectively for new business opportunities as it navigates the challenging market environment. The company did not hold an earnings call in Q1. 

McGrath RentCorp

Performance so far: McGrath RentCorp reported a 4% year-on-year increase in total revenues for Q1 2025, reaching $195.4 million. Rental operations revenues rose by 3% to $154.0 million.

The company posted net income of $28.2 million, or $1.15 per diluted share, up from $22.8 million, or $0.93 per diluted share, in Q1 2024. Adjusted EBITDA increased 3% to $74.5 million, reflecting solid performance in its modular business. The Mobile Modular division was the key contributor, showing strong growth in both rental revenues and rental-related services.

However, Portable Storage faced challenges, with a 13% drop in rental revenues, attributed to lower commercial construction activity. TRS-RenTelco experienced a slight improvement, with rental revenues up slightly year-over-year for the first time since Q1 2023.

Outlook for 2025: McGrath RentCorp has revised its full-year 2025 guidance, now expecting total revenues between $920 million and $960 million and Adjusted EBITDA in the range of $343 million to $355 million. The company has maintained a cautious outlook, given economic uncertainties, particularly surrounding tariff impacts, and is focused on disciplined operational execution for the remainder of the year.

The company highlighted a focus on capitalising on market opportunities and continuing progress in expanding Mobile Modular Plus and Site Related Services initiatives, despite softer demand in some markets.

The company is forecasting gross rental equipment capital expenditures in the range of $115 million to $125 million for 2025, reflecting a disciplined approach to fleet investment amid uncertain market conditions.

Impact of tariffs: CEO Joe Hanna said: “The larger projects that are underway are pretty solid. It’s the smaller ones where we’re getting more uncertainty from those folks. What’s interesting is that the activity level is good. There’s a lot of enquiries into projects. We’re just seeing that some people may be hesitant to pull the trigger on some things.”