Specialty rental delivers for United
By Belinda Smart28 April 2022
United Rentals has delivered “first quarter records” for 2022 in total revenue, rental revenue and adjusted EBITDA, with specialty rental a notable performer.
United’s financial results for the first quarter of 2022 have seen the company raise its full-year guidance for total revenue and adjusted EBITDA.
Adjusted EBITDA for the quarter was up 30.5% year-over-year to $1.139 billion.
During the quarter the group reported total revenue of $2.524 billion, including rental revenue - covering owned equipment rental revenue, re-rent revenue and ancillary revenue - of $2.175 billion.
This was an increase of 30.5% year-over-year, establishing a record, the company said.
The rise was supported by the recovery of activity across the markets served by United, as well as increased rental fleet at original equipment cost (OEC).
United’s general rentals business had a 25.1% year-over-year increase in rental revenue to $1.593 billion.
Specialty rental revenue increased 47.7% year-over-year, including the impact of the acquisition of General Finance Corporation, completed last May, to a first quarter record of $582 million.
General Finance, which operates as Pac-Van and Container King in the U.S. and Canada, and as Royal Wolf in Australia and New Zealand, is a leading provider of mobile storage and modular office space.
Specialty rental revenue increased 29% on a pro forma basis, including General Finance’s standalone, pre-acquisition revenues.
Fleet productivity, reflecting changes in rental rates, time utilisation and mix on owned equipment rental revenue, increased 13.0% year-over-year, while average OEC, including the impact of the May 2021 acquisition of General Finance, increased 16.4%.
Used equipment sales in the quarter decreased 21.0% year-over-year.
Matthew Flannery, chief executive officer of United Rentals, said the company had completed a strong start to 2022.
“The momentum we carried into the year accelerated quickly, and our markets are continuing to trend up. The most significant tailwind is the broad-based rental demand we’re seeing in our construction and industrial verticals as we approach our busy season.”
“We’ve updated our full-year guidance with higher targets for total revenue, adjusted EBITDA and free cash flow, supported by customer sentiment and robust project activity.
“Based on our visibility into the year, as well as leading industry indicators, we remain confident in our ability to leverage the current upcycle and adapt to any operating conditions.”
The company has updated its 2022 outlook to a current outlook of total revenue between $11.1 billion and $11.5 billion, compared to $10.65 billion to $11.05 billion previously.
Adjusted EBITDA is currently forecast at $5.2 billion to $5.4 billion, compared to $4.95 billion to $5.15 billion previously.