United Rentals increases CapEx and raises full-year guidance

United Rentals said it will increase its spending on fleet this year after reporting a 12% increase in second quarter revenues and raising its full-year guidance.  CapEx guidance for the year has risen 10% compared to its previous outlook.

The company said it was seeing tailwinds on large projects and customer backlogs and that it expected healthy growth to continue.

United, which is the world’s largest equipment rental business, said it now plans to make gross fleet investment of between US$4.85 billion and $5.25 billion in its current financial year, up from the previous guidance of $4.4-4.8 billion.

United rentals’ fleet telematics data will be available in the Procore construction management platform. (Image: United Rentals)

The company reported a 12% increase in revenues in the quarter to $4.41 billion, with rental revenues up 12.7% at $3.85 billion. EBITDA profit increased year-on-year by 13% to $2.0 billion.

Specialty rentals - power, pumps and other niche products - again outgrew its general rentals business, expanding by 24.8% to $1.43 billion. General rentals revenue increased by 6.6% to $2.42 billion.

Matthew Flannery, United’s CEO, said growth had accelerated in the quarter, with customers remaining optimistic, particularly around large projects.

“Looking ahead, I am very pleased that we are again raising our guidance for the year, supported by the tailwinds we see across large projects, customer backlogs, and the momentum witnessed year-to-date”, he said.

“We believe the healthy growth we’ve seen will continue and that we will deliver what our shareholders expect of us: profitable growth, strong free cash flow and compelling returns.”