United results highlight importance of specialty
26 January 2024
United Rentals has said strong demand in end markets, the impact of the Ahern Rentals acquisition and its specialty division have helped the company to achieve record fourth quarter rental revenues.
Its report for Q4 and the 2023 financial year revealed a 13.5% fourth quarter increase to the tune of $3.1 billion.
Its specialty division, which includes trench safety equipment, power & HVAC and mobile storage equipment, increased by 14.6% to $830 million.
The company said it expects the future expansion of specialty to “further position United Rentals as a single source provider of total jobsite solutions through our extensive product and service resources and technology offerings.”
The picture was also positive for the 2023 financial year, with rental revenue accounting for 84% of total revenue and generating $13.6 billion, up some $1.6 billion from 2022.
Specialty accounted for 25% of total revenue in 2023 at $3.2 billion, up from $2.7 billion from the previous financial year.
Looking ahead, United said it expects total revenue for the 2024 financial year to be somewhere in the region of $14.6 billion and £15.1 billion
Matthew Flannery, chief executive officer of United Rentals, said, “We entered 2023 with the goal of raising the bar and I’m incredibly pleased with the team’s performance. Our fourth quarter results capped a year of new records across revenue, profits, and returns driven by a relentless commitment to serving our customers, while staying laser focused on safety and operational excellence.
“We are now excited to deliver on the growth we expect in 2024, supported by our strength on large projects. Our guidance reflects the opportunities we see across our business as we leverage our competitive advantages to support our customers and outpace the market.
“We continue to execute on our long-held strategy to deliver profitable growth, strong free cash flow and exceptional returns. Our new leverage targets and 2024 capital allocation plans are further evidence of our commitment to driving shareholder value.”
Rental Briefing, a new service from KHL Group providing analysis and insight into the global rental industry, will be analysing the United results next week. Click the link below to sign up for Rental Briefing.