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United Rentals has raised its full-year revenue forecast after reporting record quarterly revenue, supported by continued demand for equipment rentals across large construction, industrial, energy and AI-related infrastructure projects. The company also delivered stronger-than-expected second-quarter earnings and revenue, surpassing analysts' estimates. Its specialty rentals business recorded the highest growth during the quarter, while the general rentals segment continued to contribute the largest share of revenue. The revised outlook reflects sustained investment in data centres, energy infrastructure and major construction projects despite continued pressure from higher fuel and energy costs.
United Rentals has increased its full-year revenue forecast after reporting record revenue for the second quarter, driven by strong demand for equipment rentals from large construction, industrial and infrastructure projects. Following the announcement, the company's shares rose around 10% in after-hours trading.
The company revised its annual revenue guidance to between USD 17.5 billion and USD 17.8 billion, compared with its earlier forecast of USD 16.9 billion to USD 17.4 billion. The updated outlook is also higher than analysts' average expectation of USD 17.27 billion, according to LSEG data.
Demand for rental equipment continues to remain strong as investments in AI infrastructure, data centres and energy projects support construction activity. These sectors have helped offset the impact of higher fuel and energy costs, which continue to weigh on consumer spending and some parts of the economy.
For the second quarter, United Rentals reported an adjusted profit of USD 12.76 per share, an increase of 22% compared with the same period last year. The figure was higher than analysts' estimate of USD 11.53 per share.
Total revenue for the quarter rose 12% year-on-year to USD 4.41 billion, marking the highest quarterly revenue reported by the company.
The company's general rentals business, its largest revenue-generating segment, recorded revenue of USD 2.42 billion, reflecting a growth of around 6.6% compared with the previous year.
Its specialty rentals business continued to outperform, with revenue increasing nearly 25% year-on-year to USD 1.43 billion. The segment includes equipment used in areas such as power, climate control, trench safety, fluid solutions and other specialised applications that are seeing higher demand from large infrastructure and industrial projects.
United Rentals has continued to benefit from a favourable environment for equipment rental companies as contractors increasingly prefer renting equipment instead of purchasing it, particularly for large and capital-intensive projects. The company has also expanded its specialty rental offerings in recent years to strengthen its presence across high-growth infrastructure and industrial sectors.
Source Reuters
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