United Rentals is the largest equipment rental company in the world, operating throughout the United States and Canada with a smaller presence in Europe, Australia and New Zealand ¹. The company serves three principal end-markets for equipment rental in North America: industrial and other non-construction; commercial construction; and residential construction, which includes remodeling ². In 2025, based on the company's classification of vertical market segments, industrial and other non-construction rentals represented approximately 48 percent of rental revenue, commercial construction rentals represented approximately 48 percent of rental revenue, and residential rentals represented approximately four percent of rental revenue ³. The North American equipment rental industry is highly fragmented and competitive, and the company estimates it has an approximate 15 percent market share in North America based on 2025 total equipment rental industry revenues (excluding party and event rentals) as measured by the American Rental Association ⁴.

The company's primary competitors include small independent businesses with one or two rental locations, regional competitors operating in one or more states, public companies or divisions of public companies operating nationally or internationally, and equipment vendors and dealers who both sell and rent equipment directly to customers ⁵. Competitive advantages cited include a large and diverse rental fleet that is the largest and most comprehensive in the industry, significant purchasing power, a national account program, operating efficiencies from equipment sharing among branches, a customer care center, consolidation of common functions, strong brand recognition, geographic and customer diversity, and strong and motivated branch management ⁶. The company's estimated North American market share of approximately 15 percent as of December 31, 2025 did not change materially from the prior year ⁷.

The company generates revenue from equipment rentals, sales of rental equipment, sales of new equipment, contractor supplies sales, and service and other revenues ⁸. In 2025, equipment rental revenues represented 86 percent of total revenues ⁹. The company offers equipment for rent on an hourly, daily, weekly or monthly basis to a diverse customer base that includes construction and industrial companies, manufacturers, utilities, municipalities, homeowners and government entities ¹⁰. The company utilizes a proprietary software application, Total Control, which provides key customers with a single in-house software application enabling them to monitor and manage all their equipment needs ¹¹. The company's strategy focuses on profitability and return on invested capital, calling for a consistently superior standard of service, optimization of customer and fleet mix, continued focus on Lean management techniques, continued expansion and cross-selling of adjacent specialty and services products, and the pursuit of strategic acquisitions ¹².

The company has two reportable segments: general rentals and specialty ¹³. The general rentals segment includes the rental of construction, aerial and industrial equipment, general tools and light equipment, and related services and activities, operating throughout the United States and Canada ¹⁴. The general rentals segment reflects the aggregation of four geographic divisions: Central, Northeast, Southeast and West ¹⁵. The specialty segment rents products including trench safety equipment, power and HVAC equipment, fluid solutions equipment, mobile storage equipment and modular office space, and surface protection mats, and primarily operates in the United States and Canada with a smaller presence in Europe, Australia and New Zealand ¹⁶. Specialty segment revenues constituted 31.7 percent of total revenues for the year ended December 31, 2025, compared to 7.3 percent of revenues for the year ended December 31, 2013 ¹⁷.

Equipment rental revenues include owned equipment rentals, re-rent revenue, delivery and pick-up fees, and other ancillary fees ¹⁸. In 2025, ancillary fees represented approximately 18 percent of equipment rental revenue, with delivery and pick-up revenue representing approximately eight percent of equipment rental revenue ¹⁹. Sales of rental equipment represent revenues from the sale of used rental equipment, and the company utilizes many channels to sell used equipment including national and export sales forces, auction, brokers, and directly to manufacturers ²⁰. Sales of new equipment include equipment such as aerial lifts, reach forklifts, telehandlers, compressors and generators from many leading equipment manufacturers ²¹. Contractor supplies sales include construction consumables, tools, small equipment and safety supplies ²². Service and other revenues primarily represent revenues earned from providing repair and maintenance services on customers' fleet, including parts sales ²³.

In March 2024, the company completed the acquisition of Yak Access, LLC, Yak Mat, LLC and New South Access & Environmental Solutions, LLC (collectively, Yak) ²⁴. In January 2025, the company announced it had signed a merger agreement to acquire H&E Equipment Services, Inc., and in February 2025, following termination of that merger agreement, received a break-up fee of $64 ²⁵. The company's results for the year ended December 31, 2025 include a net $39 merger termination benefit, reflecting this break-up fee net of related transaction costs ²⁶. In April 2025, the Board of Directors authorized a $1.5 billion share repurchase program, and subsequent to enactment of new federal tax legislation in July 2025, the Board approved an increase in the size of the program from $1.5 billion to $2.0 billion ²⁷. The company repurchased $1.65 billion under this program in 2025 ²⁸. On January 28, 2026, the Board of Directors authorized a new $5.0 billion share repurchase program ²⁹. The company also amended its ABL facility, primarily to increase the facility size from $4.25 billion to $4.50 billion and to extend the maturity date to July 2030 ³⁰. The company issued $1.5 billion principal amount of 5 3/8 percent Senior Notes due 2033, and redeemed all $500 principal amount of its 5 1/2 percent Senior Notes due 2027 ³¹.

Total revenues for the year ended December 31, 2025 were $16.099 billion, compared to $15.345 billion in 2024 and $14.332 billion in 2023 ³². Net income was $2.494 billion in 2025, compared to $2.575 billion in 2024 and $2.424 billion in 2023 ³³. Diluted earnings per share were $38.61 in 2025, compared to $38.69 in 2024 and $35.28 in 2023 ³⁴. Equipment rentals increased 6.0 percent year-over-year in 2025, driven by a 2.2 percent increase in fleet productivity and a 3.9 percent increase in average original equipment cost ³⁵. Adjusted EBITDA was $7.328 billion in 2025, compared to $7.160 billion in 2024 and $6.857 billion in 2023 ³⁶. Net cash provided by operating activities was $5.190 billion in 2025, compared to $4.546 billion in 2024 and $4.704 billion in 2023 ³⁷.

A key growth vector is the continued expansion and cross-selling of adjacent specialty and services products, which enables the company to provide a one-stop shop for customers ³⁸. The company believes that the expansion of its specialty business, as exhibited by the acquisition of Yak in March 2024 and other recent smaller acquisitions in Australia, as well as its tools and onsite services offerings, further positions United Rentals as a single source provider of total jobsite solutions ³⁹. Specialty segment revenues constituted 31.7 percent of total revenues for the year ended December 31, 2025, compared to 7.3 percent of revenues for the year ended December 31, 2013, demonstrating the growth trajectory of this segment ⁴⁰.

Another growth vector is the pursuit of strategic acquisitions to continue to expand the core equipment rental business, as exhibited by the acquisition of assets of Ahern Rentals in December 2022 and other smaller, more recent acquisitions ⁴¹. The company states that strategic acquisitions allow it to invest capital to expand its business, further driving its ability to accomplish its strategic goals ⁴². The company also focuses on the further optimization of customer mix and fleet mix, with a dual objective to enhance performance in serving the current customer base and to focus on accounts and customer types best suited to the strategy for profitable growth, primarily large construction and industrial customers as well as select local contractors ⁴³.

The company's adjusted EBITDA margin decreased 120 basis points to 45.5 percent in 2025, primarily reflecting decreased gross margin from equipment rentals (excluding depreciation and stock compensation expense) and decreased gross margin from sales of rental equipment (excluding the adjustment for the impact of the fair value mark-up of acquired fleet), which primarily reflected the normalization of the used equipment market including pricing, partially offset by the impact of the H&E break-up fee ⁴⁴. The decreased gross margin from equipment rentals was driven by inflation, normal cost variability, and a higher proportion of 2025 revenue from ancillary revenues which generate lower margins than owned equipment rentals, particularly for the specialty segment ⁴⁵. The company continues to pursue strategies to improve productivity, though the extent to which these efforts will achieve desired efficiencies and goals in 2026 and beyond is uncertain ⁴⁶.

The company's operations are impacted by global economic conditions including inflation, tariffs, interest rate fluctuations and supply chain constraints, and the company takes actions to modify its plans to address such economic conditions ⁴⁷. To date, the impact from supply chain disruptions has been limited, but the company may experience more severe supply chain disruptions in the future ⁴⁸. The company has experienced and is continuing to experience inflationary pressures, with a portion of inflationary cost increases passed on to customers, most significantly for fuel and delivery ⁴⁹. Tariffs could result in costs being more than anticipated ⁵⁰. The company continues to assess the economic environment and take appropriate actions to address economic challenges ⁵¹.

In April 2025, the Board of Directors authorized a $1.5 billion share repurchase program, and subsequent to enactment of new federal tax legislation in July 2025, the Board approved an increase in the size of the program from $1.5 billion to $2.0 billion ⁵². The company repurchased $1.65 billion under this program in 2025 and expects to complete the program in the first quarter of 2026 ⁵³. On January 28, 2026, the Board of Directors authorized a new $5.0 billion share repurchase program, which is expected to commence after completion of the current program and does not have an established expiration date ⁵⁴. The company intends to repurchase $1.15 billion under the new program in 2026 ⁵⁵. The Board of Directors also approved a first-ever quarterly dividend program in January 2023, and the company paid dividends totaling $464 ($7.16 per share) in 2025, $434 ($6.52 per share) in 2024, and $406 ($5.92 per share) in 2023 ⁵⁶. On January 28, 2026, the Board declared a quarterly dividend of $1.97 per share ⁵⁷. Net payments for rental capital expenditures were $2.736 billion in 2025, $2.232 billion in 2024, and $2.140 billion in 2023 ⁵⁸.

A structural headwind management explicitly flagged is the normalization of the used equipment market, including pricing, which contributed to decreased gross margin from sales of rental equipment ⁵⁹. The company also faces headwinds from inflation and normal cost variability, particularly in delivery and labor and benefits costs, which impacted equipment rentals gross margin ⁶⁰. Additionally, the company notes that although interest rates declined in 2025, interest rates on its debt instruments have increased in recent years, with the weighted average interest rate on variable debt instruments being 5.4 percent in 2025 compared to 1.4 percent in 2021 ⁶¹.

Geographic and macro factors management identified as constraints include challenging economic conditions in the United States and globally, with weakness in North American construction and industrial activities potentially causing weakness in end-markets ⁶². Other constraints include a decrease in expected levels of infrastructure spending, a lack of availability of credit, excess fleet in the equipment rental industry, a decrease in exploration and production activity by oil and natural gas companies, an increase in costs from inflation or tariffs, an increase in interest rates, adverse weather conditions, a prolonged shutdown of the U.S. government, public health crises, supply chain disruptions, terrorism or hostilities, and geopolitical conflicts ⁶³.

Management's message emphasizes a strategy focused on improving the profitability of the core equipment rental business through revenue growth, margin expansion and operational efficiencies, with particular focus on customer segmentation, customer service differentiation, rate management, fleet management and operational efficiency ⁶⁹. The strategic priorities emphasized for the period ahead include a consistently superior standard of service to customers, often through a single lead contact coordinating cross-selling of various services, and utilizing the proprietary Total Control software application to develop strong long-term relationships with larger customers ⁷⁰. Another priority is the further optimization of customer mix and fleet mix to enhance performance in serving the current customer base and focus on accounts best suited for profitable growth, primarily large construction and industrial customers as well as select local contractors ⁷¹. A third priority is the continued expansion and cross-selling of adjacent specialty and services products to provide a one-stop shop for customers, positioning United Rentals as a single source provider of total jobsite solutions ⁷². Management also emphasizes the pursuit of strategic acquisitions to continue to expand the core equipment rental business ⁷³. The forward-looking statements in the filing caution that actual results may differ materially from those projected due to a variety of risks and uncertainties ⁷⁴.

Total revenues were $16.099 billion in 2025, compared to $15.345 billion in 2024 ⁷⁵. Net income was $2.494 billion in 2025, compared to $2.575 billion in 2024 ⁷⁶. Diluted earnings per share were $38.61 in 2025, compared to $38.69 in 2024 ⁷⁷. Operating income was $3.973 billion in 2025, compared to $4.065 billion in 2024 ⁷⁸. Gross margin was 38.2 percent in 2025, compared to 40.1 percent in 2024 ⁷⁹. Free cash flow was $2.181 billion in 2025, compared to $2.058 billion in 2024 ⁸⁰. Total indebtedness at December 31, 2025 was $14.2 billion ⁸¹. The company had available liquidity of $3.322 billion as of December 31, 2025, comprised of cash and cash equivalents and availability under the ABL and accounts receivable securitization facilities ⁸². The net income margin was 15.5 percent in 2025, compared to 16.8 percent in 2024 ⁸³. The adjusted EBITDA margin was 45.5 percent in 2025, compared to 46.7 percent in 2024 ⁸⁴. The effective tax rate was 25.3 percent in 2025, compared to 24.0 percent in 2024 ⁸⁵. For the general rentals segment, equipment rentals gross profit was $3.225 billion in 2025 compared to $3.232 billion in 2024, and equipment rentals gross margin was 35.2 percent compared to 36.1 percent ⁸⁶. For the specialty segment, equipment rentals gross profit was $2.023 billion in 2025 compared to $1.966 billion in 2024, and equipment rentals gross margin was 43.6 percent compared to 48.1 percent ⁸⁷. The results for 2025 include a net $39 merger termination benefit from the terminated H&E acquisition, which was a $29 after-tax benefit or $0.45 per diluted share ⁸⁸.

The company's significant indebtedness of $14.2 billion at December 31, 2025 exposes it to various risks, including increasing vulnerability to adverse economic conditions, requiring substantial cash flow for debt service, and constraining financial flexibility ⁶⁴. Of this total, $4.1 billion of indebtedness bore interest at variable rates as of December 31, 2025, representing 29 percent of total indebtedness, and a one percentage point increase in interest rates on variable rate debt would decrease annual after-tax earnings by approximately $31 ⁶⁵. The company faces risks related to challenging economic conditions affecting North American construction and industrial activities, which could cause weakness in end-markets and adversely affect revenues and operating results ⁶⁶. The company also faces risks from the cyclical nature of the equipment rental industry and the industries of its customers, such as those in the construction industry ⁶⁷. Additionally, the company's growth strategies may be unsuccessful if it is unable to identify and complete future acquisitions and successfully integrate acquired businesses or assets, with risks including unrecorded liabilities, greater than expected expenses, difficulty assimilating operations, and failure to achieve anticipated synergies ⁶⁸.