United Rentals slightly misses Q4 revenue expectations, sets $5 billion buyback
Overview
Equipment rental firm's Q4 revenue slightly missed analyst expectations
Adjusted EPS for Q4 missed analyst estimates
Company announced new $5 bln share repurchase program for 2026
Outlook
United Rentals expects 2026 revenue between $16.8 bln and $17.3 bln
Company anticipates 2026 adjusted EBITDA between $7.575 bln and $7.825 bln
United Rentals plans $1.5 bln share repurchase in 2026
Result Drivers
INFLATION IMPACT - Inflation and normal cost variability affected rental gross margin, leading to decreased net income margin
SPECIALTY RENTALS COSTS - Increased delivery and depreciation expenses in specialty rentals segment impacted margins
USED EQUIPMENT SALES DECLINE - Used equipment sales decreased 14.6% year-over-year, affecting overall revenue
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Slight Miss* | $4.21 bln | $4.25 bln (15 Analysts) |
Q4 Adjusted EPS | Miss | $11.09 | $11.78 (18 Analysts) |
Q4 EPS |
| $10.27 |
|
Q4 Net Income |
| $653 mln |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the business support services peer group is "buy"
Wall Street's median 12-month price target for United Rentals Inc is $1,025.00, about 13% above its January 27 closing price of $907.45
The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 20 three months ago
Press Release: ID:nBw7F1sX8a
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
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