United Rentals posted $2.929 billion in equipment rental revenue in the first quarter of 2024, compared to $2.740 billion in the first quarter of 2023, a 6.9-percent increase. Total revenue reached $3.485 billion in Q124, compared to $3.285 billion in the year-ago first quarter, an increase of 6.1 percent.
The increases in the single digits were not unexpected after three years when double-digit increases were the norm.
The Specialty rental segment was the pace-setter in terms of growth by a large margin, increasing from $722 million in the first quarter of 2023 to $859 million in the just-concluded quarter, a 19-percent hike. The general rental segment increased by a 2.6-percent clip, from $2.018 billion in the first quarter.
Adjusted EBITDA increased from $1.503 billion in the first quarter of 2023 to $1.587 billion in Q124, a 5.6-percent increase.
Gross rental capital expenditures totaled $595 million in the first quarter.
“We’re pleased with our start to 2024, which delivered first quarter records across revenue, adjusted EBITDA, and EPS,” said Matthew Flannery, United Rentals CEO. “Our results are a testament to the team’s commitment to putting our customers at the center of everything we do and efficiently leveraging our competitive advantages. Our acquisition of Yak last month provides another excellent example of our strategy to grow our specialty rental business, differentiate our one-stop-shop capabilities and capitalize on both secular growth and cross-selling opportunities.
“2024 is playing out as we expected, with our updated full-year guidance reflecting the addition of Yak. As we enter our busy season, we are excited by both the immediate opportunities we see, particularly on large projects, and the longer-term outlook. We’ve built a resilient company with a well-proven strategy that is positioned to continue driving profitable growth, strong free cash flow generation and compelling shareholder value.”
On March 15, 2024, United completed the acquisition of Yak Access, LLC, Yak Mat, LLC and New South Access & Environmental Solutions, LLC. The company has raised its 2024 outlook to reflect the expected contribution from the Yak acquisition. For fiscal 2024, Yak is expected to provide total revenue of approximately $300 million, adjusted EBITDA of approximately $140 million, net cash provided by operating activities of approximately $150 million and free cash flow of approximately $50 million, while adding approximately $100 million of gross rental purchases.
United Rentals, headquartered in Stamford, Conn., is the largest equipment rental company in the world and remains No. 1 on the RER 100.
