United Rentals posted $2.462 billion in rental revenue for the second quarter of 2022, compared to $1.951 billion in the second quarter a year ago, a 26.2-percent year-over-year increase. Total revenue for the second quarter was $2.771 billion compared to $2.287 billion in the year-ago quarter, a 21.2-percent hike.
Sales of used equipment totaled $164 million compared to $194 million in the year-ago quarter. Service and other revenues increased year over year from $58 million to $74 million.
“Our record second quarter results reflect our strong execution in a robust demand environment,” said CEO Matthew Flannery. “We've entered our busiest season with excellent momentum and the benefit of an effective capital allocation strategy, including seven bolt-on acquisitions and 24 specialty cold-starts through June. We’re also on track to invest $3 billion in fleet this year and complete our share repurchase program this quarter, all supported by our cash generation and balance sheet.
“Our higher 2022 outlook for total revenue, adjusted EBITDA and free cash flow reflects broad-based end-market activity, contractor backlogs, customer sentiment and our visibility through the balance of the year. The flexibility of our operating model puts us in a strong position to leverage any market environment.”
Specialty segment jumps 39.2 percent
In the General Rentals segment, United Rentals posted $1.787 billion for the second quarter, compared to $1.466 billion in the second quarter a year ago, a 21.9-percent increase. The Specialty segment posted $675 million compared to $485 million in Q221, a 39.2 percent leap.
The increase in rental revenue reflects the broad-based strength of demand across the end-markets served by the company. Year-over-year, fleet productivity increased 11.3 percent while average original equipment at cost increased 13.6 percent.
Adjusted EBITDA for the quarter increased 31.2 percent year over year to a second quarter record of $1.311 billion, while adjusted EBITDA margin increased 360 basis points to 47.3 percent. The increase in adjusted EBITDA margin primarily reflected a 110-basis point increase in rental margin, a 14.3 percentage point increase in adjusted gross margin from used equipment sales, reduced SG&A epense as a percentage of revenue and revenue mix benefits.
For the first six months of the year, equipment rental revenue totaled $4.637 billion compared to $3.618 billion in the first six months of 2021, a 28.2-percent jump. Total revenue for the first six months of the year was $5.295 billion compared to $4.344 billion in the first six months of 2021, a 21.9-percent increase.
Based in Stamford, Conn., United Rentals is No. 1 on the RER 100.
