United Rentals posted $3.765 billion in the third quarter 2023 total rental compared to $3.051 billion for the third quarter of 2022, a 23.4-percent leap. In equipment rental revenue, the third quarter brought $3.224 billion, compared to $2.732 billion in the year-ago quarter, an 18-percent hike. Sales of used rental equipment more than doubled, from $181 million in the third quarter of 2022 to $366 million in this year’s third. Sales of new equipment also rose significantly, from $32 million to $52 million, a 62.5-percent incline. Contractor supplies sales went up from $32 million a year ago to $39 million this year, a 21.9-percent improvement.
For the first nine months of 2023, total rentals reached $10.604 billion compared to $8.346 billion for the first nine months of 2022. Rental revenue for the first nine months of 2023 was $8.945 billion compared to $7.369 billion in the first nine months of 2022, a 21.4-percent hike.
The general rentals segment reported $2.307 billion in the third quarter of 2023, compared to $1.942 billion in the third quarter of 2022, an 18.8-percent increase. Meanwhile, the specialty rental segment equipment rental revenue climbed from $790 million in last year's third quarter to $971 million, a 22.9-percent leap.
“I’m very pleased with our third-quarter results across growth, profitability and returns, which were underpinned by broad-based activity,” said Matthew Flannery, CEO of United Rentals. “Our ability to provide our customers with a highly differentiated value proposition, led by safety and productivity, is enabling us to outpace the broader industry and create value for our investors. Our full-year guidance speaks to the continued strength of our markets. Looking beyond 2023, we believe that our strategy positions us well to support our customers as they execute on the tailwinds we see across infrastructure, industrial manufacturing, and energy and power. Combined, these support our goals for profitable growth, strong cash flow, and attractive returns for our shareholders.”
Adjusted EBITDA for the quarter increased 21.6 percent year-over-year to a third quarter record of $1.850 billion, while adjusted EBITDA margin decreased 80 basis points to 49.1 percent. On a pro forma basis, third quarter adjusted EBITDA margin increased 20 basis points year-over-year, including the impact of ongoing integration costs. The decrease in the company's reported adjusted EBITDA margin primarily reflected the impact of Ahern Rentals on gross margin from rental revenue (excluding depreciation and stock compensation expense) and adjusted gross margin from used equipment sales, partially offset by reduced SG&A expense as a percentage of revenue.
United Rentals, based in Stamford, Conn., is No. 1 on the RER 100.
