United Rentals Expects Revenues North of $9.15 Billion in 2019
United Rentals expects a revenue range of between $9.15 billion and $9.55 billion in 2019, the company told its biennial Investor Day in New York City this week, compared to a range of between $7.89 billion to $7.99 billion. The event, hosted by senior leadership for members of the investment community, focused on the company’s strategic vision, sustainable competitive advantages and emphasis on long-term value maximization.
The company, which expects adjusted EBITDA of between $3.815 billion to $3.865 billion this year, experts EBITDA to fall in the range of $4.35 billion to $4.55 billion in 2019. Net rental capex after gross purchases are expected in the range of $1.35 billion to $1.45 billion in 2018 after gross purchases of $2 billion to $2.1 billion, and are expected in the range of $1.4 billion to $1.55 billion in 2019 after purchases of $2.15 billion to $2.3 billion.
“We’re continuing to position this company for enduring success by balancing growth, margins, returns and free cash flow,’ said Michael Kneeland, CEO of United Rentals. “Differentiation is a critical element of our strategy – our business is firmly grounded in sustainable competitive advantages that we believe will benefit our shareholders in any environment.
“Our 2019 guidance reflects the healthy momentum we see going into year-end and our confidence that positive conditions will prevail in the coming year. Our five 2018 acquisitions have been successfully integrated increasing the tailwinds in our gen-rent and specialty segments. We look forward to reporting our fourth quarter results on January 23.”
United Rentals also announced that it will resume its $1.25 billion share repurchase program this month. The program was initiated in July 2018 with approximately $210 million of shares purchased through Sept. 30. The company subsequently paused the program Nov. 1 to focus on the integration of the BlueLine Rental acquisition. The company intends to complete the program by the end of 2018.
Based in Stamford, Conn., United Rentals is No. 1 on the RER 100.
