United Rentals (URI) Stock Soars 20% Following Robust Q1 Results and Upgraded Forecast

Key Takeaways

• First-quarter earnings per share reached $9.71, surpassing the Wall Street estimate of $8.95
• Revenue for the quarter totaled $3.99 billion, representing an 8.7% year-over-year increase and exceeding the $3.87B forecast
• Annual revenue projection elevated to $16.9B–$17.4B range, improved from previous $16.8B–$17.3B outlook
• Expansion fueled by nonresidential construction, infrastructure projects, power sector, and mining operations
• Bernstein maintained its Outperform rating as URI has delivered 37% gains over the trailing twelve months

The equipment rental leader delivered an impressive first quarter that exceeded analyst projections on both the top and bottom lines, triggering a swift market response.

Shares of URI skyrocketed approximately 20% during Thursday’s trading session, reaching levels near $960, positioning it as the S&P 500’s strongest performer for the day. The stock has now gained 32% in April alone and posted 19% gains year-to-date.

United Rentals, Inc., URI

Adjusted earnings per share for the first quarter registered at $9.71, exceeding analyst expectations of $8.95 by $0.76. This represents growth from the $8.86 per share recorded in the comparable period last year. Total revenue reached $3.99 billion, marking an 8.7% increase from the prior-year figure of $3.72 billion and surpassing the consensus estimate of $3.87 billion.

Rental revenue—representing the company’s primary business segment—advanced to $3.42 billion, improving from $3.15 billion in the first quarter of 2025 and establishing a new quarterly record for the period. The average original equipment cost increased 5.7%, while overall fleet productivity showed improvement of 2.3%.

CEO Matthew Flannery highlighted that expansion came from multiple business segments. On the construction front, nonresidential construction and infrastructure projects drove performance, while the industrial segment benefited from strength in power, mining, and minerals.

New construction activity in healthcare facilities, data centers, manufacturing plants, and infrastructure projects all played a role in the quarter’s strong showing.

Company Elevates Full-Year Projections

United Rentals increased its annual revenue forecast to a range of $16.9 billion to $17.4 billion, representing an upgrade from the previous guidance of $16.8B to $17.3B. The revised midpoint of $17.15 billion slightly exceeds the Street consensus of $17.07 billion.

The company tightened its adjusted EBITDA guidance to $7.625B–$7.875B, compared to the earlier range of $7.575B–$7.825B. Free cash flow projections remained steady at $2.15B–$2.45B.

During the analyst call, Flannery noted the year is “playing out better than we expected just a few months ago,” emphasizing that field-level feedback continues to be positive, particularly regarding large-scale projects.

World Cup Tournament Provides Additional Tailwind

Flannery specifically highlighted one notable opportunity: the 2026 FIFA World Cup. The company anticipates serving as “a key partner” for the international tournament beginning in the second quarter.

Construction activity is currently progressing throughout host cities in the United States, Mexico, and Canada, encompassing stadium modifications to meet FIFA specifications along with extensive infrastructure enhancements.

First-quarter adjusted EBITDA totaled $1.76 billion, exceeding consensus projections by 5%. The General Rentals segment posted gross margins of 33.8%, approximately 180 basis points higher than analyst forecasts. Specialty segment gross margins reached 41.4%, falling roughly 200 basis points short of expectations, although Specialty rental revenues still surpassed estimates by 5%.

Bernstein SocGen Group maintained its Outperform rating on the stock following the quarterly report, keeping its price target at $903. The current trading price near $960 places shares significantly above that target following Thursday’s rally.

URI’s market capitalization now stands at roughly $50.5 billion, with the stock generating approximately 37% returns over the past year.

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