Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
United Rentals (URI) delivered FY2025 revenue of $16.1B (+4.9% YoY), but margin compression from higher costs weighed on profitability, with net income declining 3.1% to $2.49B even as operating cash flow surged 14.2% to $5.19B.
Revenue
$16.1B
+4.91% YoY
EPS (Diluted)
$38.61
-0.21% YoY
Gross Margin
38.2%
-1.9 pts YoY
Operating Income
$3.97B
-2.26% YoY
Source: SEC XBRL
United Rentals (URI) reported FY2025 revenue of $16.1B, up 4.9% year over year. Operating margin was 24.7%, down 1.8 points from 26.5% a year earlier. Operating cash flow was $5.19B, up 14.2% year over year.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 12.76 | 11.64 | Beat +9.6% |
| Mar 2026 | 9.71 | 9.06 | Beat +7.2% |
| Dec 2025This filing | 11.09 | 11.89 | Miss -6.8% |
| Sep 2025 | 11.70 | 12.42 | Miss -5.8% |
Reported EPS of $11.09 versus the $11.89 analyst consensus — a -6.8% miss for Dec 2025.
Compiled by AI from this SEC filing
URI grew total revenue 4.9% YoY to $16.10B in FY2025 (vs. $15.35B in FY2024), reflecting continued demand for equipment rental services, likely supported by infrastructure and construction activity. This top-line growth demonstrates the company's ability to expand its customer base and utilization rates.
Source: 10-K Income Statement
Gross margin contracted approximately 190 basis points to 38.2% (from 40.1%), as cost of revenue grew 8.3% — nearly double the pace of revenue growth. SG&A expenses also rose 5.3% to $1.73B, contributing to a 180 bps decline in operating margin to 24.7%.
Source: 10-K Income Statement & Key Ratios
Despite margin headwinds, operating cash flow surged 14.2% YoY to $5.19B, significantly outpacing net income of $2.49B. This reflects strong non-cash charges (primarily depreciation on the large rental fleet) and disciplined working capital management.
Source: 10-K Cash Flow Statement
URI returned approximately $2.43B to shareholders in FY2025 through a combination of $1.97B in share buybacks (+25.3% YoY) and $464M in dividends (+6.9% YoY), demonstrating management's confidence in the business and commitment to shareholder value.
Source: 10-K Cash Flow Statement
Long-term debt increased 6.2% to $14.30B, pushing the debt-to-equity ratio to 2.33x. Current liabilities grew 14.9% to $3.82B, exceeding current assets of $3.61B, resulting in a current ratio below 1.0 at 0.94x, indicating reliance on operating cash flows to meet near-term obligations.
Source: 10-K Balance Sheet & Key Ratios
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
URI carries $14.30B in long-term debt with a debt-to-equity ratio of 2.33x, making it highly sensitive to interest rate changes and economic downturns. A significant portion of cash flows must service this debt, limiting financial flexibility. Rising interest rates could materially increase borrowing costs on variable-rate obligations.
Source: 10-K Balance Sheet
Cost of revenue grew 8.3% in FY2025 — nearly twice the revenue growth rate of 4.9% — compressing gross margin by ~190 bps to 38.2%. If equipment maintenance, fleet acquisition, and labor costs continue to outpace rental rate increases, profitability could deteriorate further. This dynamic directly pressured operating income, which fell 2.3% despite higher revenues.
Source: 10-K Income Statement & Key Ratios
URI's current ratio stands at 0.94x, meaning current liabilities of $3.82B exceed current assets of $3.61B. While the company generates robust operating cash flow ($5.19B), any disruption to cash generation — such as a cyclical downturn — could create near-term liquidity pressure. The company holds only $459M in cash and equivalents.
Source: 10-K Balance Sheet & Key Ratios
URI's equipment rental business is closely tied to construction, industrial, and infrastructure spending cycles. A slowdown in non-residential construction or capital expenditure by industrial customers could rapidly reduce utilization rates and rental revenues. The company's large fixed-cost fleet base amplifies earnings sensitivity to volume declines.
Source: 10-K Income Statement
URI has historically grown through acquisitions, reflected in its large asset base of $29.87B. Investing cash outflows of $3.37B in FY2025 suggest continued capital deployment into fleet and/or acquisitions. Failure to integrate acquired businesses efficiently or overpaying in a competitive M&A environment could impair returns and strain the balance sheet.
Source: 10-K Cash Flow Statement & Balance Sheet
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 16.10 $B | 15.35 $B | +4.91% |
Cost of Revenue $B | 9.96 $B | 9.20 $B | +8.27% |
Gross Profit $B | 6.14 $B | 6.15 $B | -0.10% |
Operating Income $B | 3.97 $B | 4.07 $B | -2.26% |
Net Income $B | 2.49 $B | 2.58 $B | -3.15% |
EPS (Basic) $ | 38.71 $ | 38.82 $ | -0.28% |
EPS (Diluted) $ | 38.61 $ | 38.69 $ | -0.21% |
SG&A Expense $B | 1.73 $B | 1.65 $B | +5.29% |
Answers draw on this SEC filing and the data on this page
URI delivered strong growth in 2026-Q2, with six-month revenue up 9.6% to $8.395B and net income up 12.6% to $1.284B, driven by higher fleet investment and productivity, although specialty-rental margins declined and results included a $37M after-tax gain on a scaffolding-business sale. Source: 10-Q Item 2 MD&A, pp.27, 30, 34
URI delivered solid Q1 FY2026 results with revenue growing 7.2% YoY to $3.99B and EPS rising 6.6% to $8.43 diluted, driven by disciplined cost management and strong operating cash flow of $1.51B.
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