United Rentals Inc (URI.N): Strong Demand & Execution Continues to Push Numbers Higher

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United Rentals Inc (URI.N): Strong Demand & Execution Continues to Push Numbers Higher

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23 Jul 2026 16:00:00 ET │ 13 pages

United Rentals Inc (URI.N)

Strong Demand & Execution Continues to Push Numbers Higher

CITI'S TAKE

We have updated our model following URI’s 2Q results. We raise our 2026E

adj. EBITDA to $8,038mn from $7,768mn, our 2027E adj. EBITDA to

$8,776mn from $8,445mn, and our 2028E adj. EBITDA to $9,691mn from

$9,281mn, driven by a more constructive rental revenue/margin outlook. Buy

Demand commentary was constructive as expected, driven by large Price (22 Jul 26 16:00) US$1,035.06projects and “very modest” local market growth. Outside of continued

ancillary outgrowth that will likely continue to weigh on URI’s margins, we Target price US$1,330.00↑

gather that URI is doing a solid job at executing on its cost initiatives, as from US$1,270.00

management noted that labor, delivery and R&M costs are all showing

positive absorption. Elevated fuel costs are expected to remain a headwind Expected share price 28.5%

in the near term, although we sense that URI’s delivery & fuel cost return

management is better than peers. We maintain our Buy rating on URI shares Expected dividend yield 0.8%

and raise our price target to $1,330 from $1,270 on higher estimates.

Expected total return 29.3%

Market Cap US$64,425MMargins — Despite absorbing some elevated fuel costs (20-30-bps margin

headwind y/y in 2Q), URI highlighted that its underlying margins were up 40-bps y/y

in 2Q (backing out the 40-bps gain-on-sale and 80-bps mix headwind from

ancillary outgrowth). We think this is indicative of URI executing on some of its

internal cost initiatives, as management mentioned that labor, delivery and R&M Price Performance