By Kit Norton
Shares of United Rentals soared on Thursday, leading the S&P 500, after it handily topped first-quarter earnings estimates and raised its full-year guidance amid strong growth in nonresidential construction and the mining sector.
After the closing bell on Wednesday, the company reported first-quarter earnings of $9.71 a share, compared with $8.86 a share a year ago and well above Wall Street's expectation of $8.95 a share. First-quarter revenue for the heavy machinery and equipment rental company grew 7% to $3.98 billion, topping the analyst consensus view of $3.87 billion, according to FactSet.
United Rentals stock surged 20% to $960.18 on Thursday, making it the top S&P 500 performer for the session. Shares are on pace for their highest close since Jan. 22, according to Dow Jones Market Data.
The stock is up 32% in April, part of a 19% advance this year.
CEO Matthew Flannery said Thursday on the first-quarter conference call that United Rentals saw growth across all lines of business.
"Markets saw strong growth led by nonresidential construction and infrastructure," Flannery said. "On the industrial side, power and mining and minerals were notable standouts."
Flannery added that United Rentals benefited from a number of new construction projects in the first quarter -- spanning healthcare, infrastructure, power, industrial, manufacturing, and data centers.
Rental revenue increased 8.7% to a first quarter record of $3.419 billion, while the average original equipment at cost increased 5.7%. Total fleet productivity increased 2.3%. Meanwhile, used equipment sales decreased 7.2%.
On the strength of its first-quarter performance, United Rentals raised its full-year revenue outlook. The company projects total revenue between $16.9 billion and $17.4 billion, with the midpoint comfortably above Wall Street's $17.07 billion view and up from its previous forecast of $16.8 billion to $17.3 billion.
United Rentals also narrowed its adjusted Ebitda view to between $7.625 billion and $7.875 billion, compared with its previous $7.575 billion to $7.825 billion forecast. The equipment rental company kept its free cash flow forecast steady, expecting between $2.15 billion and $2.45 billion.
"The year is playing out better than we expected just a few months ago. Feedback from the field continues to be optimistic, particularly for large projects," Flannery told analysts Thursday.
Flannery added that United Rentals "expects to be a key partner" for the FIFA World Cup starting in the second quarter.
Construction for the 2026 FIFA World Cup across the U.S., Mexico, and Canada is focused on converting stadiums into FIFA-compliant soccer fields with major renovations already under way, along with infrastructure upgrades in host cities.
Write to Kit Norton at kit.norton@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
April 23, 2026 11:20 ET (15:20 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
Comments