New York, Jan 29, 2026, 19:45 EST — After-hours
- Shares of United Rentals fell roughly 13% in late trading Thursday.
- The equipment renter reported fourth-quarter adjusted EPS of $11.09 on $4.208 billion in revenue and set 2026 revenue guidance between $16.8 billion and $17.3 billion.
- The company announced a fresh $5 billion buyback plan and raised its quarterly dividend by 10%, bringing it to $1.97 per share.
Shares of United Rentals dropped almost 13% on Thursday, slipping to $787.04 in after-hours trading. The equipment rental giant missed earnings estimates for the quarter and released its forecast for 2026.
The move is significant since United Rentals serves as a key indicator for equipment demand in construction and industrial sectors. With U.S. rates remaining elevated and project owners cautious about timing, investors swiftly react to any sign that pricing power or utilization might be faltering.
The results came late in the week, creating a timing challenge for markets. The stock’s decline is primed to trigger a volatile Friday session, with analysts revising their models and traders shifting sector bets.
United Rentals reported fourth-quarter revenue of $4.208 billion, driven by rental revenue of $3.581 billion. Net income came in at $653 million. Adjusted earnings per share hit $11.09, with adjusted EBITDA reaching $1.901 billion. CEO Matthew Flannery projected “another year of profitable growth with strong free cash flow” in 2026. 1
The quarter fell short of estimates tracked by Investing.com. Adjusted EPS missed analyst expectations by $0.69, while revenue came in below consensus. The company’s 2026 revenue guidance midpoint also landed just below Street forecasts. 2
Margins took a hit. Adjusted EBITDA margin slipped 120 basis points, landing at 45.2%, while specialty rentals gross margin plunged 520 basis points to 40.3%, pressured by higher depreciation and delivery costs. 3
United Rentals is targeting total revenue between $16.8 billion and $17.3 billion for 2026, with adjusted EBITDA forecasted in the range of $7.575 billion to $7.825 billion. The company also expects free cash flow, excluding merger and restructuring costs, to come in between $2.15 billion and $2.45 billion. 4
Cash returns took center stage. United Rentals announced in an 8-K that it has greenlit a fresh $5.0 billion share buyback program, with no set end date. The company intends to kick off purchases under this plan once it wraps up the current $2.0 billion program in Q1 2026. 5
The company hiked its quarterly dividend by 10%, now $1.97 per share, payable Feb. 25 to shareholders on record as of Feb. 11, it announced. 6
BofA Securities trimmed its price target for United Rentals to $1,020 from $1,050 but maintained a Buy rating, pointing to constrained operating leverage and rising delivery expenses tied to fleet repositioning, according to Investing.com. 7
The selloff hit the rental sector hard. Shares of rival Herc Holdings slid roughly 6% in late trading as investors debated if softer utilization in regional markets might continue to weigh on the group.
The next few sessions could swing in either direction. If costs ease and big projects continue to soak up the fleet, buybacks might take center stage. But if delivery delays, depreciation hits, or weaker demand persist, guidance could tighten quickly.
Investors are zeroing in on whether URI can maintain its margins into early 2026. The current buyback program wraps up in the first quarter, while the dividend record date on Feb. 11 and the payout on Feb. 25 stand as key upcoming milestones.
