NEW YORK, July 22, 2026, 19:02 EDT — Cash equities have closed in the U.S.; after-hours sessions are underway.
- Following the earnings report, shares climbed approximately 9.1% to around $1,128.70.
- The midpoint targets for revenue and adjusted EBITDA increased by $500 million and $300 million, respectively.
- The midpoint for both operating-cash and rental-capex increased by $450 million, while free cash flow remained unchanged.
United Rentals Inc. NYSE:URI climbed after reporting its highest-ever second-quarter revenue and adjusted EBITDA. The stock was up 2.1% during normal trading hours.
The response indicates that investors prioritised clearer demand prospects rather than a prompt improvement in free cash flow.
Operating cash flow climbed by $450 million at the guidance midpoints. Net capital spending on rentals also rose by $450 million, keeping free cash flow stable at $2.30 billion.
| Measure | Latest or new | Prior or benchmark | Change |
|---|---|---|---|
| Q2 revenue | $4.410 billion | $4.210 billion consensus | +$200 million |
| Q2 adjusted EPS | $12.76 | $11.54 consensus | +$1.22 |
| Preliminary adjusted EPS, excluding sale gain* | $12.18 | $11.54 consensus | +$0.64 |
| 2026 revenue midpoint | $17.65 billion | $17.15 billion | +$500 million |
| 2026 adjusted EBITDA midpoint | $8.05 billion | $7.75 billion | +$300 million |
| 2026 operating-cash midpoint | $6.25 billion | $5.80 billion | +$450 million |
| 2026 net rental-capex midpoint | $3.60 billion | $3.15 billion | +$450 million |
| 2026 free-cash-flow midpoint | $2.30 billion | $2.30 billion | No change |
Initial estimates are based on the midpoint of guidance, minus the reported $0.58 gain from the sale. These figures are not official company metrics.
The aligned increases indicate that greater operating inflow will support fleet capacity. Cash conversion is expected at a later stage.
Revenue for the second quarter increased 11.8% to $4.410 billion, with rental revenue up 12.7% at $3.849 billion. Fleet productivity was reported at 3.4%.
The figure stood at 2.3% for the first quarter. This metric, which brings together rental rates, utilization and the composition of the fleet, backs management’s large-project argument.
Adjusted EPS came in at $12.76, exceeding the FactSet consensus by $1.22. The figure includes a $0.58 per share benefit from the sale of the scaffolding business.
An initial calculation shows $12.18 excluding the boost, remaining 5.5% over consensus forecasts. This contribution accounted for roughly 48% of the headline’s unexpected result.
Margins showed a mixed performance. Adjusted EBITDA margin, as reported, increased by 70 basis points to reach 46.6%. Without factoring in the gain from the sale, the margin declined by 40 basis points.
Specialty-rental revenue rose 24.8% to $1.431 billion, while gross margin slid 140 basis points to 44.4%. The decline was attributed to increased lower-margin ancillary and re-rent activities.
The increase was offset by general rentals. Revenue increased by 6.6% and rental gross margin improved by 70 basis points due to lower depreciation.
Chief Executive Matthew Flannery said “customers remain optimistic, particularly around large projects.” He added that customer backlogs and strong momentum so far this year were also factors. United Rentals
United Rentals reported a 4.1% drop in first-half free cash flow to $1.149 billion, even as operating cash increased by 20.1% to $3.305 billion. The company returned $998 million to shareholders.
United Rentals Inc. (URI) declined 1.2% over the five regular sessions ending Wednesday. Shares of peer Herc Holdings Inc. NYSE:HRI added 2.1% on Wednesday to close at $151.04.
United Rentals will hold its call Thursday at 8:30 a.m. ET, kicking off the week ahead. Herc is set to release its second-quarter earnings on July 28. The two reports will gauge demand for rentals tied to major projects.
Risks: Specialty mix continues to weigh on margins. Delayed projects might cause new fleet to be underutilised. Scaffolding benefit may not recur.
Analysts are expected to assess if expenditures align with pledged initiatives. At present, after-hours trading suggests a preference for growth rather than immediate cash returns.
