United Rentals (NYSE: URI) reported Q1 EPS of $3.45, $0.38 better than the analyst estimate of $3.07. Revenue for the quarter came in at $2.06 billion versus the consensus estimate of $2 billion.

First Quarter 2021 Highlights

• Total revenue of $2.057 billion, including rental revenue1 of $1.667 billion.
• Fleet productivity2 decreased 0.5% year-over-year; fleet productivity improved sequentially by 330 basis points, primarily due to better fleet absorption.
• Net income of $203 million, implying a net income margin3 of 9.9%. GAAP diluted earnings per share of $2.80, and adjusted EPS3 of $3.45.
• Adjusted EBITDA3 of $873 million, implying an adjusted EBITDA margin3 of 42.4%.
• $758 million of net cash from operating activities; free cash flow4 of $725 million, including gross rental capital spending of $295 million.
• Net leverage ratio of 2.3x, with total liquidity5 of $3.745 billion, at March 31, 2021.

CEO Comment

Matthew Flannery, chief executive officer of United Rentals, said, “We were very pleased with our first quarter results and the strong start to our year, as our key end-markets continue to rebound from the challenges of 2020. Sentiment among our customers continues to improve, and we are well prepared to support them as we enter the busiest part of our season.”

Flannery continued, “The recovery that we’ve seen since the middle of last year remains evident across our business, and virtually all indicators point to these trends continuing. As such, we are raising our full-year guidance to reflect our expectations for stronger growth in our core rental business and increased used equipment sales. Most importantly, we are leveraging our significant competitive advantages to add value for both our customers and our investors.”

GUIDANCE:

United Rentals sees FY2021 revenue of $9.05-9.45 billion, versus the consensus of $8.88 billion.

For earnings history and earnings-related data on United Rentals (URI) click here.