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United Rentals beats profit estimates on strong equipment demand

Published 10/25/2023, 04:47 PM
Updated 10/25/2023, 04:51 PM
© Reuters. FILE PHOTO: The sign outside of the United Rentals store in Denver, Colorado July 19, 2017.  REUTERS/Rick Wilking/File Photo

(Reuters) - Equipment rental company United Rentals (NYSE:URI) on Wednesday beat estimates for third-quarter profit on strong demand for industrial tools as spending on infrastructure and construction projects ramped up.

Demand for industrial equipment has been improving as the United States upgrades roads, railways, and other transportation infrastructure under the Biden Administration's $1 trillion package that was approved by the Senate and signed into law in 2021.

The company reported an adjusted profit of $11.73 per share, beating analysts' average estimates of $11.2 per share, according to LSEG data.

"Looking beyond 2023, we believe that our strategy positions us well to support our customers as they execute on the tailwinds we see across infrastructure, industrial manufacturing, and energy and power," said CEO Matthew Flannery.

Rental revenue increased 18% year-over-year to $3.224 billion in the third quarter ended Sept. 30.

The Stamford, Connecticut-based company reported total revenues of $3.765 billion, compared with analysts' expectations of $3.70 billion.

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