United Rentals Inc (NYSE:URI) Reports Q3 2025 Revenue Beat and EPS Miss

United Rentals Inc (NYSE:URI) reported financial results for the third quarter of 2025, delivering a top-line revenue beat but falling short of earnings expectations, a dynamic that appears to be influencing a negative market reaction in after-hours trading.

Earnings and Revenue Versus Estimates

The company's performance presented a mixed picture when measured against analyst forecasts. Total revenue for the quarter came in at $4.229 billion, surpassing the consensus estimate of $4.205 billion. This represents a year-over-year increase from the $3.992 billion reported in the same quarter last year.

However, the company's adjusted earnings per share (EPS) of $11.70 fell short of the $12.42 analysts had projected. This miss on the bottom line, despite the revenue beat, is a key factor for investors scrutinizing profitability.

• Reported Revenue: $4.229 billion

• Estimated Revenue: $4.205 billion

• Result: Beat by approximately $24 million

• Reported Adjusted EPS: $11.70

• Estimated Adjusted EPS: $12.42

• Result: Miss by $0.72

Market Reaction and Outlook

Following the earnings release, United Rentals' stock was down approximately 6.7% in after-market trading. This negative price action suggests investor focus may be centered on the earnings miss and the pressures on profitability highlighted in the report, overshadowing the positive revenue performance.

The company provided an updated full-year 2025 outlook, raising its guidance for total revenue to a range of $16.0 billion to $16.2 billion, up from a prior range of $15.8 billion to $16.1 billion. This updated guidance sits notably below the current analyst consensus estimate for full-year 2025 revenue of $43.87 billion, indicating a significant discrepancy that may be contributing to market uncertainty. The company's outlook for capital spending was also increased, reflecting plans to invest in its fleet to meet strong customer demand.

Third Quarter 2025 Performance Summary

The earnings report detailed several key achievements and challenges from the quarter:

• Rental Revenue: Achieved a third-quarter record of $3.665 billion, a 5.8% increase year-over-year.
• Profitability Metrics: Net income was $701 million, a slight decrease of 1.0% from the prior year. Adjusted EBITDA reached a Q3 record of $1.946 billion, though the margin contracted by 170 basis points to 46.0%.
• Segment Performance: The General Rentals segment saw rental revenue increase 3.1%, while the Specialty segment posted a stronger 11.4% growth. Both segments, however, experienced margin compression due to factors including inflation and higher delivery costs.
• Capital Returns: The company returned $1.633 billion to shareholders year-to-date through share repurchases and dividends.
• Balance Sheet: The net leverage ratio stood at 1.86x, with total liquidity of $2.452 billion as of September 30, 2025.

CEO Matthew Flannery pointed to "strong customer demand" across construction and industrial markets as the driver behind the results and increased guidance. He emphasized the company's strategy is focused on "profitable growth, strong through-cycle free cash flow generation and prudent capital allocation."

For a detailed look at historical earnings and future analyst estimates for United Rentals, you can review the data here.

Disclaimer: This article is for informational purposes only and is not intended as investment advice. The author has no position in the security mentioned. All data is provided without warranty of any kind. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.