Revenue growth has normalized to 7.2% in 2026Q1 while gross margins have compressed from a 39.2% peak in 2023Q4, suggesting mounting pressure from labor and maintenance costs.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 |
|---|
| Sales/Revenue | 16.36B | 16.1B | 15.35B | 14.33B | 11.64B | 9.72B | 8.53B | 9.35B | 8.05B | 6.64B | 5.76B | 5.82B | 5.68B | 4.96B | 4.12B | 2.61B | 2.24B | 2.36B | 3.27B | 3.73B | 3.64B | 3.56B | 3.09B | 2.87B | 2.82B | 2.89B | 2.92B | 2.23B | 1.22B |
| Revenue Growth % | 5.05% | 4.91% | 7.07% | 23.11% | 19.82% | 13.9% | -8.78% | 16.2% | 21.17% | 15.26% | -0.95% | 2.32% | 14.73% | 20.35% | 57.68% | 16.72% | -5.13% | -27.82% | -12.44% | 2.5% | 2.16% | 15.16% | 7.91% | 1.64% | -2.27% | -1.11% | 30.68% | 83.04% | - |
| Cost of Goods Sold | 10.43B | 10.39B | 9.63B | 8.95B | 7.01B | 6.22B | 5.7B | 6.09B | 4.99B | 4.11B | 3.58B | 3.57B | 3.48B | 3.17B | 2.69B | 1.74B | 1.63B | 1.8B | 2.22B | 2.48B | 2.4B | 2.21B | 2.2B | 1.69B | 1.61B | 1.85B | 1.5B | 1.13B | 619.6M |
| COGS % of Revenue | - | 64.56% | 62.77% | 62.45% | 60.21% | 64.03% | 66.8% | 65.11% | 62.02% | 61.93% | 62.22% | 61.35% | 61.3% | 64.02% | 65.29% | 66.76% | 72.87% | 76.55% | 68.01% | 66.39% | 65.96% | 62.05% | 71.17% | 58.83% | 57.04% | 63.99% | 51.46% | 50.51% | 50.77% |
| Gross Profit | 5.93B | 5.71B | 5.71B | 5.38B | 4.63B | 3.5B | 2.83B | 3.26B | 3.06B | 2.53B | 2.18B | 2.25B | 2.2B | 1.78B | 1.43B | 868M | 607M | 553M | 1.04B | 1.25B | 1.24B | 1.08B | 892M | 1.18B | 1.21B | 1.04B | 1.42B | 1.11B | 600.7M |
| Gross Margin % | 36.25% | 35.44% | 37.23% | 37.55% | 39.79% | 35.97% | 33.2% | 34.89% | 37.98% | 38.07% | 37.78% | 38.65% | 38.7% | 35.98% | 34.71% | 33.24% | 27.13% | 23.45% | 31.99% | 33.61% | 34.04% | 30.23% | 28.83% | 41.17% | 42.96% | 36.01% | 48.54% | 49.49% | 49.23% |
| Gross Profit Growth % | - | -0.12% | 6.15% | 16.19% | 32.53% | 23.41% | -13.21% | 6.77% | 20.89% | 16.12% | -3.16% | 2.18% | 23.39% | 24.77% | 64.63% | 43% | 9.76% | -47.08% | -16.67% | 1.21% | 15.04% | 20.74% | -24.44% | -2.58% | 16.58% | -26.63% | 28.15% | 84.04% | - |
| Operating Expenses | 1.9B | 1.73B | 1.65B | 1.53B | 1.4B | 1.2B | 979M | 1.09B | 1.04B | 903M | 719M | 714M | 758M | 642M | 588M | 407M | 367M | 408M | 517M | 595M | 613M | 553M | 497M | 808.81M | 746.13M | 548.51M | 868.76M | 696.1M | 408M |
| OpEx % of Revenue | - | 10.76% | 10.72% | 10.65% | 12.03% | 12.34% | 11.48% | 11.68% | 12.9% | 13.6% | 12.48% | 12.27% | 13.33% | 12.96% | 14.28% | 15.59% | 16.41% | 17.3% | 15.82% | 15.95% | 16.84% | 15.52% | 16.06% | 28.21% | 26.45% | 19% | 29.76% | 31.16% | 33.43% |
| Selling, General & Admin | 1.9B | 1.73B | 1.65B | 1.53B | 1.4B | 1.2B | 979M | 1.09B | 1.04B | 903M | 719M | 714M | 758M | 642M | 588M | 407M | 367M | 408M | 528M | 595M | 613M | 596M | 497M | 451.35M | 438.92M | 441.75M | 454.33M | 352.6M | 195.6M |
| SG&A % of Revenue | - | 10.76% | 10.72% | 10.65% | 12.03% | 12.34% | 11.48% | 11.68% | 12.9% | 13.6% | 12.48% | 12.27% | 13.33% | 12.96% | 14.28% | 15.59% | 16.41% | 17.3% | 16.16% | 15.95% | 16.84% | 16.73% | 16.06% | 15.74% | 15.56% | 15.3% | 15.57% | 15.79% | 16.03% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 131M | 0 | 142M | 0 | 0 | 0 | 177M | 357.46M | 307.21M | 106.76M | 414.43M | 343.5M | 212.4M |
| Operating Income | 4.04B | 3.97B | 4.07B | 3.85B | 3.23B | 2.3B | 1.85B | 2.17B | 2.02B | 1.63B | 1.46B | 1.53B | 1.44B | 1.14B | 841M | 461M | 240M | 145M | 528M | 659M | 626M | 524M | 395M | 39.16M | 111.88M | 462.03M | 547.94M | 409.4M | 192.7M |
| Operating Margin % | 24.67% | 24.68% | 26.51% | 26.9% | 27.76% | 23.63% | 21.72% | 23.22% | 25.08% | 24.47% | 25.3% | 26.37% | 25.36% | 23.03% | 20.43% | 17.66% | 10.73% | 6.15% | 16.16% | 17.66% | 17.2% | 14.71% | 12.77% | 1.37% | 3.97% | 16.01% | 18.77% | 18.33% | 15.79% |
| Operating Income Growth % | - | -2.31% | 5.53% | 19.28% | 40.77% | 23.91% | -14.65% | 7.58% | 24.18% | 11.45% | -4.95% | 6.38% | 26.38% | 35.67% | 82.43% | 92.08% | 65.52% | -72.54% | -19.88% | 5.27% | 19.47% | 32.66% | 908.76% | -65% | -75.78% | -15.68% | 33.84% | 112.45% | - |
| EBITDA | 6.51B | 7.08B | 6.97B | 6.64B | 5.45B | 4.26B | 3.81B | 4.21B | 3.69B | 3.01B | 2.7B | 2.78B | 2.63B | 2.23B | 1.72B | 937M | 680M | 610M | 1.04B | 1.15B | 1.11B | 978M | 840M | 467.48M | 508.18M | 895.94M | 962.37M | 752.9M | 405.1M |
| EBITDA Margin % | 39.76% | 43.99% | 45.43% | 46.3% | 46.8% | 43.9% | 44.61% | 45.01% | 45.84% | 45.29% | 46.91% | 47.76% | 46.35% | 45.11% | 41.85% | 35.89% | 30.4% | 25.87% | 31.86% | 30.74% | 30.58% | 27.45% | 27.15% | 16.3% | 18.01% | 31.04% | 32.97% | 33.71% | 33.2% |
| EBITDA Growth % | -6.9% | 1.59% | 5.05% | 21.78% | 27.76% | 12.09% | -9.6% | 14.1% | 22.64% | 11.28% | -2.7% | 5.43% | 17.9% | 29.72% | 83.88% | 37.79% | 11.48% | -41.4% | -9.24% | 3.05% | 13.8% | 16.43% | 79.69% | -8.01% | -43.28% | -6.9% | 27.82% | 85.86% | - |
| D&A (Non-Cash Add-back) | 2.47B | 3.11B | 2.9B | 2.78B | 2.22B | 1.97B | 1.95B | 2.04B | 1.67B | 1.38B | 1.25B | 1.24B | 1.19B | 1.09B | 882M | 476M | 440M | 465M | 513M | 488M | 487M | 454M | 445M | 428.32M | 396.29M | 433.9M | 414.43M | 343.5M | 212.4M |
| EBIT | 4.05B | 4.05B | 4.08B | 3.85B | 3.25B | 2.27B | 1.81B | 2.16B | 1.96B | 1.46B | 1.32B | 1.41B | 1.33B | 1.01B | 534M | 399M | 184M | 128M | -630M | 774M | 620M | 526M | 81M | 295M | 448M | 490.96M | 547.94M | 409.46M | 192.8M |
| Net Interest Income | -708M | -716M | -691M | -635M | -445M | -424M | -669M | -648M | -481M | -464M | -511M | -567M | -555M | -478M | -516M | -235M | -263M | -222M | -183M | -196M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 708M | 716M | 691M | 635M | 445M | 424M | 669M | 648M | 481M | 464M | 511M | 567M | 555M | 478M | 516M | 305M | 329M | 230M | 183M | 196M | 246M | 566M | 1.1B | 1.1B | 1.13B | 323.07M | 244.61M | 195.4M | 185.9M |
| Other Income/Expense | -687M | -636M | -680M | -644M | -430M | -450M | -714M | -657M | -542M | -577M | -549M | -571M | -592M | -536M | -753M | -297M | -303M | -252M | -1.34B | -81M | -221M | -193M | -483M | -333.67M | -228.88M | -247.48M | -246.44M | -167.65M | -114.5M |
| Pretax Income | 3.35B | 3.34B | 3.39B | 3.21B | 2.8B | 1.85B | 1.14B | 1.51B | 1.48B | 1.05B | 909M | 963M | 850M | 605M | 88M | 164M | -63M | -107M | -813M | 578M | 405M | 310M | -88M | -303.22M | -101.38M | 214.55M | 301.5M | 241.8M | 78.3M |
| Pretax Margin % | 20.48% | 20.73% | 22.08% | 22.4% | 24.07% | 19% | 13.35% | 16.19% | 18.34% | 15.78% | 15.78% | 16.55% | 14.95% | 12.21% | 2.14% | 6.28% | -2.82% | -4.54% | -24.89% | 15.49% | 11.13% | 8.7% | -2.84% | -10.58% | -3.59% | 7.43% | 10.33% | 10.83% | 6.42% |
| Income Tax | 844M | 844M | 813M | 787M | 697M | 460M | 249M | 340M | 380M | -298M | 343M | 378M | 310M | 218M | 13M | 63M | -41M | -47M | -109M | 215M | 156M | 123M | -4M | -58.91M | 8.1M | 91.98M | 125.12M | 99.1M | 43.5M |
| Effective Tax Rate % | 25.19% | 25.28% | 24% | 24.51% | 24.88% | 24.92% | 21.86% | 22.46% | 25.75% | -28.44% | 37.73% | 39.25% | 36.47% | 36.03% | 14.77% | 38.41% | 65.08% | 43.93% | 13.41% | 37.2% | 38.52% | 39.68% | 4.55% | 19.43% | -7.99% | 42.87% | 41.5% | 40.98% | 55.56% |
| Net Income | 2.51B | 2.49B | 2.58B | 2.42B | 2.1B | 1.39B | 890M | 1.17B | 1.1B | 1.35B | 566M | 585M | 540M | 387M | 75M | 101M | -26M | -62M | -704M | 362M | 224M | 187M | -84M | -244.31M | -397.82M | 111.26M | 176.38M | 142.7M | 13.5M |
| Net Margin % | 15.32% | 15.49% | 16.78% | 16.91% | 18.08% | 14.27% | 10.43% | 12.55% | 13.62% | 20.27% | 9.82% | 10.06% | 9.5% | 7.81% | 1.82% | 3.87% | -1.16% | -2.63% | -21.55% | 9.7% | 6.15% | 5.25% | -2.71% | -8.52% | -14.1% | 3.85% | 6.04% | 6.39% | 1.11% |
| Net Income Growth % | -1.72% | -3.15% | 6.23% | 15.15% | 51.88% | 55.73% | -24.19% | 7.12% | -18.57% | 137.81% | -3.25% | 8.33% | 39.53% | 416% | -25.74% | 488.46% | 58.06% | 91.19% | -294.48% | 61.61% | 19.79% | 322.62% | 65.62% | 38.59% | -457.58% | -36.92% | 23.6% | 957.04% | - |
| Net Income (Continuing) | 2.51B | 2.49B | 2.58B | 2.42B | 2.1B | 1.39B | 890M | 1.17B | 1.1B | 1.35B | 566M | 585M | 540M | 387M | 75M | 101M | -22M | -60M | -704M | 363M | 249M | 202M | -84M | -254M | -118M | 122.57M | 176.38M | 142.67M | 34.8M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 300M | 300M | 300M |
| EPS (Diluted) | 39.42 | 38.61 | 38.69 | 35.28 | 29.66 | 19.03 | 12.20 | 15.11 | 13.13 | 15.73 | 6.45 | 6.07 | 5.15 | 3.64 | 0.79 | 1.38 | -0.43 | -1.03 | -9.42 | 3.25 | 2.06 | 1.80 | -0.81 | -3.16 | -4.78 | 1.18 | 1.89 | 1.53 | 0.18 |
| EPS Growth % | 1.11% | -0.21% | 9.67% | 18.95% | 55.86% | 55.98% | -19.26% | 15.08% | -16.53% | 143.88% | 6.26% | 17.86% | 41.48% | 360.76% | -42.75% | 420.93% | 58.25% | 89.07% | -389.85% | 57.77% | 14.44% | 322.22% | 74.37% | 33.89% | -505.08% | -37.57% | 23.53% | 750% | - |
| EPS (Basic) | - | 38.71 | 38.82 | 35.40 | 29.77 | 19.14 | 12.25 | 15.18 | 13.25 | 15.91 | 6.49 | 6.14 | 5.54 | 4.14 | 0.90 | 1.62 | -0.43 | -1.03 | -9.42 | 3.60 | 2.32 | 1.97 | -0.89 | -3.16 | -4.78 | 1.54 | 2.48 | 2.00 | 0.20 |
| Diluted Shares Outstanding | 63.6M | 64.6M | 66.57M | 68.71M | 70.97M | 72.82M | 72.93M | 77.71M | 83.5M | 85.6M | 87.8M | 96.4M | 104.96M | 106.29M | 94.8M | 73.35M | 60.45M | 60.1M | 74.73M | 113.72M | 113.79M | 110.04M | 104.2M | 77.2M | 83.2M | 94.28M | 91.64M | 93.25M | 75M |
| Basic Shares Outstanding | 63.4M | 64.4M | 66.34M | 68.47M | 70.7M | 72.43M | 72.66M | 77.34M | 82.7M | 84.6M | 87.2M | 95.2M | 97.49M | 93.44M | 83M | 62.18M | 60.45M | 60.1M | 74.73M | 100.44M | 96.61M | 94.81M | 94.61M | 77.2M | 83.2M | 72.24M | 71.12M | 71.33M | 67.5M |
| Dividend Payout Ratio | - | 18.6% | 16.85% | 16.75% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Cyclical demand and rate sensitivity
According to recent quarterly filings, United Rentals' revenue growth has decelerated from 13.1% in 2023Q4 to 7.2% in 2026Q1, reflecting a transition from post-pandemic expansion toward a more moderate, project-driven growth environment that remains sensitive to the broader North American industrial and infrastructure construction cycle.
The deceleration in top-line growth suggests that the initial surge in demand from large-scale infrastructure projects may be reaching a steady state. Investors should monitor whether the shift toward longer-duration mega-projects provides a sufficient floor to offset potential softening in general rental demand as the macroeconomic environment evolves.
As reported in financial statements, URI's gross margin has contracted from a peak of 39.2% in 2023Q4 to 36.9% in 2026Q1, indicating that inflationary pressures on fleet maintenance and labor costs are increasingly challenging the company's ability to maintain historical levels of rental pricing power.
The compression in gross margins appears to reflect the inherent difficulty in passing through rising operational costs in a cooling construction market. This trend suggests that maintaining profitability will require more aggressive fleet utilization management or a successful pivot toward higher-margin specialty segments to mitigate the impact of rising depreciation expenses.
Based on the provided income statement data, operating income margins have fluctuated significantly, dropping from 28.6% in 2023Q4 to 21.8% in 2026Q1, which suggests that the company's ability to scale SG&A expenses efficiently is being tested by the current revenue growth deceleration and rising overhead requirements.
The recent spike in SG&A to $600 million in 2026Q1, compared to historical averages, implies that the company is absorbing higher fixed costs that are not currently being offset by proportional revenue gains. This divergence warrants further investigation into whether this represents a permanent increase in the cost base or a temporary investment phase.
Analysis of the income statement reveals that stock-based compensation has remained a consistent expense, reaching $36 million in 2026Q1, which, when combined with volatile net income margins, suggests that reported EPS may be subject to non-operating noise that masks the underlying core rental profitability of the business.
The variability in net income, which fell to $531 million in 2026Q1 from $708 million in 2024Q3, highlights the sensitivity of the bottom line to non-operating items and tax fluctuations. Investors should adjust for these items to determine if the core rental business is generating sustainable cash-backed earnings or if performance is being flattered by secondary market equipment sales.
While the company maintains a strong market position, the recent trend of declining gross and operating margins suggests that short-sellers may focus on the risk of a sustained downturn in used equipment residual values, which could permanently impair the company's capital recycling strategy and overall profitability.
The reliance on used equipment gains to bolster the bottom line creates a vulnerability if secondary market pricing softens, as this would necessitate higher depreciation charges. The current margin trajectory appears to indicate that the company is entering a more challenging phase where pricing power may be insufficient to cover rising fleet replacement costs.
Quick answers to the most common questions about buying URI stock.
For fiscal year 2025, United Rentals, Inc. (URI) reported total revenue of $16.10B. This represents a 1219.3% increase compared to $1.22B in 1998.
United Rentals, Inc. (URI) is profitable, generating $2.49B in net income for the fiscal year ending 2025 with a net profit margin of 15.5%.
United Rentals, Inc. (URI) reported an operating income of $3.97B, resulting in an operating profit margin of 24.7%. This margin reflects the operational efficiency of the business before interest and taxes.
United Rentals, Inc. (URI) generated $5.71B in gross profit for the year, representing a gross profit margin of 35.4%. This demonstrates the company's core pricing power and production efficiency.