In its first-quarter report for 2025, United Rentals demonstrated resilience despite a slight dip in profitability, surpassing market expectations and reaffirming its leadership in the sector. This article provides an in-depth look at their latest financial results, strategic moves, and what these trends mean for the construction, industrial, and transportation industries moving forward.

United Rentals, headquartered in Stamford, Connecticut, announced its financial results for the first quarter of 2025, showing a dip in net income but surpassing analyst expectations, which led to a boost in its stock price.

The company posted a net income of $518 million for the quarter, representing a 4.4% decrease from the $542 million earned during the same period last year. Despite the decline, adjusted earnings per share reached $8.86, slightly ahead of the estimated $8.84, according to data from Zacks Equity Research.

Revenue for the quarter totaled $3.72 billion, exceeding market forecasts of $3.56 billion by approximately 4.4%. The surge in sales was driven by solid performance across various segments, although profit margins faced pressure from several factors.

United attributed the lower profit margins to softer results in its specialty rental division, a decline in used equipment sales, and increased operational costs. Notably, expenses related to the company’s canceled acquisition of H&E Equipment Services contributed to this increase.

In the competitive landscape, Herc Rentals made a higher bid for H&E, outbidding United with a nearly $3.9 billion all-cash and stock offer. This binding bid valued H&E at roughly $476 million—about 14% above United’s cash-only proposal. United also received a breakup fee of $64 million as part of the process.

Compared to the first quarter of 2024, United’s revenue grew by 6.6%, from $3.49 billion to $3.72 billion. Rental revenues alone rose by 7.4%, reaching $3.15 billion, with general rentals increasing modestly by 1.4% to a record $2.1 billion. Specialty rental revenues saw a significant jump of 21.8%, hitting a Q1 record of $1.046 billion, largely fueled by the acquisition of Yak Access in March 2023 for approximately $1.1 billion. Yak Access specializes in matting solutions, expanding United’s footprint in specialty rentals.

However, sales of used equipment declined slightly, falling 1.6% year-over-year to $377 million.

CEO Matthew Flannery expressed optimism about the quarter, highlighting strong demand across both construction and industrial markets. “2025 has started on a positive note, with demand remaining robust in key sectors. Our team’s focus on customer service has driven record-breaking revenue in the first quarter,” he said.

United Rentals’ strong revenue growth and strategic acquisitions highlight its vital role in supporting infrastructure and industrial projects across North America. Although profit margins faced some pressure, the company’s performance signals robust demand and a healthy outlook for the construction and industrial sectors. For transportation professionals and industry stakeholders, these results underscore the ongoing importance of equipment rental services in facilitating large-scale projects and maintaining supply chain momentum. As the sector adapts to evolving market conditions, United’s recent performance offers valuable insights into the future of industrial and construction transportation.