United Rentals raises 2026 revenue forecast to $18.0–18.2 billion on project momentum
Key Facts
United Rentals raised its 2026 revenue forecast to between $18.0 billion and $18.2 billion, according to its third-quarter earnings statement released on October 21, 2026. The company also raised its annual adjusted earnings before interest, taxes, depreciation and amortization forecast to between $8.3 billion and $8.4 billion. Chief Executive Matthew Flannery attributed the higher guidance to customer confidence, backlogs and momentum in large projects. Flannery said in the statement that the company's outlook was based on "our customers' confidence, their backlogs, and the momentum we see in large projects." The revised annual outlook came alongside revenue growth in both general and specialty rentals and higher quarterly earnings, while the company expanded its rental equipment investment plan.
In its second-quarter earnings statement issued in July, the company had forecast annual revenue of between $17.5 billion and $17.8 billion. At the time, it set an adjusted EBITDA range of between $7.975 billion and $8.125 billion for the same year. The lower end of each new revenue and earnings range therefore exceeded the upper end of the company's previous estimates announced in July. On investment, United Rentals now targets gross rental equipment purchases of between $5.2 billion and $5.5 billion during 2026, according to the latest statement. The company set net rental capital expenditure, following those gross purchases, at between $3.75 billion and $4.05 billion under its updated annual plan.
United Rentals reported net income of $920 million for the third quarter of 2026, a level the company described as a record for the period. Net income rose 31.2% from the corresponding quarter a year earlier, according to the earnings statement. Adjusted EBITDA grew 19.8% year on year over the same period, a slower pace than net income growth. The adjusted EBITDA margin was 47.6% in the third quarter, according to figures released alongside the company's annual forecast update. Adjusted earnings per share reached $15.55, according to the company's statement, exceeding the analyst consensus of $13.94 per share cited by Investing in its earnings coverage.
Total company revenue reached $4.893 billion in the third quarter of 2026, according to United Rentals' statement. Rentals accounted for the bulk of that revenue, generating $4.316 billion over the same period. Within the business, general rental revenue rose 8.8% from the corresponding quarter a year earlier. Specialty rental revenue grew 34.7% year on year, outpacing general rentals. Rental revenue growth thus extended across both segments in a quarter when management cited customer backlogs and momentum in large projects among the reasons for improving its full-year outlook.
On cash flow, United Rentals said cash generated from operating activities reached $4.934 billion from January to September 2026. Free cash flow over the same period was $1.421 billion, including restructuring payments, according to the company's statement. Management kept its full-year free cash flow forecast at between $2.15 billion and $2.45 billion. That annual range excludes restructuring payments, unlike the reported year-to-date free cash flow figure. The company maintained its annual forecast for this measure despite raising planned spending on rental equipment, alongside higher revenue and adjusted earnings forecasts.
In the initial market reaction, United Rentals shares rose 1.8% following the earnings announcement, according to Investing. The website reported the move in its report dated October 21, 2026, alongside the announcement that adjusted earnings per share had exceeded analyst expectations and annual guidance had been raised. On cash returns to shareholders, the company announced a quarterly cash dividend of $1.97 per share in its statement. The dividend is payable to shareholders of record on November 11, 2026, under the terms of the announcement. The cash dividend is scheduled to be paid on November 25, 2026.