United Rental - URI STOCK NEWS

United Rentals (URI) reported strong Q1 2025 results with total revenue of $3.719 billion, including rental revenue of $3.145 billion. The company achieved net income of $518 million with a 13.9% margin and adjusted EBITDA of $1.671 billion.

Key highlights include:

• GAAP diluted EPS of $7.91 and adjusted EPS of $8.86
• Fleet productivity increased 3.1% year-over-year
• Free cash flow of $1.082 billion
• Returned $368 million to shareholders via share repurchases ($250M) and dividends ($118M)

The company reaffirmed its 2025 guidance with total revenue projected at $15.6-16.1 billion and adjusted EBITDA of $7.2-7.45 billion. Additionally, URI's Board approved a new $1.5 billion share repurchase program expected to complete by Q1 2026.

United Rentals (NYSE: URI) has scheduled its first quarter 2025 earnings conference call for Thursday, April 24, 2025 at 8:30 a.m. Eastern Time. The call will feature CEO Matt Flannery and CFO Ted Grace discussing the company's quarterly results.

The earnings release will be published after market close on Wednesday, April 23, 2025. Investors can access the live audio webcast through unitedrentals.com, where it will remain archived. Alternatively, participants can dial 800-451-7724 (international: 785-424-1116) to join the call. A replay will be available at 402-220-2695, with passcode 81314.

United Rentals (NYSE: URI), the world's largest equipment rental company, has been named to The Wall Street Journal's 250 Best-Managed Companies list. The prestigious recognition, presented annually since 2017, is based on the Drucker Institute's comprehensive evaluation of corporate management effectiveness.

The assessment analyzed 35 corporate performance indicators using third-party data, including a new 'digital positioning score' that measured the company's online presence compared to industry peers across search, website traffic, social media, and apps.

Matthew Flannery, president and CEO, emphasized the company's commitment to being the best rental partner for customers while creating long-term stakeholder value.

United Rentals (NYSE: URI), the world's largest equipment rental company, has released a white paper outlining innovative strategies for creating performance-driven connected worksites. The paper, titled 'Worksite Performance Solutions™', details how construction, industrial, and manufacturing companies can enhance worksite performance by connecting equipment and people through data.

The solution focuses on three key areas: Safety - implementing RFID-enabled badges for secure site and equipment access; Productivity - utilizing cloud-based fleet management software Total Control® and OnDemand technologies for actionable insights; and Sustainability - offering solutions like battery energy storage systems and environmental monitoring to help achieve business and sustainability goals.

Herc Holdings (NYSE: HRI) and H&E Equipment Services (NASDAQ: HEES) have entered into a definitive merger agreement, with H&E terminating its prior agreement with United Rentals. Under the terms, H&E shareholders will receive $78.75 in cash and 0.1287 Herc shares per share, valuing H&E at $104.89 per share. H&E shareholders will own approximately 14.1% of the combined company.

The merger will strengthen Herc's position as North America's third-largest rental company, with a leading presence in 11 of the top 20 rental regions. The combined company is expected to generate $300 million in annual EBITDA synergies by year three, including $125 million in cost synergies and $175 million from revenue synergies. The combined entity will have revenue of $5.2 billion and EBITDA of $2.5 billion.

The transaction is expected to close mid-year 2025, subject to regulatory approvals and tender of majority H&E shares. The deal is projected to be high single-digit accretive to Herc's cash earnings per share in 2026.

United Rentals (NYSE: URI) has announced it will not submit a revised proposal for the acquisition of H&E Equipment Services, following H&E's notification of receiving a superior acquisition proposal from another strategic bidder. The decision demonstrates URI's commitment to financial discipline in capital allocation.

The original merger agreement was entered on January 14, 2025. H&E notified URI on February 16, 2025, about the competing offer. Upon H&E's termination of the merger agreement, they will be required to pay URI a termination fee of approximately $63.5 million.

URI will immediately restart its share repurchase program, with approximately $250 million remaining from its existing $1.5 billion authorization as of February 18, 2025. The company maintains its focus on profitable growth, strong free cash flow generation, and prudent capital allocation.

Herc Holdings has submitted a superior proposal to acquire H&E Equipment Services for $104.89 per share, consisting of $78.75 in cash and 0.1287 shares of Herc common stock per H&E share. This offer represents a 14% premium over United Rentals' previous $92.00 per share cash offer. H&E shareholders would own approximately 14.1% of the combined company.

The merger is expected to generate $300 million in annual EBITDA synergies by year three, including $125 million in cost synergies and $175 million from revenue synergies. The combined company would have over 600 locations with a fleet worth approximately $10 billion, strengthening Herc's position as North America's third-largest rental company.

The transaction is projected to close mid-year 2025, subject to regulatory approvals and tender of majority H&E shares. The deal is expected to be high single-digit accretive to Herc's cash EPS in 2026, increasing to over 20% as synergies are realized.

United Rentals (NYSE: URI) has announced its participation in Citi's 2025 Global Industrial Tech and Mobility Conference scheduled for Wednesday, February 19, 2025. The company will be represented by CEO Matt Flannery and CFO Ted Grace, who will deliver a presentation starting at 11:20 a.m. ET. The presentation will be accessible to interested parties through a provided webcast link.

United Rentals (NYSE: URI) has withdrawn and refiled its Premerger Notification and Report Form under the Hart-Scott-Rodino Act for its pending acquisition of H&E Equipment Services (NASDAQ: HEES). The refiling aims to provide the FTC additional review time beyond the initial 15-day period for cash tender offers.

The company's cash tender offer to purchase all outstanding H&E shares at $92.00 per share remains active. Key dates include: the Go-Shop Period ending February 17, 2025, and the Expiration Date on February 25, 2025. The new HSR waiting period will expire at 11:59 P.M., Eastern Time, on February 18, 2025.