TRG | The Bottom Line – 7/24

United Rentals (URI) is kickoff to TRG’s coverage reporting season, providing a read-through on non-res to a degree. We have preached and pounded the table on non-res megaprojects being resiliently strong and that there was visibility to this sustaining  into 2028. Linked to this, we have encouraged investors to look at companies that over-index to this market. United is the epitome of this, and their Q2 results and FY outlook are a reflection of our conviction in non-res megaprojects. The extra layer is that United has executed well in its cross-selling. United’s core rental growth (OER) grew 9%, while total rental growth was 12.7%. Within this, Gen Rent grew 7% and Specialty grew 25%. United’s implied non-used sales growth forecast was increased to 10% growth for the full year. You may ask yourself – is this price-driven? Pricing is positive. But, United is now operating at historic highs in time utilization. Also, United raised its capex outlook. As such, this is a pricing and volume story. All of this points in a positive direction for 2027.

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