United Rentals, Inc.
United Rentals, Inc., through its subsidiaries, operates as an equipment rental company in the United States, Canada, Europe, Australia, and New Zealand. It operates through two segments, General Rentals and Specialty. The General Rentals segment rents general construction and industrial equipment, such as backhoes, skid-steer loaders, forklifts, earthmoving equipment, and material handling equipment; aerial work platforms, including boom and scissor lifts; and general tools and light equipment comprising pressure washers, water pumps, and power tools for construction and industrial companies, manufacturers, utilities, municipalities, homeowners, and government entities. The specialty segment rents trench safety equipment consists of trench shields, aluminum hydraulic shoring systems, slide rails, crossing plates, construction lasers, and line testing equipment for underground work; power and heating, ventilating, and air conditioning equipment, such as portable diesel generators, electrical distribution equipment, and temperature control equipment; fluid solutions equipment for fluid containment, transfer, and treatment; surface protection mats; and mobile storage equipment and modular office space. This segment serves construction companies involved in infrastructure projects, and municipalities and industrial companies. The company also sells aerial lifts, reach forklifts, telehandlers, compressors, and generators; construction consumables, tools, small equipment, and safety supplies; and parts for equipment that is owned by its customers, as well as provides repair and maintenance services. It sells used equipment through its sales force, brokers, website, at auctions, and directly to manufacturers. United Rentals, Inc. was incorporated in 1997 and is headquartered in Stamford, Connecticut.
What does it do?
United Rentals is the world's largest equipment rental company. Instead of buying a $500,000 crane or excavator, a construction company calls United Rentals, rents it for a week, and sends it back when the job is done. They own over 1,000 locations across the US, Canada, and beyond, with a fleet of equipment worth tens of billions of dollars. Think of them as the Home Depot of heavy machinery — but you return everything.
The US is in the middle of a massive infrastructure and industrial building boom, fueled by government spending on roads, chips factories, and clean energy plants — and all of that construction needs equipment. Companies increasingly prefer renting over buying because it keeps costs flexible and avoids the headache of owning depreciating machines. United Rentals sits directly in the path of that spending wave, making it a bellwether — a company whose performance signals the health of the broader construction economy.
How does it make money?
United Rentals makes money by charging daily, weekly, or monthly rental fees on its enormous fleet of over 900 types of equipment. In 2024, the company brought in $16.1 billion in revenue, up from $15.3 billion the year before — a solid 5% growth. Their two business segments are General Rentals (think forklifts, earthmovers, boom lifts for everyday construction) and Specialty (more complex equipment like power generation, climate control, and trench safety systems for industrial clients). They also earn smaller amounts from selling used equipment and providing services like delivery and repairs.
Why do investors care?
The rental model is a compounding business — United Rentals keeps buying more equipment, spreading fixed costs, and extracting more revenue from the same infrastructure. Investors are drawn to the long-term tailwinds: the CHIPS Act, the Inflation Reduction Act, and the Infrastructure Investment and Jobs Act together represent trillions in US spending that needs boots — and machines — on the ground. For the thesis to work, construction activity needs to stay elevated, interest rates need to ease enough that project financing stays viable, and URI needs to keep making smart acquisitions without taking on too much debt.
Deep Dive
MemberA full investor briefing on United Rentals, Inc. — history, leadership, risks, and outlook.