Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported July 22, 2026 · Beat 2 of last 7 quarters
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United Rentals' record quarter and raised guidance underscore the strength of large-project demand, which includes data center construction and the power infrastructure supporting AI workloads. The company's increased CapEx and commentary on supply constraints signal that the physical buildout of AI infrastructure is translating into broad-based equipment demand, benefiting rental and construction supply chains. Management's confidence in multiyear tailwinds suggests sustained investment in data centers and related power projects.
United Rentals delivered a record second quarter, with total revenue up 12% to $4.4B and rental revenue up 12.7% to $3.8B, driven by strong large-project demand and 3.4% fleet productivity. Specialty rental revenue grew 25% YoY, with growth across all seven lines of business and 11 cold starts. Used equipment sales totaled $624M OEC at a 52.9% recovery rate, and the company spent nearly $2.1B on gross rental CapEx in the quarter. Adjusted EBITDA was just over $2B (46.6% margin), and adjusted EPS rose 22% to $12.76. The company also completed the sale of its scaffolding business, realizing a $49M net benefit, and returned nearly $500M to shareholders via buybacks and dividends.
Management raised full-year 2026 guidance for the second consecutive quarter, reflecting stronger-than-expected demand, particularly from large projects. Total revenue is now guided to $17.5B–$17.8B (up $500M from prior), implying ~10% growth ex-used at the midpoint, up from ~6% originally. Adjusted EBITDA guidance was raised by $300M to $7.975B–$8.125B, with management reiterating flat margins YoY (excluding H&E impact). Gross CapEx guidance was increased by $450M to $4.85B–$5.25B, driven by record time utilization and the need to add fleet to meet demand. Free cash flow guidance was reaffirmed at $2.15B–$2.45B, and the company still plans to return ~$2B to shareholders in 2026. Management expressed confidence that large-project tailwinds will carry into 2027, though they stopped short of providing formal guidance. They also noted the potential for an investment-grade credit rating upgrade within 12 months following S&P's positive outlook revision.
“We feel good about the pipeline of the large projects. We're not going to go as far as give '27 guidance, but we certainly think these tailwinds that we've been talking about for a while will carry into next year.”
on Demand outlook
“We're running at historically high time utilizations and need additional fleet to support the stronger demand.”
on CapEx increase rationale
“We wouldn't be bringing in this more fleet just to chase the last dollars of revenue here in the back half of '26.”
on CapEx increase rationale
On margins, Q2 ex-gain was down 40 bps YoY, but implied H2 margins are up 10-20 bps. What are the swing factors? And on demand, given historically high time utilization, is the CapEx increase driven by visibility into 2027?
Matt said they wouldn't add fleet just for H2 2026 and that large-project tailwinds should carry into 2027. Ted noted Q2 underlying margins were up 40 bps ex-ancillary/re-rent outsized growth and that they expect to maintain flat margins for the year, with normal quarterly variability.
Is rate where you want it to be? And does the rise in demand reduce the risk of transportation cost unpredictability?
Matt said the team 'earned' the extra CapEx by driving fleet productivity and that rate is a key focus to offset inflation. Ted said delivery costs are showing positive absorption and that they are ahead of the curve on labor, delivery, and R&M, though ancillary remains a point of variability.
Are there more levers to pull on cost savings for 2027? And can you size the power vertical and M&A interest there?
Ted quantified incremental fuel headwind at 20-30 bps in Q2 and noted local market recovery would help delivery costs. Matt said power is over 10% of business and growing double digits, and that M&A remains a priority, especially in specialty.