URI Q4 Performance Review: How United Rentals' Key Financial Metrics Shaped Its Latest Results

For Q4 2025, United Rentals (URI) delivered mixed signals that warrant closer examination. The equipment rental leader reported revenue of $4.21 billion, marking a modest 2.8% year-over-year increase, though this figure came in 1.14% below Wall Street’s consensus estimate of $4.26 billion. Earnings per share landed at $11.09, representing a 4.2% decline from the $11.59 recorded in the prior-year quarter and falling short of the $11.90 consensus projection by 6.84%.

While headline revenue and earnings figures capture investor attention, Wall Street analysts and institutional money managers recognize that deeper operational metrics often provide clearer signals about a company’s true health and trajectory. These underlying performance indicators frequently determine whether a stock will outperform or underperform relative to market expectations. Understanding how URI performed across its key operational segments offers valuable insight into what’s driving—or constraining—its financial outcomes.

Equipment Rentals Drive URI’s Revenue Growth

The equipment rental division remains URI’s largest revenue generator and its strongest performer. This segment delivered $3.58 billion in revenue, tracking closely to the $3.59 billion average analyst estimate. More importantly, this business line demonstrated solid momentum with a 4.7% year-over-year expansion, suggesting underlying demand strength in construction and infrastructure sectors.

However, the gross profit story for equipment rentals reveals some pressure. The segment generated $1.35 billion in gross profit, trailing the $1.44 billion that four analysts had projected on average. Breaking this further down, the general rentals sub-segment produced $869 million in gross margin versus the expected $899.66 million, while specialty rentals contributed $477 million against the $570.75 million average forecast—indicating notable shortfalls in both rental subcategories.

Mixed Signals in Sales and Profit Margins

URI’s equipment sales division told a different story. The used equipment sales generated $386 million, falling short of the $417.06 million consensus estimate and declining 14.6% compared to the year-ago period. This weakness represents a significant headwind. Conversely, new equipment sales performed better, reaching $108 million against the $104.26 million estimate, with an impressive 12.5% year-over-year growth trajectory.

The contractor supplies business delivered an unexpected bright spot. Sales reached $43 million, exceeding the $40.63 million average estimate and surging 10.3% from the prior year. Service and other revenues came in at $90 million, slightly below the $90.88 million projection but maintaining a 4.7% annual growth rate.

Gross profit margins across these segments remain under pressure. Used equipment sales generated $175 million in gross profit versus $180.01 million estimated, while new equipment sales produced $22 million compared to the $20.1 million forecast—the latter being one of URI’s few metrics that exceeded expectations. Contractor supplies achieved $16 million in gross margin against $15.47 million expected, and service-related gross profit came in at $31 million versus the $32.57 million average analyst projection.

Market Performance and Investment Outlook

Over the trailing 30-day period, URI’s stock appreciated 11%, substantially outpacing the S&P 500 composite’s 0.8% return. This outperformance reflects investor optimism despite the mixed earnings picture. The Zacks rating system currently assigns URI a #3 (Hold) classification, suggesting the stock is positioned to move broadly in line with the overall market in the near term rather than significantly outperform or underperform.

For investors evaluating URI, the takeaway centers on a business navigating a bifurcated performance landscape. While core equipment rental operations continue expanding and new equipment sales momentum remains solid, challenges in used equipment sales and margin compression across most divisions warrant careful monitoring. The stock’s recent price appreciation may already incorporate much of the positive sentiment, making near-term entry points less compelling for new investors and the current holding pattern the prudent stance for existing shareholders.