United Rentals (UR) recorded total revenue of $9.7 billion in 2021, up 13 percent from 2020 revenue of $7.1 billion. Rental revenue for the year totaled $8.2 billion, up 14 percent over the $7.1 billion recorded in 2020. Net income for the year was $1.4 billion.
“Our team provided exceptional customer service, which supported better than expected organic growth in 2021, and successfully integrated over $1.4 billion of acquisitions while maintaining their focus on operating safely and managing costs,” said CEO Matthew Flannery in a prepared statement.
Rental revenue for the fourth quarter of 2021 was $2.3 billion, reflecting an increase of 24.7 percent over Q4 2020. The company said the increase reflects the continuing recovery of activity broadly across its end-markets relative to the impact of Covid-19 in Q4 2020. Fleet productivity increased 10.3 percent year-over-year, in large part due to better fleet absorption.
Used equipment sales in the fourth quarter increased 17.8 percent year-over-year, generating $324 million at a GAAP gross margin of 49.4 percent. This compares with $275 million at a GAAP gross margin of 37.1 percent in Q4 2020. The gross margin increases were primarily due to stronger pricing, which rose sequentially for the fifth consecutive quarter. Used equipment proceeds in the fourth quarter were 60.4 percent of original equipment cost.
For this year, the company expects revenue of between $10.65 billion and $11.05 and net rental capital expenditures after gross purchases between $2.9 billion and $3.1 billion.
“Our 2022 guidance reflects the optimism of our customers, as well as our confidence in leveraging our competitive advantages over the longer term,” Flannery stated. “Our larger, more diverse value proposition should both benefit the top line and strengthen our levers for delivering strong margins, cash generation and returns in this new upcycle.”
Source: United Rentals