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United Rentals reports a 16% decrease in rental revenue in the latest quarter

United Rentals, Inc. just reported their financial results for the second quarter of 2020 and reintroduced full-year 2020 guidance.

They generated $1.642 billion in rental revenue in the second quarter of 2020 compared to $1.960 billion in the same quarter a year ago, a 16.2-percent decrease. Total revenue for the second quarter was $1.939 billion, compared to $2.290 billion, a 15.3-decline. Fleet productivity decreased 13.6 percent year over year, reflecting the impact of COVID-19 on volumes.

Net income was $212 million with a net income margin of 10.9 percent. Adjust EBITDA was $899 million, with an adjusted EBITDA margin of 46.4 percent, helped by aggressive cost management. The company reported $817 million of net cash from operating activities; free cash flow was $817 million, including gross rental capital spending of $145 million. Total liquidity on June 30, 2020 was $3.823 billion.

United Rentals reinstituted guidance with the new outlook being for revenue in the range between $8.05 billion to $8.45 billion, compared to 2019 actual total revenue $9.351 billion.

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Matthew Flannery

“We’re pleased with our second-quarter results, which reflect both the flexibility and resiliency of our business model,” said United Rentals CEO Matthew Flannery. “Our employees did an outstanding job of executing our cost initiatives while helping our customers operate safely in the midst of the pandemic. I’m inspired by our team’s commitment to our company and the communities we serve. We saw a steady recovery in volume beginning in mid-April, which gave us good momentum into the start of our busy season. While visibility is still limited, near-term indicators suggest that the second half of 2020 may track to seasonal patterns in the majority of our markets. Based on this, we have reintroduced guidance. Should things change, our continued focus on cost and capital discipline, along with our strong balance sheet and robust cash generation, will allow us to respond swiftly.”