United Rentals reports record fourth quarter revenue for 2023 with growth expected in 2024
United Rentals has reported a very successful 2023, setting financial records and projecting continued revenue growth for the upcoming year.
Rental revenue for the fourth quarter ending December 31, 2023, rose by 13.5 percent to a record $3.119 billion, an increase that reflected broad-based strength of demand across United Rentals' end markets, as well as the impact of its Ahern Rentals acquisition. Fleet productivity increased 0.3 percent year-over-year, while average original equipment at cost (OEC) was up 15.1 percent. On a pro forma basis, rental revenue increased 7.6 percent year-over-year supported by a 6.9-percent increase in average OEC and a 2.4-percent increase in fleet productivity.
Used equipment sales in the fourth quarter increased 7.1 percent from the previous year, generating $438 million in proceeds. Net income for the quarter increased 6.3 percent to $679 million while net income margin declined to 18.2 percent.
For the full year, United Rentals reported revenues of $14.332 billion, up from $11.642 billion in 2022, and net income of $2.424 billion, an increase from $2.105 billion the previous year.
"We entered 2023 with the goal of raising the bar and I'm incredibly pleased with the team's performance. Our fourth quarter results capped a year of new records across revenue, profits, and returns driven by a relentless commitment to serving our customers, while staying laser-focused on safety and operational excellence," said Matthew Flannery, United Rentals CEO. "We are now excited to deliver on the growth we expect in 2024, supported by our strength on large projects. Our guidance reflects the opportunities we see across our business as we leverage our competitive advantages to support our customers and outpace the market. We continue to execute on our long-held strategy to deliver profitable growth, strong free cash flow, and exceptional returns. Our new leverage targets and 2024 capital allocation plans are further evidence of our commitment to driving shareholder value."