United Rentals to Report Q3 Earnings: What's in Store for the Stock?

United Rentals, Inc. URI is scheduled to report its third-quarter 2025 results on Oct. 22, after market close.

In the last reported quarter, the company’s adjusted earnings per share missed the Zacks Consensus Estimate by 0.7% and declined 21% year over year. Meanwhile, revenues surpassed the consensus estimate by 0.9% and registered a 4.5% improvement on a year-over-year basis.

The company’s earnings surpassed estimates in one of the trailing four quarters and missed on three occasions, with a negative average surprise of 1.9%.

How are Estimates Placed for URI Stock?

The Zacks Consensus Estimate for third-quarter adjusted earnings has remained unchanged at $12.50 per share over the past 30 days. The estimated figure indicates a 5.9% increase from the year-ago quarter’s earnings of $11.80 per share.

United Rentals, Inc. Price and EPS Surprise

United Rentals, Inc. price-eps-surprise | United Rentals, Inc. Quote

The consensus estimate for revenues is pegged at $4.16 billion, indicating growth of 4.1% from the prior-year quarter’s level.

Factors at Play for United Rentals’ Quarterly Results

Revenues:  United Rentals is expected to post revenue growth in the third quarter of 2025, supported by steady demand across construction and industrial markets. Continued activity in large infrastructure and industrial projects is likely to have contributed to higher third-quarter revenues. Major developments in data centers, hospitals, airports and industrial manufacturing facilities are expected to have provided an additional boost to the company’s top-line performance.

Specialty rentals, which offer higher margins and remain central to United Rentals’ expansion strategy, are expected to have supported revenue growth both organically and through cold-starts that added capacity in new markets. The company has also broadened its presence through strategic acquisitions and the introduction of new products, further strengthening the specialty offerings and market reach.

Segment-wise, our model predicts third-quarter revenues for General Rentals and Specialty to increase 4.7% to $2.87 billion and 2% to $1.27 billion, respectively, on a year-over-year basis.

The Equipment Rentals business, which accounted for 86.6% of second-quarter 2025 total revenues, is likely to have witnessed a decent demand trend on the back of increased fleet productivity and average OEC. Apart from Equipment Rentals, other revenue sources include Sales of Rental Equipment, New Equipment, Contractor Supplies and Service & Other revenues.

For the third quarter, we expect revenues from Equipment Rentals to increase 2.2% year over year to $3.54 billion. New Equipment Sales are expected to increase 8.4% from the year-ago quarter. Furthermore, sales of Rental Equipment and Contractor Supplies are expected to increase 13.8% and 6.7%, respectively, year over year to $365.3 million and $40.5 million. Service & Other revenues are expected to increase 25.7% from the year-ago period to $116.9 million.

Earnings & Margins: United Rentals is expected to report better margins and earnings in the third quarter, supported by higher fleet productivity and disciplined rate management. The company achieved rent revenue growth ahead of fleet growth, reflecting efficient utilization and strong pricing execution. These factors, along with continued cost control, are likely to have contributed to improved profitability and earnings performance.
 
We expect adjusted EBITDA to grow 4.1% year over year to $1.98 billion and adjusted EBITDA margin to increase 10 basis points (bps) to 47.8% in the third quarter from a year ago. Also, the gross margin is expected to expand 30 bps to 41.6% from a year ago. However, higher delivery expenses and inflationary pressures are likely to have partly offset these gains, limiting the extent of margin expansion.

What Our Model Indicates for URI

Our proven model does not predict an earnings beat for United Rentals this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here, as you can see below.

URI’s Earnings ESP: URI has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank of URI: The company currently has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Poised to Beat Earnings

Here are some companies in the Zacks Construction sector which, according to our model, have the right combination of elements to post an earnings beat.

TopBuild Corp. BLD has an Earnings ESP of +1.89% and a Zacks Rank of 3. 

The company’s earnings beat estimates in each of the last four quarters, the average surprise being 2.8%. TopBuild’s earnings for the third quarter of 2025 are expected to decrease 8.1%.

EMCOR Group, Inc. EME has an Earnings ESP of +0.20% and a Zacks Rank of 2 at present.

For the quarter to be reported, EMCOR’s earnings are expected to increase 14.7%. EMCOR’s earnings beat estimates in each of the last four quarters, the average surprise being 16.8%. 

Armstrong World Industries, Inc. AWI currently has an Earnings ESP of +0.63% and a Zacks Rank of 3.

The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 9.9%. Armstrong World’s earnings for the third quarter of 2025 are expected to increase 9.9%.

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This article originally published on Zacks Investment Research (zacks.com).

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