UNITED RENTALS, INC.URI
UNITED RENTALS, INC. Segments Disclosure
Segment Information
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Our reportable segments are (i) general rentals and (ii) specialty. Our determination of the operating segments is primarily based on geography, but also includes consideration of the offered products and services. As noted below, we evaluate segment performance primarily based on segment equipment rentals gross profit. As discussed further in note 2 to our consolidated financial statements (“Evaluation of Goodwill Impairment”), we test for goodwill impairment at the reporting unit (the region, which is one level below the operating segment (division)) level.
For general rentals, the divisions discussed below, which are our operating segments, are aggregated into the reportable segment. The specialty segment is a single division that is both an operating segment and a reportable segment. We believe that the divisions that are aggregated into our reportable segments have similar economic characteristics, as each division is capital intensive, offers similar products to similar customers, uses similar methods to distribute its products, and is subject to similar competitive risks. The aggregation of our divisions also reflects the management structure that we use for making operating decisions and assessing performance. We evaluate segment performance primarily based on segment equipment rentals gross profit.
The general rentals segment includes the rental of (i) general construction and industrial equipment, such as backhoes, skid-steer loaders, forklifts, earthmoving equipment and material handling equipment, (ii) aerial work platforms, such as boom lifts and scissor lifts and (iii) general tools and light equipment, such as pressure washers, water pumps and power tools. The general rentals segment reflects the aggregation of four geographic divisions—Central, Northeast, Southeast and West—and operates throughout the United States and Canada.
The specialty segment, which, as noted above, is a single division that is both an operating segment and a reportable segment, rents products (and provides setup and other services on such rented equipment) including (i) trench safety equipment, such as trench shields, aluminum hydraulic shoring systems, slide rails, crossing plates, construction lasers and line testing equipment for underground work, (ii) power and HVAC equipment, such as portable diesel generators, electrical distribution equipment, and temperature control equipment, (iii) fluid solutions equipment primarily used for fluid containment, transfer and treatment, (iv) mobile storage equipment and modular office space and (v) surface protection mats. The specialty segment’s customers include construction companies involved in infrastructure projects, municipalities and industrial companies. This segment primarily operates in the United States and Canada, and has a smaller presence in Europe, Australia and New Zealand.
The following table presents the percentage of equipment rental revenue by equipment type for the years ended December 31, 2025, 2024 and 2023:
Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
Primarily rented by our general rentals segment: | |||||||||||||||||
General construction and industrial equipment | 39 | % | 40 | % | 42 | % | |||||||||||
Aerial work platforms | 22 | % | 23 | % | 25 | % | |||||||||||
General tools and light equipment | 9 | % | 9 | % | 8 | % | |||||||||||
| Primarily rented by our specialty segment: | |||||||||||||||||
Power and HVAC equipment | 11 | % | 11 | % | 10 | % | |||||||||||
Trench safety equipment | 5 | % | 5 | % | 5 | % | |||||||||||
Fluid solutions equipment | 7 | % | 7 | % | 7 | % | |||||||||||
Mobile storage equipment and modular office space | 3 | % | 3 | % | 3 | % | |||||||||||
| Surface protection mats (1) | 4 | % | 2 | % | — | % | |||||||||||
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(1)In March 2024, we completed the acquisition of Yak Access, LLC, Yak Mat, LLC and New South Access & Environmental Solutions, LLC (collectively, “Yak”), which was a leading provider of surface protection mats. Prior to the Yak acquisition, we did not rent material amounts of such equipment.
The accounting policies for our segments are the same as those described in the summary of significant accounting policies in note 2. Certain corporate costs, including those related to selling, finance, legal, risk management, human resources, corporate management and information technology systems, are deemed to be of an operating nature and are allocated to our segments based primarily on rental fleet size.
Our Chief Operating Officer is our CODM. Equipment rentals gross profit is the primary measure the CODM utilizes in assessing segment performance and determining the allocation of resources. The CODM is the primary individual in control of resource allocation, and the allocation determinations are made in consultation with our senior executive committee, of which the CODM is a member. The most significant allocation determinations made by the CODM pertain to purchases of rental equipment (see the table below for total capital expenditures, including rental and non-rental equipment, by segment), and these determinations are generally made as part of the annual budgeting process, with regular reviews occurring throughout the year that can result in allocation changes (for example, if a specific division outperforms its plan, that could result in a reallocation of resources between divisions or an increase in the total allocated resources). On a monthly basis, the CODM considers budget-to-actual variances for equipment rentals gross profit when making decisions about allocating capital to the segments. Equipment rentals gross profit is also used to assess the performance for each segment by comparing the results and return on assets of each segment with one another, which also informs the determinations made pertaining to the allocation of resources.
The following table sets forth financial information by segment, and includes a reconciliation of the primary measure of segment profit (equipment rentals gross profit) to income before provision for income taxes.
Year Ended December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| General rentals | Specialty | Total | General rentals | Specialty | Total | General rentals | Specialty | Total | |||||||||||||||||||||||||||||||||||||||||||||
| Equipment rentals | $9,165 | $4,641 | $13,806 | $8,945 | $4,084 | $13,029 | $8,803 | $3,261 | $12,064 | ||||||||||||||||||||||||||||||||||||||||||||
| Sales of rental equipment | 1,216 | 197 | 1,413 | 1,328 | 193 | 1,521 | 1,411 | 163 | 1,574 | ||||||||||||||||||||||||||||||||||||||||||||
| Sales of new equipment | 199 | 149 | 348 | 159 | 123 | 282 | 95 | 123 | 218 | ||||||||||||||||||||||||||||||||||||||||||||
| Contractor supplies sales | 87 | 76 | 163 | 87 | 68 | 155 | 89 | 57 | 146 | ||||||||||||||||||||||||||||||||||||||||||||
| Service and other revenues | 334 | 35 | 369 | 326 | 32 | 358 | 299 | 31 | 330 | ||||||||||||||||||||||||||||||||||||||||||||
| Total revenue (1) | 11,001 | 5,098 | 16,099 | 10,845 | 4,500 | 15,345 | 10,697 | 3,635 | 14,332 | ||||||||||||||||||||||||||||||||||||||||||||
| Equipment rentals gross profit (see calculation below) | 3,225 | 2,023 | 5,248 | 3,232 | 1,966 | 5,198 | 3,219 | 1,595 | 4,814 | ||||||||||||||||||||||||||||||||||||||||||||
| Equipment rentals gross margin | 35.2% | 43.6% | 38.0% | 36.1% | 48.1% | 39.9% | 36.6% | 48.9% | 39.9% | ||||||||||||||||||||||||||||||||||||||||||||
| Capital expenditures (2) | 3,409 | 1,159 | 4,568 | 3,102 | 1,028 | 4,130 | 3,051 | 813 | 3,864 | ||||||||||||||||||||||||||||||||||||||||||||
| Calculation of equipment rentals gross profit: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equipment rentals | 9,165 | 4,641 | 13,806 | 8,945 | 4,084 | 13,029 | 8,803 | 3,261 | 12,064 | ||||||||||||||||||||||||||||||||||||||||||||
| Less: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Depreciation of rental equipment | (2,021) | (649) | (2,670) | (1,968) | (498) | (2,466) | (1,989) | (361) | (2,350) | ||||||||||||||||||||||||||||||||||||||||||||
| Significant/all other rental expenses (3): | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Labor and benefits (4) | (1,637) | (524) | (2,161) | (1,576) | (442) | (2,018) | (1,519) | (377) | (1,896) | ||||||||||||||||||||||||||||||||||||||||||||
| Repairs and maintenance | (848) | (239) | (1,087) | (830) | (211) | (1,041) | (827) | (176) | (1,003) | ||||||||||||||||||||||||||||||||||||||||||||
| Delivery | (514) | (473) | (987) | (472) | (350) | (822) | (448) | (269) | (717) | ||||||||||||||||||||||||||||||||||||||||||||
| All other rental expenses (3) | (920) | (733) | (1,653) | (867) | (617) | (1,484) | (801) | (483) | (1,284) | ||||||||||||||||||||||||||||||||||||||||||||
| Equipment rentals gross profit | 3,225 | 2,023 | 5,248 | 3,232 | 1,966 | 5,198 | 3,219 | 1,595 | 4,814 | ||||||||||||||||||||||||||||||||||||||||||||
| Reconciliation of equipment rentals gross profit to income before provision for income taxes: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gross profit from other lines of business | 896 | 952 | 999 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | (1,732) | (1,645) | (1,527) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring charge (5) | (1) | (3) | (28) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-rental depreciation and amortization | (438) | (437) | (431) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense, net | (716) | (691) | (635) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Other income, net (6) | 81 | 14 | 19 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Income before provision for income taxes | $3,338 | $3,388 | $3,211 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| December 31, 2025 | December 31, 2024 | December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| General rentals | Specialty | Total | General rentals | Specialty | Total | General rentals | Specialty | Total | |||||||||||||||||||||||||||||||||||||||||||||
| Total assets (7) | $21,787 | $8,079 | $29,866 | $21,044 | $7,119 | $28,163 | $20,411 | $5,178 | $25,589 | ||||||||||||||||||||||||||||||||||||||||||||
(1)Includes immaterial intersegment revenues.
(2)The consolidated statements of cash flows include the payments for capital expenditures, while the table above reflects the gross capital expenditures. Accounts payable as of December 31, 2025, 2024 and 2023 included $117, $77 and $74, respectively, of amounts due but unpaid for purchases of rental equipment.
(3)The significant expense categories align with the segment-level information that is regularly provided to the CODM. The “all other rental expenses” category reflects the difference between equipment rentals revenue less the significant expense categories above and the primary measure of segment profit (equipment rentals gross profit), and is primarily comprised of property costs, costs associated with re-rent revenue and certain ancillary revenues (see note 3 to the consolidated financial statements for a discussion of the different types of equipment rentals revenue), and insurance costs. Intersegment expenses are included within the amounts shown.
(4)Labor and benefits includes all internal labor and benefits costs associated with equipment rentals, including labor and benefits costs associated with repairs and maintenance and delivery.
(5)Primarily reflects severance and branch closure charges associated with our restructuring programs. The restructuring charges generally involve the closure of a large number of branches over a short period of time, often in periods following a major acquisition. The amounts above primarily reflect charges associated with the restructuring program initiated following the December 2022 acquisition of Ahern Rentals. See note 5 to the consolidated financial statements for additional detail on our restructuring programs.
(6)In January 2025, we announced that we had signed a merger agreement to acquire H&E. In February 2025, the merger agreement was terminated. Other income, net for the year ended December 31, 2025 includes a break-up fee of $64 that we received following the termination of the H&E merger agreement.
(7)The increase in the specialty segment assets from December 31, 2023 to December 31, 2024 includes the impact of the Yak acquisition.
We primarily operate in the United States and Canada, and have a smaller presence in Europe, Australia and New Zealand. The foreign information in the table below primarily reflects Canada. The following table presents geographic area information for the years ended December 31, 2025, 2024 and 2023, except for balance sheet information, which is presented as of December 31, 2025 and 2024:
Domestic | Foreign | Total | |||||||||||||||
| 2025 | |||||||||||||||||
| Equipment rentals | $ | 12,609 | $ | 1,197 | $ | 13,806 | |||||||||||
| Sales of rental equipment | 1,288 | 125 | 1,413 | ||||||||||||||
| Sales of new equipment | 305 | 43 | 348 | ||||||||||||||
| Contractor supplies sales | 136 | 27 | 163 | ||||||||||||||
| Service and other revenues | 333 | 36 | 369 | ||||||||||||||
| Total revenue | 14,671 | 1,428 | 16,099 | ||||||||||||||
| Rental equipment, net | 14,584 | 1,485 | 16,069 | ||||||||||||||
| Property and equipment, net | 1,022 | 112 | 1,134 | ||||||||||||||
| Goodwill and other intangible assets, net | $ | 6,772 | $ | 824 | $ | 7,596 | |||||||||||
| 2024 | |||||||||||||||||
| Equipment rentals | $ | 11,919 | $ | 1,110 | $ | 13,029 | |||||||||||
| Sales of rental equipment | 1,379 | 142 | 1,521 | ||||||||||||||
| Sales of new equipment | 242 | 40 | 282 | ||||||||||||||
| Contractor supplies sales | 131 | 24 | 155 | ||||||||||||||
| Service and other revenues | 320 | 38 | 358 | ||||||||||||||
| Total revenue | 13,991 | 1,354 | 15,345 | ||||||||||||||
| Rental equipment, net | 13,634 | 1,297 | 14,931 | ||||||||||||||
| Property and equipment, net | 942 | 92 | 1,034 | ||||||||||||||
| Goodwill and other intangible assets, net | $ | 6,910 | $ | 653 | $ | 7,563 | |||||||||||
| 2023 | |||||||||||||||||
| Equipment rentals | $ | 11,045 | $ | 1,019 | $ | 12,064 | |||||||||||
| Sales of rental equipment | 1,427 | 147 | 1,574 | ||||||||||||||
| Sales of new equipment | 168 | 50 | 218 | ||||||||||||||
| Contractor supplies sales | 130 | 16 | 146 | ||||||||||||||
| Service and other revenues | 293 | 37 | 330 | ||||||||||||||
| Total revenue | $ | 13,063 | $ | 1,269 | $ | 14,332 | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jan 28, 2026 | Showing above |
| 2024 | Jan 29, 2025 | |
| 2023 | Jan 24, 2024 | |
| 2022 | Jan 25, 2023 | |
| 2021 | Jan 26, 2022 | |
| 2020 | Jan 27, 2021 | |
| 2019 | Jan 29, 2020 | |
| 2018 | Jan 23, 2019 | |
| 2017 | Jan 24, 2018 | |
| 2016 | Jan 25, 2017 | |
| 2015 | Jan 27, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.