Fourth-quarter results across the leading equipment rental platforms reinforced several consistent themes shaping the sector. Mega project activity remains a primary demand driver, particularly across power, data centers, advanced manufacturing, LNG, and large-scale infrastructure development. At the same time, the large strategics continue expanding higher-margin specialty rental capabilities through both organic investment and targeted acquisitions.
Local non-residential construction demand remains generally stable rather than accelerating. However, strong national account activity, specialty expansion, and disciplined capital allocation are helping offset softer local project activity. Balance sheets across the group remain healthy, providing flexibility for continued fleet investment, greenfield expansion, share repurchases, and selective acquisitions as the industry moves into 2026.
United Rentals (NYSE: URI)
United Rentals reported record revenue and EBITDA for the full fiscal year, highlighting continued scale advantages and strong demand across several key end markets.
In Q4, the company generated $4.2 billion in total revenue, representing 2.8% year-over-year growth. Rental revenue increased 4.6% to $3.6 billion, while adjusted EBITDA totaled $1.9 billion with margins of 45.2%. The company ended the year with net leverage of 1.9x.
The company completed 60 cold starts during the year, including 13 in Q4, exceeding its original target. Demand remained strong across aerial equipment and industrial markets, particularly power, while data center development continues to drive specialty rental growth.
Specialty rental is expected to continue expanding at a double-digit rate. While one large pipeline-related matting project was delayed, all other specialty verticals posted growth, and management noted the company remains ahead of plan on its goal to double the matting business within five years of acquisition.
United maintained disciplined capital allocation, selling $769 million of OEC in Q4 at a 50% recovery rate while investing $4.2 billion in fleet during 2025. The company also announced plans to repurchase $1.5 billion of shares in 2026.
During the quarter, United completed three acquisitions: Direct Equipment, a Canadian trench safety provider; Clean Restroom Rentals, an East Coast portable sanitation company; and Alfasi Hire, an Australian general rental and aerial lift business. Management noted the current acquisition pipeline remains active, with a continued focus on specialty rental opportunities.
Sunbelt Rentals, an Ashtead Group Company (LSE: AHT)
Sunbelt Rentals reported $2.64 billion of revenue in Q3 FY2026, representing 2.7% year-over-year growth, with rental revenue of $2.44 billion, up 2.6%.
Growth continued to be supported by large project activity tied to infrastructure, data centers, energy, and manufacturing. Management noted that mega project demand remains strong and continues to support utilization across the fleet.
Local non-residential construction markets appear to have stabilized, with project completions no longer outpacing new starts. Leading indicators suggest potential improvement in activity over the next 12 to 24 months.
North American specialty rental revenue increased 4.4% year over year and would have been approximately 7% under a normal hurricane season. Growth was broad-based across Power & HVAC, Temporary Fencing, Structures and Walls, Trench Safety, and Flooring, supported by both construction and non-construction end markets.
Sunbelt generated $1.43 billion in free cash flow through the first nine months of FY2026, an 83% increase year over year, and returned $1.35 billion to shareholders through dividends and share repurchases. The company opened 30 greenfield locations year-to-date and ended the quarter with net leverage of 1.6x.
Management reaffirmed FY2026 guidance, calling for 2%–3% rental revenue growth, $2.2–$2.3 billion in gross capital expenditures, and approximately $2.0 billion in free cash flow.
Herc Rentals (NYSE: HRI)
Herc Rentals reported equipment rental revenue of $1.04 billion in Q4, representing 24% year-over-year growth. Adjusted EBITDA totaled $519 million, up 19%, with margins of 43%.
Full-year EBITDA increased by $235 million compared to FY24, and management forecasts $2.0–$2.1 billion in adjusted EBITDA for FY26.
Integration of the H&E acquisition is progressing, with the company focused on fleet optimization, sales integration, and expanding its operating structure to support growth. Herc is targeting $100–$120 million in revenue synergies in FY26, supported in part by the rollout of 6,000 additional equipment classes.
The company continues prioritizing specialty expansion, consolidating general rental equipment to create capacity for standalone specialty branches and increasing its specialty footprint by approximately 25%.
Mega project demand remains strong, with Herc capturing an estimated 10–15% share of targeted opportunities.
Looking Ahead
As the industry moves into 2026, the large rental platforms remain well positioned. Mega projects tied to power generation, data centers, advanced manufacturing, and infrastructure development continue to provide durable multi-year demand visibility. At the same time, continued expansion in specialty rental is supporting both growth and margin stability.
While local non-residential construction activity remains stable rather than accelerating, strong balance sheets, consistent free cash flow, and disciplined capital allocation continue to support fleet investment, network expansion, and selective acquisitions across the sector.
