The second quarter of 2025 reflected continued stability and measured growth across the large national equipment rental companies. Demand remained healthy in both construction and industrial end markets, while strategic expansions and technology investments continued to play a central role in positioning these companies for long-term gains.
Sector Takeaways
• Broad-based demand strength across non-residential construction, infrastructure, and industrial projects
• Specialty rental growth continues outpacing general rental as companies expand product offerings and cold-start locations
• Used equipment markets remain stable, supporting capital rotation plans
• Strategic acquisitions and vertical market penetration driving incremental revenue streams
United Rentals (NYSE: URI)
United Rentals delivered another quarter of record results, with total rental revenue up 6.2% year-over-year to $3.4 billion and adjusted EBITDA reaching $1.81 billion at nearly a 46% margin. Growth was driven by solid results in both general rental and specialty, with 21 new cold starts in the first half of the year and specialty up 14% year-over-year. Fleet productivity rose 3.3% year-over-year while the company invested nearly $1.6 billion in rental CapEx to support large projects. Management highlighted particular strength in infrastructure, non-residential construction, and industrial segments such as power, metals, and chemical processing. The utility vertical now represents more than 10% of total revenue, driven by acquisitions and cross-selling opportunities. United Rentals also continues to leverage telematics to improve customer fleet efficiency and reduce operating costs. Updated full-year guidance calls for 4–5% revenue growth and EBITDA margins above 46%.
Herc Rentals (NYSE: HRI)
Herc posted a 13.7% year-over-year increase in equipment rental revenue to $870 million, with adjusted EBITDA up 12.8% to $406 million, supported by specialty rental strength and pricing discipline. In Q2, Herc completed its $4.8 billion acquisition of H&E Equipment Services, consisting of $2.9 billion in cash, approximately 4.7 million Herc shares valued at $584 million, and $1.4 billion to retire outstanding H&E debt. The deal added around 160 locations and expanded fleet in aerial, earthmoving, and material handling. The integration process includes consolidating branch networks, aligning pricing, and optimizing fleet, with early signs of operational synergies and cross-selling that position the combined business to gain share in key markets.
Sunbelt Rentals North America (Ashtead Group: LSE: AHT )
Sunbelt’s North American operations reported a 1% year-over-year increase in rental revenue, with adjusted EBITDA up 0.4% to $1.2 billion. Growth was broad-based across non-residential construction, infrastructure, and industrial markets, with notable contributions from power, events, and climate control solutions. Sunbelt continues to expand its specialty footprint with new locations and enhanced service capabilities, aligning with its “cluster” market strategy to deepen presence in high-opportunity geographies. Management maintained full-year guidance for high single-digit revenue growth in North America, supported by continued fleet investment and steady market demand.
Looking Ahead
The major rental strategics remain focused on disciplined growth, capital efficiency, and expanding specialty offerings to capture more share in high-value segments. While macroeconomic uncertainty persists, consistent demand in infrastructure, industrial, and large-scale commercial projects, paired with the operational flexibility of the rental model, positions these companies to navigate near-term variability. Continued investment in technology, fleet, and vertical market penetration is expected to keep growth on track into 2026.
