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    The Bull Case For United Rentals (URI) Could Change Following Q3 Earnings Miss And Cost Pressures - Learn Why

    Simply Wall St·12/07/2025 09:27:04
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    • In October 2025, United Rentals reported past-quarter revenue of US$4.23 billion, up 5.9% year on year and ahead of analyst forecasts, but significantly missed earnings per share estimates as inflation and higher operating costs pressured profitability.
    • At the same time, the company reinforced its focus on expanding specialty rentals and enhancing financial flexibility, including a US$1.50 billion senior notes offering, underscoring management’s commitment to growth despite margin headwinds.
    • We’ll now examine how this earnings miss, amid rising cost pressures, affects United Rentals’ existing investment narrative and forward-looking assumptions.

    Find companies with promising cash flow potential yet trading below their fair value.

    United Rentals Investment Narrative Recap

    To own United Rentals, you need to believe in the long term demand for equipment rentals across construction and industrial projects, and in the company’s ability to convert that scale into consistent cash generation. The latest quarter’s revenue beat but EPS miss reinforces that the near term catalyst remains execution on margins, while the biggest current risk is that persistent inflation and higher operating costs could further compress profitability. So far, this earnings miss does not fundamentally change that thesis.

    Among the recent announcements, the US$1.50 billion senior notes due 2033 stand out as most relevant. By boosting financial flexibility at a time of margin pressure, this debt raise sits at the intersection of the key catalyst of continued growth investment and the risk that high capital spending and leverage could limit room to maneuver if conditions worsen.

    Yet behind the focus on revenue growth, investors should be aware that rising operating costs and higher CapEx commitments could...

    Read the full narrative on United Rentals (it's free!)

    United Rentals' narrative projects $18.8 billion revenue and $3.5 billion earnings by 2028. This requires 6.1% yearly revenue growth and a $1.0 billion earnings increase from $2.5 billion today.

    Uncover how United Rentals' forecasts yield a $1025 fair value, a 29% upside to its current price.

    Exploring Other Perspectives

    URI Community Fair Values as at Dec 2025
    URI Community Fair Values as at Dec 2025

    Five members of the Simply Wall St Community currently see United Rentals’ fair value anywhere between about US$533 and US$1,209 per share, highlighting how far apart individual views can be. As you weigh those perspectives, remember that recent margin pressure from inflation and operating costs could play a significant role in shaping how the company’s performance unfolds from here.

    Explore 5 other fair value estimates on United Rentals - why the stock might be worth 33% less than the current price!

    Build Your Own United Rentals Narrative

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.