What changed in this filing

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Item 1. Business

2025-01-29 compared with 2024-01-24 · 56 added, 68 removed, 254 unchanged (33% of the section changed)

United Rentals is the largest equipment rental company in the world, operates throughout the United States and Canada, and has a limited presence in Europe, Australia and New Zealand.

United Rentals is the largest equipment rental company in the world, operates throughout the United States and Canada, and has a smaller presence in Europe, Australia and New Zealand.

The table below presents key information about our business as of and for the years ended December 31, 2024 and 2023.

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Fleet OEC (in billions) $21.43 $20.66

Equipment classes 4,800 4,600

Equipment units 1,120,000 995,000

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Mobile storage equipment and modular office space

Surface protection mats (5) 2% —%

LOCATIONS/PERSONNEL

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Mix includes the impact of changes in customer, fleet, geographic and segment mix.

The positive fleet productivity for 2022 reflected strong demand across our end-markets.

The novel coronavirus (“COVID-19”), which resulted in rental volume declines in response to shelter-in-place orders and other market restrictions, had the most pronounced on our business in 2020.

Beginning in 2021 and continuing through 2023, we have experienced broad-based strength of demand across our end-markets.

See "Industry Overview and Economic Outlook" below for further discussion of our end-markets.

(3) Reflects the combined impact of changes in the other types of equipment rentals revenue (see note 3 for further detail), excluding owned equipment rental revenue.

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The pro forma information includes the standalone, pre-acquisition results of Ahern Rentals.

The pro forma components are not reflected above for 2022 versus 2021 because of the December 2022 acquisition date (Ahern Rentals did not materially impact the comparison of 2022 and 2021 equipment rentals).

The Ahern Rentals acquisition is discussed further in note 4 to the consolidated financial statements.

(5) As discussed below (see "Industry Overview and Economic Outlook"), North American equipment rental industry revenue is based on industry estimates from the American Rental Association ("ARA").

As discussed above, we completed the acquisition of Ahern Rentals in December 2022.

Estimated North American market share as of December 31, 2022 includes the standalone, pre-acquisition revenue of Ahern Rentals.

Subsequent to our prior disclosure of 2022 industry information, the ARA increased its estimate of the size of the North American equipment rental industry.

As a result of this change, relative to our prior disclosures, our market share as of December 31, 2022 decreased and the size of the 2022 growth in North American equipment rental industry revenue increased.

Pro forma information is not reflected above for 2024 versus 2023 because Ahern Rentals was fully included in our results for both years.

(5) As discussed in note 4 to the consolidated financial statements, 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.

(6) As discussed below (see “Industry Overview and Economic Outlook”), North American market share and equipment rental industry revenue are based on industry estimates (excluding party and event rentals) from the American Rental Association (“ARA”).

As discussed above, in March 2024, we completed the acquisition of Yak.

Estimated North American market share as of December 31, 2024 includes the standalone, pre-acquisition revenue of Yak.

Human Capital

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enhance the Company’s culture through efforts aimed at making the workplace more inclusive;

acquire and retain diverse talent;

acquire and retain high-performing talent;

ensure employees are supported and engaged so they can provide outstanding customer service;

reward and support employees through competitive pay and benefit programs;

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• Health and safety:

We have a safety program that focuses on implementing management systems, policies and training programs and performing assessments to see that workers are trained properly and that injuries and incidents are prevented.

We have a safety program that focuses on implementing management systems, policies and training programs and performing assessments designed to promote proper training of workers and prevention of injuries and incidents.

All of our employees are empowered with stop-work authority which enables them to immediately stop any unsafe or potentially hazardous working condition or behavior they may observe.

We utilize a mixture of indicators to assess the safety performance of our operations, including total recordable injury rate (TRIR), preventable motor vehicle incidents per million miles, corrective actions and near miss frequency and have disclosed a goal to further reduce our TRIR.

We also recognize outstanding safety behaviors through our annual awards program.

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The Company’s Live Well, Safe & Healthy program is a comprehensive approach to wellness that encourages healthy behaviors and is intended to raise morale, productivity and overall employee engagement.

The program includes a biometric screening at work or off-site, a health assessment, a paid day off to be used for a wellness exam or day of service, tobacco cessation support, and participation incentives.

Through the program, eligible employees can reduce medical plan costs if they complete a health assessment and participate in a biometric screening at work or off-site, and, in 2024, 56 percent of eligible employees did so.

The program also includes (i) a paid day off to be used for a wellness exam or day of service, which was used by 91 percent of eligible employees in 2024, (ii) tobacco cessation support and (iii) participation incentives.

Additionally, employees and family members can participate in virtual health challenges to encourage daily activity.

Approximately 63 percent of eligible employees participated in the program in 2023.

• Workplace inclusivity and diversity:

We believe that an inclusive and diverse team is key to the success of our culture, and we view diversity holistically through a framework that recognizes the importance of diversity in enabling our commercial strategy and continued business success.

Our commitment to diversity, equity and inclusion (“DEI”) is demonstrated through many efforts including employee-led employee resource groups (“ERGs”);

aspirational company-wide DEI goals;

and inclusive volunteering opportunities.

Our seven ERGs aim to represent and support the diverse communities that make up our workforce by facilitating:

networking and connecting with peers;

education and awareness efforts;

and leadership and skill development.

The Company has

disclosed an aspirational goal to increase the percentage of racially or gender diverse employees in sales and management roles, reflecting our commitment to increase diverse representation in our talent pipeline.

There has been positive progress in this aspirational goal, as reflected in an over five percentage point increase in diverse employees in sales and management roles from 29.5 percent in 2020 to 34.7 percent in 2023.

As part of its diversity efforts, the Company is committed to supporting our military veterans and believes that diversity in experience is an asset to the business.

To that end, the Company has made the fair inclusion of veterans a priority, through its veterans ERG and external partnerships.

• Compensation programs and employee benefits:

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We offer comprehensive benefit options including paid time off, retirement savings plans, medical and prescription drug benefits, dental and vision benefits, accident and critical illness insurance, life and disability insurance, health savings accounts, flexible spending accounts, parental leave, legal coverage, auto/home insurance, identity theft insurance and tuition assistance.

Additionally, we have conducted four company-wide stock grant programs for employees since 2014 – the most recent grant took place in 2022 and was in honor of our 25 th anniversary.

Additionally, we have conducted five company-wide stock grant programs for employees since 2014 – the most recent grant took place in 2024.

• Employee experience and retention:

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For example, voluntary employee turnover, which represents voluntary terminations during the year divided by average headcount during the year, was 11.9 percent, 12.4 percent and 13.1 percent for 2024, 2023 and 2022, respectively.

We also conduct an annual employee experience survey, which provides valuable information on drivers of engagement and areas where we can improve.

In 2022, we switched survey administration to Peakon (a Workday company).

We also conduct an annual employee experience survey, with Peakon (a Workday company) serving as administrator, which provides information on drivers of engagement and areas where we can improve.

Our 2024 employee experience survey showed strong results with average responses ranging from 8.3 to 9.1 out of 10 in each of our four survey categories:

Engagement (8.5), Diversity & Inclusion (8.6), Health & Wellbeing (8.4) and Safety Commitment (9.2).

Our 2023 results were consistent with our strong 2022 results, with scores in three categories flat year-over-year and our Diversity & Inclusion score decreasing slightly from 8.7 to 8.6.

Our results placed us in the top 10 percent of the Peakon Benchmark for Commercial and Professional Services Companies for the Engagement and Health & Wellbeing categories and in the top 25 percent of the Diversity & Inclusion category;

there is no benchmark reference for our Safety category.

Engagement (8.4), Belonging (8.3), Health & Wellbeing (8.4) and Safety Commitment (9.1).

Our 2024 results were consistent with our strong 2023 results, with scores in all four categories flat or within 0.1 year-over-year.

Our employee Net Promoter Score places us in the top five percent of the Peakon Benchmark for Commercial and Professional Services Companies for the Engagement category, in the top 10 percent for the Health & Wellbeing category and in the top 25 percent for the Belonging category.

There is no external benchmark reference for our Safety Commitment category.

• Employee inclusion and engagement:

Our commitment to inclusion is demonstrated through many efforts such as employee-led employee resource groups (“ERGs”).

Our many ERGs are open to all employees and aim to foster a diverse and inclusive workplace by facilitating:

networking and connecting with peers;

education and awareness efforts;

and professional development.

As part of its inclusion efforts, the Company is committed to supporting its military veterans and has made the fair inclusion of veterans a priority, through its veterans ERG and external partnerships.

To provide an open and frequent line of communication for all employees, we host town hall meetings and quarterly all employee conference calls, and utilize Workplace, a virtual collaboration platform for our employees, to engage with our full team.

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In addition, as we did in 2024, we aim to regularly develop new training programs, launch pilot programs and expand leadership opportunities for our employees.

In 2023, our employees enhanced their skills through approximately 825,000 hours of training, including safety training, sales and leadership training and equipment-related training from our suppliers.

In 2024, our employees enhanced their skills through approximately 1.2 million hours of training, including safety training, sales and leadership training and equipment-related training from our suppliers.

Our performance process encourages employee check-ins throughout the year to discuss performance and career goals, as well as development opportunities at all levels across the Company.

For the past several years, as we continued to manage the impact of global economic conditions and COVID-19, we executed a strategy focused on improving the profitability of our core equipment rental business through revenue growth, margin expansion and operational efficiencies.

For the past several years, we have executed a strategy focused on improving the profitability of our core equipment rental business through revenue growth, margin expansion and operational efficiencies.

In particular, we have focused on customer segmentation, customer service differentiation, rate management, fleet management and operational efficiency.

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We utilize a proprietary software application, Total Control ® , which provides our key customers with a single in-house software application that enables them to monitor and manage all their equipment needs.

Total Control ® is a unique customer offering

that enables us to develop strong, long-term relationships with our larger customers.

Total Control ® is a unique customer offering that enables us to develop strong, long-term relationships with our larger customers.

Our digital capabilities, including our Total Control ® platform, allow our sales teams to provide contactless end-to-end customer service;

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condensing the cycle time associated with preparing equipment for rent;

optimizing our resources for delivery and pickup of equipment;

optimizing our resources for

delivery and pickup of equipment;

improving the effectiveness and efficiency of our repair and maintenance operations;

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• The continued expansion and cross-selling of adjacent specialty and services products, which enables us to provide a “one-stop” shop for our customers .

We believe that the expansion of our specialty business, as exhibited by our acquisition of General Finance Corporation (“General Finance”) in May 2021, as well as our tools and onsite services offerings, will further position United Rentals as a single source provider of total jobsite solutions through our extensive product and service resources and technology offerings;

• The pursuit of strategic acquisitions to continue to expand our core equipment rental business, as exhibited by our recently completed acquisition of assets of Ahern Rentals, which is discussed in note 4 to the consolidated financial statements.

We believe that the expansion of our specialty business, as exhibited by our acquisition of Yak in March 2024, which is discussed in note 4 to the consolidated financial statements, as well as our tools and onsite services offerings, further positions United Rentals as a single source provider of total jobsite solutions through our extensive product and service resources and technology offerings;

• The pursuit of strategic acquisitions to continue to expand our core equipment rental business, as exhibited by our acquisition of assets of Ahern Rentals in December 2022, as well as the pending acquisition of H&E Equipment Services, Inc.

d/b/a H&E Rentals (“H&E”) that is discussed in note 19 to the consolidated financial statements, which is expected to close in the first quarter of 2025.

Strategic acquisitions allow us to invest our capital to expand our business, further driving our ability to accomplish our strategic goals.

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and residential construction, which includes remodeling.

We also have a limited presence in Europe, Australia and New Zealand.

We also have a smaller presence in Europe, Australia and New Zealand.

See Item 2—Properties for further geographical detail on our rental network.

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• Residential rentals represented approximately five percent of our rental revenue, primarily reflecting rentals of equipment for the construction and renovation of homes.

Based on industry estimates from the ARA, 2023 North American equipment rental industry revenue grew an estimated 12 percent year-over-year.

In 2023, our full year rental revenue increased by 19.3 percent year-over-year, which included the impact of the Ahern Rentals acquisition that was completed in December 2022 and is discussed in note 4 to the consolidated financial statements.

The impact of the Ahern Rentals acquisition on our equipment rentals revenue is primarily reflected in the year-over-year increase in average OEC of 21.9 percent for the year ended December 31, 2023.

On a pro forma basis including the pre-acquisition results of Ahern Rentals, year-over-year, equipment rentals revenue increased 11.3 percent, primarily reflecting an increase in average OEC of 10.4 percent.

Our estimated North American market share of approximately 15 percent as of December 31, 2023 did not change materially from our market share as of December 31, 2022, which included the pre-acquisition revenue of Ahern Rentals as the acquisition was completed in 2022.

Based on industry estimates (excluding party and event rentals) from the ARA, 2024 North American equipment rental industry revenue grew an estimated 8 percent year-over-year.

In 2024, our full year rental revenue increased by 8.0 percent year-over-year, which included the impact of the Yak acquisition that was completed in March 2024 and is discussed in note 4 to the consolidated financial statements.

Our estimated North American market share of approximately 15 percent as of December 31, 2024, which includes the standalone, pre-acquisition revenue of Yak, did not change materially from our market share as of December 31, 2023.

Competitive Advantages

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Leveraging information technology to achieve greater efficiencies and improve customer service is a critical element of our strategy.

Each branch is equipped with one or more workstations that are electronically linked to our other locations and to our data center.

Rental transactions can be entered at these workstations, or through various mobile applications, to be processed on a real-time basis.

Each branch is equipped with one or more computers that are electronically linked to our other locations and to our data center.

Rental transactions can be entered at these computers, or through various web/mobile applications, to be processed on a real-time basis.

Our information technology systems:

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• allow management to obtain a wide range of operational and financial data.

We have a fully functional back-up facility designed to enable business continuity for our core rental and financial systems in the event that our main computer facility becomes inoperative.

We have a back-up facility designed to enable business continuity for our core rental and financial systems in the event that our main computer facility becomes inoperative.

This back-up facility also allows us to perform system upgrades and maintenance without interfering with the normal ongoing operation of our information technology systems.

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Geographic and Customer Diversity .

We primarily operate in the United States and Canada, and have a limited presence in Europe, Australia and New Zealand, and our global branch network includes 1,584 rental locations.

We primarily operate in the United States and Canada, and have a smaller presence in Europe, Australia and New Zealand, and our global branch network includes 1,686 rental locations.

See Item 2—Properties for further geographical detail on our branch network.

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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 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, and (iv) mobile storage equipment and modular office space.

The specialty 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 limited presence in Europe, Australia and New Zealand.

This segment primarily operates in the United States and Canada, and has a smaller presence in Europe, Australia and New Zealand.

Products and Services

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Equipment Rental .

We offer for rent approximately 4,800 classes of rental equipment on an hourly, daily, weekly or monthly basis.

We offer a fleet of rental equipment with total OEC of $21.4 billion for rent on an hourly, daily, weekly or monthly basis.

The types of equipment that we offer include general construction and industrial equipment;

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mobile storage equipment and modular office space;

surface protection mats;

and general tools and light equipment.

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Our customer base is highly diversified and ranges from Fortune 500 companies to small businesses and homeowners.

Our customer base varies by branch and is determined by several factors, including the equipment mix and marketing focus of the particular branch as well as the business composition of the local economy, including construction opportunities with different customers.

Our customer base varies by branch and is determined by several factors, including the equipment mix and marketing focus of

the particular branch as well as the business composition of the local economy, including construction opportunities with different customers.

Our customers include:

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Our customers can check equipment availability and pricing, and reserve equipment online, 24 hours a day, seven days a week, by accessing our equipment catalog and used equipment listing, which can be found at www.unitedrentals.com.

Our customers can also use our UR Control ® application to actively manage their rental process and access real-time reports on their business activity with us.

Total Control ® .

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Our strategic approach with respect to our suppliers is to maintain the minimum number of suppliers per category of equipment that can satisfy our anticipated volume and business requirements.

This approach is designed to ensure that the terms

we negotiate are competitive and that there is sufficient product available to meet anticipated customer demand.

This approach is designed to ensure that the terms we negotiate are competitive and that there is sufficient product available to meet anticipated customer demand.

We utilize a comprehensive selection process to determine our equipment vendors.

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We believe we have sufficient alternative sources of supply available for each of our major equipment categories.

For a discussion of the risks associated with potential supply chain disruptions, see Item 1A- Risk Factors (“Operational Risks- Disruptions in our supply chain could result in adverse effects on our results of operations and financial performance ").

We primarily operate in the United States and Canada, and have a limited presence in Europe, Australia and New Zealand.

We primarily operate in the United States and Canada, and have a smaller presence in Europe, Australia and New Zealand.

The North American equipment rental industry is highly fragmented and competitive.

As the largest equipment rental company in the industry, we estimate that we have an approximate 15 percent market share in North America based on 2023 total equipment rental industry revenues as measured by the ARA.

Estimated market share is calculated by dividing our total 2023 North American rental revenue by ARA’s forecasted 2023 industry revenue.

As discussed in note 4 to the consolidated financial statements, in March 2024, we completed the acquisition of Yak.

As the largest equipment rental company in the industry, we estimate that we have an approximate 15 percent market share, which includes the standalone, pre-acquisition revenue of Yak, in North America based on 2024 total equipment rental industry revenues (excluding party and event rentals) as measured by the ARA.

Estimated market share is calculated by dividing our total 2024 North American rental revenue, including the standalone, pre-acquisition revenue of Yak, by ARA’s forecasted 2024 industry revenue (excluding party and event rentals).

Our competitors primarily include small, independent businesses with one or two rental locations;

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public companies or divisions of public companies that operate nationally or internationally;

and equipment vendors and dealers who both sell and rent equipment directly to customers.

and equipment vendors and dealers who both sell and rent equipment

directly to customers.

We believe we are well positioned to take advantage of this environment because, as a larger company, we have more resources and certain competitive advantages over our smaller competitors.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business