The company’s rental revenue improved 19.3%, helped by an increase in owned equipment rental revenue. Time utilization fell 20 basis points to 69.2% due to the impact of NES and Neff acquisitions. Trench, Power and Pump specialty segment’s rental revenue increased by 33.5%, primarily on a same-store basis.
Looking ahead into fiscal 2018, United Rentals raised its outlook. The company lifted its total revenue outlook to a range of $7.5-$7.7 billion from the previous estimate of $7.3-$7.6 billion, and its adjusted EBITDA estimate to $3.675-$3.775 billion from the prior outlook of $3.60-$3.75 billion.
For the full year 2018, net cash provided by operating activities guidance was revised upward to a range of $2.675-$2.825 billion from the previous outlook of $2.625-$2.825 billion. Meanwhile, the company maintained its free cash flow forecast of $1.3-$1.4 billion for fiscal 2018.
On July 2, United Rentals has entered into a pact to buy BakerCorp International, a provider of rental solutions for fluid storage, transfer, and treatment, for about $715 million in cash. The deal is predicted to close early in the third quarter and will contribute about $140 million of revenue and $40 million of adjusted EBITDA to the full year 2018 results. This will add about $50 million to 2018 capital spending plan.
Shares of United Rentals ended Wednesday’s regular trading session up 1.77% at $154.91 on the NYSE. The stock had been trading between $106.52 and $190.74 for the past 52 weeks.
Related Infographics: Q1 earnings
