Toromont Increases 2021 Revenues 22.6 Percent
10 May, 2022 04:44 AM
United Rentals posted equipment rental revenue of $2.277 billion in the third quarter of 2021 compared to $1.861 billion in the third quarter of 2020, a 22.4-percent year-over-year increase. Total revenue was $2.596 billion in third quarter of 2021 compared to $2.187 billion in the year-ago quarter, an 18.7-percent hike.
The rental revenue increase reflects the pronounced impact of COVID-19 in the third quarter of 2020, in addition to the continuing recovery of activity across the end-markets served by the company. Fleet productivity increased 13.5 percent year-over-year, in large part because of better fleet absorption.
Sale of used equipment was $183 million during the quarter compared to $199 million in the same quarter a year ago, an 8-percent decrease, suggesting that United Rentals was holding on to machines longer in the wake of longer lead times. Gross margins were 45.9 percent compared to 38.2 percent a year ago, because of stronger pricing, which rose sequentially for the fourth consecutive quarter. Used equipment proceeds in the quarter were 60 percent of original equipment cost, compared to 51 percent of OEC in the third quarter of 2020.
We were very pleased with our third quarter performance, with rental results coming in ahead of expectations as our team serviced our customers in a safe and efficient manner through the busiest part of our year,” said United Rentals CEO Matthew Flannery. “Importantly, the momentum we’ve experienced from the broad-based recovery of our end-markets supports our raising full year guidance for both total revenue and adjusted EBITDA