United Rentals reported total revenue for Q2/18 was $1.891 billion and rental revenue was $1.631 billion, compared with $1.597 billion and $1.367 billion, respectively, for the same period last year. Q2/18 included a net income benefit associated with the Tax Cuts and Jobs Act.

Rental revenue increased 19.3% year over year. Within rental revenue, owned equipment rental revenue increased 19.3%, reflecting increases of 15.9% in the volume of equipment on rent and 2.8% in rental rates.
Pro forma1 rental revenue increased 11.4% year over year, reflecting growth of 7.1% in the volume of equipment on rent and a 2.8% increase in rental rates.

Time utilization decreased 20 basis points year over year to 69.2%, primarily reflecting the impact of United Rental’s acquisition of Neff Corporation. On a pro forma basis, time utilization was flat year over year.

The company’s Trench, Power and Pump specialty segment’s rental revenue increased by 33.5% year-over-year, including a 21.9% increase on a same store basis. The segment’s rental gross margin decreased by 110 basis points to 48.5%.

During the quarter, United Rentals completed its acquisitions of NES Rental Holdings and Neff Corporation and also announced its definitive agreement to acquire BakerCorp for $715 million.

“We were very pleased with the momentum of our business in the second quarter, as strong gains in volume and rates helped drive better than 11% growth in pro forma rental revenue,” said Michael Kneeland, CEO of United Rentals. “Importantly, demand remained robust across our construction and industrial verticals in both the U.S. and Canada. The Neff integration is largely complete, and we look forward to getting the process started with Baker this quarter.”

In the first six months of 2018, rental revenue increased 22.0% year over year. Within rental revenue, owned equipment rental revenue increased 22.1%, reflecting increases of 20.6% in the volume of equipment on rent and 2.4% in rental rates.

Pro forma rental revenue increased 10.7% year over year, reflecting growth of 7.0% in the volume of equipment on rent and a 2.8% increase in rental rates.

Time utilization decreased 60 basis points year over year to 67.2%, primarily reflecting the impact of the NES and Neff acquisitions. On a pro forma basis, time utilization decreased 10 basis points year over year.

The company’s Trench, Power and Pump specialty segment’s rental revenue increased by 34.9% ye ar over year, including a 23.7% increase on a same store basis. The segment’s rental gross margin increased by 20 basis points to 47.4%.

“Everything we see internally and externally points to a durable cycle and continued industry discipline in managing fleet growth,” Kneeland said. “Given this backdrop, we’ve raised our 2018 guidance for total revenue, adjusted EBITDA and capex. We remain focused on executing a balanced strategy of growth and returns to maximize long-term value.”