United Rentals to maintain high CapEx in 2022

United Rentals said it is likely to maintain the high levels of capital expenditure in 2022 with expected spending of up to US$3.1 billion.

The forecast came as United reported a 24.7% increase in revenues for the final quarter of 2021, up to $2.3 billion, with net profits rising 62% to $481 million.

Total revenues for 2021 were $9.7 billion, which represents a 14.1% increase over 2020, and means that United has now exceeded its record year in 2019 when sales were $9.3 billion.

A notable feature of the results is the continuing rise in revenues at its specialty rental division, where sales were up 45.3% in the quarter to $613 million. That compared to an 18.6% increase in its general rentals business, reaching sales of $1.69 billion.

Matthew Flannery, CEO of United, said, “Our strong fourth quarter, which included record revenue, adjusted EBITDA and operating earnings, completes a year of significant achievements and provides solid momentum as we enter the new year.”

He said the company’s 2022 guidance – for revenues of between $10.6 and 11.0 billion – “reflects the optimism of our customers, as well as our confidence in leveraging our competitive advantages over the longer term.”