United Rentals Earnings Reconciliation and Strategic Vision
Structural changes are key to increased margins
Adjusted EBITDA Margin (1) (%)
60%
Adjusted EBITDA margin
~1,500 bps above prior peak (3)
50%
40%
30%
20%
10%
.
•
0%
•
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023F
Notes:
1)
2)
3)
Key Drivers of Margin Gains
Strong fixed-cost absorption
•
Cyclical leverage (e.g., SG&A as % of sales)
M&A cost synergies (e.g., RSC, NES, Neff)
Operational efficiency gains
•
Process improvements (e.g., LEAN, 5S, etc.)
Technology (e.g., logistics, CORE, telematics)
Improved mix
•
Shift towards higher margin Specialty
Improved segment/end-market mix
⚫ De-emphasis of low margin/return businesses.
Improved used equipment sales strategies
Dramatic cycle-over-cycle margin improvement
Adjusted EBITDA is a non-GAAP measure. Adjusted EBITDA margin represents adjusted EBITDA divided by total revenue. See the tables provided elsewhere in this presentation for reconciliations to the most comparable GAAP measures.
2023F reflects the mid-point of guidance.
Reflects change between 2008 and 2023F.
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