Capital Allocation and Digital Strategy Update
Profitability: Focus on efficiency
supports improved margins
50%
40%
30%
20%
10%
25%
20%
15%
Key Drivers of Margin Gains
Strong Fixed-Cost Absorption
•
Cyclical leverage (e.g., SG&A)
M&A cost synergies
Increased Operational Efficiency
•
Process improvements (e.g., LEAN)
10%
5%
• Technology investments (e.g., logistics,
telematics, CORE, etc.)
Improved Mix
• Shift towards higher margin Specialty
•
Improved segment/end-market mix
De-emphasis of low margin/return
businesses
Enhanced Used
Equipment Strategies
·
0%
+ 0%
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023(1)
Adj. EBITDA Margin (L)
Net Income Margin (R)
Industry Leading Margins Driven by Scale and Focus on
Efficiency
(1) The year-over-year decrease in net income margin primarily reflects the impact of the Ahern Rentals acquisition in 2022.
Note: Adjusted EBITDA is a non-GAAP measure. Net income margin and adjusted EBITDA margin represent net income or adjusted EBITDA divided by total revenue. See the tables
provided elsewhere in this presentation for adjusted EBITDA reconciliations to the most comparable GAAP measures. Note: 2017 net income margin excludes one-time benefit from the
Tax Act.
United Rentals®
Work United®
| 29View entire presentation