Rising Revenue Growth in Equipment Rentals: Insights for Business Owners

Equipment Rental: A Growing Market

As the construction landscape evolves, the demand for rental equipment continues to drive revenue growth for major companies in the industry. Recent reports highlight significant year-over-year revenue increases for power players such as United Rentals, Ashtead Group (parent of Sunbelt), and Herc Rentals, reflecting broader trends influencing the construction sector.

Herc Rentals: Significant Growth Despite Setbacks

In the second quarter of 2025, Herc Rentals saw total revenues surge by 18%, exceeding $1 billion. This robust performance stemmed from a 14% boost in equipment rental revenues, bolstered by their strategic acquisition of H&E Rentals. However, it's worth noting that Herc faced an overall net loss of $35 million during this quarter, in stark contrast to a net profit of $70 million the previous year. While the figures show resilience, they also underscore the challenges post-acquisition as the company navigates integration and equipment depreciation, up by 18% due to a larger fleet size.

The Performance of United Rentals

Conversely, United Rentals reported a more tempered yet solid revenue increase of 4.5% year-over-year, reaching $3.9 billion for the second quarter. Their equipment rental revenue climbed 6.2% to $3.4 billion. While not as aggressive as Herc's growth, this increase reflects a stable demand amidst fluctuating market conditions. It’s notable that sales from rental equipment plummeted by 13.2% in the same period, hinting at changing dynamics in purchasing behaviors.

Understanding The Market Forces

The growth in equipment rental revenue is intricately tied to several factors, including an increased need for cost-effective solutions among property developers, general contractors, and facility managers. As these professionals often face budget constraints, opting for rentals over purchases significantly reduces upfront costs. Furthermore, the rise in sustainability trends is prompting businesses to seek flexibility in resources, enhancing the appeal of rental options.

Future Trends in Equipment Rental

Looking ahead, industry experts forecast continued revenue growth for the equipment rental sector, with Herc Rentals projecting revenues between $3.7 billion and $3.9 billion for fiscal 2025. This optimistic outlook is fueled by ongoing investments in technology and smart solutions within the sector, enabling better asset utilization and operational efficiencies. Property developers and project managers should keep their sights on evolving technological enhancements that could streamline their operations and rental processes.

The Role of Technology in Construction

Darren Washington, a seasoned analyst in construction technology, emphasizes that technology, particularly in Building Information Modeling (BIM), is reshaping how equipment is rented and managed. As businesses embrace digitization, the ability to monitor equipment usage and streamline rental logistics will likely play a pivotal role in improving service delivery and maximizing revenue potential.

Making Smart Rental Decisions

For business owners and property developers, the focus should be on understanding the shifting dynamics in equipment rental. With the data reflecting recovery and growth alongside rising costs, savvy stakeholders will look for ways to leverage rental models that not only optimize expenses but also align with sustainability practices. It’s essential to engage with trusted rental companies that can offer deep insights into equipment needs while providing robust support for construction projects.