United Rentals Q2 2026 Earnings Call | Equipment Rental Sourcing Demand Expands Margins

Good morning everyone and welcome to the United Rentals Investor Conference call. Please be advised that this call is being recorded. Before we begin, please note that the company's press release, comments made on today's call, and responses to your questions contain forward-looking statements. The company's business and operations are subject to a variety of risks and uncertainties, many of which are beyond its control, and consequently, actual results may differ materially from those projected. A summary of these uncertainties is included in the safe harbor statement contained in the company's press release. For a more complete description of these and other possible risks, please refer to the company's annual report on Form 10-K for the year ended December 31, 2025, as well as subsequent filings with the SEC. You can access these filings on the company's website at www.unitedrentals.com. Please note that United Rentals has no obligation and makes no commitment to update or publicly release any revisions to forward-looking statements in order to reflect new information or subsequent events, circumstances, or changes in expectations. You should also note that the company's press release and today's call include references to non-GAAP terms such as free cash flow, adjusted EPS, EBITDA, and adjusted EBITDA. Please refer to the back of the company's recent investor presentation to see the reconciliation from each non-GAAP financial measure to the most comparable GAAP financial measure. Speaking today for United Rentals is Matt Flannery, President and Chief Executive Officer, and Ted Grace, Chief Financial Officer. I will now turn the call over to Mr. Flannery. Please go ahead, sir.

Thanks Matt and good morning everyone. As Matt just shared, the year has continued to progress better than expected as we set all-time second quarter records for total revenue, rental revenue, EBITDA, and EPS. More importantly, the increases to our 2026 guidance reflect our confidence that both the strength of demand and our team's discipline will continue in the back half of the year. But before we get into the details of the outlook, let's dive into the second quarter's results. As you saw in our press release, rental revenue increased $434 million year-over-year or 12.7% to a record of over $3.8 billion, supported again by strong execution across large projects and key verticals. Within this, OER increased by $246 million or 9% driven by 7.1% growth in our average fleet size and fleet productivity of 3.4%, partially offset by assumed state inflation of 1.5%. Also within rental revenue, ancillary and re-rent grew nearly 28% or roughly three times the rate of OER, adding a combined $188 million.

On the used equipment side, we sold $624 million of OEC in the quarter, generating $330 million of proceeds, an adjusted margin of 47.3% and a 52.9% recovery rate. So, another solid quarter there. Next, let's turn to EBITDA. Excluding the $49 million net benefit we realized this quarter from the sale of our scaffolding business, EBITDA increased $197 million to a second quarter record of just over $2 billion. This was primarily driven by a $231 million increase in rental gross profit and a $3 million increase in used gross profit. SG&A increased $39 million year-over-year, which was flat as a percent of revenue, while gross profits from other lines of business increased $2 million.

Looking at profitability on an as-reported basis, our second quarter adjusted EBITDA margin increased 70 basis points year-over-year. Excluding both the gain on sale of our scaffolding business and the outsized growth in ancillary and re-run revenues, which I think gives better insight into our core cost performance, our second quarter margins increased 40 basis points year-over-year.

Within ancillary, I'll note that we've been successful at passing through both higher fuel and delivery cost increases which have driven revenue growth but brought limited incremental margin dollars. More broadly, our team continues to execute well on cost which is helping us offset some of the ancillary impact I just mentioned as well as overall cost inflation.

Shifting to capex, we've responded to robust customer demand by investing over $2.9 billion in gross rental capex year to date, which is an increase of more than $650 million year-over-year.

Moving to returns and free cash flow, our return on invested capital of 11.8% remains comfortably above our weighted average cost of capital, while free cash flow has totaled roughly $1.15 billion year to date.

Turning to our balance sheet, net leverage remained very comfortable at 1.8 times at the end of June with total liquidity of almost $3 billion. As most of you know, a key element of our capital allocation strategy has been ensuring that we have a strong balance sheet supported by conservative financial policies. Think leverage, liquidity, and maturity management, and consistent operating performance, particularly excess free cash flow.

Along these lines, we were very pleased to see S&P recently acknowledge our progress on this front by raising our credit outlook to positive from stable, with the potential to upgrade our credit rating from high yield to investment grade within the next 12 months.

Turning to capital allocation, we have returned $998 million to shareholders year to date, including $750 million through repurchases and $248 million via dividend.

Now, let's shift to the guidance we shared last night, which reflects our confidence in delivering a record year. Total revenue is now expected in the range of 17.5 to 17.8 billion, an increase of $500 million versus our prior guidance, while used sales are still expected at around $1.45 billion. At midpoint, this now implies full-year growth of over 10% versus our original guidance of closer to 6%. In turn, we've also raised our adjusted EBITDA guidance by $300 million to a range of 7.975 to 8.125 billion, reflecting our continued expectation to bring the revenue growth to the bottom line by maintaining flat margins year-over-year. On the capex side, we've increased our gross capex guidance by $450 million to a range of 4.85 to 5.25 billion in response to the stronger demand we see. This now implies net capex of 3.4 to 3.8 billion. And finally, we are reaffirming another year of strong free cash flow in the range of 2.15 to $2.45 billion, with the increase in rental capex offset by higher cash flow from operations. On the capital allocation front, we still intend to repurchase $1.5 billion of shares in 2026. Combined with our dividend, this will return roughly $2 billion to our shareholders this year, equating to approximately $32 per share or a return of capital yield of approximately 3% based on our current share price.

So with that, let me turn the call over to the operator for Q&A. Operator, please open the line.

Thank you, Mr. Grace. Ladies and gentlemen, at this time, if you do have any questions or comments, please press star one. If you find your question has been addressed, you may remove yourself from the queue by pressing star two. Additionally, we do ask that you please limit yourself to one question and one follow-up. We'll go first this morning to David Roso with Evercore ISI.

Hi, thank you. A question on margins and a question on end demand. First on the margins, the second quarter margins exit gain were down about 40 pips year-over-year. The implied second half margins are up year-over-year 10 to 20 bits. What are the swing factors when you think about labor absorption, delivery, repositioning cost, some of the restructuring savings? To think about that swing from the down margins to up a bit in the second half of the year. And then for the end demand, I was intrigued by the comment historically high time utilization, right? We're starting to see the industry add capacity again. And you always wonder about supply-demand balances when we get a recovery in the capex numbers. That historically high time utilization comment given the nature of large projects, more long-dated, is some of the capex increase providing you confidence to do it, to give them visibility on '27? Are you starting to get a better look at '27 on the demand at this high time utilization? Can you stay at a pretty high level even as you're adding capex? Thank you.

Yeah, on the margin side, David, I'd say a couple things. I mean certainly if we look at how we started the first half of the year, we're up about 10 basis points on an underlying basis. So the team's doing a great job of managing that. Certainly we would expect that kind of performance to continue in the back half. There's always going to be normal quarter-to-quarter variability. If you think about the second quarter in the context of your question, but certainly we feel confident that the team is doing everything we've asked of them and has us in a good position to achieve our goal for the year, which is flat margins excluding the impact of H&E last year.

Would you mind just a little more color? Do you see the spread that it widened in the second quarter, ancillary outgrowth versus OER growth? Do you see that spread narrowing to take a little pressure off that mix? Is there delivery repositioning costs? Maybe some quantification to have a think about that. Again, just trying to give a few building blocks on that. I know the volume improvement. Thanks.

It won't surprise anybody to know that it has been difficult to forecast ancillary. We did see another outsized growth in the second quarter. In terms of the third quarter, we'll see what happens there. Certainly, fuel is part of that. Our expectation is that fuel prices probably remain constant, second quarter versus third quarter. And certainly that will have some impact on where we fall within the range. But otherwise, we expect to have another strong quarter of growth, solid fleet productivity, and good cost execution that we think puts us in a good position to hit our goals.

Thank you very much. I appreciate it.

Thanks David. Thank you. We'll go next now to Rob Warheimimer with Melius Research.

Hey, thanks and good morning. Question is a little bit on, and I know you don't want to disaggregate fleet productivity, I get it, but you know the decision to add capacity, where you kind of want it to be or is it getting there fast? Your margins actually are quite good, not quite at peak. I don't know if you have an ambition of growing off where peak was, just that balance between rate and traffic is my first question.

Perfect. Thank you. And just the other one is just on margin. Obviously from our side of the table, hard to forecast some of the transportation costs etc. that come as the industry has evolved to serve a little bit more bigger projects. With the rise in demand, does that risk fall further back because for one, you're kind of coping some of those issues and for two, you can kind of shift more fleets to new projects, or should I think about that as being ongoing minor unpredictability? I'll stop there.

Certainly, I'd say our ability to predict it is challenged just given the nature of these projects, right? Some of the timing dynamics we've talked about. That being said, we've talked about the initiatives and the effort we've really kind of leaned into this year. And I think if you were to look at the delivery costs, the team's done a great job. If you look at costs, our big three costs within core, so labor, delivery, and R&M, and this is all in the segment disclosure, you can see we're actually ahead of the curve on all three. We were in the second quarter and we are year-to-date. So from that perspective, it takes a lot of effort. The team is finding ways to be more efficient in the face of ongoing repositioning costs. We expect to continue to see good results there, Rob. But in fairness, that was kind of the one, probably the biggest point of variability we thought about at the beginning of the year and we talked about the need to offset it through some of the cost actions we're taking.

Thank you.

Thanks, Rob. Thank you. We go next now to Michael Sineer with Bank of America.

Yep. Hey guys, thanks for squeezing me in. Matt and Ted, I know we talked about the margins. Just you obviously saw headwinds last year on delivery cost. You made some adjustments this year. You have cost savings. Is there anything you're observing this year that you guys are highlighting that there's more levers to pull to think about that for 2027? Ted maybe you could kind of outline the headwind you're absorbing this year or in the quarter just on fuel alone. It doesn't seem like that would be there next year. Just trying to see if this absorption on labor and R&M can keep improving as we look forward into next year.

Yeah. So in the quarter itself, if you just think about the incremental fuel costs we absorbed running the business. So this would be fuel used in service trucks, sales vehicles, managed vehicles etc. that was probably in isolation 20 or 30 basis points of additional headwind year-over-year versus what you would have seen even in the first quarter where there was very little fuel effect. We'll see obviously how geopolitics play out and what happens with oil markets and diesel and gasoline prices, but certainly that would be one thing. And the other thing we've talked about, at some point local markets come back and then we're better able to leverage the network, and that should help us on the delivery cost side, specifically that repositioning cost that certainly was something we talked about a lot in 2025 and is something we're still managing through in 2026.

And Matt, just to follow up, just the verticals like utilities and let's say power, what type of growth are you seeing there today? How big is this for you? Is there any way for us to size that? Are you one of the biggest power rental fleets out there? And when you think of M&A with your leverage, is this an area that you're looking at to get bigger in? Just kind of curious what you're seeing there on these verticals and how we could think about sizing that up.

Thank you.

Thank you. We go next now to Steve Fiser with UBS.

Great. Thanks. Congrats. Just a bigger picture question about repositioning costs relative to capex. I think part of the margin headwind you've had to deal with over the last 18 months or so is incurring costs to reposition compared to what you're actually shipping from the OEM factories to projects. And you can correct me if I'm wrong on that, but now that you're ramping up capex again, I'm curious to what extent does that help the relative impact of repositioning on margins? Maybe it depends on whether we're talking about gross margins or EBITDA margins here, but just wondering if you can get some margin help from ramping up capex versus repositioning. And then, when do you think we could get to a point where we really don't need to call out the repositioning impact anymore? Are sort of more normalized.

Yeah, I to point, I think it's hard to quantify the repositioning cost this year. Last year it was easier because that relationship between delivery growth and rental revenue growth was obviously unusual in the fact that we had 20% growth in delivery cost versus 6 or 7% growth in rental revenue, and that implied something like $115 million of excess cost that we absorbed. When you do that math now, you'd see that in the second quarter, for example, rental revenue up 12.7%, delivery up 11.7%. So we do have that repositioning cost continues to be something we're working through. We have found ways elsewhere to absorb it, right? And we talked a lot about behavioral changes across the team to make sure that we are emphasized on balancing customer service with efficiency, and they've done a great job year to date. We've got to keep it up, right? This is something we've got to maintain in the back half of the year to hit our goals. Otherwise, it's hard to quantify, and I think as Matt alluded to, certainly capex is one way you can address it, but you've got to do it in a capital-efficient manner, and when you decompose fleet productivity, you can see that time was a positive good guy again, so we continue to do that quite effectively as well.

Really helpful. And just curious how hard is it for suppliers to react to more of the demand you're asking for here? Is the challenge that they're getting more broad demand across the rental industry, or is it just sort of larger projects that they're able to serve? Because it's really just larger projects they need to serve, or is it broadly across the industry?

Terrific. Thank you. Thanks.

Thank you. We go next now to Jerry Revich with Wells Fargo.

Yes. Hi. Good morning everyone. Nice to see the specialty asset grow by about a billion dollars plus and really nice growth in the branch count. I'm wondering can you just unpack that for us? What part of the specialty portfolio have grown the fastest over the past 6 to 12 months and then the capex outlook in the back half of the year? How much more can we grow the asset base within specialty specifically with the capex raise?

Yeah, I'll do my best to help with some of that and Matt can jump in. Certainly, we've talked about all seven parts of the specialty business growing well this year. I'll tell you they're all in the double digits. It's hard to compare and contrast them on an apples-to-apples basis because some are younger and we're building out scale. So you would think about mobile modular, mobile storage, you would think about ROS in that context? Yeah, absolutely. Those are, I'd say statistically putting up probably the strongest growth, but they're also the smallest in the context of the business. To Matt's prior point, you think about the power and HVAC business that is also putting up very strong growth. Teams are doing a great job executing, strong end market demand, and everything in between. So, certainly fluid solution is doing a great job, trench and safety is doing a great job, and tools. So really, and Matting I should absolutely include Matting.

Super. Thank you. And can I just ask from an end market standpoint? You mentioned large projects really strong. Semis and electronics have been one end market that's been in decline since 24 now inflecting positively. Are you starting to deliver more equipment onto the next round of semi fab sites? Is that an uptick in the business this year? Is that still in front of us? And you know similar question in power the big behind the meter data center actually construction plans are set to accelerate next year. I'm wondering have you already started delivering equipment on sites there? Has that accelerated in your mix?

Thank you.

Thank you. We go next now to Kyle Mingz with Cityroup.

Great. Thank you, guys. Um that you're now growing revenue 10% this year with pretty much no help from local markets. So I'm curious in your mind just with the pipeline of mega projects out there and that visibility you have um how you think you can grow maybe in the next couple years um if mega sorry if local markets do come back and would be helpful to hear an update on what you're seeing in local markets this year as well.

Gotcha. And then would also just be helpful to hear your latest thoughts on the M&A pipeline, how strong it is, and assuming you're still targeting specialty deals. Curious if there's any of size in the existing pipeline. Thank you.

Thank you. We'll go next now to Ken Newman with Key Capital Markets.

Hey, good morning guys. Congrats on the nice quarter. Thank you. Um yeah, maybe first just a clarification on the rate question from earlier in the call. You know, I know you guys don't quantify all the components of fleet productivity, but just given where we've seen used prices in the secondary market, is it fair to assume that you'd expect some improvement in sequential rental rates into the back half or just how do you think about the opportunity for rental rate improvement to go forward?

Yeah, we feel that the supply demand dynamics are positive to drive fleet productivity. We've talked a little bit how time was up and a little bit of a surprise for us, but rate is a good guy and we expect it to continue and in this kind of demand environment that should be the case especially when you're offsetting inflation. So we do feel good about the opportunity to drive all components of fleet productivity positive.

Very helpful. Okay. And then for my followup here, if I remember from your analyst day a few years ago, you mentioned maybe some new product opportunities and specialty. I think you had multiple pilot programs for new specialty applications. Any comments or commentary just about how those pilots are progressing or if you're seeing any traction in something where you feel like you can maybe lever up and do an acquisition to gain some scale there.

Thanks.

We'll go next now to Seth Weber with BNT Paribus.

Hey guys, good morning. Um, hey, I wanted to go back to your rate comment. I know we're not giving specifics around rate, but can you just highlight, I know you've talked about implementing some AI into your pricing and rate calc. Can you talk about where we're at with that and whether that's contributing at this point to the rate progression or if that's really still on the come? Thanks.

Yeah, I guess what I'd say is that the team has a lot of tools to try to maximize the rate we're realizing on any given transaction. Certainly there's some things that we're working that are really in pilot mode, but I think when we really take a step back and we think about the environment today, we've long talked about a very constructive environment where you're seeing good discipline across the industry on the supply demand front. Um, and that is probably the biggest factor currently driving successive rates across the industry in my opinion. This not to say the tools aren't important. They are and we think incrementally they'll be more and more valuable to us. But right now what you've seen is that discipline that is critical. So Matt, I don't know if you'd add anything there.

Got it. Okay. Thanks. And then just going back to I think David asked a question just on the cost savings. And I think it was you kind of ring fenced around 10 million in the first quarter. Is that a similar number here for the second quarter and should we just think about that as ratable through the year, 10 to 15 million a quarter in savings, or does it accelerate?

Yeah, that's a reasonable way to think about it. I would say we'd estimate internally the second quarter benefit was on the order of about 12 million. Um, which is effectively that annualized run rate. We talked about achieving 45 to 50 of realized savings in 2026. Uh, and so we're basically at that run rate. You saw in the quarter we took another 6 million of charges. So we're now running at 51 year to date. And for the full year we thought those charges would be 55 to 65 still our expectation. And so everything really is going to plan on all those restructuring activities. Matt, anything you'd add there?

Got it. Thanks, guys. Appreciate it.

We'll go next now to M Dobé with Baird.

Thanks for taking the question. Good morning. Um, going back to your comment about record time utilization. Um, congrats on that. I'm sort of curious based on everything that you know competitively about the industry, the benchmarking that you do. Is this record time utilization condition just specific to your business? Certain things that you guys are doing that are just sort of idiosyncratic or would you say that the industry as a whole is in a position where equipment supply versus demand is just kind of reaching this balance where you're getting good broad utilization?

That's helpful. And maybe to ask Kyle's question a little bit different, if this is the case and we're seeing just utilization more broadly in the industry get better, if at a point in time we do have say for instance a little bit of help from lower rates, some recovery in local markets, how do you think about the capacity of the industry and your suppliers to be able to scale up to meet that incremental demand?

All right, good luck. Thank you.

We'll go next now to Jamie Cook with Truist.

Hey, good morning. Nice quarter. Um I guess two questions. You know Ted clearly now with markets in recovery trying to think about if you could update us on your thoughts on setup for incremental margins this cycle obviously we have ancillary which is a headwind, we don't have noise from acquisitions and sounds like the bare case on rental really shouldn't be there anymore, I don't know if investing on tech goes up or if that's a positive relative to the aspirational targets you laid out at your analyst day of the 50 to 60%. And then my second question with markets in recovery and it sounds like suppliers can ramp but only to a certain degree, to what degree do you think that the industry would look to use acquisitions or consolidate in order to get fleet? Thank you.

Yeah, I'll take the first part Jamie and Matt can take the second. On the margins. We've long said our goal is to drive margin expansion. Um, and I think if you look at our year-to-date results and certainly the second quarter results included within that, we're doing that on an underlying basis. And that to us is the most important way to measure our business internally. So, just to go through a bridge, you'd see the as reported margins being up 70 basis points year. When you back out the gain, they're down 40. I think David made that point. That includes that outsized growth from ancillary and rerent. If we adjust for that, just that outsized growth, the margins were up 40 basis points year on year, even while we included or absorbed, excuse me, a 20 to 30 basis points from the higher fuel price. Again, that's the internal consumption piece. So, that to us is indicative for the underlying cost performance of the business and gets to that goal we've talked about. Um and when you look at those big three metrics across cost of rental here again labor delivery R&M all showing positive absorption year to date and in the second quarter. So as we roll that forward, we think the core should continue to drive margin expansion. Things that are to some degree outside our control like how we serve customers with ancillary will be impactful. That said, these are things customers are asking us to do and frankly they're part of what's driving the strong growth. If you look at ancillary being up or sorry specialty being up 25%. The underlying market is not up 25%. We are certainly outpacing the market and we think to some degree that's driven by the fact that we are being selected as this partner of choice, key part of our strategy for doing these small things. So we're not going to shy away from them. We're going to support customers. We're going to take advantage of that strategic focus and then explain to people what that ultimate impact may be on margins. So we can dig into any of that, but hopefully that gives you at least a sense for how we're thinking about the business going forward.

And sorry, one quick one. Of the capex increase, what was gen versus specialty implied in the increase in forecast?

Uh we haven't broken that out, but you could assume you see the growth of each of those. You could assume that there's a lot of specialty growth within that complex summer.

Okay. Thank you.

Thank you. We'll go next now to Anel Castillo with Morgan Stanley.

Hi, good morning. Thanks for taking the question. Little bit of a bigger picture. I guess just wanted to go back to the comment that you could potentially get upgraded to investment grade over the next 12 months. Can you just talk about how important that is to your capital allocation strategy? Just the reason I asked because your leverage is at this point is kind of near its historical lows and continuing to decline with this very strong fundamental performance. So I'm curious how you perhaps weigh that investment grade opportunity versus opportunity to get upgraded versus opportunities of M&A or more buybacks.

Amazing. Super helpful. Um and then I wanted to ask just on the cap backs front. You mentioned, if you wanted another billion worth of fleet that you probably would be a little bit challenged in getting that. So just curious, one, can you talk about maybe where in particular in your fleet or type of products that you might be sourcing there is a little bit more tightness. I think over the last year or so, you've certainly talked about more availability of fleet from the supplier. And then a little bit of a preliminary into 27. Just curious, as you see this demand backdrop, the backlog I believe you've talked in the past about mega projects giving you more like a 12 to 18 month kind of visibility. So as you see all of that and this tightening in the supply base, how are you thinking about your capex needs at least at a high level for next year versus perhaps some of this increased capex this year being able to set you up for that growth next year. Thank you.

And then just in the in the 1 billion of the fleet like or where where there's tightness.

Very helpful. Thank you.

Thank you. We'll go next now to Sabah Khan with RBC Capital Markets.

Great. Thanks and good morning. So just I guess on the H2 guidance, obviously the numbers are moving higher versus your initial expectations, was this maybe a little bit of you waiting to see how the demand backdrop evolved or did something really inflected? I know we talked a little bit about some of the non-data center markets, but it does look like fleet productivity comps are getting easier in the back half. Was it you just waiting for some confidence in the market before sort of kicking that up? And then maybe if you can just share some thoughts around just kind of the expected cadence for the numbers if you can based on the comp last year. Thanks.

Great. And then there's a sort of discussion earlier in the call around just how the some of the incremental costs around repositioning are being absorbed. You know, if we bring it all together, is that just a function of look at the at this point, given it's been going on for a while, you've been able to adjust your business, reduce costs, and get customers to sort of take some of those increases, or is it just the demand backdrop is so strong, you're able to maybe price for it better. Just trying to think through how we should expect the transportation cost evolution for the next few quarters or, you know, that's built in now, the rates are in good place, and you're comfortable with the margin outlook.

Yeah, I would say it's the former. It's a lot of hard work, right? So, it's really deep diving on our processes. I mean, let's face it, when something gets away from you, so to speak, you got to look at it differently. So, I would say it's just a lot of change in how we address it, a lot of coordination and frankly more eyeballs and elbow grease on it. So, the team's done a really good job offsetting it. And as I said earlier, you'd have to assume I don't have the math directly behind it, but with fuel increases alone, our cost per mile has to be up. So to get that kind of positive absorption is really more process change and execution from the field.

Thanks so much.

We'll go next now to Tammy Zakaria with JP Morgan.

Hi, good morning. Um, I have a follow-up question on your rental revenue. It's growth accelerated to 13% and year-to-date it's up almost 11. So, is there a reason to expect rental revenue growth to slow down from the year-to-date double-digit rate? Or ask another way, what is your expectation of rental revenue growth for the next two quarters?

So, thanks for the question, Tammy. And you can kind of see the range of growth that's implied across our range. Uh so on the one hand, we always encourage people not to anchor at the midpoint. On the other hand, we inevitably these conversations start there. But we would point people towards the range. So we think any reasonable set of outcomes certainly if you think about the back half and probably the parts that could most reasonably drive the greatest part of volatility it's probably things around ancillary and rerun where you saw that accelerate obviously in the second quarter that has proven very difficult to predict as we talked about earlier in the call. So we did see a nice acceleration in OEER and that's important and certainly we see strong demand backdrop in the back half. So, we're optimistic about that. But in terms of where we fall out in the range, I say we'll have an update for you in October, but we will.

Got it. Another question on your local market demand or the industry local market demand. In your view, what's holding it back from materially strengthening after staying stable for several quarters? Is it housing that needs to come back? Is it interest rates? Is it inflation that needs to come down? So what can perk up this end market?

Understood. Thank you.

We'll go next to Chad Dillard with Bernstein.

Hey, good morning guys. Um, so Matt, in your prepared remarks, you talked about demand outpacing original expectations and I was hoping you could talk about the practice of surprise on two axes. So, first of all, maybe by business segment and then second by end market.

Great. That's helpful. Um and then second question on your return on invested capital. Can you talk about the path to improving it and let's just simply decide just the market but talk about what United can do itself. I mean you can break down your efforts by general versus specialty.

Great. Thank you.

Thank you. And ladies and gentlemen, that's all the time we do have for questions this morning. At this time, Mr. Flannery, I'll turn things back to you, sir, for any closing comments.

Thank you, Mr. Flannery. Thank you, Mr. Grace. Again, ladies and gentlemen, this will conclude today's United Rentals conference call. Again, thanks so much for joining us, everyone. We wish you all a great day. Goodbye.