{"schemaVersion":1,"research":true,"symbol":"uri","name":"United Rentals","topic":"moat","path":"/stock/uri/moat","status":"published","version":4,"updatedAt":"2026-10-18T13:12:52.545Z","locked":false,"publicFairValue":false,"fairValue":null,"moat":{"verdict":"narrow","summary":"United Rentals has a narrow moat from purchasing scale, fleet breadth and branch coverage that support equipment availability and redeployment. Its operating footprint and demonstrated fixed-cost absorption support a current advantage, although comparative procurement savings remain issuer assertions. Customer engagement supports service relevance but does not establish strong switching costs. Pricing power is weakly evidenced: historical competitive pressure and realized used-equipment pricing normalization constrain the assessment, while 2026 operating improvement does not establish rental-rate control.","advantages":[{"mechanism":"cost_advantage","claim":"A large fleet and extensive branch network support purchasing economies, broad equipment availability and asset transfers across local markets. Actual fleet scale and improved fixed-cost absorption support a current operating advantage; superior procurement terms and equipment reliability versus competitors remain management assertions.","durability":"The established physical footprint and capital required to reproduce its breadth support some persistence. Stable estimated market share and continued fleet investment support a narrow advantage, but the passages do not demonstrate exceptional durability or quantify competitors' cost disadvantages.","risks":"Fragmented competition constrains rental-rate protection. Equipment inflation, transport costs, cyclical demand and capital requirements can weaken scale economics. Actual 2025 margin erosion and continued specialty margin compression show incomplete protection from cost and mix pressures.","invalidation":"The thesis would weaken materially if comparable-period disclosures showed sustained market-share losses alongside deteriorating utilization or cost absorption despite continued fleet investment, or if procurement and redeployment savings ceased to offset their associated financing, maintenance and transport costs.","competitors":[],"evidenceIds":["e1","e2","e3","e4","e5","e6","e7"],"counterEvidenceIds":["e8","e9","e10","e11","e12","e13"]}],"evidence":[{"id":"e1","sourceId":"filing-1","location":"Business—Significant Purchasing Power","excerpt":"Significant Purchasing Power. We purchase large amounts of equipment, contractor supplies and other items, which enables us to negotiate favorable pricing, warranty and other terms with our vendors."},{"id":"e2","sourceId":"filing-1","location":"Business—Large and Diverse Rental Fleet","excerpt":"Our large and diverse fleet allows us to serve large customers that require substantial quantities and/or wide varieties of equipment."},{"id":"e3","sourceId":"filing-1","location":"Business—Geographic and Customer Diversity","excerpt":"Geographic and Customer Diversity. We primarily operate in the United States and Canada, and have a smaller presence in Europe, Australia and New Zealand, and our global branch network includes 1,768 rental locations."},{"id":"e4","sourceId":"filing-2","location":"MD&A—Fleet original equipment cost and branch network","excerpt":"These include a fleet of rental equipment with a total original equipment cost (“OEC”) of $23.8 billion, and a North American branch network that operates in 49 U.S."},{"id":"e5","sourceId":"filing-2","location":"MD&A—Claimed purchasing, service and redeployment advantages","excerpt":"Our size also gives us greater purchasing power, the ability to provide customers with a broader range of equipment and services, the ability to provide customers with equipment that is more consistently well-maintained and therefore more productive and reliable, and the ability to enhance the earning potential of our assets by transferring equipment among branches to satisfy customer needs."},{"id":"e6","sourceId":"filing-2","location":"MD&A—Six-month general rentals cost performance and fixed-cost absorption","excerpt":"Gross margin increased primarily due to better cost performance and fixed cost absorption on higher revenue, as reflected in reductions in depreciation and labor and benefits expenses as a percentage of revenue."},{"id":"e7","sourceId":"filing-1","location":"Business—Estimated North American market share","excerpt":"Our estimated North American market share of approximately 15 percent as of December 31, 2025, which is based on industry estimates (excluding party and event rentals) from the ARA, did not change materially from our market share as of December 31, 2024."},{"id":"e8","sourceId":"filing-1","location":"Competition—Limitations on mitigating rental-rate pressure","excerpt":"The fragmented nature of the industry and our relatively small market share, however, may adversely impact our ability to mitigate rental rate pressure."},{"id":"e9","sourceId":"filing-4","location":"Risk factors—Historical adverse effects of competitive pressure","excerpt":"Competitive pressures have in the past adversely affected, and could again in the future adversely affect, our revenues and operating results by, among other things, decreasing our rental volumes, depressing the prices that we can charge or increasing our costs to retain employees."},{"id":"e10","sourceId":"filing-1","location":"Note on segment information—2023–2025 revenue, rental margins and capital expenditures","excerpt":"60 Table of Contents Year Ended December 31, 2025 2024 2023 General rentals Specialty Total General rentals Specialty Total General rentals Specialty Total Equipment rentals $9,165 $4,641 $13,806 $8,945 $4,084 $13,029 $8,803 $3,261 $12,064 Sales of rental equipment 1,216 197 1,413 1,328 193 1,521 1,411 163 1,574 Sales of new equipment 199 149 348 159 123 282 95 123 218 Contractor supplies sales 87 76 163 87 68 155 89 57 146 Service and other revenues 334 35 369 326 32 358 299 31 330 Total revenue (1) 11,001 5,098 16,099 10,845 4,500 15,345 10,697 3,635 14,332 Equipment rentals gross profit (see calculation below) 3,225 2,023 5,248 3,232 1,966 5,198 3,219 1,595 4,814 Equipment rentals gross margin 35.2% 43.6% 38.0% 36.1% 48.1% 39.9% 36.6% 48.9% 39.9% Capital expenditures (2) 3,409 1,159 4,568 3,102 1,028 4,130 3,051 813 3,864 Calculation of equipment rentals gross profit: Equipment rentals 9,165 4,641 13,806 8,945 4,084 13,029 8,803 3,261 12,064 Less: Depreciation of rental equipment (2,021) (649) (2,670) (1,968) (498) (2,466) (1,989) (361) (2,350) Significant/all other rental expenses (3): Labor and benefits (4) (1,637) (524) (2,161) (1,576) (442) (2,018) (1,519) (377) (1,896) Repairs and maintenance (848) (239) (1,087) (830) (211) (1,041) (827) (176) (1,003) Delivery (514) (473) (987) (472) (350) (822) (448) (269) (717) All other rental expenses (3) (920) (733) (1,653) (867) (617) (1,484) (801) (483) (1,284) Equipment rentals gross profit 3,225 2,023 5,248 3,232 1,966 5,198 3,219 1,595 4,814 Reconciliation of equipment rentals gross profit to income before provision for income taxes: Gross profit from other lines of business 896 952 999 Selling, general and administrative expenses (1,732) (1,645) (1,527) Restructuring charge (5) (1) (3) (28) Non-rental depreciation and amortization (438) (437) (431) Interest expense, net (716) (691) (635) Other income, net (6) 81 14 19 Income before provision for income taxes $3,338 $3,388 $3,211 December 31, 2025 December 31, 2024 December 31, 2023 General rentals Specialty Total General rentals Specialty Total General rentals Specialty Total Total assets (7) $21,787 $8,079 $29,866 $21,044 $7,119 $28,163 $20,411 $5,178 $25,589 ___________________ (1)Includes immaterial intersegment revenues."},{"id":"e11","sourceId":"filing-2","location":"MD&A—Second-quarter and first-half segment rental margins","excerpt":"Segment equipment rentals gross profit and gross margin were as follows: General rentals Specialty Total Three Months Ended June 30, 2026 Equipment Rentals Gross Profit $ 865 $ 636 $ 1,501 Equipment Rentals Gross Margin 35.8 % 44.4 % 39.0 % Three Months Ended June 30, 2025 Equipment Rentals Gross Profit $ 796 $ 525 $ 1,321 Equipment Rentals Gross Margin 35.1 % 45.8 % 38.7 % Six Months Ended June 30, 2026 Equipment Rentals Gross Profit $ 1,618 $ 1,129 $ 2,747 Equipment Rentals Gross Margin 34.8 % 43.1 % 37.8 % Six Months Ended June 30, 2025 Equipment Rentals Gross Profit $ 1,475 $ 976 $ 2,451 Equipment Rentals Gross Margin 33.8 % 44.5 % 37.4 % General rentals."},{"id":"e12","sourceId":"filing-1","location":"Risk factors—Historical and potential transport-cost exposure","excerpt":"Accordingly, our business in the past has been, and in the future could be, adversely affected by limitations on fuel supplies or significant increases in fuel prices that result in higher costs to us for transporting equipment from one branch to another branch."},{"id":"e13","sourceId":"filing-1","location":"Risk factors—Realized increases in new-equipment costs","excerpt":"The costs of new equipment we use in our fleet have increased, and may continue to increase, requiring us to spend more for replacement equipment or preventing us from procuring equipment on a timely basis."},{"id":"e14","sourceId":"filing-3","location":"Executive compensation—2025 customer experience and digital-adoption outcomes","excerpt":"Scope 3 emissions from third-party haulers were higher than expected due to increased third-party hauling activity related to mega-project activity and our matting business Excluding Scope 3 emissions, forecasted 33.5% reduction in Scope 1 and 2 GHG emissions intensity from 2018 baseline, which is above the goal Customer Experience Customer Experience: Net Promoter Score (“NPS”) NPS score greater than or equal to 72.6 Met goal and achieved greater than 1.5 percentage point improvement year-over-year Customer Digital Adoption: Percentage of total Company revenue where a customer used a digital tool within the last 90 days 76% adoption rate Met goal, with a 77.5% adoption rate Human Capital Employee Safety: Total Recordable Incident Rate (“TRIR”) TRIR at or below .65 Fell short of stretch goal with 0.75 TRIR; however, we improved 7.4% year-over-year against strong performance in 2024 Employee Engagement: Employee engagement Net Promoter (“eNPS”) survey results Overall eNPS remains in the top 10% of the Peakon Benchmark Met goal; earned overall eNPS in the top 5% or 10% of the Peakon Benchmark for all surveys conducted during 2025 Employee Retention: Improvement in overall employee retention Voluntary turnover at or below 11.5% Met goal, with 10.8% voluntary turnover 49 Based on the NEOs’ collective achievements against the metrics in the framework, the Committee may, in its own discretion, decide to adjust each NEO’s funding level upward or downward in the range of 90% to 110% of the initial funding amount."},{"id":"e15","sourceId":"filing-2","location":"MD&A—Comparative segment rental revenue","excerpt":"Revenues by segment were as follows: 32 Table of Contents General rentals Specialty Total Three Months Ended June 30, 2026 Equipment rentals $ 2,418 $ 1,431 $ 3,849 Sales of rental equipment 284 46 330 Sales of new equipment 39 47 86 Contractor supplies sales 25 19 44 Service and other revenues 89 12 101 Total revenue $ 2,855 $ 1,555 $ 4,410 Three Months Ended June 30, 2025 Equipment rentals $ 2,268 $ 1,147 $ 3,415 Sales of rental equipment 272 45 317 Sales of new equipment 49 26 75 Contractor supplies sales 22 19 41 Service and other revenues 87 8 95 Total revenue $ 2,698 $ 1,245 $ 3,943 Six Months Ended June 30, 2026 Equipment rentals $ 4,647 $ 2,621 $ 7,268 Sales of rental equipment 585 95 680 Sales of new equipment 87 83 170 Contractor supplies sales 46 38 84 Service and other revenues 173 20 193 Total revenue $ 5,538 $ 2,857 $ 8,395 Six Months Ended June 30, 2025 Equipment rentals $ 4,367 $ 2,193 $ 6,560 Sales of rental equipment 602 92 694 Sales of new equipment 92 53 145 Contractor supplies sales 42 35 77 Service and other revenues 168 18 186 Total revenue $ 5,271 $ 2,391 $ 7,662 Equipment rentals represented 87 percent of total revenues for the three months ended June 30, 2026."},{"id":"e16","sourceId":"filing-3","location":"2025 performance discussion—Margin decline and used-equipment pricing normalization","excerpt":"Adjusted EBITDA margin(2) decreased 120 basis points to 45.5%, primarily reflecting 1) decreased gross margin from equipment rentals (excluding depreciation and stock compensation expense) and 2) decreased gross margin from sales of rental equipment (excluding the adjustment for the impact of the fair value mark-up of acquired fleet), which primarily reflected the normalization of the used equipment market, including pricing, partially offset by 3) the impact of the H&E break-up fee."},{"id":"e17","sourceId":"filing-2","location":"MD&A—Specialty margin effects from ancillary and re-rent revenue mix","excerpt":"Gross margin decreased primarily due to changes in revenue mix driven by growth in lower-margin ancillary and re-rent revenues, partially offset by a reduction in labor and benefits expenses as a percentage of revenue."},{"id":"e18","sourceId":"filing-3","location":"2025 financial highlights—Operating cash flow and free cash flow","excerpt":"Furthermore, we generated $5.2 billion of net cash from operating activities and $2.2 billion of free cash flow(1)."},{"id":"e19","sourceId":"filing-2","location":"Condensed consolidated statements of cash flows—First-half 2026 spending, financing and cash generation","excerpt":"CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (In millions) Six Months Ended June 30, 2026 2025 Cash Flows From Operating Activities: Net income $ 1,284 $ 1,140 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 1,615 1,510 Amortization of deferred financing costs and original issue discounts 8 8 Gain on sales of rental equipment (314) (313) Gain on sales of non-rental equipment (7) (10) Gain on sale of business (1) (49) — Insurance proceeds from damaged equipment (23) (23) Stock compensation expense, net 79 70 Restructuring charge 51 1 Debt related activity (2) — 13 Increase (decrease) in deferred taxes 220 (38) Changes in operating assets and liabilities, net of amounts acquired: (Increase) decrease in accounts receivable (272) 5 Increase in inventory (54) (41) Decrease (increase) in prepaid expenses and other assets 30 (114) Increase in accounts payable 623 529 Increase in accrued expenses and other liabilities 114 16 Net cash provided by operating activities 3,305 2,753 Cash Flows From Investing Activities: Payments for purchases of rental equipment (2,720) (2,121) Payments for purchases of non-rental equipment and intangible assets (165) (182) Proceeds from sales of rental equipment 680 694 Proceeds from sales of non-rental equipment 26 31 Insurance proceeds from damaged equipment 23 23 Purchases of other companies, net of cash acquired (400) (16) Proceeds from sale of business (1) 82 — Purchases of investments — (1) Proceeds from sales of investments 3 — Net cash used in investing activities (2,471) (1,572) Cash Flows From Financing Activities: Proceeds from debt 4,503 4,829 Payments of debt (4,594) (4,952) Payment of contingent consideration (18) (23) Common stock repurchased, including tax withholdings for share-based compensation (816) (720) Payments of financing and other debt related costs (2) (1) (14) Dividends paid (248) (235) Net cash used in financing activities (1,174) (1,115) Effect of foreign exchange rates (7) 25 Net (decrease) increase in cash and cash equivalents (347) 91 Cash and cash equivalents at beginning of period 459 457 Cash and cash equivalents at end of period $ 112 $ 548 Supplemental disclosure of cash flow information: Cash paid for income taxes, net $ 158 $ 540 Cash paid for interest 342 339 11 Table of Contents (1)See note 3 to the condensed consolidated financial statements for a discussion of the gain recognized upon sale of part of our scaffolding business."},{"id":"e20","sourceId":"filing-3","location":"2025 financial highlights—Leverage target and liquidity","excerpt":"At year-end, our net leverage ratio was 1.9x, which was within our leverage target range of 1.5x-2.5x, and we had total liquidity of $3.3 billion."},{"id":"e21","sourceId":"filing-2","location":"Financial overview—Completion of prior repurchase program","excerpt":"This program was completed in the first quarter of 2026."},{"id":"e22","sourceId":"filing-3","location":"Executive compensation—Actual 2025 revenue and ROIC performance against PRSU targets","excerpt":"2025 Performance Metrics ($M) Payout Level % of Target Total Revenue (50% weighting)(1) ROIC (50% weighting)(1) Maximum 200% $16,598 13.47% Target(2) 100% $15,881 12.29% Threshold 50% $14,626 10.18% Actual(1) $16,114 11.72% 132.6% of Target 86.5% of Target Earned Amount 109.5% of Target (1) For purposes of the PRSUs, total revenue and ROIC include an adjustment to normalize for the foreign exchange rate impact, and ROIC includes an additional adjustment to neutralize the financial impact of the termination of the H&E acquisition, comprised of the transaction termination fee net of associated expenses."},{"id":"e23","sourceId":"filing-3","location":"Executive compensation—Actual first-quarter 2026 settlement of earned PRSUs","excerpt":"These PRSUs were settled in shares of the Company’s common stock in the first quarter of 2026."},{"id":"e24","sourceId":"filing-3","location":"Executive compensation practices—Ownership guidelines and net share retention","excerpt":"Stock ownership guidelines supported by net share retention requirements"},{"id":"e25","sourceId":"filing-3","location":"Executive compensation—Annual goal setting within three-year PRSU periods","excerpt":"Because our PRSU goals are set on an annual basis, the grant date and associated award fair value are established annually over the three-year performance period—resulting in differences between what is reported in the Summary Compensation Table (further described in footnote 4 thereto) and the amount of the award the Committee originally awarded."},{"id":"e26","sourceId":"filing-3","location":"Governance summary—Board structure, independent committees and shareholder rights","excerpt":"Board Independence and Accountability Board Performance • Annual Election of Directors by Majority Vote • Risk Oversight • 9 of 11 Nominees are Independent • Robust Board Evaluations • Required Committees are Fully Independent • Commitment to Board Refreshment • Separate Chair and CEO, with a Lead Independent Director • Focus on Management Succession Planning Other Board and Board Committee Practices Stockholder Rights • No Hedging or Pledging of Company Shares • No Supermajority Voting Requirements • Robust Stock Ownership Guidelines • Stockholder Right to Call Special Meetings • Authority to Retain Outside Advisors • Stockholder Right to Act by Written Consent • Director Retirement Age Policy • Proxy Access • Director Overboarding Policy • No Poison Pill Investor Engagement We value our investors’ perspective on our business and each year we proactively interact with investors through numerous engagement activities."},{"id":"e27","sourceId":"filing-3","location":"Board leadership—Appointment of Lead Independent Director","excerpt":"Kneeland’s previous service as CEO, our independent directors have appointed Gracia Martore to serve as Lead Independent Director."},{"id":"e28","sourceId":"filing-3","location":"Compensation policies—Financial restatement recovery requirement","excerpt":"The Dodd-Frank Clawback Policy requires the Company to recoup any erroneously awarded incentive-based compensation received by certain executives, including each NEO, in the event the Company is required to prepare an accounting restatement due to material noncompliance with any financial reporting requirement under the federal securities laws."},{"id":"e29","sourceId":"filing-3","location":"2025 operational highlights—Specialty branch openings","excerpt":"We opened 60 specialty branch locations during the year and increased the size of our business to 1,768 global branches as of December 31, 2025."},{"id":"e30","sourceId":"filing-2","location":"Condensed consolidated statements of income—Comparative first-half operating results","excerpt":"CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (In millions, except per share amounts) Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025 Revenues: Equipment rentals $ 3,849 $ 3,415 $ 7,268 $ 6,560 Sales of rental equipment 330 317 680 694 Sales of new equipment 86 75 170 145 Contractor supplies sales 44 41 84 77 Service and other revenues 101 95 193 186 Total revenues 4,410 3,943 8,395 7,662 Cost of revenues: Cost of equipment rentals, excluding depreciation 1,644 1,443 3,136 2,821 Depreciation of rental equipment 704 651 1,385 1,288 Cost of rental equipment sales 176 171 366 381 Cost of new equipment sales 68 61 138 117 Cost of contractor supplies sales 30 28 58 54 Cost of service and other revenues 56 56 111 112 Total cost of revenues 2,678 2,410 5,194 4,773 Gross profit 1,732 1,533 3,201 2,889 Selling, general and administrative expenses 472 422 913 859 Restructuring charge 6 — 51 1 Non-rental depreciation and amortization 116 108 230 222 Operating income 1,138 1,003 2,007 1,807 Interest expense, net 178 171 354 355 Other income, net (47) (7) (55) (75) Income before provision for income taxes 1,007 839 1,708 1,527 Provision for income taxes 254 217 424 387 Net income $ 753 $ 622 $ 1,284 $ 1,140 Basic earnings per share $ 12.04 $ 9.59 $ 20.47 $ 17.51 Diluted earnings per share $ 12.03 $ 9.59 $ 20.44 $ 17.48 See accompanying notes."},{"id":"e31","sourceId":"filing-1","location":"Competition—Disclosed competitor categories","excerpt":"Our competitors primarily include small, independent businesses with one or two rental locations; regional competitors that operate in one or more states; public companies or divisions of public companies that operate nationally or internationally; and equipment vendors and dealers who both sell and rent equipment directly to customers."}],"changes":["Retain the previous narrow-moat verdict; the supplied operating evidence supports scale economies without establishing strong customer lock-in.","Recognize disclosed customer NPS improvement and 77.5% digital adoption as engagement evidence, while distinguishing these measures from customer retention rates or switching costs.","Refine pricing from wholly unproven to weak observed outcomes: used-equipment pricing normalization and historical competitive pressure permit a low assessment, while standalone realized rental-rate changes remain undisclosed.","Add assessments based on actual proxy disclosures of compensation outcomes, share settlement, governance practices and capital deployment."],"limitations":["All evidence comes from issuer filings. Fleet size, branch counts and reported operating results support assessment, but comparative purchasing savings, reliability and brand advantages are not quantified against competitors.","Competition passages identify generic categories rather than named current competitors. Acquisition targets and companies appearing in director biographies do not establish current competitor coverage, so the competitors array is empty.","Customer NPS and digital adoption demonstrate engagement indirectly; customer repeat-rental rates, renewal outcomes and material switching costs are not disclosed.","Realized rental-rate changes and customer-contract repricing rights are absent. Used-equipment pricing evidence applies to fleet disposals and cannot establish rental pricing power.","Ownership guidelines and actual equity settlements are disclosed, but individual management ownership balances and compliance with those guidelines are not established by the supplied passages.","Dates are treated as filing dates under dateKind=filed. The July 22, 2026 filing reports results through June 30, 2026; proposed meeting items and future restructuring savings are not treated as completed outcomes."],"qualityAssessments":[{"category":"moat","checks":[{"criterion":"structural_advantage","grade":3,"rationale":"The extensive branch footprint, $23.8 billion fleet at original equipment cost and ability to serve broad equipment needs support a demonstrated scale advantage. Better fixed-cost absorption corroborates its operating usefulness; comparative procurement savings remain unquantified.","evidenceIds":["e1","e2","e3","e4","e5","e6"]},{"criterion":"durability","grade":2,"rationale":"An established physical footprint and stable estimated 15% market share support persistence, but fragmented competition, equipment replacement costs and limited rental-rate protection constrain durability.","evidenceIds":["e3","e4","e7","e8","e13"]},{"criterion":"customer_dependency","grade":2,"rationale":"Broad fleet availability and disclosed customer satisfaction and digital usage support service relevance. Digital adoption measures revenue associated with recent tool use, not exclusivity or contractual dependence; material switching costs are not demonstrated.","evidenceIds":["e2","e5","e14"]},{"criterion":"erosion_resilience","grade":2,"rationale":"Stable estimated share and improved 2026 general rentals cost absorption offset some concerns. However, 2025 rental-margin erosion, continued specialty compression and historical competitive harm demonstrate incomplete resilience.","evidenceIds":["e7","e6","e9","e10","e11","e17"]}]},{"category":"pricing_power","checks":[{"criterion":"realized_pricing","grade":1,"rationale":"Disclosed used-equipment pricing normalization contributed to lower disposal margins, and competitive pressures historically depressed chargeable prices. These support weak observed pricing outcomes; no standalone realized rental-rate series establishes current rental pricing strength.","evidenceIds":["e9","e16"]},{"criterion":"retention","grade":2,"rationale":"Improved customer NPS, 77.5% digital adoption and growing rental revenue provide indirect engagement and demand evidence. They do not isolate repeat customers, and revenue growth can reflect fleet expansion, acquisitions or mix rather than retention.","evidenceIds":["e14","e15","e29"]},{"criterion":"margin_resilience","grade":2,"rationale":"Rental gross margin fell from 39.9% in 2024 to 38.0% in 2025, then improved year over year from 37.4% to 37.8% in the first half of 2026. General rentals benefited from cost absorption while specialty remained under mix pressure. This is mixed operating resilience, not proof of price control.","evidenceIds":["e10","e11","e6","e17"]},{"criterion":"contractual_freedom","grade":null,"rationale":"The passages do not establish customer rental-contract duration, repricing rights, escalation provisions or restrictions on changing terms. Supplier purchase-order cancellation rights do not establish customer pricing freedom.","evidenceIds":[]}]},{"category":"strong_management","checks":[{"criterion":"capital_discipline","grade":2,"rationale":"Actual operating cash generation, fleet investment, leverage within the disclosed target range and completion of the prior repurchase program support discipline. First-half 2026 investment and shareholder distributions coincided with cash falling from $459 million to $112 million, while 2025 ROIC missed its incentive target. Acquisition returns and repurchase value creation remain unestablished.","evidenceIds":["e18","e19","e20","e21","e22"]},{"criterion":"incentive_alignment","grade":3,"rationale":"Actual awards linked equally to revenue and ROIC, subsequent share settlement, ownership guidelines with net share retention, and clawback requirements demonstrate substantive alignment mechanisms. Annual goal resets within three-year awards and absent individual ownership balances limit confidence in exceptional long-term alignment.","evidenceIds":["e22","e23","e24","e25","e28"]},{"criterion":"execution","grade":3,"rationale":"Opening 60 specialty branches, achieving customer engagement goals, increasing first-half rental revenue and operating income, and improving general rentals cost absorption demonstrate execution across several operating dimensions. Operating results are indirect evidence of management effectiveness; specialty compression and the ROIC target shortfall temper the grade.","evidenceIds":["e29","e14","e15","e30","e6","e11","e22"]},{"criterion":"governance","grade":3,"rationale":"Disclosed independent required committees, separate Chair and CEO roles, an appointed Lead Independent Director, shareholder rights and mandatory restatement recovery provide strong structural governance evidence. The Chair is not independent, the nine-of-eleven figure refers to nominees, and these passages do not demonstrate the effectiveness of every safeguard.","evidenceIds":["e26","e27","e28"]}]}],"financialAssessments":[],"qualityPolicy":"quality-scores-2","sourcePolicy":"issuer-evidence-4","basisHash":"c7f3df6db99bf78fda01dbb6d3312af072aa9f1246379b36bf4c024128c11bde","updatedAt":"2026-10-18T13:12:52.545Z","sources":[{"id":"filing-1","url":"https://www.sec.gov/Archives/edgar/data/1047166/000106770126000007/uri-20251231.htm","publishedAt":"2026-01-28","sha256":"e005542064f51803c9cbee6f37d9998cd0b149e8e9ad1a7de6f133339dc2548b","dateKind":"filed"},{"id":"filing-2","url":"https://www.sec.gov/Archives/edgar/data/1067701/000106770126000026/uri-20260630.htm","publishedAt":"2026-07-22","sha256":"ea09aa48e37f1ce31c10fc45af18dfefe2922ed06f8e63d76995aec60582ceaa","dateKind":"filed"},{"id":"filing-3","url":"https://www.sec.gov/Archives/edgar/data/1067701/000119312526124113/uri-20260324.htm","publishedAt":"2026-03-25","sha256":"bd9dbd303e5eeea771a8d356b5d713dafa63e4c1e2cc7aad25491ebd1bb43c8b","dateKind":"filed"},{"id":"filing-4","url":"https://www.sec.gov/Archives/edgar/data/1047166/000106770125000008/uri-20241231.htm","publishedAt":"2025-01-29","sha256":"5c9f4ff8796a8442ad4b1d528c84164971864ae52186e2e9788d0c9b6997b31f","dateKind":"filed"},{"id":"filing-5","url":"https://www.sec.gov/Archives/edgar/data/1047166/000106770124000007/uri-20231231.htm","publishedAt":"2024-01-24","sha256":"6475024f3a01c83d474e4a62cee2b5fedb423be2b5128f9ae568e717c9e8d239","dateKind":"filed"},{"id":"filing-6","url":"https://www.sec.gov/Archives/edgar/data/1047166/000106770126000016/uri-20260331.htm","publishedAt":"2026-04-22","sha256":"6c0766eaac3cf1236a4f48354a1c591e9e2b9ac287f56fc4ff844190ca116b86","dateKind":"filed"}],"model":"gpt-6.1-sol","providerId":"codex:49c7ff193a72a7d5ff09601c00403b8d09851271491a96b9c2eec33e0f59890d","usage":{"input_tokens":87612,"cached_input_tokens":21120,"cache_write_input_tokens":0,"output_tokens":3733,"reasoning_output_tokens":118},"basisSupplement":{"previousHash":"27f73839e5bb314e151097e05e1ecc776ff42a57bff58b36cb0939bc044f699c","checkedAt":"2026-10-18T16:49:32.080Z","rule":"dated historical and missing inputs only; 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