United Rentals, Inc.

Good morning and welcome to the United Rentals Investor Conference call. Please be advised 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, 2024, as well as to subsequent filings with the SEC. You can access these filings on the company's website at .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. Mr. Flannery, you may begin.

Thank you, Operator, and good morning, everyone. Thanks for joining our call. Yesterday afternoon, we were pleased to report solid second-quarter results, which reflected a continuation of the momentum we reported last quarter. More importantly, our updated guidance speaks to the confidence both we and our customers have in the remainder of the year. Critical to the success is our team of over 27,000 individuals who focus on being the partner of choice for our customers and live our -U-R culture every day. This includes putting safety at the forefront of everything we do to enable us to deliver a superior value proposition and ultimately the results our shareholders have come to expect. In the second quarter specifically, we again saw growth across both our industrial and construction end markets, healthy demand for used equipment, and ongoing optimism from the field, which is reinforced by our Customer Confidence Index. So having said all this, today I'll review our second-quarter results and touch on our updated 2025 guidance. Then I'll discuss a recent win which illustrates our strategy in the utility vertical, followed by a look into how our -in-class telematics is helping our customers improve their own productivity. Afterwards, Ted will review the financials in detail before we open up the call to Q&A. So with that, let's start with the second-quarter results. Our total rental revenue grew by .5% year over year to $3.9 billion. And within this, rental revenue grew by .2% to $3.4 billion, both second-quarter records. Fleet productivity increased by .3% supported by disciplined execution. Adjusted EBITDA increased to a second-quarter record of $1.8 billion, translating to a margin of nearly 46%. And finally, adjusted EPS came in at $10.47. Now let's turn to customer activity. We continue to see growth in both our gen rent and specialty businesses. Specialty rental revenue grew 14% year over year while opening 21 cold starts in the second quarter. We remain on track to open at least 50 this year. By vertical, our construction end markets saw impressive growth across both infrastructure and non-residential construction, while our industrial end markets saw particular strength within power, metals and minerals, and chemical processing. We continue to see new projects kicking off with a few recent examples, including data centers, hospitals, and airports.

Now,