United Rentals, Inc.

Good morning, everyone, and welcome to the United Rental 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 the 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.

Thank you, Operator, and good morning, everyone. Thanks for joining our call. Yesterday afternoon, we reported a strong start to 2026, including first quarter records across revenue, EBITDA, and EPS. I was very pleased by the growth, margins, and fleet productivity we reported as the team continues to execute against our north star of putting the customer first. The momentum we're carrying into our busy season, along with our customers' feedback for their business, supports our expectations that this will be another record year as further evidenced by our updated guidance. This is all attributed to our 28,000 team members who are laser-focused every day on safely serving the customer and delivering against our goal to be their partner of choice. What exactly does this mean? Well, it means we have a broad and unmatched offering of both generate and specialty products. We invest in industry-leading technology to make both the customer and our own operations more productive and efficient. And most importantly, we have a track record of providing superior service our customers can depend on. This didn't happen by accident. We've developed sustainable competitive advantages through our differentiated value proposition and operational excellence, allowing us to deliver consistent performance and shareholder value. Now, having said all this, Today, I'll give a quick recap of our first quarter results, followed by what's driving our optimism for the year. And then Ted will go into more details around the numbers before we open up the call for Q&A. So let's start with the quarter's results. Our total revenue grew by 7% year over year to nearly $4 billion. And within this, rental revenue grew by almost 9% to $3.4 billion, both first quarter records. Fleet productivity of 2.3% contributed to OER growth of 6.5%. Adjusted EBITDA came in at $1.8 billion, resulting in a margin of 44.1%, a 60 basis point improvement year over year when you exclude the H&E benefit. And finally, adjusted EPS came in at $9.71, up 10% year over year, and another first quarter record. Now let's turn to customer activity. We continue to see healthy growth across both our general and specialty businesses. Within specialty, which grew 14% year over year, we saw growth across all lines of business and opened 17 cold starts. By vertical, our construction and markets saw strong growth led by non-residential construction and infrastructure. And on the industrial side, Power and mining and minerals were notable standouts, with power continuing to post double-digit growth. We saw a wide variety of new projects kick off in the quarter, spanning healthcare, infrastructure, power, industrial manufacturing, and, of course, data centers. And for you soccer fans out there, we expect to be a key partner for the World Cup starting here in the second quarter. Now, turning to the used market, we sold $680 million of OEC at a 51% recovery rate. We're on track to sell approximately $2.8 billion of fleet this year, supported by strong demand for used equipment. In conjunction with these sales, we spent $874 million on rental CapEx. This was spread across replacement and growth CapEx with a focus on specialty, and bringing in additional gen-rent equipment where we see strong demand. Subsequently, we generated free cash flow of $1.1 billion. We're set up for another strong year of cash generation, which is a critical feature of the company. As a reminder, the combination of our industry-leading profitability, capital efficiency, and the flexibility of our business model enables us to generate meaningful free cash flow throughout the cycle, which can be redeployed in ways that allow us to create long-term shareholder value. Finally, we allocated capital in the quarter consistent with our framework, which starts with a healthy balance sheet. After supporting both organic and inorganic growth, we returned $500 million to shareholders during the quarter through a combination of share buybacks and our dividends. Our leverage of 1.9 times remains well within our targeted range, leaving plenty of dry powder to support growth and return excess capital to shareholders. Now, let's turn to the rest of 2026. As evidenced by our updated guidance, the year is playing out better than we expected just a few months ago. Feedback from the field continues to be optimistic, particularly for large projects. We're carrying a strong momentum into our busy season, and we feel confident we're positioned to win in the marketplace. So, to sum it all up, our unwavering focus on our strategy, which includes our differentiated value proposition, positions us well to compete effectively in the marketplace. Our customers know they can depend on us, and our team is executing with strong capabilities. We see multi-year tailwinds for large projects and believe we're well positioned for these opportunities. And we'll continue to monitor and manage our cost structure and operate with capital discipline. I'm confident the combination of our resilient business model, prudent capital allocation, and balance sheet strength will allow us to continue to drive profitable growth, generate strong free cash flow, and deliver compelling returns to our investors. And with that, I'll hand the call over to Ted to review our financial results, and then we'll take your questions.

Over to you, Ted. Thanks, Matt, and good morning, everyone.