United Rentals Slides on Weaker Construction Markets

Carillon Scout Mid Cap Fund cites construction slowdown and equipment repositioning as factors impacting profitability.

Mar. 23, 2026 at 11:04am

Got story updates? Submit your updates here. ›

Carillon Tower Advisers, an investment management company, released its fourth-quarter 2025 investor letter for the 'Carillon Scout Mid Cap Fund'. The letter discussed United Rentals, Inc. (NYSE:URI), the largest equipment rental company in North America, which reported a disappointing quarter due to weaker construction markets. Profitability was impacted as the company repositioned its fleet equipment for large-scale projects.

Why it matters

United Rentals is a bellwether for the construction industry, and its performance can provide insights into broader economic trends. The company's struggles highlight the challenges facing the construction sector, which could have ripple effects on related industries and the overall economy.

The details

According to the investor letter, United Rentals' revenue grew by 2.8% year-over-year in Q4 2025, but the company faced pressure on profitability as it repositioned its fleet equipment for large-scale projects. The fund believes construction market conditions could improve in 2026, driven by reshoring and manufacturing projects, support from data center construction, and power generation. As activity picks up, the fund expects United Rentals' margins to also improve.

  • United Rentals, Inc. (NYSE:URI) stock closed at $710.47 per share on March 20, 2026.
  • In Q4 2025, United Rentals, Inc.'s (NYSE:URI) revenue grew by 2.8% year-over-year to $4.2 billion.

The players

United Rentals, Inc.

A leading equipment rental company headquartered in Stamford, Connecticut.

Carillon Scout Mid Cap Fund

An investment management fund that released a fourth-quarter 2025 investor letter discussing United Rentals, Inc.

Got photos? Submit your photos here. ›

What they’re saying

“We believe construction market conditions could improve in 2026, driven by reshoring and manufacturing projects due in part to incentives in the One Big Beautiful Bill Act, support from data center construction, and power generation. As activity picks up, margins also should improve.”

— Carillon Scout Mid Cap Fund

The takeaway

United Rentals' struggles highlight the challenges facing the construction industry, which could have broader economic implications. However, the fund believes the company's fortunes could improve in 2026 as construction activity picks up, driven by factors like reshoring, manufacturing projects, and data center construction.