Commercial Equipment Rental and Leasing NAICS 5324

Aug 4, 2025 - Equipment Rental Firms Notch Q2 Revenue Growth

• Two major US equipment rental firms notched robust revenue growth in the second quarter 2025. United Rentals’ Q2 2025 revenue was $3.9 billion, up 4.5% over the same period in 2024. The company’s rental revenue rose 6.2% to $3.22 billion in the second quarter over $3.2 billion in Q2 2024. United Rentals revised its full-year revenue outlook to $15.8 billion to $16.1 billion compared to a previous projection of $15.6 billion to $16.1 billion. Herc Rentals’ revenue in the second quarter increased 18% to $1 billion compared to Q2 2023. The increase in year-over-year revenue was partly due to recent acquisitions, including H&E Rentals.
• US manufacturing activity contracted in July 2025 for the fifth consecutive month, according to the Institute for Supply Management (ISM). The ISM’s Purchasing Managers Index (PMI) in July fell to 48% from a reading of 49% in June. A reading above 50% indicates manufacturing expansion. July’s New Orders Index decreased by 0.7 percentage points to 47.1%. The August Production Index rose 1.1 percentage points to 51.4%. Several respondents to the July ISM survey said their businesses faced tariff-related purchasing and supply chain challenges. Of the 18 manufacturing industries tracked by the ISM, eight reported growth in July: apparel, leather, and allied products; nonmetallic mineral products; textile mills; miscellaneous manufacturing; furniture and related products; and primary metals. Industries reporting contractions in July included printing & related support activities; paper products; chemical products; machinery; wood products; fabricated metal products; computer and electronic products; transportation equipment; electrical equipment, appliances, and components; and food, beverage & tobacco products. US manufacturing activity is a demand driver for commercial equipment rental and leasing.

• North American construction and engineering spending in 2025 is expected to grow by 1% after increasing an estimated 7% in 2024, according to FMI’s third-quarter 2025 North American Engineering and Construction Outlook. With growth of 32%, the data center sub-sector will lead 2025 nonresidential construction, followed by sewage and waste disposal (7% growth over 2024), amusement and recreation (+6%), water supply (+6%), educational (+4%), and public safety (+4%). Commercial construction spending is expected to decline 4% in 2025 amid a 4% drop in warehouse demand, which accounts for more than half of annual commercial spending. Lodging construction spending is forecast to fall by 3%, and stubbornly high office vacancies are expected to hold new office construction to 2% growth in 2025. Amid high mortgage interest rates and a lack of affordability, single-family construction spending is forecast to rise by 1% in 2025. A recent jump in new apartment supply and unfavorable cost conditions will reduce multifamily spending by 9% in 2025. In addition to strong spending on water and sewage projects, other segments of the infrastructure sector are projected to see spending increase in 2025, including power (+3%) and highway and street (+2%).
• The Equipment Leasing and Finance Association’s (ELFA) Monthly CapEx Finance Index (CFI) showed new business volume decreased 3.8% to $9.6 billion in June 2025 compared to the same month in 2024. On a month-over-month basis, new business volumes decreased 7.4% in June. New business volume in the first half of 2025 declined 1.8% compared to the same period in 2024. ELFA CEO and President Leigh Lytle said, “The latest CFI survey shows an easing in equipment demand and a moderate rise in losses, but delinquencies retreated. Volatility across many indicators is up in 2025, so I’m not taking too much signal from one month of data. Still, we’ll be watching the incoming data closely this summer to see if trade policy uncertainty is finally beginning to weigh on equipment and software demand. Even if a slowdown materializes over the next few quarters, our sector is well positioned to handle the turbulence.”