United Rental's second-quarter earnings rose 13% as the equipment-rental company said it's seeing "vigorous activity" in nonresidential construction sectors including energy, and boosted the lower end of its projected revenue range for 2014.
United Rentals now expects 2014 revenue of $5.55 billion to $5.65 billion, compared with a prior view of $5.45 billion to $5.65 billion. Its free cash flow outlook range was increased to $450 million to $500 million, from a previous range of $425 million to $475 million.
In the second quarter, the company earned $94 million, or 90 cents a share, up from $83 million, or 78 cents a share, a year earlier. Adjusted earnings per share rose to $1.65 from $1.12.
Revenue rose 16% to $1.4 billion from $1.21 billion.
In April, the company reaffirmed its full-year cash flow outlook and said its customers were optimistic about a recovery in commercial construction.
United Rentals bought National Pump on April 1, a deal previously valued at roughly $780 million. The transaction is worth about $853 million including potential future payments based on EBITDA targets. The company bought the power and HVAC assets of Blue-Stream Services LLC.
