United Rentals Faces Decline Amid Ashtead's Low Forecasts

United Rentals, Inc. (NYSE:URI) and other equipment rental companies' stocks experienced a decline following the announcement from London-based equipment rental company Ashtead Group, which lowered its annual guidance due to softer conditions in the U.S. market. This news resulted in a 4% drop in United Rentals' shares, while Herc Holdings fell by 5% and H&E Equipment Services dropped by 4%.

Analyst Mircea Dobre from Baird commented on the situation, noting that the slowdown in rental demand has become more pronounced and may intensify as 2025 approaches. Dobre emphasized that United Rentals may face the highest risk among its competitors. He also pointed out that Ashtead plans to move its primary listing to the U.S.

The impact of Ashtead's updated guidance was felt industry-wide. Shares of Caterpillar Inc., a key player in the construction and mining equipment manufacturing sector, fell by 1.6%. Similarly, shares of construction machinery companies Oshkosh Corporation and Terex Corporation also experienced declines of over 2%. These movements reflect the broad impact that market conditions are creating across the industry.