United Rentals (URI) risk factors, FY2024 10-K

Industry and Economic Risks

1. 01Our industry is highly competitive, and competitive pressures have in the past led, and could lead again in the future, to a decrease in our market share or in the prices that we can charge
2. 02Trends in oil and natural gas prices have in the past adversely affected, and could again in the future adversely affect, the level of exploration, development and production activity of certain of our customers and the demand for our services and products
3. 03Increases in fuel costs or reduced supplies of fuel have in the past harmed, and could in the future again harm, our business

Risks Related to our Indebtedness and Liquidity

1. 04Our significant indebtedness exposes us to various risks
2. 05To service our indebtedness, we require a significant amount of cash and our ability to generate cash depends on many factors beyond our control
3. 06We may not be able to refinance our indebtedness on favorable terms, or at all. Our inability to refinance our indebtedness could materially and adversely affect our liquidity and our ongoing results of operations
4. 07We may be able to incur substantially more debt and take other actions that could diminish our ability to make payments on our indebtedness when due, which could further exacerbate the risks associated with our current level of indebtedness
5. 08If we are unable to satisfy the financial covenant or comply with other covenants in certain of our debt agreements, our lenders could elect to terminate the agreements and require us to repay the outstanding borrowings, or we could face other substantial costs
6. 09Restrictive covenants in certain of the agreements and instruments governing our indebtedness may adversely affect our financial and operational flexibility
7. 10These restrictions may cause us to suspend or cease the payment of dividends. These restrictions may also make more difficult or discourage a takeover of us, whether favored or opposed by our management and/or our Board of Directors
8. 11The amount of borrowings permitted under our ABL facility and the accounts receivable securitization facility may fluctuate significantly, which may adversely affect our liquidity, results of operations and financial position
9. 12We rely on available borrowings under the ABL facility and the accounts receivable securitization facility for cash to operate our business, which subjects us to market and counterparty risk, some of which is beyond our control
10. 13If we are unable to obtain additional capital as required, we may be unable to fund the capital outlays required for the success of our business

Risks Related to our Strategic Transactions and Investments

1. 14Our growth strategies may be unsuccessful if we are unable to identify and complete future acquisitions and successfully integrate acquired businesses or assets
2. 15acquisition opportunities in the future or that we will be able to consummate any such transactions on terms and conditions acceptable to us
3. 16If we determine that our goodwill has become impaired, we may incur impairment charges, which would negatively impact our operating results

Risks Related to our Securities

1. 17Our operating results may fluctuate, which could affect the trading value of our securities
2. 18Our common stock price has fluctuated significantly and may continue to do so in the future
3. 19We cannot guarantee that we will repurchase our common stock pursuant to our share repurchase program or that our share repurchase program will enhance long-term stockholder value. Share repurchases could also increase the volatility of the price of our common stock and could diminish our cash reserves
4. 20Our charter provisions, as well as other factors, may affect the likelihood of a takeover or change of control of the Company
5. 21We cannot make any guarantees with respect to payment of dividends on our common stock

Operational Risks

1. 22If we are unable to collect on contracts with customers, our operating results would be adversely affected
2. 23Turnover of members of our management and our ability to attract and retain key personnel may adversely affect our ability to efficiently manage our business and execute our strategy
3. 24Our operational and cost reduction strategies may not generate the improvements and efficiencies we expect
4. 25We are dependent on our relationships with key suppliers to obtain equipment and other supplies for our business on acceptable terms
5. 26If our rental equipment ages, the costs of maintaining such equipment, if not replaced within a certain period of time, will likely increase. The costs of maintenance may materially increase in the future and could lead to material adverse effects on our results of operations
6. 27Disruptions in our or our third-party vendors’ information technology systems could adversely affect our operating results by limiting our ability to effectively monitor and control our operations, adjust to changing market conditions, implement strategic initiatives or support our online ordering system
7. 28Our financial performance and our reputation could be adversely affected, and we could be subject to legal liability or regulatory enforcement actions, if we are unable to protect against, or effectively respond to, cyberattacks or other cyber incidents
8. 29Failure to comply with data privacy and protection laws and regulations could subject us to legal liability and adversely affect our reputation and our financial performance
9. 30Severe weather events or other natural occurrences may materially adversely impact our operations and markets
10. 31Regulators’ and stakeholders’ requirements and expectations on environmental, social and sustainability-related topics continue to evolve and diverge, and our ability to meet these requirements and expectations may have a material adverse impact on our results of operations
11. 32We are subject to risks related to our ability to meet our aspirational sustainability and safety goals, including our greenhouse gas intensity reduction goal, which, if not achieved, could damage our reputation and have an adverse effect on our financial performance
12. 33Our growing specialty reportable segment, as well as our tools and onsite services offerings, presents new and expanded risks, which may increase as we engage in new activities and provide new services
13. 34Our rental fleet is subject to residual value risk upon disposition and may not sell at the prices or in the quantities we expect
14. 35We have operations outside the United States, in Canada, Europe, Australia and New Zealand. As a result, we may incur losses from the impact of foreign currency fluctuations and have higher costs than we otherwise would have due to the need to comply with foreign laws
15. 36We have a holding company structure and depend in part on distributions from our subsidiaries to pay amounts due on our indebtedness. Certain provisions of law or contractual restrictions could limit distributions from our subsidiaries

Legal and Regulatory Risks

1. 37We are exposed to a variety of claims relating to our business, and our insurance may not fully cover them
2. 38We are subject to numerous environmental and safety regulations. If we are required to incur compliance or remediation costs that are not currently anticipated, our liquidity and operating results could be materially and adversely affected
3. 39Changes to income tax laws or regulations in the U.S. and other jurisdictions where we operate could increase our tax liability and adversely impact our financial results
4. 40Our collective bargaining agreements and our relationship with our union-represented employees could disrupt our ability to serve our customers, lead to higher labor costs or the payment of withdrawal liability