United Rentals vs. Fluor: Which Infrastructure Stock Has Better Value?

2026.07.17 15:29 (GMT+0)

United Rentals vs. Fluor: Which Infrastructure Stock Has Better Value?

The multiyear infrastructure investment cycle is benefiting infrastructure firms like United Rentals, Inc. URI and Fluor Corporation FLR. Growth in public and private funding is boosting demand for large-scale industrial and infrastructure projects.

United Rentals, a renowned equipment rental company, is benefiting from robust demand for specialty rentals and general equipment, supported by non-residential construction, infrastructure, power, industrial manufacturing and data center projects. Meanwhile, Fluor, a global engineering, procurement and construction (EPC) contractor, is leveraging a growing pipeline of large, complex projects across nuclear, LNG, power, mining, life sciences and advanced manufacturing.

Let’s closely compare the fundamentals of the two infrastructure stocks for a better investment decision.

The Case for United Rentals Stock

This Connecticut-based equipment rental company is benefiting from favorable secular trends in non-residential construction, infrastructure modernization, power, manufacturing, mining and data center development, which continue to drive healthy equipment rental demand. During the first quarter of 2026, equipment rental revenues climbed 8.7% year over year to a record $3.42 billion, driven by 2.3% growth in fleet productivity and a 5.7% expansion in average fleet size.

Besides, URI’s Specialty segment remains another major growth engine, supported by expanding product offerings and increasing demand for higher-value rental solutions. The segment now represents 36.5% of total revenues (as of 2025) and has delivered a robust 20.2% revenue CAGR over the past decade, reflecting sustained customer adoption. In the first quarter of 2026, Specialty rental revenues surged 13.8% year over year to a record $1.19 billion, significantly outpacing the General Rentals business. Growth was broad-based across all specialty lines, with the company opening 17 new greenfield (cold start) locations during the quarter to expand market reach.

Encouraged by strong customer feedback, particularly for large projects, United Rentals raised its 2026 guidance, expecting total revenues of $16.9-$17.4 billion (from $16.8-$17.3 billion) and higher EBITDA, reflecting confidence in continued demand for equipment rentals and market share gains. Moreover, the company expects to play a key role in the 2026 FIFA World Cup-related projects, adding another growth catalyst.

Besides market tailwinds, URI’s capital allocation approach is also encouraging for stabilizing its competitive position in the market. Since its founding, the company has completed nearly 250 acquisitions to expand its geographic footprint, specialty offerings and one-stop-shop capabilities. United Rentals generated more than $1 billion in first-quarter 2026 free cash flow and maintained a conservative net leverage ratio of 1.9x, providing ample financial flexibility. The company also returned $500 million to shareholders through dividends and share repurchases during the quarter and plans to repurchase approximately $1.5 billion of stock in 2026, underscoring its balanced approach toward growth investments and shareholder value creation.

The Case for Fluor Stock

Fluor is indeed benefiting from mid and long-term market tailwinds given its exposure to end markets like energy, mining & metals, life sciences, advanced manufacturing, data centers, and government and mission solutions. During the first quarter of 2026, management noted that front-end engineering and study work now represent more than $60 billion of potential future backlog if clients proceed with execution phases, while the broader opportunity pipeline has expanded 50% over the past year.

During the first quarter of 2026, consolidated new awards totaled $2.7 billion, with 98% reimbursable, while backlog rose slightly sequentially to $25.7 billion and remained 82% reimbursable. Management also highlighted that margins on newly booked work were materially above the existing backlog margin profile. Fluor further strengthened shareholder returns through more than $500 million of repurchases during the quarter and expects approximately $1.4 billion of buybacks in 2026 following the completion of NuScale monetization.

Although FLR’s diversified portfolio positions it at a stable juncture during commodity and economic cycles, the ongoing macro uncertainties, execution risks and other near-term volatility are taking a toll on it. During first-quarter 2026, Urban Solutions recorded a $37 million charge tied to cost growth and declining productivity on a mining project in the Americas. Management also cited temporary project slowdowns tied to Middle East geopolitical uncertainty. Several infrastructure projects remain in completion phases through 2026 and early 2027, leaving the company exposed to additional closeout and recovery risks.

Fluor operates in a cyclical environment wherein capital spending decisions remain closely tied to commodity prices, energy markets and macroeconomic conditions. Management acknowledged that some award conversions remain weighted toward the back half of 2026 and that prolonged geopolitical instability could delay client spending decisions, increase inflationary pressures and disrupt supply chains. Also, its reach outside national borders exposes FLR to foreign currency fluctuations and legal uncertainties.

Stock Performance & Valuation

As witnessed from the chart below, in the year-to-date period, United Rentals’ share price performance has been above Fluor’s and the broader Construction sector.