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Hello, everyone. Thank you for joining us, and welcome to EquipmentShare Q1 2026 earnings call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Rhett Butler, Vice President of Investor Relations. Rhett, please go ahead.

Good morning, and welcome to the EquipmentShare First Quarter 2026 Financial Results Conference Call. Joining me today are Jabbok Schlacks, Founder and Chief Executive Officer, Willy Schlacks, Founder and President, Mark Wopata, Chief Data Officer and EVP of Finance, and Dave Marquardt, Chief Financial Officer and Chief Accounting Officer. Last night, we issued our earnings release and posted an earnings presentation to our Investor Relations website at ir.equipmentshare.com. We encourage you to review the presentation alongside today's remarks. Please be advised this call is being recorded. Comments made on today's call and responses to your questions may contain forward-looking statements within the meaning of applicable securities laws. These statements are subject to risks and uncertainties that could cause actual results to differ materially. Please refer to our earnings release, presentation, and SEC filings for a discussion of those risks.

EquipmentShare has no obligation to update or revise forward-looking statements made on this call. We will also reference certain non-GAAP financial measures. Reconciliations to the most directly comparable GAAP measures are included in our earnings release. With that, I'll turn the call over to Jabbok.

Thank you, Rhett, and good morning, everyone. We delivered a strong first quarter and are raising our 2026 outlook across the board. The headline is not just the financial performance, but the durability of what is driving it. Strong demand in our core end markets, continued share gain with large customers, and the distinct value proposition of T3. I'll start with a macro backdrop and demand environment. Willy will cover the T3 platform advantage. Mark will walk through site performance and the OWN Program. Dave will cover financial performance, and I will close with our updated 2026 outlook. A few headline numbers before we dive in. Rental segment revenue was $764 million, up 37% year-over-year. Adjusted core EBITDA was $399 million, up 39% year-over-year.

We opened 22 new locations and ended the quarter with 407 operational locations. On a trailing 12-month basis, we are now generating $1.78 billion of Adjusted core EBITDA and mature rental locations Adjusted EBITDA margins were 55%. Based on that strong start to the year and what we are seeing in customer demand, we are raising guidance. Rental segment revenue guidance now implies 29% year-over-year growth at the midpoint, up from 27% in our prior guide. The equipment rental market remains large, fragmented, and under-penetrated by technology. The U.S. equipment rental industry is approximately $84 billion, and the largest providers still represent only a minority of the total market. That gives us a long runway for share gains, particularly with customers who need scale, reliability, and better operating visibility. What matters in this environment is no longer just fleet availability.

Customers are choosing partners who can mobilize quickly, support complex job sites, reduce downtime, and help them execute against compressed schedules. That is where EquipmentShare is winning. Our mix reflects that demand. Industrial and non-residential end markets account for 87% of our rental revenues in 2025, and that mix has held in the first quarter. These are customers building factories, data centers, power and grid infrastructure, and large public projects. That mix is translating into growth well above the market. While the broader industry is growing at low single digits, our rental segment revenue grew 37% in the first quarter. The difference is simple. We are not just renting equipment. We are lowering the cost to execute. That gives EquipmentShare pricing power while delivering a better economic outcome for the customers. Mega projects are the clearest expression of this demand.

Data centers, advanced manufacturing, energy, and infrastructure are all moving towards larger sites, tighter timelines, and higher execution risk. At that scale, customers need more than fleet. They need a partner that can mobilize thousands of machines quickly, keep them running, and give operators real-time visibility and control. That is where EquipmentShare creates clear separation. Data centers show the magnitude of the shift. Rack densities have moved from roughly 8 kW-12 kW a decade ago to more than 100 kW today, with next generation designs reaching as high as 600 kW. That is driving major investment in power, cooling, and new facilities, all areas where we are not only active, but excel. The same pattern is playing out in advanced manufacturing, where onshoring is driving semiconductor, battery, automotive, and defense-related construction.

In energy, grid constraints are increasing demand for mobile and modular power, an area where we have built a leading position. In federal and state infrastructure, public spend continues to flow into roads, bridges, water system, and ports where our footprint continues to expand. One customer example captures the broader trend. A top 50 ENR customer running one of the largest renewable power projects in the world had previously chosen another rental partner because our geographic reach was not yet developed enough to support them. Earlier this year, that customer moved 100% of their spend to EquipmentShare.

The reasons were specific: access control, predictive maintenance, the depth of our service technical network, and the ability to manage thousands of machines through a single platform. We are seeing that pattern repeat across the customer base. T3 is what makes that possible. It turns scale into a measurable operating advantage for our customers. I'll now turn it over to Willy to talk more about the T3 platform.

Thanks, Jabbok. At its core, EquipmentShare is not simply a rental company with software attached. We have spent more than a decade building the operating system for our industry, from machine hardware to data infrastructure, the application and intelligence layers which customers use every day. The contractors we serve are not just asking for more equipment. They're asking for fewer delays, better visibility, safer job sites, higher utilization, and more predictable execution. T3 is how we deliver that. It is why customers are consolidating more spend with EquipmentShare. The capabilities customers often value most, things like access control, predictive maintenance, technician coverage, and the ability to manage thousands of machines through one platform, these are not standalone features. They're the output of a vertically owned technology stack that we have built in-house.

On page seven, we compare that integrated stack against industry software providers, rental peers, and manufacturers at every layer: hardware, data, and application. EquipmentShare designs it, we build it, own it, and of course, consistently improve it. Starting with hardware, we design and build and deploy our own sensors and embedded systems across manufacturers' equipment and our own fleet. This creates a rich real-time digital twin foundation that fundamentally is different from legacy rental software and environments, which are built around static records, machines, contract to location, analog service tickets, et cetera. These are useful, often backward-looking and manually updated. Versus T3, which continuously captures live operating signals from equipment, job sites, and workflows enabled by that foundational digital twin, so customers and our teams can see what is actually happening in real-time in the field.

That data then flows into the own data environment, capturing things like utilization, service faults, history, access events, et cetera. These operating patterns are across hundreds of manufacturers and thousands of equipment classes. The platform is where real-time data becomes shared workflows, insights, and predictive intelligence for both EquipmentShare and our customers. Because we own the full stack, the customer is not looking through some limited portal while we operate in an entirely different environment. Our teams and our customers work in one integrated multi-tenant environment on the same data model with the same real-time context. That is the opposite of the fragmented environment that drove us to start EquipmentShare. In the legacy model, contractors are forced to manage their business across this disconnected landscape of vendors and systems instead of one platform built around how the job site and industry actually work. T3 collapses that fragmentation.

It allows customers to manage their resources with the same real-time operating context that our own teams use to support them. That structure also creates our AI advantage. The breakthrough is not adding AI on top of the platform. It is embedding intelligence into the operating layer of the job site itself with the level of visibility, context, and control that fragmented systems cannot replicate. That vertical ownership is the point. Every machine engagement and data flows through technology we built and control, creating a closed-loop operating system that improves with scale and gives customers a level of visibility, uptime, and efficiency that is difficult to match. This is showing up in the business. T3 is not a feature. It is the operating layer connecting our fleet, service network, customers, and job sites. It helps us deliver measurable customer value while driving loyalty and pull-through demand across the network.

With that, I will turn the call over to Mark.

Thanks, Willy. What Willy just walked through is exactly what we are seeing in the business. Customer demand remained strong in Q1, supported by an increase in construction activity, our expanded geographic footprint, growth in fleet OEC under management, and the value customers are seeing from T3. That demand showed up clearly in the Q1 results. New fleet absorption was strong across the network, and customers continued to pull more of our T3-enabled equipment and on-site services into their job sites. That is an important point. In stark contrast to the industry, our organic site and revenue expansion is being driven by customers who are growing with us because they value the integrated EquipmentShare model. A new organic rental location works when two things come together: customer demand created through T3 and strong execution on the ground. We continue to see both in Q1.

Our mature rental locations delivered 55% rental segment adjusted EBITDA margins on a trailing 12-month basis. Those are very strong site economics, and they reflect the operating efficiency, pricing discipline, and customer stickiness we believe T3 helps create. As expected, our newer rental sites continue to ramp at a healthy pace, supported by pull-through demand from national and regional customers. As a reminder, when we open a new location, a significant majority of first-year revenue comes from existing EquipmentShare customers already renting from us in other markets. Roughly 90% of our revenue as a company comes from national and regional contractors. We opened 19 full-service rental locations in Q1, so we are slightly ahead of our original guide.

Based on that progress and the demand we are seeing, we are raising our full-year guidance for full-service rental locations to a range of 427-435 by year-end, or 431 at the midpoint. That implies 79 new rental locations in 2026 at the midpoint. We continue to be disciplined in new site selection to support customer demand. During Q1, fleet absorption was strong, mature locations continued to perform at a high level, and newer cohorts continued to ramp with healthy demand behind them. That all shows up in the embedded earnings power of the network as those growth sites mature over time. Turning to the OWN Program. OWN remains a core part of how we fund our growth. Demand for OWN remains very strong.

The OWN Program is a differentiated platform that opens equipment ownership to a broader pool of capital and allows us to operate equipment at a cost of capital similar to funding on the balance sheet. In Q1, we executed $102 million of equipment sales into the OWN Program. As a reminder, OWN Program transactions do not occur evenly quarter to quarter. We typically see larger clusters of activity in Q2 and Q4. Q1 was consistent with how we expected the year to begin. We continue to be multiple times oversubscribed across high net worth, family office, and institutional channels, and we are on pace to meet our OWN Program targets for the year based on the current CapEx plan. That demand reflects the quality of the asset class and the differentiated visibility that T3 provides participants in the program.

With that, I'll turn it over to Dave.

Thanks, Mark. We're excited to report our results for the first quarter as customer demand continues to drive our organic growth and continued positive momentum. While our financial results for the quarter provide measures of our business for the year-to-date period, we also believe it is meaningful to evaluate our operating performance over the trailing twelve-month period, which we have provided in our earnings release. For the first quarter, our total revenue was $989 million, reflecting a year-over-year increase of 38%. Our rental segment revenue grew 37% to $764 million, and rental segment adjusted EBITDA was $323 million, both driven by continued footprint expansion and growth of our managed fleet.

Sales segment revenue was $179 million for the first quarter, up 23% year-over-year, with equipment sales to the OWN Program of $102 million, up 7% year-over-year. Sales segment adjusted EBITDA was $26 million, reflecting disciplined and selective sales into the OWN Program, which as Mark mentioned, continues to be oversubscribed. Our first quarter operating results include $17 million of non-cash stock-based compensation expense related to previously disclosed equity awards granted by our board to the founders in connection with our recently completed IPO. The IPO founders awards comprise five tranches of performance stock units which only vest and become issuable when the company's stock price achieves certain defined hurdles, with the last tranche becoming issuable upon achieving a $90 billion market capitalization.

For accounting purposes, the fair value of the award will be recognized as non-cash stock-based compensation expense over the performance period. More information will be provided in the footnotes to our financial statements. Adjusted core EBITDA for the first quarter was $399 million, up 39%. Growth was driven by continued expansion of our full-service rental location footprint and maturing of our existing rental sites. Adjusted core EBITDA reflects our underlying operating performance by excluding items unique to our organic growth and fleet sourcing strategy, most notably OWN Program payouts and new market startup costs. For reconciliations to our operating measures, please refer to the details provided in our earnings release.

Turning to the balance sheet, liquidity, and cash flows, our total available liquidity was $1.6 billion as of March 31st, comprised of $329 million in cash on hand and $1.3 billion of availability under our ABL facility. As a reminder, we replaced our prior ABL facility during the fourth quarter of last year with a new facility led by Wells Fargo, extending the maturity of outstanding borrowings to 2030 and at a meaningful reduction in our total cost of capital. Net leverage decreased to 2.8x turns as compared to 3.2x turns a year ago, reflecting the use of proceeds from the IPO to pay down a portion of outstanding borrowings. Cash used in operating activities reflects our organic site expansion strategy, along with increased working capital corresponding to the growth in our revenues and the timing of payments.

Net rental CapEx for the first quarter was $213 million after gross purchases of $328 million. In response to customer demand, we intend to invest discretionary cash flow into further site expansion, increasing fleet under our management. Organic growth initiatives. We believe the investments we are making in expanding our footprint with T3 provide the best return on invested capital. Finally, with our average fleet age of approximately 30 months, we have meaningful operational flexibility throughout industry cycles, including the ability to moderate fleet purchases, pause new site openings, and age the fleet if conditions warrant those actions. With that, I'll turn the call back over to Jabbok.

Thanks, Dave. Based on the strength of first quarter and what we're seeing in customer demand, we are raising our full year 2026 outlook. The updated ranges are as follows: OEC of $10.15 billion-$11.2 billion. Full service rental locations of 427-435. Total revenue of $5.15 billion-$5.58 billion. Rental segment revenue of $3.37 billion-$3.64 billion. Approximately 29% growth at the midpoint. Adjusted core EBITDA of $1.88 billion-$2 billion. This includes $221 million of sales segment EBITDA at the midpoint, a new disclosure to provide additional segment-level transparency.

OWN Program payouts of $906 million-$962 million, gross rental CapEx of $2.28 billion-$2.5 billion. Net rental CapEx of $819 million-$899 million. We continue to expect OWN Program OEC at 55%-60% of total OEC under management at year-end, and over 260 mature rental site locations. Looking further out, we continue to plan towards approximately 700 full-service rental locations by 2030, opened organically and informed by customer demand. Construction productivity has been stagnant since the 1940s. Not for lack of demand, but because the industry was built on fragmentation. Our thesis is simple: if contractors can run their job sites on a single technology platform, they will.

That was true 40 years ago, it is true today, and it will be true a decade from now. Our approach stays the same. We scale with discipline. We build a technology platform that creates customer value. We use OWN to fund outsized demand without straining the balance sheet, and we manage to gross margins and ROIC. EquipmentShare is built for where the industry is going. Bigger job sites, more complex work, and customers who need one partner delivering at scale. We appreciate your continued partnership and support. Operator will now open the line for questions.

We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Your first question comes from the line of Rob Wertheimer with Melius Research. Rob, your line is open. Please go ahead.

Thank you. Good morning, guys. My first question is on revenue, where, you know, you obviously had very strong revenue performance. We've seen in the past, you've grown fleet a bunch, you've grown locations a bunch. Rental revenue doesn't always outstrip fleet. In this quarter it did by a wide margin. I'm just curious, did things go much more right than you expected in the quarter? Or is this just kind of maturation of some of the stores kind of starting to deliver? How would you characterize that outperformance?

Hey, Rob. Thanks for the question. It's, as you mentioned, it's a number of things. It was a particularly, you know, good quarter as we would expect in this macro backdrop. There's good fleet absorption. We're growing with customer demand, that obviously drives the fleet absorption I just mentioned. Also site maturation as well. All those things together is what drives the revenue growth, especially when you pair it with the OEC.

All right. Perfect. Then, I'd like to ask just a bigger picture one, which you addressed pretty well in your opening comments. I think investors are still trying to grapple with, you know, what is T3, what are the biggest benefits, you know, how differentiated is it in different spots and so on. I wonder if you could kind of just give a couple examples of that concept of multi-tenant database and your customers all looking at the same data and their ability to manage fleet differently and better, just to make it a little bit more tangible for us. I'll stop there. Thank you.

Yeah. This is Willy. When we use the term multi-tenant and, you know, a singular data structure, it really is speaking to you wanna think about what is this, you know, the legacy environment. In the old world, you've got fragmented systems, you know, analog process. You've got ERPs that a rental provider might be using and then the customer might be using. Interoperability between those was really manual phone calls, you know, emails, and best case scenario, maybe a multi-year API integration. Then you contrast that with EquipmentShare. T3 enables if we rent gear, that custody follows the contract. There is no manual effort. At its core, there's this ledger that understands custody of that resource and that digital twin.

There's no effort that we have to do to actually extend the value in that digital twin to our clients. There's no effort they have to do to actually consume that. It's all available within T3. That is extremely unique. I think it is a good question you're asking because a lot of folks will look at the surface and the edges of the platform, and they look at, you know, telemetry data and how you use it and how it can implicate things like utilization and insights, et cetera. The real challenge is actually getting that data at scale to be driven and the access to it to be custody driven without human intervention, and that's what we have solved. Of course, we earn the right then to deliver that insight at scale.

These terms, you know, I think will be more common as we move into the AI world because it only compounds its value. Now, instead of just a human being able to look at this, you suddenly have reasoning capability where there's deterministic structured data at scale, versus if you're in the old world, you're still stuck 'cause there's no way to actually create that deterministic extension of data to your clients or, you know, a multi-tenant environment. It's one to many. It's not just like one provider sees it, the bank sees it, the insurance company sees it, the renting company sees it, the sub-renter sees it, the EquipmentShare sees it. You know, the fueling company might have access to it. There's this really complex orchestration of data that is natively solved with T3.

Thank you.

Your next question comes from the line of Mig Dobre with Baird. Mig, your line is open. Please go ahead.

Hey, thank you guys, and congrats on really strong start to the year. Maybe I wanna follow on that discussion with Rob there. You know, you talked about the big win that you had with a top 50 contractor. I guess I'm sort of curious, when you're delivering these kinds of wins, you know, what is sort of like the value proposition, the framework that really kinda comes out of this? One of the concerns that I think a lot of investors had was pricing, and that being the tool that you're using to win this business.

Maybe comment on whether or not that perception is accurate and comment how you think about industry conditions and your ability to really capture the value that it seems that you're bringing to the table through pricing or any other means.

Yeah. As we mentioned, jobs are getting bigger and more complex. Like I was saying before, with our ability to natively extend data to any party, without human intervention, it is a very unique value proposition. If you think about the practical examples of what that might mean. Say you have a massive job site with, you know, hundreds of companies on that job and thousands of machines and, amidst that chaos, you then try to determine who has access to the digital twin, the real-time data of all this activity. Our platform handles that natively. When you practically think about that, you have questions like, "Well, can this human use this machine?" Again, think about the thousands of humans that are on a job and the thousands of machines.

Our platform answers that in real time, so there's no phone call, there's no fax, there's no, you know, scurrying around and the chaos of that or even over-renting a machine. Instead of going, "Well, I can't use that machine, so I need to call someone else to get another machine." You suddenly have this real-time ability to grant access or understand custody and access. Even if we sort of narrow the scope just down to this pragmatic environment of, you know, folks in the field trying to utilize these machines, 'cause the machines are how they do work. If you think about building, it doesn't matter if it's a, you know, a highway, a data center, an office building, you've got humans and you have machines, and that's how you construct this stuff.

Being able to have all of that suddenly reduce the chaos and you have this controlled environment, that T3 brings means that, you know, if you're a big client and you're about to encounter that chaos, who are you gonna choose to be your partner? Now, we're not big enough to meet 100% of demand, and I don't know if we'll ever be big enough to meet 100% of demand. What we do get is we get that first call, and that is absolutely an advantage we have because then, of course, instead of trying to gain market share by cutting prices, we gain market share because we give value. Of course, we wanna give a good value to our clients.

I believe they need to rent fewer machines if they use us because suddenly you don't have this duplication of, you know, one sub is using an aerial boom lift and then the other sub can't share it, so he has to rent his own boom lift, and then the other sub can't share it, so and so on, you sort of see how that can propagate and create complexity and, you know, lower utilization, unsafe environment and all that. We help solve those problems, and because we help solve those problems, the demand is there. I think the numbers speaks of itself. I mean, I, we ourselves look at the demand we've had for the last 10 years and, you know, outside of M&A, nobody's seen this, and that's really because of the differentiation we bring. Jabbok can speak to maybe the pricing.

Thanks for the question. If what's changed for EquipmentShare over the last decade, a decade ago, we had one store. We now have the scale that we can deliver across the U.S., and we use that example. Customers have realized not only do we have the scale, but we have the sophistication as well we talked about from a technology standpoint, and this is built on a tech stack that actually solves our customers' problems. They hear about tech. We all understand AI is changing fundamentally how work is done, but we're still in a very physical industry. You still have to have access control. You still have to have visibility of your machines.

You still have to have job sites where when you use EquipmentShare, you can run the safest job sites, you can run the most productive job sites. At the end of the day, our customers are in this. They have businesses. They need to make money. When you use our tech stack, when you use T3, that unlocks value. As we talk about growth, we talk about margins. We have the highest margins in the industry and net return on capital. That's also for our customers because of the value we actually provide from technology.

Understood. My follow-up, one of the metrics that stood out to me from the quarter was the dollar utilization. I know you guys don't specifically talk to this, but by my own math, this metric expanded something like 150 basis points year-over-year. If you were willing to comment at all, I'm curious what's behind that. Is it better utilization of fleet relative to a year ago? Is it maybe a little bit of help from the previous discussion we had on price? Is it fair to expect continued improvement on a year-over-year basis in this metric as 2026 progresses? Thank you.

Yeah, thanks for the question. Like, you know, as we said before, we don't really comment on seasonality, but what we can say, when you look at our customer base at about 90% being national and regional co-contractors, T3 created the most value on mega projects and large job sites. Those are really long duration projects with not the sort of fleet turnover that you see in the local market. We definitely do see that as a tailwind in the actual yield that we're getting off of the fleet and our utilization in the market. I'll let Jabbok kind of talk about what we're looking at for the rest of the year and talk about the guide a little bit more on 2026.

Yeah, I think when we look at the guide, we upped it from 27% to midpoint to 29%. If we kind of take a step back for EquipmentShare today, in an industry at the scale we have, that's never happened in history from organic growth. It really reflects, like Willy talked about, that customer demand driven by a differentiated solution. You see that demand. We're seeing unprecedented demand across mega projects, data centers, manufacturing, infrastructure, really across every sector that we're serving as a customer. With that said, we don't want to get over our skis. We're a very disciplined company. We're only one full quarter into the year, and that's why we raised it from 27% to 29%. If you think of our organic sites, they're maturing. We're seeing really good customer demand.

For us, we really like what we're seeing as far as today and where we're actually going.

Thank you, guys.

Your next question comes from the line of Gary Liebowitz with Wells Fargo Securities. Gary, your line is open. Please go ahead.

Yes, hi, good morning. This is Gary Liebowitz. I was hoping to jump in on the rental gross margin performance. It was a really good performance there, depending on the metric, you know, up about 200 basis points year-over-year. I'm wondering if you folks can comment on what was performance on a same store, like for like basis for mature sites. And, you know, if you're willing to comment on what was the tailwind from new starts as a percent of total, you know, declining as your footprint grows and the denominator gets larger here. Thanks.

Hey, Gary. Thanks for the question. On the gross margin side, if you kinda can compare the equivalent rental segment revenues against the direct COGS, we saw a nice lift in gross margin and also the leverage on the SG&A side. Both of those were good tailwinds on top of the volume. We do break out the segment cohorts. We did that at the year-end, and we'll do that again for you periodically. At a high level, we're seeing growth across our segments. Like I said in the prepared comment, the cohorts of sites. Like I said in my prepared comments, our new sites are ramping nicely.

If you kinda think about the same store from a margin perspective, that's 55% TTM for the greater than 24 months. Those mature sites was 55%. We saw strong, you know, strong performance against those, plus the growth of the new sites is what drove the performance in Q1.

Okay. Then, can we just go back to the dollar utilization part of the conversation? Looks like for the industry, dollar utilization was a nice tailwind versus normal seasonality in the first quarter. You know, the market had been oversupplied from aerials. I know for you folks it's a bit different, but can you just comment on the pricing trends that you're seeing in the market? It feels like, from checks that for the first time in, I don't know, 18 months, two years, we're getting nice pickup in rental rate heading into the construction season for the industry overall. I'm wondering if you can comment and talk about if that's what you're seeing in your markets as well.

Great. Aerials is obviously part of the growth, all across the core and Advanced Solutions and Site Solutions, we're seeing strong demand. From a pricing perspective, as we've said in our, you know, as we said before, we see a really stable pricing backdrop right now. There's a lot of demand, a lot of good customers with a lot of activity. We've seen a stable pricing backdrop for on our end. You know, given the T3 capabilities and our customer relationships, we've been able to command the right kind of price and at or above the industry, which is where we target for our customers.

Thank you.

Your next question comes from the line of Joe Ritchie with Goldman Sachs. Joe, your line is open. Please go ahead.

Thank you. Good morning, everybody. I know that you guys typically don't comment on seasonality, but historically, margins improve in 2Q and 3Q really through the prime construction season. Can you maybe just provide a little bit of color on margins going forward as the year progresses?

Yeah, Joe, thanks for the question. As Jabbok mentioned into the rest of the year, we, on the, on the revenue growth or the equipment rental revenue, we grew, you know, we upped the guide at, from 27% to 29% at the midpoint. We had a strong quarter for Q1, as you mentioned. Like you mentioned, there is a lot of strong backdrop in the industry right now through the rest of the year, which we, which we view as a positive sign. You can kind of see in the guide where we're implying for margins through the rest of the year. We think that the, you know, the rest of 2026 is a really strong backdrop, especially for the customers that we serve.

We're, you know, we think that's a positive development.

Okay, great. Look, there's obviously a lot of concern in the market right now regarding inflation, you know, geopolitical events of the last quarter. I guess it doesn't seem like you guys are seeing any change in customer behavior, you know, through the quarter or into Q2. Just any comments on like, whether things are getting delayed from a project perspective at all, or as your suppliers are talking about supply, you know, the supply chain environment today. Anything changing, lead times changing? Just any color around that would be helpful.

Yeah. I think, it's Jabbok. I think as we discussed before, we're seeing unprecedented demand across all the sectors from all our customers. One of the advantages we have, and the largest buyers in the world for manufacturers, we have very, very strong relationships. Those relationships kind of cross over the ups and downs from economic cycles, and that preserves our ability to maintain through the years those relationships and that pricing from a consistency standpoint. If you think of rental, which is different than some of the other sub-sectors, we already have our $9+ billion worth of fleet. We're already monetizing that fleet. That is if you think of inflation and tariffs and things like that fleet is already owned. It's already our fleet.

I'm able to monetize that, and that is when you have excess demand and limited supply, and when there's a little bit of dislocation in the market, that gives pricing power to this industry if you think of the macro. There's something where the largest players do absolutely have an advantage in times like this.

Helpful. Thank you.

Your next question comes from the line of Aaron Kimson with Citizens. Aaron, your line is open. Please go ahead.

Great. I wanted to start with a macro question as well. From your vantage point, has there been a noticeable change in the commercial construction macro since you reported in mid-March? if so, what are the main drivers?

It's actually an interesting question. You think of, just from a recovery from an economic, standpoint, I would look at this more from a macro, like a K-type recovery. You've got unprecedented demand across from onshoring manufacturing, data center mega projects. What's loosely associated, you'll see how we report our customers, when you think of residential and commercial, that's kind of stable, but in some areas and some geographical locations, those are actually going down. When you think of that, what's really fascinating about a company with our scale and with the tech stack, we have mobile fleet. We can optimize the best customers that we serve them with the highest returns. To answer your question, we're saying we bucket that as about 11%.

I think the type of customers we serve, if we're looking at the, call it the commercial residential, and that's stable, but in some geographical segments you actually see a little bit of, even less than stable. Like I said, more of a K-type recovery.

Okay. That's helpful. Thank you. As a follow-up, Willy, can you talk about how the pace of product development for T3 has been changing with recent model advancements? Whether you see the lowered barriers to building technology as a net threat to the ten-year tech gap y'all have talked about EquipmentShare having versus the industry, or potentially giving you a chance to compound your tech advantage relative to peers.

Yeah. It's pretty exciting. The pace of development has grown by an order of magnitude, and I think that's true of any forward-thinking tech environment, where it's a software, you know, only stack. The advantage we have is that, you know, from a moat perspective. We get the tailwind and this whole new environment of, you know, software development has changed, and there's really no barrier in the software world of building something, say in a year. Like you can, if you can imagine it, you can build it.

Where the barrier is and really our moat is when you start getting down to that stack into embedded layers and hardware and integrations and then, you know, whether you think about ultimately then the IP associated with things like our access control and then, you know, manufacture installs, et cetera. That's where you're in multi-year, you know, fairly complex, challenging environments to actually build that technology stack. We start from the ground up. You know, we build our own sensors. We write our own embedded software. We own that IP, and that's not just like one simple thing.

You have thousands of, you know, machine product categories and hundreds of manufacturers and integrations that is required. All of that's necessary to then feed into a structure and a, you know, a structured environment of data that then, like I described before, where you need the capability then to deliver that data to many parties based on custody. There, there's a whole ecosystem there that has to develop. If you're only looking at software and building, you know, if somebody is building a simple software platform, that is, you know, that is not hard to really duplicate, and pace is really what matters now. Domain experience is what matter, context is what matters. When you think about EquipmentShare, what we have is we're not software only.

We have a deep, you know, thread all the way into the hardware world that is our IP that we own and then connects to, you know, machines in the whole environment. This spans from, you know, vision systems like security systems on job sites to machines and keypads, et cetera, all that. We really don't have time to go quite into all those details, but can individually. If you move to the software side, what that gives us, we have industry-leading industry. If you think about just me, you know, leading the technology side of this, I have the advantage of knowing what it means to build at scale in this environment, in the physical world and in the software world, and that is unique.

Like, when you think about our future competitors, when they may or may not turn up, they're gonna look a lot like us. They're gonna have these two worlds of data, software, hardware, et cetera, and then a whole world of operational excellence and distribution. Because then the humans who are leading that and have the view and the expertise of what should be built, which is the barrier in software, is simply what should be built. They have to have that domain expertise because LLMs and AI, there is no urge to build. They're directed by humans. Now it's really the advantage is not squarely in the box of outliers, differentiated companies, and companies that span both worlds of physical and distribution and hardware, but also on the software side.

Got it. Thank you both.

Your next question comes from the line of Jamie Cook with Truist Securities. Jamie, your line is open. Please go ahead.

Hi, good morning, and congratulations on a nice quarter and guidance rates. I guess if you could just frame, obviously we raised the guidance, nice start to the year. It sounds like the macro is picking up as well as you're doing a good job executing. Any way you could just help us frame, you know, what you have embedded in sort of like the high end and the low end of the guidance? If we were to raise, I guess, guidance again, do you think it'd be more reflective of just macro improving or just more sort of EquipmentShare specific, you know, initiatives in terms of opening more new stores?

I guess my second question is in terms of your CapEx guidance rates, can you just talk about like by equipment, like where the incremental demand is coming from? Thank you.

Hey, Jamie. Thanks for the question. I'll take that in a few parts here. On the ranges and the guide, we talked about the midpoint. What kind of has the flex on the high and low range is we can pause or slow down growth in the macro environment if we wanted to. All our obviously purchase orders, we can flex if needed. On the high side too, the opposite is true. We're quite flexible from a balance sheet and fleet growth perspective and new site openings, that is kind of embodied in the range there. What would drive, as you were saying, what would drive a beat is it's pretty simple. We execute well within a good macro backdrop, both those variables drive our performance.

As we continue to execute on mega projects with large customers, prove the tech differentiation to more and more customers and get adoption and drive value for our customers, that obviously will translate within a strong backdrop for the customers that we serve into stronger performance. On the CapEx side, you can see, you know, on the both the core and the advanced fleet, both are seeing great demand. We don't break that out specifically, but you can kind of see the split in our historical financials. I will also note even on especially Advanced Solutions space, we are the fastest growing Advanced Solutions organic business in the industry as well.

We've seen a lot of growth and good contribution in that part of the fleet business as well.

Thank you.

Your next question comes from the line of Ken Newman with KeyBanc Capital Markets. Ken, your line is open. Please go ahead.

Hey, thanks. Morning, guys. Nice type one beat this quarter. Wanted to just dive into the adjusted core EBITDA guide. You know, I think, it is adding back, call it $19 million in that stock-based comp this quarter. I think historically, that expense has been included in that calculation. Maybe a two-part question. First, just any color on why the change on that methodology versus last quarter? Second, you know, if we are going to start continuing to add back SBC to the adjusted core EBITDA for the rest of the year, is that gonna be similar to what we've seen this quarter? I'm just trying to get a sense of, you know, you raised the EBITDA guide by $70 million.

Is that primarily just being driven by the higher stock-based comp add backs or any help there?

Yeah, Ken. Let's talk about the stock-based comp for a second here. To compare SBC in 2025, $4 million was the SBC in 2025. The change in 2026 and going forward is almost entirely driven by the founder award PSU stock-based comp expense that was granted at the time of the IPO. Of the $19 million of SBC in Q1, $17 million of that is the founder awards. To remind you what the founder awards are as well, there's five tranches, and the last tranche is a $90 billion market capitalization for the company. For us, when we think about performance and the way that those are accrued from an accounting perspective, having, you know, those tranches up to $90 billion is not really reflective of the actual earnings power of the business, which is why we included that.

The raise, it's the actually original guide that we had didn't have that substantial amount of SBC in there in the first place. The SBC exclusion from adjusted core EBITDA is actually consistent from the year-over-year guide. That $70 million guide had no impact from the SBC gain that was driven by the founder awards. To answer your second question, the actual founder award expense impact in out years is noted in a footnote in the 10-Q, which is now available. You can actually go see the annual impact there, and you can derive your quarterlies accordingly.

Okay. Very helpful. I appreciate that. Maybe just for my follow-up here, and I was surprised to see in the deck that the appraised value on the own fleet came down a little bit from the fourth quarter, just given that, you know, we did see the OEC on the own fleet was up slightly. And I also think used equipment prices have continued to come up in the secondary market. Maybe just any help on why the appraised value is a little bit lower or just how to think about appraised value on a go-forward basis.

Yeah, that's just normal economic depreciation against the much larger OWN Program basis compared to the incremental add of new OWN Program OEC. That delta in OWN Program appraised value is entirely consistent with the normal economic depreciation that we expect that gets embedded inside of the appraised values. Well, that is not reflective of softening that we're seeing in the used market. If anything, we're actually seeing a stronger used equipment market, which to, you know, to your point, will track with the, those appraised values obviously will track with OWN Program equipment, but you have to factor in normal economic depreciation on that gear. When you do it's kind of a standard baseline comparing Q over Q, even with the new OWN Program additions.

Understood. Thanks.

Your next question comes from the line of Avi Jaroslawicz with UBS. Avi, your line is open. Please go ahead.

Good morning. Thank you. Just wanna address what you're seeing, the specific relevant markets that's telling you to accelerate the new openings this year and raise your CapEx. Is it more about the more activity in the market or more about you taking more share than you were previously thinking? Just I get that it's both, but wondering what you would say is the bigger driver here.

It is both, to answer the question. What we're seeing, and we talked about a lot. We have stores that are maturing. The stores themselves, again, we projected 27%. We raised that to 29%. If you think of the organic growth of what we're doing in this industry and the differentiator product, you're gonna see that accelerated. The stores start at zero and they ramp up. You're gonna see that add back. What's interesting, if you look at us, and I think we've talked about it before, we're at that over midpoint where there's more mature stores actually producing revenue and producing the associated EBITDA and earnings than there are actually stores that we're opening. As we do our path to 700, this is a massive industry, and we talked about that as well.

If you think of our place in the industry, this is $15 trillion. If you look at pundits who have studied it, we still lag the industry dramatically from a productivity level. That's what we're actually solving for. Large industry, growing incredibly good macro drivers in our industry for all of us who are in the industry, and then our unique position really drives that growth.

Okay. I guess just given the plans that you have through 2030, how should we think about how you're executing that plan? When we think of the locations that you're adding this year, is it more governed by what you think the market can support or just more governed by how quickly you can get these locations open?

Yeah. We're right on track. If you think of our guide, and we're slightly above the midpoint from the stores we actually opened, we're right on track. Because of the size of the industry, not to reiterate what we talked about before, this is in spite of the industry itself. The industry, again, there's one to two trillion that pundits say we lose, and I agree with them, because of just lack of basic productivity that our tech stack actually starts solving. We're intent on going there. We're intent on solving that. We think of the different verticals that we're turning on, besides just rental. Rental is the gateway into the industry. Allows us to actually broadcast that network, allows us to serve customers. Our customers need many, many more services.

What's fascinating is that customer acquisition cost goes to zero as we serve them in other segments of what they actually need. We are very, very focused. This is a physical industry. You can't just solve it with tech. Willy talked about that a bunch. You actually have to have physical distribution. Because we provide this product, because we have the scale now nationally, our customers drive that, differentiate, our customers drive that expansion. That's what we're seeing today, and we expect to see that through 2030.

All right. Appreciate the time. Thank you.

Your next question comes from the line of Scott Schneeberger with Oppenheimer. Scott, your line is open. Please go ahead.

Thank you very much. Good morning. For my first, you all increased the 2026 guidance for total revenue by $100 million, and guidance for the rental segment increased, I think it was about $55 million, and clearly very strong and congratulations. The remaining $45 million increase, is that primarily equipment shares? You kinda touched on that. Is other revenue going to be a sizable contributor? Just looking for what's behind that. Thanks.

The guide increase, if I understand the question, the guide increase was driven primarily by equipment rental and equipment sales revenue. Then Scott, just to call out, and Jabbok mentioned it in the prepared remarks, we now break out the equipment sales segment, EBITDA contribution in the guide, separately from the other, so you can kind of deconstruct those as well. It's the guide increase on revenue is getting driven by the rental segment itself.

Great. Thanks. Net leverage ratio decreased from the fourth quarter was 3.2x now down to 2.8x. I understand there's seasonality, and it's probably gonna increase in the middle of the year here, but making really nice progress there. How do you see that ending 2026? Are you tracking ahead with the strong EBITDA growth that you're driving?

Yeah. We're still on the same target for year-end in the low 3%. Because we have so much demand, because we're getting 60.5% mature side ROIC, our deployment of capital, you know, is obviously very favorable from a capital deployment perspective. From a leverage perspective, we're still targeting low 3% at year-end, mid to low 2%, trending the mid to low 2% in the medium to long term.

Great. Thanks. Congratulations.

Your next question comes from the line of Kyle Menges with Citigroup. Kyle, your line is open. Please go ahead.

Great. Thanks for taking my questions. I was hoping if you guys could just talk a little bit more about your power gen offerings for data centers and just anything you're maybe exploring to add in that area. Curious if there could be an opportunity to leverage the OWN Program with power gen for data centers.

Yeah, I think it's a great question. As Mark had mentioned earlier, our specialty division is the fastest-growing in our industry. As we've talked about, it's paired with our core, and the rest of the company is also growing at a very healthy amount in the industry. As we all see within the U.S. and really globally from a data center perspective, and I talked about it a little bit in the prepared remarks, you have 40-50 sq ft, which 10 years ago you used maybe 8 kW-12 kW of power. When you have today, and some are saying it's even up to a megawatt, but let's call it 500 kW-600 kW.

If you have Blackwell and some of the Vera Rubin, but some of the best chips are consuming in the same amount of square footage, sometimes 40x-50x more power and then associated cooling. If you think of the power demand, you think of the cooling demand. If you think of what, from if we're just focused on specifically data center, and there's a lot more with electric vehicles and trucks and everything else from a power consumption. Data centers, you need four things. You need a building, you need cooling, you need power, and you need the actual chipsets. Three of those things, we are very focused, and I would argue we say the best in the world at supporting when you have massive acceleration. We think it's a huge part of it.

Again, we're growing, we're a very disciplined company, but the fastest-growing in the specialty industry. Where does power come from? That's where you're seeing a lot of those microgrids. You're seeing natural gas in the U.S. specifically as a really good support. You're seeing turbines, you're seeing recips, you're seeing mobile modular because you have to spin up additional power and sometimes 40x-50x more power. You don't wanna strain the grid. It's something we squarely play in, and it's something that we, I would arguably say, are the best in the industry from a mobile modular.

That's helpful. I am curious your thoughts as well as you see maybe some other equipment rental companies signing partnerships with construction management software companies just, you know, as maybe more of your competitors do that in equipment rental. I'm curious just how T3 can still gain share in that environment and how T3 can differentiate.

Yeah. I don't think the future is really trying to cobble together a bunch of different fragmented legacy systems. I mean, it just pains me trying to think about the, you know, suffering through those types of integrations. AI has completely changed the landscape on time to value and in the software world. Like I described before, though, you know, software is no longer a moat. The moat, it can be present within users and, you know, depth of integrations, but that's quickly dissipating. The moat really becomes the integration to hardware in a physical world, and we have an extremely, you know, robust moat there. It translates then to what to build.

Like, you have to have a view on the industry, you have to have a vision because now the barrier to generating code is, you know, has gone from very high to it's almost gone. Yeah, I mean, I applaud any effort to create value for a customer. I just don't think those tools are legacy systems that get, you know, thrown together with some, you know, ancient APIs. Anyway.

All right. Thank you.

We have reached the end of the Q&A session. This concludes today's call. Thank you for attending EquipmentShare Q1 2026 earnings call. You may now disconnect

Good morning. Thank you for attending today's EquipmentShare Q4 and full year 2025 financial results conference call. My name is Jennifer, and I'll be your moderator today. All lines will be muted during the presentation portion of the call, with an opportunity for questions and answers at the end. If you would like to ask a question, press star one on your telephone keypad. I would now like to pass the conference over to Rhett Butler, Vice President of Investor Relations with EquipmentShare. Rhett, please proceed.

Good morning, and welcome to the EquipmentShare fourth quarter and full year 2025 financial results conference call. Joining me today are Jabbok Schlacks, Co-Founder and Chief Executive Officer. Willy Schlacks, Co-Founder and President. David Marquardt, Chief Financial Officer and Chief Accounting Officer, and Mark Wopata, EVP of Finance and Chief Data Officer. Yesterday, we issued our earnings press release and posted an earnings presentation on our investor relations website at ir.equipmentshare.com. We encourage you to review the presentation, which provides additional detail on our financial results. Please be advised this call is being recorded. Before we begin, I'd like to remind everyone that the company's earnings press release, earnings presentation, comments made on today's call, and responses to your questions may contain forward-looking statements within the meaning of applicable securities laws.

These statements are based on current expectations and assumptions and are subject to a variety of risks and uncertainties that could cause actual results to differ materially from those projected. Please refer to our earnings press release, our earnings presentation, and our SEC filings for a discussion of these risks and uncertainties. You can access all of these documents and filings on our investor relations website. Please note that EquipmentShare has no obligation to update or revise forward-looking statements that have been made to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. We will also reference certain non-GAAP financial measures. Non-GAAP financial measures should not be used as substitute for the corresponding GAAP measures. Reconciliations to the most directly comparable GAAP measures are included in our earnings press release. With that, I'll turn the call over to Jabbok.

Thank you, Rhett. We're pleased to report strong fourth quarter and full year 2025 results as we continue executing against our operational and financial objectives. Our top priority is solving problems for customers, problems we experienced firsthand on the job site as contractors for decades before starting EquipmentShare, and we built the company around that focus. Driven by our differentiated tech-empowered offering, a strong demand environment in the end markets we serve, and a relentless focus on execution, 2025 was a banner year for EquipmentShare. I'll start with a quick financial summary before we step back and talk about what's driving the business. Full year 2025 highlights include rental segment revenue was $2.7 billion, up 34% year-over-year. We added 95 locations for a total of 385 locations at the end of 2025.

Adjusted Core EBITDA was $1.7 billion, up 32% year-over-year. Mature site rental segment Adjusted EBITDA margin was 54%, in line with our target of over 50%. Mature site return on invested capital was 16.5%. Our year-end results focused on growth, margins, and ROIC set us up well for 2026. We continue to see strong customer demand and a significant opportunity to keep addressing industry pain points. At the midpoint of our 2026 outlook, we expect rental segment revenue to grow approximately 27% year-over-year, supported by our differentiated offering and a constructive industry backdrop. We continue to invest in organic growth because locations opened in response to customer demand have consistently generated strong returns and attractive unit economics as they mature.

In 2025, we incurred $252 million of one-time new market start-up costs to support new site openings. Those costs are concentrated in the first 12 months of a location, but we believe they create a long-term earnings generating asset within our network. As those sites ramp and mature, we expect them to contribute meaningfully to earnings and cash flow. We believe that is a highly efficient use of capital and a key driver of long-term value creation. To understand our performance, it helps to start with how the industry is changing and what customers now require from a rental partner. The equipment rental industry is a great industry, and it forms the backbone of what gets built in this country, but it's also a fragmented industry. Page 10 of the presentation frames both the size of the opportunity and the continued fragmentation of the rental market.

Today, the largest players only represent a minority of the total market, which creates a long runway for share gains for companies that can deliver at scale and solve increasingly complex job site needs. Job sites are getting larger, faster moving, and more operationally demanding, particularly across mega projects like data centers, advanced manufacturing, energy, and infrastructure. Page 22 shows the scale of the active and planned mega project opportunity already within our serviceable footprint. At the high end of the market, scale is a differentiator. There are only a small number of companies globally that can deploy 3,000+ machines to a job site quickly and reliably.

Page 23 is a good illustration of what that looks like on a complex mega project. At that scale, customers need a partner that can bring coordination, visibility, control, safety, and uptime day after day across thousands of assets, people, and workflows. Increasingly, we believe that customers also want that from a more integrated partner across the job site. Not just equipment, but service, technology, and specialty solutions. We saw that reflected in 2025 when our specialty division scaled 34% year-over-year, and revenue from T3 and our materials business grew over 100%. That true tech-integrated one-stop-shop offering is what is driving our market share gains. When you see our 30%+ organic year-over-year revenue growth in a low single-digit industry, it raises the obvious question, what's driving it? For us, it's not acquisition-driven. It's customer-driven.

We believe customers are consolidating spend with us because we deliver a differentiated solution on the job site. The way we do that is through an integrated model that combines three things. First, physical distribution at scale. Delivering, servicing, and supporting equipment and job site solutions across a broad national footprint. T3 is a major differentiator, but this is still a job site business. You have to deliver equipment and service at scale. Second, we bring operator-grade experience. As contractors, we've lived these job sites for decades, and we've built the teams, processes, and technology designed for the real constraints in the field. Third, our proprietary technology platform, T3. It's deeply integrated into how customers run their job site every day, and it also powers how we run our own operations at EquipmentShare. We built and own the full sensor to server technology stack.

Because we operate end-to-end, we're capturing a unique proprietary data set across equipment, people, service, workflows, and job site operations. That combination, physical distribution, job site expertise, and a proprietary operating system built on a decade of real job site data, make up the structural advantage that are driving our performance. You can see the value showing up in customer behavior. Customers that meaningfully engage with our technology platform spend dramatically more with us. In fact, as you can see on page 30 of the presentation, national customers that are highly engaged with T3 spend roughly six times more in rental than rental customers who don't use T3. When we talk about which customers see the most value on T3, it's customers running large, complex job sites across multiple locations where downtime, safety incidents, and lack of visibility can translate into huge inefficiencies.

That retention and expansion is a key reason our growth is both organic and durable. When we open a new location, more than 75% of first-year revenue comes from existing customers already renting from us in other markets. That dynamic is illustrated on page 20 of the presentation. You can see it in our results. Industry-leading organic growth, leading mature site margins, and strong returns on capital. We pair that growth with discipline. We expand sites in response to customer demand and manage the business against those key metrics I mentioned, growth, margins, and ROIC. With that as context, I'll turn the call over to Willy to talk more about T3 and the connected job site. Mark will then walk through our unit economics and the OWN Program, and Dave will take you through the financial results, balance sheet, and capital allocation in more detail. Willy, over to you.

Thank you, Jabbok. Many of you are already familiar with T3, our proprietary technology platform, and the differentiated value it creates for both our customers and our operations. At its core, T3 connects the job site from within a sensor to server environment and creates this unified data across people, machines, and job sites. There's really two sides of that platform. First, it powers how we operate. That connectivity gives us operational intelligence, remote monitoring, predictive maintenance, preventative alerts, real-time visibility across our fleet, and it helps us run the business more efficiently and deliver better uptime for our customers. Second, that same connected data set powers the insights customers get. It helps them answer basic questions quickly, like what's on the job? Where is it? How is it being utilized? And it helps identify opportunities to improve productivity across machine categories and across the job site holistically.

That includes critical assets like generators and security systems, where connectivity matters for things like life safety and energy for that job site. Our vision continues to push towards a fully connected environment where the effort to gain insight becomes frictionless because the answers are essentially at your fingertips and everything is generating in real time. What's particularly exciting today is what AI and large language models can do on top of the data we've been collecting for more than a decade. When we started this company, we never imagined tools this powerful. After years of building structured job site and machine datasets, a lot of that value is now getting unboxed with these models able to do the reasoning at scale and surface insights automatically. It's really accelerated what can deliver value to our customers. A couple of important points about the platform itself.

First, T3 is OEM-agnostic. It integrates across equipment regardless of manufacturer or machine type. Second, it spans a full gradient of assets and categories, from small inventory all the way up to large serialized machines. The system flexes to generate the right insights at any level of that categorization. Increasingly, the platform has evolved beyond simply tracking inventory. It's really designed to help customers manage job site resources more holistically, people, equipment, and everything you would consider in that full spectrum of a resource that you would see within a contractor at a job site. That becomes incredibly valuable the larger and more complex you have this chaotic environment, like a mega site or any type of large infrastructure job site.

We're seeing strong demand for that capability across manufacturing data centers, energy and infrastructure projects where thousands of machines and workers are operating simultaneously, and the cost of downtime or lack of visibility within those environments is real. Finally, this connectivity doesn't just create operational value, it also enables financial differentiation. Programs like the OWN Program that are powered by the transparency and control that T3 provides. With that, I'll turn it over to Mark Wopata to give you a bit more insight into the OWN Program, the unit economics and update on that overall system.

Thanks, Willy. We closed out 2025 with a very strong unit economics, and our rental locations delivered the growth, margin, and return profile that places us at the top of the industry in those categories. I'll walk through the site maturity curve and the economics that result as locations mature. Pages 18 through 20 of the presentation walk through the unit economics, maturity curve, and organic site ramp. Because we are a large-scale equipment rental provider uniquely focused on organic growth, understanding how a new site ramps to maturity and the unit economics produced through that process is critical to understanding our model. When we think about what drives success for a new location, it comes down to two things, creating demand through T3 and operational excellence.

We open locations in response to customer demand, and our more than 350 organic rental starts since founding, including 85 new rental locations in 2025, reflects a disciplined, repeatable organic growth playbook. When we open a new site, we typically invest about $2.5 million over the first 12 months, expensed through the P&L, which we report as new market start-up costs. New sites generally follow this consistent ramp pattern. In year one, they ramp in revenue as we invest in people, property and fleet. In year two, they generally break even, and by month 24, they become what we call mature and begin contributing meaningfully to the company's revenue, mature site margins, and ROIC.

These mature site economics are driven by strong fleet performance, operating leverage, and the benefits of our proprietary T3 technology platform, which helps us optimize equipment performance and redeploy assets efficiently across the network. We primarily evaluate the performance of our organic growth strategy using three key metrics, rental segment revenue growth, mature site rental segment adjusted EBITDA margins, and mature site return on invested capital. As Jabbok Schlacks mentioned at the top of the call, in 2025, rental segment revenue grew 34%, driven by strong customer demand. Our mature sites delivered 50%+ rental segment adjusted EBITDA margins, reflecting the operating leverage embedded in the model as our locations scale.

In 2025, our mature site ROIC was 16.5%, which puts us solidly in our near-term target range and progressing toward a long-term target of over 20% ROIC per mature site as we continue building out a more complete job site platform. Importantly, a large portion of the network is already built. As those ramping sites mature, we expect them to contribute meaningfully in additional earnings and cash flow with limited incremental investment. We believe that site maturation should continue to support earnings growth and margin expansion over time, even if the pace of growth investment were to moderate. Moving to the OWN Program, which remains a core pillar of our strategy. Pages 35 to 40 of the presentation provide a useful overview of the OWN Program and how it fits into our model.

We closed out 2025 with over $4.9 billion of OEC in the OWN Program, compared to $3.4 billion in 2024. As a reminder, the OWN Program works as follows. EquipmentShare purchases new equipment at industry-leading prices from our top OEMs. That equipment enters our rental fleet and begins generating revenue. We then sell equipment into the OWN Program and enter into asset management and revenue sharing agreements with participants. The equipment is rented, serviced, and maintained just like our on-balance sheet fleet. Rental revenues are then shared with participants and reflected as OWN Program payouts within cost of goods on the P&L. At the end of the term, we have the option, but not the obligation, to purchase the equipment at the appraised value or to help remarket it for sale.

We believe that the lifetime economics of the OWN Program are comparable to our on-balance sheet fleet, while allowing us to meet customer demand in a disciplined, capital-efficient way. Participants in the program include high-net-worth individuals, family offices, and institutional investors funded through both traditional lending and the ABS market. We believe these are durable, scalable sources of capital that support the growth of the program over time. The program's success is powered by T3, which gives equipment owners real-time visibility into their asset location, utilization, and service history, improving transparency and reducing risk for OWN participants. We remain significantly oversubscribed in the program.

In the fourth quarter, we completed another ABS-funded OWN transaction and executed additional transactions in our high-net-worth and family office channel for a total of $680 million of OWN sales in the fourth quarter and $1.3 billion of OWN sales for the full year. The appraised value of the OWN program fleet as of year-end was $4.1 billion.

Looking ahead, we continue to expect OWN Program OEC to remain at roughly half of our fleet under management over the medium to long term, plus or minus 10%. We are anticipating 55%-60% of OEC in the OWN Program at the end of 2026. With that, I'll turn the call over to Dave for financial update.

Thanks, Mark. Customer demand continues to drive our organic growth and positive momentum, which is reflected in our fourth quarter and full year 2025 results. As we continue to expand our footprint into new markets and as more of our recently opened sites ramp up to maturity, we are well-positioned for continued market share gains and profitable growth. To summarize our results for the fourth quarter and fiscal year ended December 31, 2025, revenue from our rental segment for the fourth quarter grew over 35% year-over-year to $772 million. For the full year 2025, rental segment revenue reached more than $2.7 billion, an increase of 34% versus the prior year. Rental segment revenue growth was due to significant customer demand, which drove continued expansion of our full service branch footprint and an increase in our rental fleet.

Total consolidated revenue for the fourth quarter was more than $1.5 billion, roughly flat year-over-year. Fourth quarter total revenue reflects a 22% year-over-year decrease in equipment sales into the OWN Program, which we execute opportunistically and selectively. We continue to see high market demand for the OWN Program well in excess of our sourcing needs. For the full year 2025, total revenue was nearly $4.4 billion, up 16% year-over-year. Net income for the fourth quarter was $65 million, as compared to $50 million in the fourth quarter of 2024. For the full year 2025 was $40 million, as compared to $3 million in the prior year.

Adjusted Core EBITDA reflects our underlying operating performance by excluding items unique to our organic growth and fleet sourcing strategy, most notably OWN Program payouts and new market start-up costs associated with our organic growth strategy. OWN Program payouts are unique to EquipmentShare and represent an alternative form of sourcing equipment for our rental fleet. New market start-up costs reflect the upfront investments required to support our continued geographic expansion. We believe that Adjusted Core EBITDA is a key measure of our underlying financial performance because it provides a clear view of the earnings power of our core operations and enhances comparability with industry peers. For simplicity, Adjusted Core EBITDA is the sum of our segment adjusted EBITDA for the rental and sales business segment.

Ladies and gentlemen, please hold for a brief moment. Ladies and gentlemen, please hold for a brief moment as we are experiencing technical difficulties. Ladies and gentlemen, I will now pass the call back over to Jabbok Schlacks.

Hey, thank you. It sounds like we had a few technical difficulties, so we'll finish out with our 2026 outlook and then open up for questions. If you look at our 2026 outlook, you can see on page 47 of the presentation. For the full year ending December 31st, 2026, we expect rental segment revenue of $3.3 billion-$3.6 billion, representing 27% year-over-year growth at the midpoint. OEC of $10 billion-$11 billion. Full service rental locations of 421-429. Total revenue of $5 billion-$5.5 billion. Adjusted Core EBITDA of $1.8 billion-$1.9 billion. Gross CapEx of $2.1 billion-$2.3 billion.

Net rental CapEx of $759 million-$839 million. OWN Program payouts of $891 million-$947 million. As we look ahead, our approach remains the same. Scale with discipline while maintaining balance sheet strength. We're expanding in response to customer demand, and we're managing the business against the key metrics we talked about throughout the call, growth, margins, and returns on capital. The closeout of 2025 was strong execution against those priorities, and we intend to carry that momentum into 2026. Customer demand remains strong, particularly across large national infrastructure-driven projects, and we believe our integrated model positions us well to continue taking share in 2026. Importantly, our growth is discretionary.

If demand softens, we have clear levers to moderate investments, slow the pace of expansion, and prioritize cash flow generation while protecting returns on capital. In summary, we believe EquipmentShare is built for where the industry is headed, where job sites are larger, more complex, and require a partner that can deliver equipment and service at scale, with the visibility and control that only an integrated technology platform can provide. We're excited about what's in front of us, and we appreciate your continued partnership and support. Operator, if you can, open the line for questions.

Thank you. If you would like to ask a question, please press star followed by one on your telephone keypad. If your question has been answered or you wish to remove your question, please press star followed by two. Again, to ask a question, press star one. If you are using a speakerphone, please pick up your handset before asking your question. We will pause here briefly as questions are registered. Our first question comes from the line of Jerry Revich with Wells Fargo Securities. Your line is now open.

Yes. Hi, good morning, everybody. I'm wondering if I could just ask you to expand on the conversation on the mature site performance in the quarter.? Nice to see you folks hitting numbers out of the gate. Can we just unpack what the core pricing and dollar use look like for the mature sites in the fourth quarter? What are you folks expecting into 2026? If you can comment on the first quarter, that'd be helpful as well? Thank you.

Hey, Jerry. Thanks for the question. Yeah. In 2025 and in Q4 as well, we saw strong performance from our mature sites. As we talked about, you know, growth, strong growth and maturation to those sites. Margins at 54% for the year for our sites over 24 months, and then also that 16.5% ROIC. The yield that we're getting on the equipment plus the margin profile driven by that strong customer demand is what we saw through 2025. Into 2026, we continue to see a strong demand backdrop from our customers, a stable pricing environment and, you know, strong demand because of the differentiated offering we provide.

Embedded in that guide is similar performance to for our mature sites that we saw in 2025.

Okay. Super. You know, at the time of the IPO, you folks had really helpful disclosures on the differentiation, the mature sites financial profile between years two through five. Can you just talk to us about how the cohort developments have played out over the past three months? What are you folks seeing as sites go from two years to three years, three to four, relative to what you folks have laid out in the past?

Yeah. First, on the year of 2024, we actually saw that our growth of those immature sites was a little bit faster ramp than usual in 2025, so we were pleased with that performance. Then that years two through five, that data set is pretty similar across the board. We see that what we've seen consistently is a low 50s EBITDA margin production, and so we're happy with where those kind of mature to, you know, four-year-plus super mature sites are operating. Yeah, we showed that 54%, but inside of that disclosure is a really consistent performance from the different vintages of sites, you know, throughout that greater than 24-month cohort.

Okay. Thank you.

Thank you. Our next question comes from the line of Joe Ritchie with Goldman Sachs. Your line is now open.

Hey, good morning, guys, and congrats on getting out on your first earnings call. Can you maybe just start on the cadence for the new rental site location? I think at the midpoint of your guidance for 2026, you're expecting, I guess, roughly 73%. Is that supposed to be linear as we progress through the year? Are you gonna try to front-end load it? Like, maybe just talk a little bit about your plans for 2026?

Yeah, absolutely, Joe. Thanks for the question. The 73%, it is linear, if you think of how they actually open, but opening a site doesn't happen overnight. We're looking, and we may have talked before, years in advance as we prepare. The visibility is incredibly strong for us for the entire rest of the year, but the actual opening cadence is linear in nature.

Okay, great. That's helpful. Then secondly, as you think about the equipment rental margins and those, any progression that you're expecting expansion for 2026, I'm curious, like, is most of that margin expansion just gonna come from the economics, you know, and the mix getting better for mature versus growth rental? I think we're expecting, you know, mature sites to be maybe greater than 60% of the mix by the end of the year. Just any comments around the margin opportunity this year on that side of the business.

Yeah, I think it's a really good point. As you go more than 50% on actually mature stores, you have that massive margin accretion across the entire company. as we're opening those 73 this year stores and continue to open stores, as the market visibility that we have, that visibility going forward, you're gonna have a majority of stores being mature, which will improve dramatically across the entire company, in the future of the margin profile.

Okay, great. Thank you very much.

Thank you. Our next question comes from the line of Rob Wertheimer with Melius Research. Your line is now open.

Hey, good morning, and apologies that I was out for a sec. So just the first question, I wanna ask two, one on how you operate and one just on the market? Obviously, there's been a surge in mega projects. There's been kind of a flattening out of the overall construction market as the rest has declined. Just how are you seeing, you know, the rest of the year, your revenue outlook's quite strong? Do you feel like the smaller markets have bottomed? Do you feel like you're gaining enough share in mega projects to more than offset that? Maybe just talk about that for a second?

Yeah. I think we see from the macro, mega projects are leading a construction surge. The nature of the equipment we provide and the data we have, because we're embedded in customers' workflows, many of our customers work on different types of projects, both industrial and mega projects, smaller, mid-size, and some of the largest projects in the world. That visibility we both give our customers, but also that T3 tech stack we use ourselves, allow us the mobility to go across that stack when you think of the size of projects. Absolutely a tailwind to the industry that we all see. It's important to note we have the flexibility because of the type of equipment and the visibility we have in the market to actually take advantage in good times, and then when times do actually change.

Rob, the other thing I would add is, you can see on page 21 of the deck, one of the dynamics there on why larger projects are driving growth is, 89%-90% of our revenue in 2025 is driven by national and regional customers. That's really where that 27% growth guide is coming from, is following that same sort of customer segmentation mix into 2026.

All right. Perfect. Thank you. Then, Jabbok, I don't think I've asked you this one exactly, but we're all trying to understand some of your differentiation. You guys talked a lot about T3 data flow and so forth on the call, which is great. You also have a little bit of a different structure in your sites where they're larger than some. I wonder if you kind of just talk about where you see, you know, efficiencies being driven, whether you experimented with that, you know, whether your sites are, you know, coming up to productivity fast. I mean, just talk about kind of that aspect of operations, and I'll stop there? Thanks.

Yeah, no. Great question, Rob. I think a big part of this is if you think of the organic growth, we've 99.9% of what we do is organic growth. To grow organically, I've got to get the right sites. That gives us a huge advantage that I can choose them, I don't inherit them. I've got to get the right people on the team, and I've got to get the right fleet. Because we have more data transparency across manufacturers from a tech stack embedded directly onto the machines themselves through the CAN bus, it gives us more data to actually allow us to grow organically, and that's proven throughout the growth. Then growth needs to come with, as we talk a lot about, margins. When we look at our margins, highest in the industry at that 54% on the mature stores.

At the end of the day, that invested capital, the ROIC being at that 16.5%, again, highest in the industry. That structure really has to be driven from a data-driven approach. Because the same tech stack we use is also what our customers use embedded in their workflows, it gives our customers a unique advantage on the job site, and it gives us a unique advantage. I could spend a lot of time there, happy to do it, but really, the tech stack empowers what we do and drives that organic growth and helps us serve customers better.

Thank you.

Thank you. Our next question comes from the line of Aaron Kamson with Citizens. Your line is now open.

Great. Thank you, guys. For the first one, during the prepared remarks, you mentioned physical distribution, job site expertise, and the proprietary operating system associated decade of data is generated as recent customers choose EquipmentShare. Can you talk a little bit about the durability of the moats you see for T3 and why it's so hard for some of your well-capitalized competitors to emulate, whether it's your largest rental peer recently partnering with the leading construction software provider, a software player specializing in telematics, trying to do parts of what you do in construction or the OEMs potentially trying to capture some of the data off their machines one day? Thank you.

Yeah. No, great question. I've been in the industry 35 years, and the reason we started EquipmentShare was most of the companies that you're kind of referencing also existed, providing a degree of disparate technology, might be the best way to put it. The necessity to be OEM-agnostic and to be full stack, but vertically integrated, but horizontal across all manufacturers is absolutely important. We've been developing this technology for over a decade, and it is truly a sensor-to-server environment. You actually have to have the hardware that is embedded in the machine, you have to have the libraries and workflows, and you have to have the front end. Now, what we're excited about. The industry is actually talking about it. Again, we started it because we are historically, as an industry, one of the most unproductive industries in construction.

We are, in some cases, some of the unsafe. We need safety improvements. We need productivity improvements. We're dramatically leading the industry from a technology standpoint, but it never can only be one player. We're excited people are talking about it. Again, we're about a decade ahead of the development of that full sensor to server stack.

I would also add. Oh, I was gonna say, this is Willy, just to layer on what Jabbok's articulating there. There is a way you run your business in a physical dimension, and there has to be a way you represent that in the digital world, in these modern days. The choice of the industry and our peers is very clear. They've got systems that are built in the 1990s and, you know, they're off-the-shelf, and that's totally okay. That's the acceptance of, you know, by and large, most companies, they would choose existing off-the-shelf products. The difference, and one of the core moats that we have, is we built our platform from the ground up. Like we were talking in the remarks earlier, there's a dual nature to that.

That's how we operate our company, and that's how we extend value to our customers. It's a singular platform. You get this tremendous benefit of singularity of data, non-duplication, and all the way down to the schema level of our platform, you extend this value out. The simplicity, the lack of friction. You move to the hardware side, and you have the exact same benefit where we've built that from the ground up all the way to the embedded code, such as the server environment, the data we collect and leverage. There's a lot of it is a sum of the parts. If you look at the industry, it's a great industry. Because of that, there's been, you know, products that have been built decades ago, from the nineties, and they still work.

There's no real reason to change if they still work from most people's perspective. However, if you drive value to your customers, you have to start from the ground up. Now we've got a decade of doing that. When you consider moats, if it is not just one singular thing that really creates a moat in my mind, it is the sum of the parts, and it's the decade of effort building that out and the fact that this is a vertical stack and platform, the OS that we have and can extend this value to customers that no one else has.

Got it. Thank you both for that. As a follow-up, maybe for Willy, can you walk us through what you view as the most important key milestones for T3 since it launched in 2016 and maybe the top one or two things the platform can't do today that you want it to be able to do a year from now?

Yes. Key things since we launched, way back when we started was the visibility. The dual visibility between tenants, meaning that we as a seller have the exact same data set and visibility as the buyer. That visibility was anchored on a native operating system. There was no human who had to go in and extend that. It wasn't like, "Hey, this company wants to see this data. Can we have our IT department give them access?" That question and necessity was never a reality for us because it was always embedded in native inside the platform when we launched this in the early days. That was sort of the ground shift for us when our growth started to take off because we could focus efforts on operations. Technology did not.

Ironically enough, the technology enabled us to focus more on operations and the data that it delivered and all that. In parallel, as we build our technology with the technology teams, the things that it can't do today that I'm very excited about, you know, the roadmap and what we're launching, is the extension of the operating system into the industry. We've done this for rental. We know what it looks like to really differentiate the value and extend value from a data perspective, visibility and all the problems it can solve. What we speculate about and what we're excited about is as that exact same pattern starts to emerge into the rest of the industry. If you think about rental as a transaction type, think about all the other elements where you have distribution of sale of goods and services.

That operating system, the ability to handle that flow is quite a bit different at scale than just when you think about the rental industry.

Thank you.

Thank you. Our next question comes from the line of Mig Dobre with RW Baird. Your line is now open.

Hey, good morning, guys. It's Joseph Grabowski on for Mig this morning. I wanted to start out and, you know, your commentary on the industry backdrop sounds pretty positive, and I realize a lot of the demand is being driven by mega projects that have been on the planning board for several years, but just wondering if you've seen any change in customer sentiment since the start of the war and the resultant impact on interest rates and crude oil prices?

Yeah. We absolutely support the energy sector here in the U.S. What's really interesting, because we've been through ups and downs in markets before. I've been in this industry 35 years. Here at EquipmentShare, really when there is pressure in the markets, and that could be oil prices, commodity prices, tariffs. What's really interesting, we've seen this happen. It's really where efficiencies matters on job sites. Where efficiency matters, companies and contractors choose EquipmentShare. That's really what we've seen happen in the past, and we'll see it again, really when there is a disconnect or pressure in the markets.

As a general rule, right now, we are not seeing kind of macro pressures from our customers, even with recent developments. To Jabbok's point, when there is pressure, we see customers choosing EquipmentShare more because of the efficiency that we provide.

Got it. Okay, great. That's very helpful. My follow-up question, kind of somewhat related: How do higher diesel prices impact your P&L if they remain elevated?

Yeah. I think it's because we support the. Again, we've been through a hundred-year oil before. When you have pricing disparity, you got it on both sides. One, you are paying more for oil, you're also supporting an energy sector. Again, that's where data. When we talk about data, Willy dug into a little bit there. We have that sensor to server environment. We have data in the cab, so we know exactly how that's functioning. We know it on the job site. We know how actually job site is being powered. That data allows not only us, 'cause we use the same software, hardware in our business, and it's the same software and hardware our customers use, so it allows us to run more efficiently. When there is no disconnect in the market, it's not as important efficiency.

When there is, that drives you towards efficiency. We've seen that massively in times past. We'll see it again. As Mark said, we do not see an impact today.

It will drive efficiency, which just drives you to EquipmentShare, both for our internal operations and for our customers.

Okay, great. Thank you.

Thank you. Our next question comes from the line of Jamie Cook with Truist Securities. Your line is now open.

Hi, good morning and congrats on a nice quarter. Just sorry, another question. Just as you think about, you know, visibility into 2026 versus, you know, history or normal year, how much visibility do you have? When you think about the opportunity for upside, do you think that would come more from, you know, you do opening greenfield locations quicker or market share versus what do you have factored in for, you know, any potential macro recovery on the small local stuff? Understanding that's not a big part of your business, but like the bigger OEMs like Cat and Deere being much more positive on, you know, the construction outlook. Just how to think about that?

I guess, you know, my second question, not to nitpick, but your longer term OEC targets of $20 billion, it's now $20 billion versus, I think around the IPO was $20 billion plus. Anything to read into that? Thank you.

I'll start with the last one first. Nothing to read into on that one. That's, there's $20 billion target or more still. It's still the target. On the growth, what's driving the growth. First thing I think it's helpful to note operationally that the 27% growth year-over-year is something we've done or in excess of for the last decade. Our operational cadence on growth is continue to be a disciplined grower in response to customer demand. The first driver of why we grow is always customer demand. Then site openings and fleet expansion are a knock-on effect of that customer demand.

The baseline for our visibility into 2027, obviously we're three months into 2026. We're three months into 2026 already. The baseline for that visibility is the current customer demand that we have right now, the site footprint of the macro backdrop. What continues to drive that? If there is more customer demand, it flows through obviously and, you know, our discretionary fleet expansion and greenfield openings. The main driver is customer demand. The operational outputs of that are more greenfields and more fleet CapEx. We feel strong about. We feel there's a. We see a strong macro backdrop. Like we had said before, operationally this is a cadence that we've been executing on for the last decade.

Our network has more than enough capacity to absorb that demand.

Thank you.

Thank you. Our next question comes from the line of Ken Newman with KeyBanc. Your line is now open.

Hey, good morning, guys. Thanks for squeezing me in. Maybe for my first one, just a really quick one. I maybe it was in Dave's opening comments, so sorry if I missed this. Any help on what you guys are assuming for new market start-up costs this year?

Yeah, it's in the deck. We see about $2.5 million per new market. Another way to back into that is, you know, the midpoint of the guide implies 73 new rental locations. The last 2025 was 85 new rental locations. Call it a 15%, a little bit, 15% less than that. You can also back into the new market start-up costs that way. As a general rule, $2.5 million per.

There's some timing obviously of when you start markets, but you can back into that 2.5-ish or kind of the growth of new markets compared to the new market start-up costs in 2025 to understand kind of how we're thinking about the new market start-up costs invested through the P&L in 2026.

Yep. Okay. Got it. That's helpful. Then for the follow-up here, I didn't really hear any color on expectations for the revenue growth or the margins out of your building products business in 2026. I know we've got 24 building materials locations as of the end of 2025. Maybe just give a little bit of color on what the expectations are for that business and, you know, what's the visibility towards that 100 building materials locations and when you think you can get there.

Yeah. Great. Yeah, I'll let Jabbok Schlacks take the materials location. Also one more follow on the startup costs, and I know we've talked about this a lot. That investment of the $2.5 million or so per new market, the reason we call that out is because the organic growth story and the organic growth ROIC that you get to that one-time investment is, you know, significantly higher than anything that we've seen on the M&A strategy. We just want to continue to call that out, that new market start-up is that one-time investment that then flows through and very high ROIC return on that capital, compared to. Which is why we're an organic grower versus M&A, because if you have the demand, it is a far more efficient use of capital.

Jabbok, maybe just talk about, you know, just briefly on the

Yeah. As you see, we are solving and we're a very disciplined grower on the rental space. A large portion of the revenue is currently from rental. If you think of what a customer actually needs, just having been in the industry, they do need that one-stop shop that actually solves all of their problems, ideally. There's definitely a huge benefit for EquipmentShare providing that, especially with a tech stack to back it. We're following the disciplined growth of rental, but as we can add other ancillary things to the customer. It solves their problems, and it dramatically increases ROIC. It's incredibly good from a return on capital standpoint. The associated is it really supports our customers. That will follow the growth, the disciplined growth of the rental business.

Okay. Got it. I appreciate that.

Thank you. Our next question comes from the line of Avi Jaroslawicz with UBS. Your line is now open.

Hey, good morning. Thank you, guys. Just wanna understand the strategy for staffing new branches, understanding that, especially technicians, mechanics, labor is tight? To what extent are you able to now leverage the footprint that you already have for staffing the new branches?

Yeah, I think it's a good question. What we do, again, as we open sites, I've gotta get the right properties, I've gotta get people on board, and I have to get equipment. On the people aspect, we take a different approach. The same tools that we're building for our customers, we're using internally. We have our entire tech teams building tools that technicians can actually do their jobs better and serve customers better. We have a massive influx of applicants to join EquipmentShare, which allows us to be very intelligent about who is actually serving our customers. To your point there, it does give us, with more stores, the ability to forward deploy technicians to actually serve, in many cases, the largest job sites in the world.

Okay. Appreciate that. If I can ask a follow-up on some of the expectations that are underlying guidance. Just what are you anticipating for equipment sales this year, and what kind of margin do you have embedded on those? Just trying to understand how that splits out versus the profitability on the rental side of the business?

Yeah. Great question. You can kinda see in the guide, we chose total revenue, and then we break out the equipment rental revenue. On the equipment sales, the two main drivers on equipment sales are obviously our used equipment and the OWN Program. The used equipment margins you can kinda see in the historical for 2025. On the OWN Program, what we wanna continue to note first that the OWN Program is significantly oversubscribed, and we have a lot of demand, and it's all our discretion, based on our kind of finance and CapEx decisions on how we wanna fund the OWN Program. Those OWN Program margins are typically about 10%-15%.

That's one of the two main, obviously, the drivers of the contribution to the sales segment. You can kind of see that through the guide of the rest obviously the rest of the most of the revenue in the guide is coming from the sales segment. You can see the historicals from the used sales are about 10%-15% from the OWN Program on the total margin contribution there.

Okay. Appreciate the color. Thank you for the time.

Thank you. Our next question comes from the line of Scott Schneeberger with Oppenheimer. Your line is now open.

Thanks very much, and congrats on the first public call. First question from me. It's very impressive that you all win about 3/4 of your revenue and new sites coming from existing customers. How long a tail does that model have in your view? Could you please discuss your approach to obtaining customers that you don't win that way? Somewhat of a marketing question and go-to-market question. Thanks.

Yeah. In reality, it gets better. If you think the 75%, as we add more locations, that feedback loop gets better and better and better, so you're having an increase of existing customers. If you think of what we're doing from a marketing and advertising, we have hundreds of thousand machines. These machines have EquipmentShare branding on them. Really, customers are driving through that organic adoption and coming to EquipmentShare, and then that drives that feedback loop and that flywheel. If you look at page 30, what's really interesting is as they start using T3, and sometimes T3 is forward deployed, so that's deployed on sites that EquipmentShare has not located in that city yet. We have customers using T3. Then they're using a peer set, and they're demanding EquipmentShare to start in that market.

We have actually massive demand pull-through, and it gives us insight to the sites that we start. When you look at that page 30, six times more spend with customers that actually use T3. You have that pull-through. Many times they start as commodity. They start using T3. It empowers the adoption of what they're doing at a job site. Something that rental is 3%-5% of a job site, but many times it causes 20% of the cost because you have old equipment. It doesn't work. You have all the inherent problems. What EquipmentShare does is solve those problems, and that's why you see that massive growth and that pull-through once they start using technology, and then they actually use and start renting from EquipmentShare.

Great. Thanks. Specialty rental, how do you see that evolving in 2026 and beyond for that matter? What asset categories are you most interested in expanding and potentially moving into beyond what you currently operate? Thanks.

Yeah, great question. Specialty is extremely important. We grew one of the largest specialty divisions in the world, 34%, year-over-year if you look in the numbers. The Cat Class we're looking at massive from an energy support standpoint. This is in our specialty solutions group. You have HVAC support systems. You've got pumps. We have one of the largest electric pump fleet in the world in EquipmentShare's fleet. You're looking at compressed air. Then the site solutions. Really everything for a contractor connected in a core ecosystem, which is T3. It's very important. Again, one of the fastest-growing segments in the world.

Thanks.

Thank you. That will conclude the question and answer session. I will pass the call back over to Rhett Butler for closing remarks.

Thank you, Jennifer. We appreciate it. Thank you everyone for joining the call.

That concludes today's call. Thank you for your participation. You may now disconnect your line.