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    EQPT
    Earnings call· Mar 2026(Q1 FY26)

    EquipmentShare.com Q1 FY26 earnings call EQPT

    May 14, 2026 Source

    Executive summary

    EquipmentShare Q1 FY26 — Strong Rental Revenue Growth and Raised Full-Year Outlook

    EquipmentShare delivered a strong first quarter, driven by robust demand in core end markets, continued share gains with large customers, and the differentiated T3 technology platform. The company raised its full-year 2026 outlook across key financial metrics, reflecting confidence in its organic growth strategy and the value proposition of its integrated model. Management emphasized the company's ability to scale with discipline and leverage its tech stack to drive customer value and high returns on invested capital.

    Highlights

    5

    • Rental segment revenue grew 37% year-over-year to $764 million.

    • Adjusted core EBITDA increased 39% year-over-year to $399 million.

    • Full-year rental segment revenue guidance raised from 27% to 29% growth at midpoint.

    • Mature rental locations achieved 55% adjusted EBITDA margins on a trailing 12-month basis.

    • Opened 19 full-service rental locations in Q1, ahead of original guide, with full-year target raised to 427-435 locations.

    Concerns

    1

    • Commercial and residential construction end markets are stable or declining in some geographical locations, contrasting with strong mega-project demand.

    Guidance & targets

    14
    CategoryTargetConfidence
    Full-year 2026 Rental segment revenue growth
    approximately 29% growth at the midpoint
    high materiality
    High
    Full-year 2026 Total OEC
    $10.15 billion to $11.2 billion
    high materiality
    High
    Full-year 2026 Full-service rental locations
    427 to 435
    medium materiality
    High
    Full-year 2026 Total revenue
    $5.15 billion to $5.58 billion
    high materiality
    High
    Full-year 2026 Adjusted core EBITDA
    $1.88 billion to $2 billion
    high materiality
    High
    Full-year 2026 Sales segment EBITDA
    $221 million at the midpoint
    medium materiality
    High
    Full-year 2026 OWN Program payouts
    $906 million to $962 million
    medium materiality
    High
    Full-year 2026 Gross rental CapEx
    $2.28 billion to $2.5 billion
    high materiality
    High
    Full-year 2026 Net rental CapEx
    $839 million to $919 million
    high materiality
    High
    Full-year 2026 OWN Program OEC as % of total OEC
    55% to 60%
    medium materiality
    High
    Full-year 2026 Mature rental site locations
    over 260
    medium materiality
    High
    Long-term Full-service rental locations
    approximately 700
    high materiality
    High
    Medium-to-long term Net leverage
    mid- to low 2s
    medium materiality
    High
    Year-end 2026 Net leverage
    low 3s
    medium materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Rental
    Driven by continued footprint expansion and growth of managed fleet. Industrial and nonresidential end markets account for 87% of rental revenues.
    Adjusted EBITDA margin (mature locations, TTM): 55%
    		$764 million37%—$323 million
    Sales
    Reflects disciplined and selective sales into the oversubscribed OWN Program.
    Equipment sales into OWN Program: $102 million (up 7% YoY)
    		$179 million23%—$26 million

    Operational metrics

    15
    Adjusted core EBITDA
    $399 millionup 39% YoY
    Q1 FY26

    Growth driven by expansion of full-service rental location footprint and maturing of existing rental sites. Excludes OWN Program payouts and new market start-up costs.

    Adjusted core EBITDA
    $1.78 billion
    TTM Q1 FY26

    Trailing 12-month basis.

    Total revenue
    $989 millionup 38% YoY
    Q1 FY26

    Driven by customer demand and organic growth.

    Noncash stock-based compensation expense
    $17 million
    Q1 FY26

    Related to IPO founders awards, which vest upon achieving certain stock price hurdles (last tranche at $90 billion market cap).

    Total available liquidity
    $1.6 billion
    as of March 31, 2026

    Replaced prior ABL facility in Q4 last year, extending maturity to 2030 and reducing cost of capital.

    Net leverage
    2.8 turnsdecreased from 3.2 turns a year ago
    as of March 31, 2026

    Reflects use of IPO proceeds to pay down outstanding borrowings.

    Net rental CapEx
    $213 million
    Q1 FY26

    Investment in response to customer demand for site expansion, fleet growth, and organic initiatives.

    Average fleet age
    approximately 30 months
    Q1 FY26

    Provides operational flexibility to moderate fleet purchases or age the fleet if conditions warrant.

    New rental locations opened
    19
    Q1 FY26

    Full-service rental locations, slightly ahead of original guide.

    Total operational locations
    407
    end of Q1 FY26
    OWN Program equipment sales
    $102 millionup 7% YoY
    Q1 FY26

    Transactions do not occur evenly quarter-to-quarter, typically larger in Q2 and Q4. Program remains multiple times oversubscribed.

    ROIC (mature sites)
    16.5%
    Q1 FY26

    Return on invested capital for mature sites.

    Rental revenue mix (Industrial and nonresidential)
    87%
    Q1 FY26

    Mix has held from 2025.

    Revenue from national and regional contractors
    roughly 90%
    Q1 FY26

    From national and regional contractors.

    First year revenue from existing customers (new locations)
    significant majority
    first year

    For new organic rental locations.

    Industry KPIs

    7
    MetricValueDetails
    Rental CAPEX fleet$213 million net, $328 million grossUSD
    End market growth mix87%%
    ROIC capital intensity16.5%%
    Time dollar utilizationexpanded something like 150 basis pointsbps
    Ancillary specialty growthfastest-growing
    Market volume mro market benchmark$84 billionUSD
    Contract vs spot large customer mix90%%

    Risks & headwinds

    2
    Commercial and Residential End Market WeaknessQ1 FY26

    stable, but in some areas, in some geographical locations, those are actually going down

    Mitigation: Company has mobile fleet and can optimize to serve customers with highest returns; focus on mega-projects.

    Inflation and Geopolitical Eventscurrent

    Unquantified, but mentioned as "a lot of concern in the market right now"

    Mitigation: Strong relationships with manufacturers, existing fleet monetized, pricing power due to excess demand and limited supply.

    What to watch in Q2 FY26

    4

    Rental segment revenue growth

    Next quarter (Q2 FY26)
    Current37% YoY in Q1 FY26
    TargetMaintain or exceed 29% midpoint of full-year guidance

    Why it matters

    This is a key indicator of the company's ability to continue outperforming the broader market and leveraging its T3 platform and expanded footprint.

    Rental segment revenue guidance now implies 29% year-over-year growth at the midpoint, up from 27% in our prior guide.

    Q&A highlights

    5

    Why did rental revenue outstrip fleet growth by a wide margin in Q1? Was it better-than-expected performance or maturation of stores?

    The outperformance was due to a combination of factors: strong fleet absorption driven by customer demand in a favorable macro backdrop, and the maturation of existing stores.

    “So it's -- as you mentioned, it's a number of things. It was a particularly good quarter as we would expect in this macro backdrop. So there's good fleet absorption, we're growing with customer demand. And so that obviously drives the fleet absorption I just mentioned. And then also site maturation as well.”

    asked by Robert Wertheimer · answered by Mark Wopata

    2 min read5 chapters

    Detailed Narrative

    01

    Macro Backdrop and Demand Environment

    EquipmentShare is experiencing strong demand, particularly from industrial and nonresidential end markets, which account for 87% of rental revenues. This includes mega-projects like data centers, advanced manufacturing, energy infrastructure, and large public projects. While the broader industry grows at low single digits, EquipmentShare's rental segment revenue grew 37% in Q1, driven by its ability to mobilize equipment quickly, support complex job sites, and reduce downtime.

    02

    T3 Platform Advantage

    The T3 platform is a vertically owned technology stack that provides real-time visibility and control for customers, enabling them to manage thousands of machines through a single platform. This integrated system, from hardware to data infrastructure and application layers, helps customers reduce delays, improve utilization, and enhance safety, leading to increased loyalty and pull-through demand. The platform's multi-tenant environment allows EquipmentShare and its customers to work with the same real-time data, creating a significant operational advantage.

    03

    Site Performance and OWN Program

    New organic rental locations are ramping at a healthy pace, supported by strong customer demand and efficient execution. Mature rental locations delivered 55% adjusted EBITDA margins on a trailing 12-month basis, reflecting strong site economics. The OWN Program, which funds growth by selling equipment to a broader pool of capital, remains highly oversubscribed across various investor channels, ensuring funding for the current CapEx plan.

    04

    Financial Performance Highlights

    Total revenue increased 38% year-over-year to $989 million, with rental segment revenue up 37% to $764 million. Adjusted core EBITDA grew 39% to $399 million. The company's total available liquidity stood at $1.6 billion, and net leverage decreased to 2.8 turns, down from 3.2 turns a year ago, following the IPO and ABL facility refinancing.

    05

    Strategic Outlook and Growth Drivers

    EquipmentShare is on track to reach approximately 700 full-service rental locations by 2030, driven by customer demand and its differentiated technology. The company believes its approach addresses the stagnant productivity in the construction industry by offering a single technology platform for job site management. This strategy, combined with disciplined scaling and efficient capital management, positions EquipmentShare for continued growth and strong returns on invested capital.

    AI-generated summary of the company’s earnings call. Not investment advice.