How have site cohorts (2-3 years, 3-4 years) developed compared to prior disclosures, specifically regarding ramp speed and consistent performance?

Immature sites (0-24 months) ramped faster than usual in 2025. For sites 2-5 years old, performance is consistent with low 50s EBITDA margin production, confirming the 54% mature site margin. “on the 0 to 24, we actually saw in our growth of those immature sites was a little bit faster ramp than usual in '25. And then the years 2 through 5, that data set is pretty similar across the board, and we see that -- what we've seen consistently is a low 50s EBITDA margin production.”

Will the planned 73 new rental locations for 2026 be opened linearly or front-end loaded?

The opening cadence for the 73 new locations in 2026 is linear, with strong visibility for the entire year due to long-term planning. “the 73, it is linear if you think of how they actually open, but opening a site doesn't happen overnight. So we're looking, and we may have talked before years in advance as we prepare. So the visibility is incredibly strong for us for the entire rest of the year. But the actual opening cadence is linear in nature.”

Will margin expansion primarily come from the mix shift towards more mature sites?

As mature stores become a majority (over 50%), there will be massive margin accretion across the entire company, significantly improving the overall margin profile in the future. “As you go more than 50% on actually mature stores, you have that massive margin accretion across the entire company. So 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 going to have a majority of stores being mature, which will improve dramatically across the entire company in the future, the margin profile.”

EQPT

EquipmentShare.com (EQPT) Q4 FY25 earnings call: guidance and Q&A

Earnings call· Dec 2025 (Q4 FY25)· Industrials· Mar 19, 2026

Source: earnings call transcript

Executive summary

EquipmentShare Q4 FY25 — Strong Rental Revenue Growth and Robust Mature Site Performance

EquipmentShare delivered strong Q4 and full-year FY25 results, driven by robust rental segment growth and high-performing mature sites. The company's differentiated tech-empowered offering, particularly its T3 platform, continues to drive market share gains in a fragmented industry. Management provided a strong 2026 outlook, anticipating continued organic growth and margin expansion, while maintaining operational flexibility to adapt to macroeconomic changes.

Highlights

Full year 2025 Rental Segment revenue grew 34% year-over-year to $2.7 billion.
Full year 2025 Adjusted core EBITDA increased 32% year-over-year to $1.7 billion.
Mature site rental segment adjusted EBITDA margin was 54%, exceeding the target of over 50%.
Mature site return on invested capital (ROIC) reached 16.5%, within the near-term target range.
National customers highly engaged with T3 spend roughly 6x more in rental, demonstrating strong customer retention and expansion.

Concerns

Total consolidated revenue for Q4 was roughly flat year-over-year at over $1.5 billion, reflecting a 22% year-over-year decrease in equipment sales into the OWN program.
Net leverage ratio ended the year at 3.2 turns, slightly above the stated year-end target of below 3 turns.

Guidance & targets

Category	Target	Timeline	Confidence
Rental segment revenue	$3.3 billion to $3.6 billion high materiality	FY26	High
OEC (Owned Equipment Cost)	$10 billion to $11 billion medium materiality	FY26	High
Full-service rental locations	421 to 429 medium materiality	FY26	High
Total revenues	$5 billion to $5.5 billion high materiality	FY26	High
Adjusted core EBITDA	$1.8 billion to $1.9 billion high materiality	FY26	High
Gross CapEx	$2.1 billion to $2.3 billion medium materiality	FY26	High
Net rental CapEx	$759 million to $839 million medium materiality	FY26	High
OWN program payouts	$891 million to $947 million medium materiality	FY26	High
OWN program OEC as % of fleet under management	roughly half, plus or minus 10% medium materiality	medium to long term	Medium
OWN program OEC as % of fleet under management	55% to 60% medium materiality	end of 2026 · FY26	High
Mature site ROIC	over 20% medium materiality	long-term	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Rental Segment Revenue for the fourth quarter grew over 35% year-over-year.	$772 million	over 35%	—	—
Rental Segment Full year 2025 revenue increased 34% versus the prior year. Mature site adjusted EBITDA margin was 54% and ROIC was 16.5%. Mature site rental segment adjusted EBITDA margin: 54%Mature site return on invested capital: 16.5%Locations added in FY25: 95Total locations at end of 2025: 385Mature sites: 186Growth sites: 166	$2.7 billion	34%	—	54%
Specialty Division Specialty division scaled 34% year-over-year in 2025.	—	34%	—	—
T3 and Materials Business Revenue from T3 and our materials business grew over 100% in 2025.	—	over 100%	—	—

EQPT operating KPIs by quarter

EQPT operating KPIs stated on its earnings calls, by fiscal quarter
KPI	This call Dec 2025 Q4 FY25	Mar 2026 Q1 FY26	Change vs prior quarter
Locations	385 We added 95 locations for a total of 385 locations at the end of 2025. Source: earnings call transcript	407 We opened 22 new locations and ended the quarter with 407 operational locations. Source: earnings call transcript	+5.7%
Mature site return on invested capital	16.5% Mature site return on invested capital was 16.5%. Source: earnings call transcript	16.5% We have -- because we have so much demand, because we're getting 16.5% mature site ROIC, our deployment of capital is obviously going to be very favorable from a capital deployment perspective. Source: earnings call transcript	0 pt

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Risks & headwinds

New market start-up costs First 12 months of a location

$252 million in FY25

Mitigation:These costs create long-term earnings-generating assets and are a key driver of long-term value creation.

Net leverage ratio exceeding target Year-end 2025

3.2 turns at year-end 2025 vs. target of below 3 turns

Mitigation:Company aims to maintain balance sheet strength and has operational flexibility to moderate investments; new ABL facility extends maturity until 2030 at a reduced cost of capital.

Macroeconomic volatility and demand softening Ongoing

Unquantified, but potential for industry cycles

Mitigation:Clear levers to moderate investment, slow the pace of expansion, prioritize cash flow generation, and age the fleet, leveraging a young fleet age of ~30 months.

What to watch in Q1 FY26

Net leverage ratio

Next quarter / FY26

Current 3.2 turns

Target Below 3 turns

Why it matters

Indicates balance sheet strength and adherence to financial targets, crucial for capital-intensive operations.

we ended the year with net leverage ratio of 3.2 turns, well within our year-end target of below 3 turns net leverage.

Find out whether EQPT delivers this. Inve re-checks your case every morning.

Q&A highlights

What were the core pricing and dollar utilization for mature sites in Q4 FY25, and what are the expectations for FY26, including Q1?

Mature sites showed strong performance in 2025 with 54% EBITDA margins and 16.5% ROIC, driven by strong customer demand and a stable pricing environment. Similar performance is expected for 2026.

“in 2025 and in Q4 as well, we saw strong performance from our mature sites. As we talked about growth, strong growth and maturation of those sites, margins at 54% for the year for our sites over 24 months and then also that 16.5% ROIC.”

asked by Jerry Revich · answered by Mark Wopata

2 min read 6 chapters

Detailed narrative

Differentiated Tech-Empowered Offering

EquipmentShare's core strategy centers on solving customer problems through its integrated model, combining physical distribution, job site expertise, and the proprietary T3 technology platform. This approach drives market share gains, with customers consolidating spend due to the differentiated solution. The company emphasizes its OEM-agnostic, full sensor-to-server, vertically integrated, and horizontally distributed technology, built over a decade, as a key competitive moat.

Organic Growth and Unit Economics

The company focuses on organic growth, opening locations in response to customer demand. New sites typically incur approximately $2.5 million in start-up costs over the first 12 months, breakeven in year 2, and become mature by month 24, contributing significantly to revenue, margins, and ROIC.

This disciplined, repeatable playbook resulted in 95 new locations in 2025, bringing the total to 385, and is expected to add 73 more in 2026 with a linear opening cadence.

T3 Platform and AI Integration

T3 is EquipmentShare's proprietary technology platform, powering both internal operations and customer insights by connecting the job site from sensor to server. It provides operational intelligence, remote monitoring, predictive maintenance, and helps customers manage job site resources holistically. The integration of AI and large language models is accelerating the value derived from a decade of collected data, enabling frictionless insights at scale and enhancing productivity on complex mega projects.

OWN Program Success and Capital Efficiency

The OWN program remains a core pillar, allowing capital-efficient growth by purchasing new equipment, renting it, and then selling it to participants with asset management and revenue sharing agreements. The program closed 2025 with over $4.9 billion of OEC, up from $3.4 billion in 2024, and is significantly oversubscribed. T3 provides transparency and control for OWN participants, improving visibility and reducing risk for equipment owners.

Financial Performance and Outlook

EquipmentShare reported strong Q4 and full-year 2025 results, with Rental Segment revenue up 34% YoY to $2.7 billion and Adjusted core EBITDA up 32% to $1.7 billion. Mature sites achieved a 54% adjusted EBITDA margin and 16.5% ROIC. The 2026 outlook projects 27% Rental Segment revenue growth at the midpoint, with continued focus on disciplined expansion and balance sheet strength, expecting 55% to 60% of OEC in the OWN program by year-end 2026.

Operational Flexibility and Macro Response

The company emphasizes its operational flexibility to respond to macroeconomic volatility. It can moderate fleet purchases, pause new site openings, and age the fleet, leveraging its relatively young fleet age of approximately 30 months to generate cash and protect returns during industry cycles. This discretionary growth approach allows the company to adapt if demand softens, prioritizing cash flow generation.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.