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    EQPT
    Earnings call· Dec 2025(Q4 FY25)

    EquipmentShare.com Q4 FY25 earnings call EQPT

    Mar 19, 2026 Source

    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

    5

    • 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

    2

    • 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

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

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    Rental Segment
    Revenue for the fourth quarter grew over 35% year-over-year.
    		$772 millionover 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 billion34%—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%——

    Operational metrics

    29
    Adjusted core EBITDA
    $559 millionup 34% year-over-year
    Q4 FY25

    Reflects underlying operating performance by excluding OWN program payouts and new market start-up costs.

    Adjusted core EBITDA
    $1.7 billionup 32% year-over-year
    FY25

    Reflects underlying operating performance by excluding OWN program payouts and new market start-up costs.

    Mature site rental segment adjusted EBITDA margin
    54%
    FY25

    For sites open longer than 24 months.

    Mature site return on invested capital
    16.5%
    FY25

    Well within near-term expectations and progressing toward a long-term target of over 20%.

    New market start-up costs
    $252 million
    FY25

    One-time costs incurred to support new site openings, concentrated in the first 12 months of a location.

    New market start-up costs per new market
    $2.5 million
    first 12 months

    Typically invested over the first 12 months of a new site, expensed through the P&L.

    OWN program OEC
    $4.9 billioncompared to $3.4 billion in 2024
    end of FY25

    Owned Equipment Cost in the OWN program.

    OWN program sales
    $680 million
    Q4 FY25

    Includes ABS funded and high net worth/family office transactions.

    OWN program sales
    $1.3 billion
    FY25

    Total for the full year.

    OWN program appraised value
    $4.1 billion
    year-end FY25

    Appraised value of the OWN program fleet.

    Net leverage ratio
    3.2 turns
    end of FY25

    Ended the year with net leverage ratio of 3.2 turns, stated as 'well within' the year-end target of below 3 turns, which is a mathematical contradiction.

    Liquidity
    $1.3 billion
    end of FY25

    Total liquidity at year-end.

    Net cash provided by operating activities
    $264 million
    FY25

    For the full year.

    Net rental CapEx
    $620 millioncompared to $263 million during 2024
    FY25

    After gross purchases of rental equipment of approximately $1.8 billion.

    Gross purchases of rental equipment
    $1.8 billioncompared to $1.6 billion during 2024
    FY25

    Part of the net rental CapEx calculation.

    OWN program margins
    10% to 15%
    typical

    Typical margins for the OWN program, contributing to the sales segment.

    Total consolidated revenue
    $1.5 billionroughly flat year-over-year
    Q4 FY25

    Reflects a 22% year-over-year decrease in equipment sales into the OWN program.

    Total consolidated revenue
    $4.4 billionup 16% year-over-year
    FY25

    For the full year.

    Net income
    $65 millionas compared to $50 million in the fourth quarter of 2024
    Q4 FY25

    Reported net income for the quarter.

    Net income
    $40 millionas compared to $3 million in the prior year
    FY25

    Reported net income for the full year.

    Equipment sales into OWN program
    22%year-over-year decrease
    Q4 FY25

    Decrease in sales into the OWN program, which is executed opportunistically and selectively.

    New locations added
    95
    FY25

    Total new full-service rental locations added during the year.

    Total locations
    385
    end of FY25

    Total full-service rental locations at the end of the year.

    Mature sites
    186
    end of FY25

    Sites open longer than 24 months.

    Growth sites
    166
    end of FY25

    Sites under 24 months old.

    Age of fleet
    30 months
    current

    Average age of the fleet, providing operational flexibility.

    First year revenue from existing customers (new locations)
    over 75%
    first year

    Percentage of first-year revenue at new locations that comes from existing customers.

    National customers T3 engagement spend multiplier
    6x
    FY25

    National customers highly engaged with T3 spend roughly 6x more in rental than those who don't use T3.

    Revenue from national and regional customers
    89-90%
    FY25

    Percentage of revenue driven by national and regional customers.

    Industry KPIs

    5
    MetricValueDetails
    Rental CAPEX fleet$620 millionUSD
    ROIC capital intensity16.5%%
    Ancillary specialty growth34%%
    Contract vs spot large customer mix89-90%%
    Digital vending managed inventory penetration6xmultiplier

    Risks & headwinds

    3
    New market start-up costsFirst 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 targetYear-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 softeningOngoing

    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

    5

    Net leverage ratio

    Next quarter / FY26
    Current3.2 turns
    TargetBelow 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.

    Q&A highlights

    6

    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 read6 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

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