EQPT

• Market Position and End Market Demand

  • The U.S. equipment rental industry is ~$84 billion, highly fragmented, giving EquipmentShare a long runway for organic share gains, especially with large customers needing scale, reliability, and operational visibility.
  • 87% of 2025 rental revenue came from industrial and non-residential end markets including data center construction, advanced manufacturing onshoring, grid/energy infrastructure, and public infrastructure projects, a mix held steady in Q1 2026. While the broader industry grows at low single digits, EquipmentShare's rental revenue grew 37% YoY, driven by differentiated value rather than just fleet availability.
  • Mega projects (especially data centers driven by massive power and cooling investment, semiconductor/battery/defense manufacturing onshoring, mobile power for grid constraints, and public infrastructure) are a core source of strong demand, with the company recently winning 100% of spend from a top 50 ENR customer on a large renewable project that previously used a competitor.

• T3 Technology Platform Differentiation

  • T3 is a fully vertically integrated, in-house built technology stack spanning hardware, data infrastructure, applications, and AI, not just an add-on feature to rental services. It creates a digital twin of job sites and equipment with real-time data shared in a single multi-tenant environment, eliminating the fragmentation and manual work common with third-party, cobbled-together industry systems.
  • Full vertical stack ownership enables embedded AI at the operating layer, with unique closed-loop data that improves with scale and cannot be replicated by fragmented third-party systems. The technology drives higher customer loyalty, pricing power, and operational efficiency by reducing job site chaos, cutting duplicate equipment rentals, improving access control, and enabling predictive maintenance.

• Network and OWN Program Operations

  • The company opened 22 new locations in Q1 (19 full-service rental locations), ending the quarter with 407 operational locations, slightly ahead of prior expansion targets. Mature locations continue to deliver strong 55% TTM adjusted EBITDA margins, reflecting T3-driven operating efficiency, pricing discipline, and customer stickiness, while newer location cohorts are ramping ahead of plan.
  • The OWN equipment ownership funding program remains core to the company's growth strategy, opening fleet investment to third-party capital and allowing EquipmentShare to operate at a balance sheet cost of capital similar to on-balance sheet funding. Q1 2026 saw $102 million in equipment sales into the program, in line with historical quarterly seasonality (larger activity typically occurs in Q2 and Q4). The program remains multiple times oversubscribed across high net worth, family office, and institutional channels, and the company is on track to meet full-year OWN program targets. OWN program OEC is expected to represent 55-60% of total OEC under management at year-end 2026.

• Balance Sheet and Operational Flexibility

  • As of March 31, 2026, total available liquidity was $1.6 billion, with $329 million in cash on hand. Net leverage decreased to 2.8x from 3.2x a year prior, driven by IPO proceeds used to pay down debt. Average fleet age is approximately 30 months, giving the company meaningful operational flexibility to moderate fleet purchases or pause new site openings if industry conditions weaken. Net rental capex for Q1 was $213 million, on gross purchases of $328 million.

Management raised full-year 2026 guidance across all metrics based on the strong Q1 performance and sustained customer demand:

• Total revenue guidance raised to a range of $5.15 billion to $5.58 billion
• Rental segment revenue guidance updated to $3.37 billion to $3.64 billion, implying 29% year-over-year growth at the midpoint, up from 27% at the midpoint in the prior guidance
• Adjusted core EBITDA guidance updated to $1.88 billion to $2.0 billion, with $221 million of sales segment EBITDA expected at the midpoint (a new disclosure for improved transparency)
• Full-year full-service rental location target raised to 427 to 435 by end of 2026, implying 79 new full-service locations at the midpoint, up from prior guidance
• Gross rental capex guidance set at $2.28 billion to $2.5 billion, with net rental capex of $819 million to $899 million
• The company reaffirmed its long-term target of approximately 700 organically opened full-service rental locations by 2030, aligned with customer demand.
• Net leverage is expected to end 2026 in the low 3x range, trending to the mid to low 2x range over the medium to long term.

For Q1 2026, EquipmentShare reported total revenue of $989 million, a 38% year-over-year increase.

• Rental segment: Revenue grew 37% YoY to $764 million, contributing 77.25% of total company revenue. Rental segment adjusted EBITDA was $323 million. Trailing 12-month adjusted EBITDA margins for mature rental locations (over 24 months old) reached 55%.
• Sales segment: Revenue grew 23% YoY to $179 million, contributing 18.1% of total company revenue. This included $102 million in equipment sales to the OWN program, up 7% YoY. Sales segment adjusted EBITDA was $26 million.
• Consolidated adjusted core EBITDA for the quarter was $399 million, up 39% YoY.

Management did not identify material new risks or operational failures on the call. They noted that forward-looking statements are subject to inherent risks and uncertainties that could cause actual results to differ materially, referencing risk disclosures in prior SEC filings and the Q1 earnings release. The only operational uncertainty mentioned is the uneven geographic demand for commercial/residential construction, which the company mitigates by reallocating mobile fleet to higher-return end markets and projects.

Q: Rental revenue outpaced fleet growth by a wide margin this quarter — is this outperformance driven by better-than-expected results or site maturation, and what makes T3's multi-tenant data structure uniquely valuable for customers? / A: The outperformance comes from both strong fleet absorption from current macro demand and site maturation of existing locations. Unlike legacy fragmented systems that require manual work and clunky API integrations between rental provider and customer systems, T3's single multi-tenant data structure automatically tracks equipment custody and extends real-time digital twin data to customers with no manual effort. This deterministic, scaleable data structure is required to embed valuable AI capabilities that fragmented systems cannot support.

Q: When you win large mega project contracts like the recent top 50 ENR customer win, is pricing the main differentiator, and what is driving the recent expansion in dollar utilization? / A: We do not win market share by cutting prices; we win because our T3 platform reduces job site chaos by managing access and custody for thousands of machines and subcontractors on large job sites, eliminating duplicate rentals and improving safety and productivity. The tailwind for dollar utilization comes from our customer mix, which is heavily weighted to long-duration mega projects that have lower turnover and higher steady utilization than local market work.

Q: Recent AI advancements have lowered barriers to software development — does this erode EquipmentShare's tech moat, or does it compound your advantage? / A: The pace of T3 product development has grown by an order of magnitude from recent AI advancements, which compounds our advantage. Our moat is not just surface-level software: we own all intellectual property for our full stack from embedded hardware and sensors up through applications, built over a decade of domain experience in the equipment rental industry. New competitors would need to replicate this entire vertically integrated stack to compete, which takes years of complex work. While basic software is easy to build now, domain expertise and context to solve industry-specific problems is still the key barrier to entry.

Q: What is driving the acceleration of new store openings and the guidance raise — is it stronger market demand or higher-than-expected share gains? / A: It is a combination of both factors. Our existing locations are maturing faster than expected, producing higher revenue and EBITDA than projected, and we are gaining share faster due to growing customer recognition of T3's differentiated value. The U.S. equipment rental market is massive and still very underpenetrated by productivity-improving technology, giving us plenty of room for sustained expansion aligned with customer demand. New store expansion is governed by customer demand, not constrained by our ability to open locations, as we have the scale and national footprint to meet growing demand from large national customers.