EquipmentShare.com Q1 Earnings Call Highlights

Key Points

• EquipmentShare posted a strong Q1, with total revenue up 38% year over year to $989 million and rental segment revenue climbing 37% to $764 million. Adjusted core EBITDA rose 39% to $399 million, and the company also opened 22 new locations during the quarter.
• Management raised full-year 2026 guidance across revenue, EBITDA and location growth, now targeting $5.15 billion to $5.58 billion in revenue and $1.88 billion to $2.00 billion in adjusted core EBITDA. It expects 427 to 435 full-service rental locations by year-end, up from prior plans.
• The company says its T3 platform is driving share gains with large industrial and non-residential customers, especially in data centers, manufacturing and infrastructure. Management emphasized stable pricing and said EquipmentShare is winning business by offering better job-site visibility, access control and equipment management rather than by cutting prices.

EquipmentShare.com NASDAQ: EQPT reported a strong first quarter of fiscal 2026 and raised its full-year outlook, citing continued demand from large contractors, growth in its rental locations and customer adoption of its T3 technology platform.

Founder and Chief Executive Officer Jabbok Schlacks said the quarter reflected “strong demand in our core end markets, continued share gain with large customers, and the distinct value proposition of T3.” Rental segment revenue rose 37% year over year to $764 million, while adjusted core EBITDA increased 39% to $399 million. Total revenue for the quarter was $989 million, up 38% from the prior-year period.

The company opened 22 new locations during the quarter and ended March with 407 operational locations. On a trailing 12-month basis, EquipmentShare generated $1.78 billion of adjusted core EBITDA, while mature rental locations produced adjusted EBITDA margins of 55%.

Company raises 2026 outlook

Management raised its full-year 2026 guidance across several key metrics. The updated outlook calls for:

• Total revenue of $5.15 billion to $5.58 billion.
• Rental segment revenue of $3.37 billion to $3.64 billion, implying approximately 29% growth at the midpoint.
• Adjusted core EBITDA of $1.88 billion to $2.00 billion.
• Owned equipment cost, or OEC, of $10.15 billion to $11.2 billion.
• Full-service rental locations of 427 to 435 by year-end.
• Gross rental capital expenditures of $2.28 billion to $2.5 billion and net rental CapEx of $819 million to $899 million.

Schlacks said the company continues to plan toward roughly 700 full-service rental locations by 2030, with openings driven organically and based on customer demand.

Chief Data Officer and Executive Vice President of Finance Mark Wopata said the company opened 19 full-service rental locations in the first quarter, slightly ahead of its original guide, and raised its full-year guidance to 427 to 435 full-service rental locations. At the midpoint, that implies 79 new rental locations in 2026.

Demand tied to large projects and industrial markets

Schlacks said EquipmentShare’s business remains concentrated in industrial and non-residential end markets, which accounted for 87% of rental revenue in 2025 and remained consistent in the first quarter. He pointed to demand from factories, data centers, power and grid infrastructure and public projects.

“While the broader industry is growing at low single digits, our rental segment revenue grew 37% in the first quarter,” Schlacks said. He said customers are increasingly choosing partners that can mobilize equipment quickly, reduce downtime and provide better job-site visibility.

Schlacks highlighted “mega projects” in data centers, advanced manufacturing, energy and infrastructure as areas where EquipmentShare is gaining traction. He cited one example involving a top 50 ENR customer on a major renewable power project that moved all of its rental spend to EquipmentShare after previously using another provider. According to Schlacks, the customer cited access control, predictive maintenance, the service technician network and the ability to manage thousands of machines through one platform.

T3 platform positioned as differentiator

Founder and President Willy Schlacks said EquipmentShare is “not simply a rental company with software attached,” but has built an operating system for the industry across hardware, data infrastructure, applications and intelligence layers.

He described T3 as a vertically owned technology stack that includes sensors and embedded systems across manufacturers’ equipment and EquipmentShare’s own fleet. The platform captures real-time signals from equipment, job sites and workflows, which management said enables customers and EquipmentShare teams to work from the same data model.

During the question-and-answer session, Willy Schlacks said the company’s “multi-tenant” data structure allows custody of rented equipment and related data access to follow the contract without manual intervention. He said that capability helps customers manage large job sites with many contractors, workers and machines, including real-time access control and visibility into equipment use.

Management also pushed back on the idea that pricing is the main tool behind share gains. Willy Schlacks said EquipmentShare seeks to gain market share by providing value rather than cutting prices, while Jabbok Schlacks said the T3 platform helps customers operate safer and more productive job sites.

Financial position and OWN Program

Chief Financial Officer and Chief Accounting Officer Dave Marquardt said rental segment adjusted EBITDA was $323 million in the first quarter, driven by footprint expansion and managed fleet growth. Sales segment revenue was $179 million, up 23% year over year, while sales segment adjusted EBITDA was $26 million.

The company sold $102 million of equipment into its OWN Program during the quarter, up 7% year over year. Wopata said the program remains oversubscribed across high-net-worth, family office and institutional channels, though transactions do not occur evenly throughout the year and typically cluster in the second and fourth quarters.

EquipmentShare reported total available liquidity of $1.6 billion as of March 31, including $329 million of cash and $1.3 billion of availability under its asset-based lending facility. Net leverage decreased to 2.8 times from 3.2 times a year earlier, reflecting IPO proceeds used to pay down borrowings.

Marquardt also noted $17 million of non-cash stock-based compensation expense related to previously disclosed equity awards granted to the founders in connection with the company’s IPO. Wopata said later in the call that the exclusion of stock-based compensation from adjusted core EBITDA was consistent with the company’s year-over-year guidance and did not drive the $70 million increase in the adjusted core EBITDA outlook.

Management cites stable pricing and flexible capital plans

In response to analyst questions, Wopata said EquipmentShare is seeing a “stable pricing backdrop” and has been able to command pricing “at or above the industry” due to T3 capabilities and customer relationships.

Jabbok Schlacks said demand remains strong across data centers, manufacturing, infrastructure and other customer sectors, though he characterized residential and commercial activity as stable overall, with some geographic softness. He said the company can optimize deployment of its mobile fleet toward customers and markets with the highest returns.

Asked about inflation, tariffs and supply chains, Schlacks said EquipmentShare already owns more than $9 billion of fleet and has strong manufacturer relationships as one of the largest buyers in the market. He said industry dislocation can provide pricing power when demand is high and supply is limited.

Management said the company remains flexible on capital spending and site openings. Wopata said EquipmentShare can slow growth if conditions warrant, but can also invest further if strong demand persists. The company said it continues to expect net leverage in the low threes at year-end and in the mid- to low-twos over the medium to long term.

About EquipmentShare.com NASDAQ: EQPT

EquipmentShare.com Inc provides integrated, full-service construction solutions across equipment rental, sales and technology. EquipmentShare.com Inc is based in Columbia, Missouri.

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