Summary of EquipmentShare Q2 2026 Earnings Call

1Key Financial Results and Metrics

Total Revenue: $1.4 billion, up 26% year-over-year.

Rental Segment Revenue: $908 million, an increase of over 39% year-over-year.

Adjusted Core EBITDA: $531 million, a 34% increase year-over-year.

Rental Segment Adjusted EBITDA: $449 million, including $60 million in new market start-up costs.

Mature Rental Locations: 55% trailing 12-month EBITDA margins.

Total Available Liquidity: $2.8 billion, with $443 million in cash and $980 million available under the ABL facility.

Net Leverage: 3.0 turns, down from 3.4 turns a year ago.

2Strategic Updates and Business Highlights

Market Demand: Strong demand in nonresidential and industrial markets, particularly for large-scale projects in data centers, healthcare, and infrastructure.

Fleet Management: Expanded fleet under management to nearly $10 billion of OEC, with over $750 million of new fleet put on rent in Q2.

Customer Base: 91% of rental revenue from national and regional customers, indicating strong relationships and repeat business.

T3 Platform: Continued improvements in operations and customer relationships through the T3 platform, enhancing efficiency and visibility for clients.

OWN Program: The managed asset program is oversubscribed and evolving, with increased participation from institutional investors.

3Forward Guidance and Outlook

Full-Year Rental Segment Revenue Guidance: Midpoint implies approximately 33% growth, with 28% growth expected in the second half against a strong prior year comparison.

Margin Expansion: Anticipated modest rental segment margin expansion in the second half due to improved fleet absorption and operational efficiencies.

Long-Term Outlook: Confidence in a $4 billion core EBITDA business at maturity, with significant organic growth opportunities ahead.

4Bad News, Challenges, or Points of Concern

Fuel Costs: Approximately 50 basis point headwind from increased fuel costs affecting margins.

Market Comparisons: The second half of 2026 is expected to show slower growth compared to a very strong prior year, which may create conservative guidance perceptions.

Related Party Transactions: Ongoing efforts to wind down related party transactions, with less than $1 million remaining in the OWN program fleet owned by related parties, but still a point of scrutiny.

5Notable Q&A Insights

Demand Environment: Jabbok Schlacks emphasized that the current demand environment is one of the strongest seen in decades, particularly for complex mega projects.

Pricing Pressure: There is upward pressure on rental rates, especially for larger projects, with expectations for continued improvement in the second half of the year.

OWN Program Dynamics: The OWN program is designed to be flexible in downturns, with no fixed payment obligations, providing a buffer against potential economic challenges.

Geographic Expansion: EquipmentShare is seeing growth across all regions, with significant demand for their services in both mature and new markets.

Data Center Concerns: Although there are local moratoriums on new data centers, existing projects are expected to continue due to long permitting processes already in place. This summary encapsulates the key points from the earnings call, providing a balanced view of EquipmentShare's performance, strategic direction, and market challenges.