EquipmentShare.com (NASDAQ:EQPT) reported second-quarter results marked by continued rental revenue growth, expanding fleet deployment and demand from large construction projects, as management said the company entered the second half with stronger pricing trends and a growing mega-project pipeline.
Total revenue rose 26% year over year to $1.4 billion in the second quarter. Rental segment revenue increased more than 39% to $908 million, while adjusted core EBITDA rose 34% to $531 million. The company said its mature rental locations produced trailing 12-month rental segment EBITDA margins of 55% and represented 56% of its rental network.
“The construction environment remains one of the strongest backdrops I’ve experienced in over 25 years in construction,” Schlacks said, citing activity in data centers, advanced manufacturing, healthcare, energy and transportation infrastructure.
Fleet absorption and second-half outlook
Management said the company placed more than $750 million of new fleet on rent for the first time during the second quarter, including equipment originally expected to be deployed during the third quarter. EquipmentShare said the accelerated fleet absorption was driven by mega-project wins and its ability to deploy equipment to meet customer demand.
The midpoint of the company’s full-year rental segment revenue guidance implies approximately 33% growth, including roughly 28% growth in the second half against a period in 2025 when rental segment revenue grew about 36% year over year.
Schlacks characterized the outlook as conservative, saying the company’s deployed fleet, project demand visibility and expanding pipeline reduced risk to the second-half forecast. He said there was a “meaningful opportunity to outperform,” though management did not raise guidance during the call.
Chief Data Officer and Executive Vice President of Finance Mark Wopata said second-quarter growth was driven primarily by volume, with some upward pricing pressure. Management expects additional pricing pressure in the second half and beyond, particularly as supply remains limited for certain equipment classes.
EquipmentShare also expects modest rental segment margin expansion in the second half as locations mature, fleet absorption improves and operating efficiencies increase. The company reported that higher fuel costs created an approximately 50-basis-point headwind during the quarter, but said it preserved margins through customer pricing and cost-saving initiatives.
Network expansion and customer relationships
EquipmentShare opened 39 full-service rental locations year to date and said it remains on pace to meet its full-year expansion expectations. The company said more than 75% of first-year rental segment revenue at new locations comes from customers already using EquipmentShare elsewhere in its network.
Schlacks said the company is seeing growth across the U.S., with percentage growth stronger in newer markets and continued growth in more mature areas such as the Midwest and Texas. He said EquipmentShare is frequently selected as the primary equipment provider on large projects, typically supplying 85% to 95% of the equipment on those sites.
Management said the company’s growth on mega projects is often the result of being selected at the outset of a project rather than displacing another provider. Schlacks said only a limited number of companies can deploy thousands of machines in a six- to eight-week period, positioning EquipmentShare to compete for large-scale assignments.
T3 platform and SaaS business
President and Co-Founder Willy Schlacks said the company’s T3 operating system continues to support internal efficiencies, rental customer relationships and standalone software-as-a-service revenue.
The company has rolled out additional dispatch, hauling, fuel and logistics capabilities that it said are improving route planning and recovery rates while helping offset marketwide fuel and logistics pressures. Willy Schlacks said SG&A has continued to decline as a percentage of rental revenue as the company scales its technology-enabled operations.
EquipmentShare provides T3 with each rental, and customers who engage with the platform spend approximately six times more with the company than those who do not, according to management. The company said larger customers are increasingly evaluating T3 for mixed-fleet management, service, logistics, field operations and potentially broader ERP workflows.
Willy Schlacks cited one customer with more than $1 million in annual recurring SaaS revenue from T3, describing the platform as increasingly being used to help customers run their businesses rather than solely manage EquipmentShare rentals.
OWN program, liquidity and capital allocation
Equipment sales revenue was $483 million in the second quarter, including $428 million of equipment sales into the company’s OWN managed asset program. Equipment sales segment adjusted EBITDA was $82 million.
Wopata said OWN provides fleet capital through sale-leaseback arrangements with variable payments and no minimum lease payments, utilization guarantees, residual-value guarantees or obligation for EquipmentShare to repurchase equipment at the end of an agreement. The company said equipment owners retain title to the assets, while EquipmentShare manages the equipment.
For transactions completed in the first half of 2026, EquipmentShare said the expected economics implied a balance-sheet-equivalent cost of capital of approximately 7%. The company received approximately $728 million of gross proceeds from equipment sold into OWN in the first half and expects approximately $649 million of net payments over the seven-year term, based on historical utilization assumptions.
Chief Financial Officer and Chief Accounting Officer David Marquardt said EquipmentShare ended the quarter with $2.8 billion of total available liquidity, including $443 million of cash, $980 million available under its ABL facility and $1.35 billion from a bond offering completed July 1. The notes carry a 7.8% coupon and mature in 2034.
Net leverage stood at 3.0 times at quarter-end, compared with 3.4 times a year earlier. Net rental capital expenditures were $321 million, following gross purchases of $689 million.
On July 9, the board authorized a $500 million share repurchase program through Dec. 31, 2028. Schlacks said the company’s priority remains organic investment, with buybacks intended as an opportunistic tool in the event of market dislocations while remaining within leverage and liquidity targets.
The company also said it has reduced founder-related transactions. Less than $1 million of the $5.5 billion OWN fleet remained owned by related parties at the end of the second quarter, while year-to-date lease payments for certain founder-related real estate were just under $5 million. EquipmentShare said it intends to substantially reduce those arrangements by the end of 2026 and transition away from them entering 2027.
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.
