Aug 13, 2026 earnings call — Rental growth, T3 platform and OWN update
Adjusted core EBITDA grew to $531 million in Q2, driven by 39% plus Rental segment growth and strong fleet absorption.
Revenue $1.4B (est $1.2B) · EPS $0.18 (est $-0.06)
Key quotes
"In Q2 alone, we put more than $750 million of new fleet on rent for the first time, including fleet we had originally expected to deploy in Q3."
"For transactions completed during the first half of 2026, the expected economics imply a balance sheet equivalent cost of capital of approximately 7%..."
"we provide T3 with every rental and customers who engage with the platform spending approximately 6x more with us than customers who do not."
Analyst Q&A 11
Where rental rates are rising
Q (Robert Wertheimer · Melius): Analyst asked where rental rates are trending and whether rates are stronger on mega projects versus smaller customers.
A: Management said most of the rate pressure and increases come from large, complex projects where they have the most exposure. They see some improvement with smaller, local customers too, but their visibility is mainly within the large-project customers.
"I think if you look at the 91% mix of the regional and national customers, that exposure of EquipmentShare is to larger projects, these complex projects." — Jabbok Schlacks (CEO)
Where upside to guidance could come from
Q (Jamie Cook · Truist): Analyst asked where the company sees upside to the guide and whether upside would hit in Q3 or Q4; also asked for color on rental margins improving in back half.
A: Management said the guide is conservative and they see significant upside from fleet absorption, volume, and upward pricing pressure. They expect rental segment EBITDA to grow faster than revenue in the back half, with more pricing tailwinds later in the year.
"we had a lot of fleet absorption in Q2, over $750 million of new equipment that had never been rented before rented in Q2." — Mark Wopata
OWN program cost of capital and governance
Q (Mircea Dobre · Baird): Analyst asked if shifting OWN program mix toward institutional investors raises cost of capital and how related-party transactions and governance will be handled going forward.
A: Management said the first-half OWN deals had an equivalent cost of capital around 7% and that the mix between channels is producing relatively similar costs, which should compress favorably. They also said all related party transactions go through an approval process, are evaluated on terms and accounting, and are approved by the Audit Committee with policies on the investor website.
"first half deals, which we saw that kind of $728 million of gross proceeds, equivalent cost of capital is approximately 7% if you do the math, as we showed on the slide." — Mark Wopata
Utilization, pricing and fuel impact
Q (Jerry Revich · Wells Fargo): Analyst asked how broad the dollar utilization acceleration was, differences by site maturity, and the magnitude of rate pickup; plus diesel pass-through vs site mix on margins.
A: Management said demand and upward pricing pressure increased across all cohorts, with Q2 growth driven mostly by volume from fleet absorption and some pricing lift expected in the back half. They noted about a 50 basis point fuel headwind and that they passed through many fuel increases on pricing, while ancillary services mix affected margin percentages.
"we did see approximately 50 basis point headwind on the fuel side." — Mark Wopata
Contractual pricing and buyback conditions
Q (Joseph Ritchie · Goldman Sachs): Analyst asked whether upward pricing is contractual or mix-driven and under what conditions the company might use or expand the buyback authorization.
A: Management said pricing strength is both mix- and contract-driven, with less supply and more demand pushing certain equipment class pricing upward, and they have good visibility on back-half pricing for long-term projects. On buybacks, they said the $500 million authorization is to be used opportunistically in the event of a severe stock price dislocation and will be managed within governance and leverage targets.
"If and when that does happen, a dislocation that the company can act upon that in an efficient way." — Jabbok Schlacks (CEO)
Geographic pockets of growth
Q (Sean-M Wondrack · Deutsche Bank): Analyst asked where in the U.S. construction demand is picking up more than others.
A: Management said they are seeing demand increases across the U.S. and are growing nearly 40% year-over-year. Earlier-stage growth areas will show faster percentage growth, while more mature regions like the Midwest and Texas still grow strongly in dollar terms.
"We're seeing it universally, and we are a growth company, growing almost 40% year-over-year." — Jabbok Schlacks (CEO)
Fleet appraisal values vs market
Q (Kenneth Newman · KeyBanc): Analyst asked why appraised fleet value was flat sequentially despite owned OEC up and how to model appraised value percent of OEC going forward.
A: Management said the third-party appraisal lags current market dynamics and includes normal depreciation and adds, so appraisal figures can trail market-driven valuation changes. They expect appraised values to move up over time as market supply constraints and demand dynamics feed through.
"what we're seeing in the actual kind of appraisal numbers is lagging the total market dynamics that we're seeing as well." — Mark Wopata
Share gains on mega projects
Q (Seth Weber · BNP Paribas): Analyst asked whether share gains on mega projects come from other national operators or local regional operators ceding share.
A: Management said customers now award them at the outset and they often act as the sole or primary provider on large projects, rather than taking share midstream from others. They noted only a few companies can deploy thousands of machines quickly, and EquipmentShare is winning an outsized share in that national/regional cohort.
"What we're doing now, and this was not true a decade ago when we started, but these customers that have been with us for years and years and years are awarding us at the outset." — Jabbok Schlacks (CEO)
Mature-site margins and building materials rollout
Q (Scott Schneeberger · Oppenheimer): Analyst asked if mature-location adjusted EBITDA margins can reach new higher levels and how sustainable, and how the building materials and other revenue lines are being scaled.
A: Management said the current higher mature-site margins are an opportunity to outperform and are expected to be stable over the next couple years, while their long-term target remains greater than 50% paired with a >20% ROIC goal. For new divisions like building materials, they start in the middle market strategically and expand up to mega projects and down to smaller customers as they scale.
"we see that as a sustainable opportunity to outperform, and we think that will be stable over these next couple of years." — Mark Wopata
Primary role on mega projects and OWN timing
Q (Steven Fisher · UBS): Analyst asked how often EquipmentShare is the primary on large projects and how OWN program contributions should be expected in Q3.
A: Management said on the vast majority of large projects they act as the primary provider, typically supplying 85% to 95% of machines on a project. They also said OWN program sales are concentrated in Q2 and Q4, expect lower contribution in Q3, and they are slightly ahead of plan for the year's OWN contributions.
"The vast majority that we talk about, we are the primary." — Jabbok Schlacks (CEO)
Downturn resilience and OWN program recourse
Q (Aaron Kimson · Citizens): Analyst asked whether the OWN program helps or hurts in a downturn and who has recourse on OWN equipment if participants default; also how data center permitting risks factor into branch expansion.
A: Management said they have traditional downturn levers (pause openings, cut growth CapEx, sell on-balance fleet) plus OWN-specific protections, and the OWN participants are the at-risk capital owners with UCC filings while EquipmentShare manages the equipment. They added that data centers are only one of many project types, permitting takes years so awarded and permitted projects continue, and demand across other verticals supports their branch location planning.
"we are not at recourse in any macro environment for the equipment." — Mark Wopata