EquipmentShare.com Inc

Good morning. Thank you for attending today's Equipment Share Q4 and full year 2025 financial results conference call. My name is Jennifer, and I'll be your moderator today. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you would like to ask a question, press star 1 on your telephone keypad. I would now like to pass the conference over to Rhett Butler, Vice President of Investor Relations with Equipment Share. Rhett, please proceed.

Good morning, and welcome to the Equipment Share Fourth Quarter and Full Year 2025 Financial Results Conference Call. Joining me today are Javik Schlatz, Co-Founder and Chief Executive Officer, Willie Schlatz, Co-Founder and President, Dave Marquardt, Chief Financial Officer and Chief Accounting Officer, and Mark Wafata, EVP of Finance and Chief Data Officer. Yesterday, we issued our earnings press release and posted an earnings presentation on our investor relations website at ir.equipmentshare.com. We encourage you to review the presentation, which provides additional detail on our financial results. Please be advised, this call is being recorded. Before we begin, I'd like to remind everyone that the company's earnings press release, earnings presentation, and Comments made on today's call and responses to your questions may contain forward-looking statements within the meaning of applicable securities laws. These statements are based on current expectations and assumptions and are subject to a variety of risks and uncertainties that could cause actual results to differ materially from those projected. Please refer to our earnings press release, our earnings presentation, and our SEC filings for a discussion of these risks and uncertainties. You can access all of these documents and filings on our investor relations website. Please note that equipment share has no obligation to update or revise forward-looking statements that have been made to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. We will also reference certain non-GAAP financial measures. Non-GAAP financial measures should not be used as substitute for the corresponding GAAP measures. Reconciliations to the most directly comparable GAAP measures are included in our earnings press release. With that, I'll turn the call over to Javik.

Thank you, Rhett. We're pleased to report strong fourth quarter and full year 2025 results as we continue executing against our operational and financial objectives. Our top priority is solving problems for customers, problems we experienced firsthand on the job set as contractors for decades before starting EquipmentShare. And we built a company around that focus. Driven by our differentiated, tech-empowered offering, a strong demand environment in the end marks we serve, and a relentless focus on execution, 2025 was a banner year for EquipmentShare. I'll start with a quick financial summary before we step back and talk about what's driving the business. Full year 2025 highlights include rental segment revenue was $2.7 billion, up 34% year over year. We added 95 locations for a total of 385 locations at the end of 2025. Adjusted core EBITDA was $1.7 billion, up 32% year over year. Mature site rental segment adjusted EBITDA margin was 54%, in line with our target of over 50%. Mature site return on invested capital was 16.5%. Our year-end results focused on growth, margins, and ROIC set us up well for 2026. We continue to see strong customer demand and a significant opportunity to keep addressing industry pain points. At the midpoint of our 2026 outlook, we expect rental segment revenue to grow approximately 27% year-over-year. Supported by our differentiated offering, and a constructive industry backdrop. We continue to invest in organic growth because locations open in response to customer demand have consistently generated strong returns and attractive unit economics as they mature. In 2025, we incurred $252 million of one-time new market startup cost to support new site openings. Those costs are concentrated in the first 12 months of a location and but we believe they create a long-term earnings-generating asset within our network. As those sites ramp and mature, we expect them to contribute meaningfully to earnings and cash flow. We believe that is a highly efficient use of capital and a key driver of long-term value creation. To understand our performance, it helps to start with how the industry is changing and what customers now require from a rental partner. The equipment rental industry is a great industry, and it forms the backbone of what gets built in this country. But it's also a fragmented industry. Page 10 of the presentation frames both the size of the opportunity and the continued fragmentation of the rental market. Today, the largest players only represent a minority of the total market, which creates a long runway for share gains for companies that can deliver at scale and solve increasingly complex job site needs. Job sites are getting larger. faster moving, and more operationally demanding, particularly across megaprojects like data centers, advanced manufacturing, energy, and infrastructure. And page 22 shows the scale of the active and planned megaproject opportunity already within our serviceable footprint. At the high end of the market, scale is a differentiator. There are only a small number of companies globally that can deploy 3,000-plus machines to a job site quickly and reliably. Page 23 is a good illustration of what that looks like on a complex mega project. At that scale, customers need a partner that can bring coordination, visibility, control, safety, and uptime day after day across thousands of assets, people, and workflows. Increasingly, we believe that customers also want that from a more integrated partner across the job site, not just equipment. but service, technology, and specialty solutions. We saw that reflected in 2025 when our specialty divisions scaled 34% year-over-year and revenue from T3 and our materials business grew over 100%. That true tech-integrated one-stop-shop offering is what is driving our market share gains. When you see our 30% plus organic year-over-year revenue growth in a low single-digit industry, it raises the obvious question, what's driving it? For us, it's not acquisition driven. It's customer driven. We believe customers are consolidating spend with us because we deliver a differentiated solution on the job site. And the way we do that is through an integrated model that combines three things. First, physical distribution at scale. Delivering servicing and supporting equipment and job site solutions across a broad national footprint. T3 is a major differentiator, but this is still a job site business. You have to deliver equipment and services scale. Second, we bring operator grade experience. As contractors, we've lived these job sites for decades and we've built the teams, processes and technology designed for the real constraints in the field. And third, Our proprietary technology platform, T3, is deeply integrated into how customers run their job sites every day. And it also powers how we run our own operations at EquipmentShare. We built and own the full sensor-to-server technology stack. And because we operate end-to-end, we're capturing a unique proprietary data set across equipment, people, service, workflows, and job site operations. That combination – Physical distribution, job site expertise, and a proprietary operating system built on a decade of real job site data make up the structural advantage that are driving our performance. And you can see the value showing up in customer behavior. Customers that meaningfully engage with our technology platform spend dramatically more with us. In fact, as you can see on page 30 of the presentation, National customers that are highly engaged with T3 spend roughly six times more in rental than rental customers who don't use T3. So when we talk about which customers see the most value on T3, it's customers running large, complex job sites across multiple locations where downtime, safety incidents, and lack of visibility can translate into huge inefficiencies. That retention and expansion is a key reason our growth is both organic and durable. When we open a new location, more than 75% of first-year revenue comes from existing customers already renting from us in other markets. That dynamic is illustrated on page 20 of the presentation. You can see it in our results. Industry-leading organic growth, leading mature site margins, and strong returns on capital. We pair that growth with discipline. We expand sites in response to customer demand and manage the business against those key metrics I mentioned, growth, margins, and ROIC. With that in context, I'll turn the call over to Willie to talk more about T3 and the connected job site. Mark will then walk through our unit economics in the OWN program, and Dave will take you through the financial results, balance sheet, and capital allocation in more detail. Willie, over to you. Thank you, Javik.