v3.26.1
Segments (Tables)
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Schedule of Company’s Segment Results The Company’s segment results are presented in the tables below:
Three Months Ended June 30,
20262025
(in $000s)SERSTEMSERSTEM
Revenue from external customers
Rental$145,060$—$120,814$—
Equipment sales51,659331,90039,661316,451
Parts sales and services22,10012,72722,35312,204
Total revenue from external customers218,819344,627182,828328,655
Intersegment sales4,11393,15315,72697,599
Rental AR provision(1)
2,390—2,358—
Sales-type lease adjustment(2)
(4,318)—1,179—
Total Segment Revenue221,004 437,780 202,091 426,254 
Segment Expenses:
Cost of rental revenue, excluding depreciation(3)
34,542—30,040—
Cost of equipment sales, net of purchase accounting, sales-type leases and depreciation(4)
30,884281,23525,959265,542
Cost of parts and services, excluding depreciation(5)
17,9149,55118,9938,634
Cost of intersegment sales3,72878,59615,72697,599
Rental AR provision(1)
2,390—2,358—
Total cost of segment revenue89,458369,38293,076371,775
Selling, general and administrative expense14,34720,04216,18016,663
Floor plan interest expense—11,139—13,764
Total Segment Expenses103,805400,563109,256402,202
Segment Adjusted EBITDA$117,199$37,217$92,835$24,052
Six Months Ended June 30,
20262025
(in $000s)SERSTEMSERSTEM
Revenue from external customers
Rental$282,275$—$237,075$—
Equipment sales89,436586,75769,516560,459
Parts sales and services40,87125,72943,31823,347
Total revenue from external customers412,582612,486349,909583,806
Intersegment sales10,903188,60327,326192,388
Rental AR provision(1)
4,566—4,203—
Sales-type lease adjustment(2)
(2,215)—2,436—
Total Segment Revenue425,836 801,089 383,874 776,194 
Segment Expenses:
Cost of rental revenue, excluding depreciation(3)
65,290—60,132—
Cost of equipment sales, net of purchase accounting, sales-type leases and depreciation(4)
59,356494,46043,885470,991
Cost of parts and services, excluding depreciation(5)
35,88218,64538,97016,078
Cost of intersegment sales9,838158,78127,326192,388
Rental AR provision(1)
4,566—4,203—
Total cost of segment revenue174,932671,886174,516679,457
Selling, general and administrative expense28,20837,62230,47432,516
Floor plan interest expense—21,658—27,061
Total Segment Expenses203,140731,166204,990739,034
Segment Adjusted EBITDA$222,696$69,923$178,884$37,160
(1) Specifically identifiable lease revenue receivables not deemed probable of collection are recorded as a reduction of rental revenue. This is classified as a segment expense for Segment Adjusted EBITDA reviewed by the chief operating decision maker.
(2) Impact of sales-type lease accounting for certain leases containing RPOs: this impact is excluded from the measure of Adjusted EBITDA utilized by our CODM to allocate resources and to assess the performance of our segments as we believe continuing to reflect the transactions as an operating lease better reflects the economics of the transactions given our large portfolio of rental contracts.
(3) Cost of rental revenue, excluding depreciation: reflects repairs and maintenance costs of rental equipment, parts costs, labor and other overheads related to maintaining the rental fleet, and freight associated with the shipping of rental equipment.
(4) Cost of equipment sales, net of purchase accounting, sales-type leases and depreciation: reflects production and inventory costs associated with new units sold, labor and other overheads related to production, and freight associated with the shipping and receiving of equipment. Cost of equipment sales also includes the net book value of rental units sold. These costs are net of (i) the impact of purchase accounting step-up in basis on equipment and inventory acquired ("non-cash purchase accounting impact") and (ii) the impact of sales-type lease accounting for certain leases containing RPOs, further excluding depreciation.
(5) Cost of parts and services sales, excluding depreciation: reflects inventory costs associated with parts costs and freight associated with the shipping and receiving of parts, further excluding depreciation.
(6) Certain costs are not allocated to the segments as they represent Corporate-level activities. These costs primarily include people-related costs, enterprise technology, insurance coverage, and professional services required to support the Company’s national scale, public-company requirements, and centralized corporate functions.
Reconciliation Of Segment Adjusted EBITDA To Consolidated Income (Loss) Before IncomeTaxes The following table presents a reconciliation of segment adjusted EBITDA to consolidated income (loss) before income taxes:
Three Months Ended June 30,
in 000s20262025
SERSTEMTotalSERSTEMTotal
Segment Adjusted EBITDA$117,199 $37,217 $154,416 92,835 24,052 $116,887 
Reconciling Items:
Intersegment margin(14,942)— 
Corporate and non-allocated selling, general and administrative expenses(6)
(22,720)(23,459)
Depreciation and amortization(68,970)(66,426)
Interest expense, net (non-floor plan)(27,051)(26,440)
Non-cash purchase accounting impact(4)
(2,736)(3,915)
Transaction and integration costs(5,998)(5,303)
Sales-type lease adjustment(2)(4)
408 (471)
Share-based payments(3,431)(1,775)
Consolidated income (loss) before income taxes$8,976 $(10,902)
Six Months Ended June 30,
in 000s20262025
SERSTEMTotalSERSTEMTotal
Segment Adjusted EBITDA$222,696 $69,923 $292,619 178,884 37,160 $216,044 
Reconciling Items:
Intersegment margin(30,887)— 
Corporate and non-allocated selling, general and administrative expenses(6)
(46,992)(49,190)
Depreciation and amortization(137,244)(128,937)
Interest expense, net (non-floor plan)(51,569)(52,056)
Non-cash purchase accounting impact(4)
(5,968)(8,096)
Transaction and integration costs(9,890)(8,963)
Sales-type lease adjustment(2)(4)
(288)(1,017)
Share-based payments(4,610)(4,179)
Consolidated income (loss) before income taxes$5,171 $(36,394)

(1) Specifically identifiable lease revenue receivables not deemed probable of collection are recorded as a reduction of rental revenue. This is classified as a segment expense for Segment Adjusted EBITDA reviewed by the chief operating decision maker.
(2) Impact of sales-type lease accounting for certain leases containing RPOs: this impact is excluded from the measure of Adjusted EBITDA utilized by our CODM to allocate resources and to assess the performance of our segments as we believe continuing to reflect the transactions as an operating lease better reflects the economics of the transactions given our large portfolio of rental contracts.
(3) Cost of rental revenue, excluding depreciation: reflects repairs and maintenance costs of rental equipment, parts costs, labor and other overheads related to maintaining the rental fleet, and freight associated with the shipping of rental equipment.
(4) Cost of equipment sales, net of purchase accounting, sales-type leases and depreciation: reflects production and inventory costs associated with new units sold, labor and other overheads related to production, and freight associated with the shipping and receiving of equipment. Cost of equipment sales also includes the net book value of rental units sold. These costs are net of (i) the impact of purchase accounting step-up in basis on equipment and inventory acquired ("non-cash purchase accounting impact") and (ii) the impact of sales-type lease accounting for certain leases containing RPOs, further excluding depreciation.
(5) Cost of parts and services sales, excluding depreciation: reflects inventory costs associated with parts costs and freight associated with the shipping and receiving of parts, further excluding depreciation.
(6) Certain costs are not allocated to the segments as they represent Corporate-level activities. These costs primarily include people-related costs, enterprise technology, insurance coverage, and professional services required to support the Company’s national scale, public-company requirements, and centralized corporate functions.
Schedule of Total Assets by Country
The following table presents total assets by country:
(in $000s) June 30, 2026December 31, 2025
Assets:
United States$3,504,456 $3,344,032 
Canada100,160 97,422 
       Total Assets$3,604,616 $3,441,454