v3.26.1
SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
The Company has two reportable segments: (1) Equipment Rental and Services Operations, and (2) Equipment
Sales. Equipment Rental and Services Operations are comprised of recurring activity performed at the Company's
full-service branch locations, such as equipment rentals and related services (including allocated telematics revenue
related to rental customer access to the T3 platform), and sales of parts, supplies and maintenance services to
construction contractors and others. Equipment Sales are comprised of sales by the Company of new or used
equipment made at any of the Company's branch locations and dealership sites, including equipment sales to
participants in the OWN Program. All other business activities, which include telematics SaaS subscriptions,
software applications, and related telematics devices purchased by customers for their owned fleet, as well as
building materials and hardware supplies, are included in “All Other.” The Company generates all of its revenue in
the U.S. and all long-lived assets are located in the U.S.
These segments are based upon revenue streams and how the chief operating decision maker (“CODM”) of the
Company allocates resources and assesses performance. The Company’s Chief Executive Officer is the CODM. The
CODM uses Segment Adjusted EBITDA to make resource allocation decisions and to assess the performance of
these segments. The CODM uses Segment Adjusted EBITDA to evaluate segment performance without regard to
potential distortions and to assess period-over-period growth. Excluding OWN Program payouts and equipment
operating lease expense from Equipment Rental and Services Operations Segment Adjusted EBITDA provides the
CODM with a more meaningful metric to compare operating performance to industry peers who do not source their
equipment fleet through lease arrangements. The most significant decisions made by the CODM relate to site
expansion, capital deployment, and employee hiring, among other things.
Significant expenses regularly provided to the CODM and reported in Segment Adjusted EBITDA include
segment cost of revenues and segment selling, general, and administrative expenses. Segment cost of revenues for
the Equipment Rental and Services Operations segment includes direct operating costs, excluding equipment and
vehicle operating lease expense. Segment cost of revenues for the Equipment Sales segment includes the cost of
equipment sales. Segment cost of revenues for All Other business activities includes platform expenses. Segment
Adjusted EBITDA also excludes operating expenses related to OWN Program payouts, depreciation expense on
rental equipment, and amortization expense on capitalized software. Segment selling, general and administrative
expenses exclude depreciation expense related to the Company’s property and other fixed assets, and during the first
quarter of 2026, on a prospective basis, segment selling, general and administrative expenses exclude stock-based
compensation expense, following a change in the information regularly reviewed by the CODM. There are no other
significant segment expenses.
The accounting policies of the reportable segments are consistent with those described in Note 2. Summary of
Significant Accounting Policies in the Company’s Audited Consolidated Financial Statements as of and for the year
ended December 31, 2025. Certain corporate selling, general and administrative expenses, including corporate
employee compensation, technology costs, professional service fees, and insurance expenses are deemed to be of an
operating nature and are allocated to each segment based primarily on segment employee headcount. There were no
sales or transactions between segments for any of the periods presented. The Company retains various unattributed
assets at the general corporate level, which the Company refers to as “Shared Resources” in the table below. Assets
identified as Shared Resources primarily consist of cash, investments, property and other fixed assets and property
right of use assets. All other costs and assets are directly attributable to the segments. The Company does not
compile discrete financial information for segments other than the information presented below.
The following table presents information about reportable segments (in millions):
Three Months Ended June 30, 2026
Equipment Rental
and Services
Equipment
Operations
Sales
All Other
Total
Equipment rental, parts, supplies and services ...............
$903
$–
$–
$903
Equipment sales .............................................................
–
483
–
483
Telematics ......................................................................
5
–
29
34
Sales of building materials, small tools, and hardware
supplies .......................................................................
–
–
29
29
Total revenues ................................................................
$908
$483
$58
$1,449
Significant expenses:
Segment cost of revenues .........................................
271
394
35
Segment selling, general and administrative
expenses .................................................................
248
7
22
Segment Adjusted EBITDA ........................................
$389
$82
$1
$472
Three Months Ended June 30, 2025
Equipment Rental
and Services
Equipment
Operations
Sales
All Other
Total
Equipment rental, parts, supplies and services ...............
$647
$–
$–
$647
Equipment sales .............................................................
–
478
–
478
Telematics ......................................................................
4
–
6
10
Sales of building materials, small tools, and hardware
supplies .......................................................................
–
–
12
12
Total revenues ................................................................
$651
$478
$18
$1,147
Significant expenses:
Segment cost of revenues .........................................
175
411
11
Segment selling, general and administrative
expenses .................................................................
201
7
12
Segment Adjusted EBITDA ........................................
$275
$60
$(5)
$330
Six Months Ended June 30, 2026
Equipment Rental
and Services
Equipment
Operations
Sales
All Other
Total
Equipment rental, parts, supplies and services ...............
$1,663
$–
$–
$1,663
Equipment sales .............................................................
–
661
–
661
Telematics ......................................................................
9
–
56
65
Sales of building materials, small tools, and hardware
supplies .......................................................................
–
–
48
48
Total revenues ................................................................
$1,672
$661
$104
$2,437
Significant expenses:
Segment cost of revenues .........................................
486
540
63
Segment selling, general and administrative
expenses .................................................................
473
14
43
Segment Adjusted EBITDA ........................................
$713
$107
$(2)
$818
Six Months Ended June 30, 2025
Equipment Rental
and Services
Equipment
Operations
Sales
All Other
Total
Equipment rental, parts, supplies and services ...............
$1,200
$–
$–
$1,200
Equipment sales .............................................................
–
624
–
624
Telematics ......................................................................
7
–
13
20
Sales of building materials, small tools, and hardware
supplies .......................................................................
–
–
20
20
Total revenues ................................................................
$1,207
$624
$33
$1,864
Significant expenses:
Segment cost of revenues .........................................
341
524
19
Segment selling, general and administrative
expenses .................................................................
383
14
23
Segment Adjusted EBITDA ........................................
$483
$86
$(9)
$560
The following table reconciles total Segment Adjusted EBITDA to income before income taxes (in millions):
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Segment Adjusted EBITDA ................................
$472
$330
$818
$560
Equipment operating lease expense ....................
(6)
(6)
(12)
(12)
OWN Program payouts .......................................
(234)
(173)
(451)
(328)
Depreciation expense on rental equipment .........
(91)
(72)
(173)
(139)
Depreciation expense on property and other
fixed assets ......................................................
(14)
(10)
(27)
(19)
Amortization expense on capitalized software
and intangible assets ........................................
(8)
(5)
(16)
(9)
Stock-based compensation expense ....................
(25)
–
(45)
–
Interest expense ...................................................
(73)
(69)
(143)
(131)
Other income, net ................................................
12
8
20
14
Income (loss) before income taxes ......................
$33
$3
$(29)
$(64)
The following table presents information about identified assets by reportable segment (in millions):
June 30, 2026
December 31, 2025
Segment identified assets:
Equipment Rental and Service Operations .....................................
$4,742
$3,948
Equipment Sales ..............................................................................
178
160
All Other .........................................................................................
307
274
Shared Resources ............................................................................
1,884
1,605
Total assets ......................................................................................
$7,111
$5,987
The following table presents information about cash flows from investing activities by reportable segment (in
millions):
June 30, 2026
June 30, 2025
Equipment
Equipment
Rental and
Rental and
Services
Equipment
Services
Equipment
Operations
Sales
Operations
Sales
Cash flows from investing activities:
Purchases of rental equipment ................
$(1,017)
$–
$(799)
$–
Proceeds from sale of rental equipment ..
–
483
–
500