v3.26.3
Segment Information
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Segment Information Segment Information
Our reportable segments are (i) general rentals and (ii) specialty. Our determination of the operating segments is primarily based on geography, but also includes consideration of the offered products and services. For general rentals, the divisions discussed below, which are our operating segments, are aggregated into the reportable segment. The specialty segment is a single division that is both an operating segment and a reportable segment. We believe that the divisions that are aggregated into our reportable segments have similar economic characteristics, as each division is capital intensive, offers similar products to similar customers, uses similar methods to distribute its products, and is subject to similar competitive risks. The aggregation of our divisions also reflects the management structure that we use for making operating decisions and assessing performance. We evaluate segment performance primarily based on segment equipment rentals gross profit.
The general rentals segment includes the rental of (i) general construction and industrial equipment, such as backhoes, skid-steer loaders, forklifts, earthmoving equipment and material handling equipment, (ii) aerial work platforms, such as boom lifts and scissor lifts and (iii) general tools and light equipment, such as pressure washers, water pumps and power tools. The general rentals segment reflects the aggregation of four geographic divisions—Central, Northeast, Southeast and West—and operates throughout the United States and Canada.
The specialty segment, which, as noted above, is a single division that is both an operating segment and a reportable segment, rents products (and provides setup and other services on such rented equipment) including (i) trench safety equipment, such as trench shields, aluminum hydraulic shoring systems, slide rails, crossing plates, construction lasers and line testing equipment for underground work, (ii) power and HVAC equipment, such as portable diesel generators, electrical distribution equipment, and temperature control equipment, (iii) fluid solutions equipment primarily used for fluid containment, transfer and treatment, (iv) mobile storage equipment and modular office space and (v) surface protection mats. The specialty segment’s customers include construction companies involved in infrastructure projects, municipalities and industrial companies. This segment primarily operates in the United States and Canada, and has a smaller presence in Europe, Australia and New Zealand.
Our Chief Operating Officer is our chief operating decision maker (“CODM”). Equipment rentals gross profit is the primary measure the CODM utilizes in assessing segment performance and determining the allocation of resources. The CODM is the primary individual in control of resource allocation, and the allocation determinations are made in consultation with our senior executive committee, of which the CODM is a member. The most significant allocation determinations made by the CODM pertain to purchases of rental equipment (see the table below for total capital expenditures, including rental and non-rental equipment, by segment), and these determinations are generally made as part of the annual budgeting process, with regular reviews occurring throughout the year that can result in allocation changes (for example, if a specific division outperforms its plan, that could result in a reallocation of resources between divisions or an increase in the total allocated resources). On a monthly basis, the CODM considers budget-to-actual variances for equipment rentals gross profit when making decisions about allocating capital to the segments. Equipment rentals gross profit is also used to assess the performance of each segment by comparing the results and return on assets of each segment with one another, which also informs the determinations made pertaining to the allocation of resources. 
The following tables set forth financial information by segment, and include reconciliations of the primary measure of segment profit (equipment rentals gross profit) to income before provision for income taxes.
Three Months Ended September 30, 2026Three Months Ended September 30, 2025
General
rentals		SpecialtyTotalGeneral
rentals		SpecialtyTotal
Equipment rentals$2,612 $1,704 $4,316 $2,400 $1,265 $3,665 
Sales of rental equipment305 43 348 274 59 333 
Sales of new equipment35 49 84 45 50 95 
Contractor supplies sales24 23 47 23 20 43 
Service and other revenues89 9 98 84 9 93 
Total revenue (1)3,065 1,828 4,893 2,826 1,403 4,229 
Equipment rentals gross profit (see calculation below)1,003 811 1,814 881 570 1,451 
Equipment rentals gross margin38.4 %47.6 %42.0 %36.7 %45.1 %39.6 %
Calculation of equipment rentals gross profit:
Equipment rentals2,612 1,704 4,316 2,400 1,265 3,665 
Less:
Depreciation of rental equipment(537)(205)(742)(512)(172)(684)
Significant/all other rental expenses (2):
Labor and benefits (3)(441)(152)(593)(416)(134)(550)
Repairs and maintenance(236)(74)(310)(228)(66)(294)
Delivery(143)(163)(306)(141)(133)(274)
All other rental expenses (2)(252)(299)(551)(222)(190)(412)
Equipment rentals gross profit1,003 811 1,814 881 570 1,451 
Reconciliation of equipment rentals gross profit to income before provision for income taxes:
Gross profit from other lines of business232 214 
Selling, general and administrative expenses(511)(442)
Restructuring charge (4)(15)— 
Non-rental depreciation and amortization(111)(109)
Interest expense, net(184)(178)
Other income, net6 1 
Income before provision for income taxes$1,231 $937 
Nine Months Ended September 30, 2026Nine Months Ended September 30, 2025
General
rentals		SpecialtyTotalGeneral
rentals		SpecialtyTotal
Equipment rentals$7,259 $4,325 $11,584 $6,767 $3,458 $10,225 
Sales of rental equipment890 138 1,028 876 151 1,027 
Sales of new equipment122 132 254 137 103 240 
Contractor supplies sales70 61 131 65 55 120 
Service and other revenues262 29 291 252 27 279 
Total revenue (1)8,603 4,685 13,288 8,097 3,794 11,891 
Equipment rentals gross profit (see calculation below)2,621 1,940 4,561 2,356 1,546 3,902 
Equipment rentals gross margin36.1 %44.9 %39.4 %34.8 %44.7 %38.2 %
Capital expenditures (5)3,730 1,296 5,026 3,049 984 4,033 
Calculation of equipment rentals gross profit:
Equipment rentals7,259 4,325 11,584 6,767 3,458 10,225 
Less:
Depreciation of rental equipment(1,557)(570)(2,127)(1,497)(475)(1,972)
Significant/all other rental expenses (2):
Labor and benefits (3)(1,296)(435)(1,731)(1,237)(382)(1,619)
Repairs and maintenance(658)(200)(858)(630)(178)(808)
Delivery(387)(420)(807)(384)(348)(732)
All other rental expenses (2)(740)(760)(1,500)(663)(529)(1,192)
Equipment rentals gross profit2,621 1,940 4,561 2,356 1,546 3,902 
Reconciliation of equipment rentals gross profit to income before provision for income taxes:
Gross profit from other lines of business686 652 
Selling, general and administrative expenses(1,424)(1,301)
Restructuring charge (4)(66)(1)
Non-rental depreciation and amortization(341)(331)
Interest expense, net(538)(533)
Other income, net (6)61 76 
Income before provision for income taxes$2,939 $2,464 
September 30,
2026		December 31,
2025
General
rentals		SpecialtyTotalGeneral
rentals		SpecialtyTotal
Total assets$23,410 $9,375 $32,785 $21,787 $8,079 $29,866 
 ___________________
(1)Includes immaterial intersegment revenues.
(2)The significant expense categories align with the segment-level information that is regularly provided to the CODM. The “all other rental expenses” category reflects the difference between equipment rentals revenue less the significant separately disclosed expense categories above and the primary measure of segment profit (equipment rentals gross profit), and is primarily comprised of property costs, costs associated with re-rent revenue and certain ancillary revenues (see note 2 to the condensed consolidated financial statements for a discussion of the different types of equipment rentals revenue), and insurance costs. Intersegment expenses are included within the amounts shown.
(3)Labor and benefits includes all internal labor and benefits costs associated with equipment rentals, including labor and benefits costs associated with repairs and maintenance and delivery.
(4)Primarily reflects severance and branch closure charges associated with our restructuring programs. The restructuring charges generally involve the closure of a large number of branches over a short period of time, often in periods following a major acquisition. The amounts above primarily reflect charges associated with the restructuring program initiated in the fourth quarter of 2025 (see note 4 to the condensed consolidated financial statements for additional detail on our restructuring programs).
(5)The condensed consolidated statements of cash flows include the payments for capital expenditures, while the table above reflects the gross capital expenditures. Accounts payable included $524 and $117 as of September 30, 2026 and December 31, 2025, respectively, and $261 and $77 as of September 30, 2025 and December 31, 2024, respectively, of amounts due but unpaid for purchases of rental equipment.
(6)The nine months ended September 30, 2026 include a gain of $53 primarily associated with the sale of part of our scaffolding business. This gain was primarily recognized in other income, net. In January 2025, we announced that we had signed a merger agreement to acquire H&E. In February 2025, the merger agreement was terminated. Other income, net for the nine months ended September 30, 2025 includes a break-up fee of $64 that we received following the termination of the H&E merger agreement.