Companies / EquipmentShare
EquipmentShare EQPT
Capital Structure
| Cap Structure | Amt Out. | Mkt Price | Yield | Lev. Through | View |
|---|---|---|---|---|---|
| Unrestricted Cash | $359.0 | ||||
| 9.000% Senior Secured Second Lien Notes due 2028 | 1,034.0 | 102.1%* | 4.67% | NA | Bearish |
| ABL Credit Facility (asset-based revolver) | 806.0 | 100.0% | 5.26% | NA | Neutral |
| 8.625% Senior Secured Second Lien Notes due 2032 | 600.0 | 103.9%* | 7.73% | NA | Neutral |
| 8.000% Senior Secured Second Lien Notes due 2033 | 500.0 | 102.7%* | 7.48% | NA | Neutral |
| 7.125% Senior Secured Second Lien Notes due 2034 | 1,350.0 | 98.4%* | 7.39% | NA | Neutral |
| Equipment financing lines of credit with various institutions | 2.0 | 100.0% | N/a | NA | Neutral |
| Total Debt | $4,229.0 | NA | |||
| Net Debt | $3,870.0 | NA |
Last Twelve Months
| Revenue | -- |
| Implied Costs | -- |
| Adj. EBITDA | -- |
| (-) Interest Expense | (165) |
| (-) Capex | -- |
| Memo: FCF | ($179) |
| Total Liquidity | $2,298.0 |
EquipmentShare
| 9/30/26 | Face Value / Adj. EBITDA | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cap Structure | Coupon | Maturity | Amt Out. | Mkt Price | YTM | Next Call | Yield to Call | View | 2023A | 2024A | 2025A | LTM |
| Unrestricted Cash | $359.0 | |||||||||||
| Undrawn Revolver ($2,750mm facility) | 1,939.0 | |||||||||||
| Total Liquidity | $2,298.0 | |||||||||||
| 9.000% Senior Secured Second Lien Notes due 2028 | 9.00% | 5/15/2028 | 1,034.0 | 102.1%* | 7.48% | 5/15/2027 @ 100 | 4.67% | Bearish | ||||
| ABL Credit Facility (asset-based revolver) | 5.26% | 11/26/2030 | 806.0 | 100.0% | 5.26% | N/a | N/a | Neutral | ||||
| 8.625% Senior Secured Second Lien Notes due 2032 | 8.625% | 5/15/2032 | 600.0 | 103.9%* | 7.73% | 5/15/2027 @ 104.313 | 9.02% | Neutral | ||||
| 8.000% Senior Secured Second Lien Notes due 2033 | 8.00% | 3/15/2033 | 500.0 | 102.7%* | 7.48% | 9/15/2027 @ 104 | 9.07% | Neutral | ||||
| 7.125% Senior Secured Second Lien Notes due 2034 | 7.125% | 7/1/2034 | 1,350.0 | 98.4%* | 7.39% | 7/1/2029 @ 103.563 | 8.81% | Neutral | ||||
| Equipment financing lines of credit with various institutions | N/a | N/a | 2.0 | 100.0% | N/a | N/a | N/a | Neutral | ||||
| Total Secured Debt | $4,292.0 | 7.8x | 7.7x | 6.4x | NA | |||||||
| Net Secured Debt | $3,933.0 | 7.2x | 7.1x | 5.9x | NA | |||||||
| Other debt, discounts and issuance costs | N/a | N/a | (63.0) | |||||||||
| Total Debt | $4,229.0 | 7.7x | 7.6x | 6.3x | NA | |||||||
| Net Debt | $3,870.0 | 7.1x | 7.0x | 5.8x | NA | |||||||
| Adj. EBITDA | $548 | $554 | $666 | -- | ||||||||
Key Financials
| 2023A | 2024A | 2025A | LTM | |
|---|---|---|---|---|
| Revenue | $2,557 | $3,764 | $4,379 | -- |
| Y/Y Growth | 47.2% | 16.3% | ||
| (-) Cost of Revenue | (1,798) | (2,818) | (3,140) | (2,746) |
| Gross Profit | $759 | $946 | $1,239 | -- |
| Gross Margin | 29.7% | 25.1% | 28.3% | |
| (-) SG&A | (509) | (728) | (942) | (948) |
| (+/-) Other Operating Costs, net of D&A | 295 | 332 | 365 | -- |
| EBITDA | $545 | $550 | $662 | -- |
| (+) Add-backs: stock comp, restructuring, impairments | 3 | 4 | 4 | -- |
| Adj. EBITDA | $548 | $554 | $666 | -- |
| Margin | 21.4% | 14.7% | 15.2% | |
| (-) Restructuring and other cash add-backs | -- | -- | -- | -- |
| Cash EBITDA | $548 | $554 | $666 | -- |
| (-) Interest Expense (Cash Only) | (200) | (230) | (272) | (165) |
| (-) Cash Taxes | -- | -- | (6) | 2 |
| (-) Capex | -- | -- | -- | -- |
| (+/-) Working Capital and Other | (69) | (42) | (124) | -- |
| Memo: FCF | $279 | $282 | $264 | ($179) |
| % of Debt | 6.6% | 6.7% | 6.2% | (4.2%) |
Liquidity
| Unrestricted Cash | $359.0 |
| Undrawn Revolver | 1,939.0 |
| Total Liquidity | $2,298.0 |
| (-) Debt due through 2028 | (1,034.0) |
| (+/-) Free cash flow, last twelve months | (179.0) |
| Liquidity after maturities and a year of cash flow | $1,085.0 |
The basket review for this company has not finished yet. When it does, this tab shows the dollar capacity to move value or prime lenders, the playbook moves that fit, and what they would do to each tranche. Meanwhile, see the liability management playbook.
Key Financials
| 2023A | 2024A | 2025A | LTM | |
|---|---|---|---|---|
| Revenue | $2,557 | $3,764 | $4,379 | -- |
| Y/Y Growth | 47.2% | 16.3% | ||
| (-) Cost of Revenue | (1,798) | (2,818) | (3,140) | (2,746) |
| Gross Profit | $759 | $946 | $1,239 | -- |
| Gross Margin | 29.7% | 25.1% | 28.3% | |
| (-) SG&A | (509) | (728) | (942) | (948) |
| (+/-) Other Operating Costs, net of D&A | 295 | 332 | 365 | -- |
| EBITDA | $545 | $550 | $662 | -- |
| (+) Add-backs: stock comp, restructuring, impairments | 3 | 4 | 4 | -- |
| Adj. EBITDA | $548 | $554 | $666 | -- |
| Margin | 21.4% | 14.7% | 15.2% | |
| (-) Restructuring and other cash add-backs | -- | -- | -- | -- |
| Cash EBITDA | $548 | $554 | $666 | -- |
| (-) Interest Expense (Cash Only) | (200) | (230) | (272) | (165) |
| (-) Cash Taxes | -- | -- | (6) | 2 |
| (-) Capex | -- | -- | -- | -- |
| (+/-) Working Capital and Other | (69) | (42) | (124) | -- |
| Memo: FCF | $279 | $282 | $264 | ($179) |
| % of Debt | 6.6% | 6.7% | 6.2% | (4.2%) |
Earnings call: Q3 2026 · Nov 10, 2026
Rental revenue up 49% on 32% fleet growth, margins wider, and 2026 outlook held at the level raised in October.
Takeaways
- Total revenue rose 55% to $1,468 million. Rental segment revenue grew 49% to $1,113 million on 32% growth in fleet under management (OEC of $10.7 billion).
- Rental segment adjusted EBITDA rose 52% to $491 million. Margin widened about 70 basis points from a year ago to 44%. Mature sites ran at 54% margins on a trailing basis.
- Cash flow is still negative. Operating cash flow was a $179 million outflow for nine months, as receivables grew by $437 million. Net rental capex was $590 million in the quarter.
- Net leverage was 3.4x at September 30, down from 3.7x a year earlier but up from 3.0x at June 30. Net debt was $3.9 billion against $2.1 billion of trailing adjusted core EBITDA plus start-up costs.
- Liquidity was $2.3 billion, made up of $1.9 billion undrawn on the asset-based revolver and $359 million of cash.
- GAAP net income was $20 million versus $6 million. Interest expense rose to $88 million from $75 million after this year's refinancing.
Debt and capital
- Total debt was about $4.55 billion at September 30, with a blended rate near 7.5% and 82% fixed.
- The debt stack: $806 million drawn on the ABL, plus second lien secured notes. These are $1,034 million due 2028 at 9.0%, $600 million due 2032 at 8.6%, $500 million due 2033 at 8.0% and $1,350 million due 2034 at 7.1%.
- The 2028 notes are the nearest large maturity. There are no meaningful bond maturities in 2026 or 2027.
- About $1.3 billion of net bond proceeds were funded on July 1, 2026. The 2034 tranche appears to be that issue.
- Near-term leverage target is high 2x to low 3x, with about 3.0x targeted for year-end 2026 and low 2x in the medium term.
- A $500 million Class A share buyback was authorized in July 2026, running to December 31, 2028. Buybacks are to stay within the leverage framework.
- Liquidity policy is a minimum of $500 million. Actual liquidity of $2.3 billion is more than four times that.
Guidance
- Full-year 2026 outlook was held at the level raised on October 19, which was itself the second raise of the year after July 9.
- Total revenue of $5,808 to $6,045 million, up from $5,254 to $5,682 million before October.
- Rental segment revenue of $3,823 to $3,979 million and adjusted core EBITDA of $2,136 to $2,224 million.
- OEC of $11,391 to $11,613 million, with 427 to 435 full-service rental locations.
- Gross rental capex of $2,664 to $2,886 million and net rental capex of $980 to $1,060 million were unchanged since July.
- Management said it sees room to beat the outlook and expects rental margins to keep expanding in the second half.
Tone: Confident and growth-focused, with management stressing demand visibility into 2027 and the chance to beat a twice-raised outlook.
Last quarter: Third quarter 2026
Revenue grew 55% as the rental fleet and branch network expanded, and reported net leverage fell to 3.4x.
Results
- Third quarter total revenue was $1.47bn, up 55% from $945mm a year earlier. Rental segment revenue was $1.11bn, up 49%.
- Adjusted Core EBITDA, the company's headline measure, was $594mm against $424mm, up 40%. It adds back $254mm of OWN Program payouts and $59mm of new market start-up costs. EBITDA before those add-backs was $276mm against $186mm.
- Rental segment adjusted EBITDA was $491mm, up 52%, at a 44% margin against 43%, a gain of 68 basis points.
- Net income was $20mm against $6mm. Excluding $26mm of founder stock awards tied to the IPO, adjusted net income was $46mm.
- Net rental equipment capital spending was $590mm in the quarter, after $822mm of gross purchases. The release gives cash flow only for the nine months, when operating activities used $179mm.
Why
- Fleet under management, at original cost, rose 32% to $10.66bn. Of that, $5.77bn sits in the OWN Program, where third parties own the equipment, and $4.82bn is company owned.
- The company had 448 locations against 373 a year earlier and opened 18 in the quarter. Rental sites open more than 24 months earned a 54% adjusted EBITDA margin over the trailing twelve months.
- Equipment sales revenue rose 76% to $294mm, driven by a $139mm increase in sales into the OWN Program. Sales to contractors and other end users fell $12mm.
- OWN Program payouts rose 37% to $254mm and interest expense rose to $88mm from $75mm.
Balance sheet and guidance
- Cash was $359mm at September 30, 2026. Total available liquidity was $2.30bn, including $1.94bn undrawn on the asset-based revolver.
- Long-term debt was $4.23bn, up from $3.27bn at year-end 2025. Net debt by the company's calculation was $3.93bn.
- Reported net leverage was 3.4x, down from 3.7x a year earlier. The ratio uses trailing EBITDA plus new market start-up costs.
- Full year 2026 total revenue of $5.81bn to $6.05bn and rental segment revenue of $3.82bn to $3.98bn.
- Full year 2026 Adjusted Core EBITDA of $2.14bn to $2.22bn, including $278mm to $290mm from the sales segment.
- Net rental capital spending of $980mm to $1.06bn on gross spending of $2.66bn to $2.89bn. OWN Program payouts of $938mm to $976mm.
- The release labels this current guidance and shows no prior range, so it does not say whether it was raised, cut or held. Management says it sees a chance to exceed it.
What to watch
- Operating activities used $179mm of cash in the nine months, with receivables up $437mm, while long-term debt rose to $4.23bn from $3.27bn. Watch whether operating cash flow turns positive as growth continues.
- The headline EBITDA measure adds back OWN Program payouts, which are a cash cost of $254mm a quarter and rising. Watch the gap between Adjusted Core EBITDA and EBITDA.
- Equipment sales growth came from placements into the OWN Program, and the program is guided to 55% to 60% of fleet. Watch the pace of those placements and the appraised value of that fleet, stated at $4.21bn.
Filings
Earnings releases 5
- Nov 9, 20268-K for Nov 9, 2026: Results · Press release
- Aug 12, 20268-K for Aug 12, 2026: Results · Press release
- Jul 10, 20268-K for Jul 9, 2026: Results; Regulation FD
- May 13, 20268-K for May 13, 2026: Results · Press release
- Mar 18, 20268-K for Mar 18, 2026: Results · Press release
Annual reports (10-K) 1
- Mar 19, 202610-K for Dec 31, 2025
Quarterly reports (10-Q) 3
- Nov 10, 202610-Q for Sep 30, 2026
- Aug 13, 202610-Q for Jun 30, 2026
- May 14, 202610-Q for Mar 31, 2026
Current reports (8-K) 6
- Oct 19, 20268-K for Oct 19, 2026: Regulation FD
- Jul 2, 20268-K for Jul 1, 2026: Material agreement; New debt
- Jun 16, 20268-K for Jun 16, 2026: Other event
- Jun 16, 20268-K for Jun 16, 2026: Regulation FD; Other event
- Jun 10, 20268-K for Jun 4, 2026: Director or officer change; Shareholder vote; Regulation FD
- Jan 26, 20268-K for Jan 22, 2026: Bylaw change
Proxy statements 1
- Apr 21, 2026DEF 14A for Dec 31, 2025
Coming up
- Mar 18, 2027Results. Full-year results for the period ending 2026-12-31. The date is an estimate: last year's filing date moved forward a year.
- May 15, 2028Maturity. 9.000% Senior Secured Second Lien Notes due 2028: $1,034mm outstanding comes due.
Recent 8-K filings
- Nov 9, 2026Reported results
- Oct 19, 2026Regulation FD disclosure
- Aug 12, 2026Reported results
- Jul 10, 2026Reported results; Regulation FD disclosure
- Jul 2, 2026Entered into a material agreement; Took on new debt or an obligation
- Jun 16, 2026Other event
- Jun 16, 2026Regulation FD disclosure; Other event