EquipmentShare.com Inc. (EQPT) Earnings Call Transcript & Summary

Hello, everyone. Thank you for joining us, and welcome to EquipmentShare Q1 2026 Earnings Call. [Operator Instructions] I will now hand the conference over to Rhett Butler, Vice President of Investor Relations. Rhett, please go ahead.

Good morning, and welcome to the EquipmentShare First Quarter 2026 Financial Results Conference Call. Joining me today are Jabbok Schlacks, Founder and Chief Executive Officer; Willie Schlacks, Founder and President; Mark Wopata, Chief Data Officer and EVP of Finance; and Dave Marquardt, Chief Financial Officer and Chief Accounting Officer. Last night, we issued our earnings release and posted an earnings presentation to our Investor Relations website at ir.equipmentshare.com. We encourage you to review the presentation alongside today's remarks. Please be advised this call is being recorded. 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 subject to risks and uncertainties that could cause actual results to differ materially. Please refer to our earnings release, presentation and SEC filings for a discussion of those risks. EquipmentShare has no obligation to update or revise forward-looking statements made on this call. We will also reference certain non-GAAP financial measures. Reconciliations to the most directly comparable GAAP measures are included in our earnings release. With that, I'll turn the call over to Jabbok.

Thank you, Rhett, and good morning, everyone. We delivered a strong first quarter and are raising our 2026 outlook across the board. The headline is not just the financial performance, but the durability of what is driving it, strong demand in our core end markets, continued share gain with large customers and the distinct value proposition of T3. I'll start with the macro backdrop and demand environment. Willie will cover the T3 platform advantage. Mark will walk through site performance and the OWN Program. Dave will cover financial performance, and I will close with our updated 2026 outlook. A few headline numbers before we dive in. Rental segment revenue was $764 million, up 37% year-over-year. Adjusted core EBITDA was $399 million, up 39% year-over-year. We opened 22 new locations and ended the quarter with 407 operational locations. On a trailing 12-month basis, we are now generating $1.78 billion of adjusted core EBITDA and mature rental locations adjusted EBITDA margins were 55%. Based on that strong start to the year and what we are seeing in customer demand, we are raising guidance. Rental segment revenue guidance now implies 29% year-over-year growth at the midpoint, up from 27% in our prior guide. The equipment rental market remains large, fragmented and underpenetrated by technology. The U.S. equipment rental industry is approximately $84 billion, and the largest providers still represent only a minority of the total market. That gives us a long runway for share gains, particularly with customers who need scale, reliability and better operating visibility. What matters in this environment is no longer just fleet availability. Customers are choosing partners who can mobilize quickly, support complex job sites, reduce downtime and help them execute against compressed schedules. That is where EquipmentShare is winning. Our mix reflects that demand. Industrial and nonresidential end markets account for 87% of our rental revenues in 2025, and that mix has held in the first quarter. These are customers building factories, data centers, power and grid infrastructure and large public projects. That mix is translating into growth well above the market. While the broader industry is growing at low single digits, our rental segment revenue grew 37% in the first quarter. The difference is simple. We are not just renting equipment. We are lowering the cost to execute. That gives EquipmentShare pricing power while delivering a better economic outcome for the customers. Mega projects are the clearest expression of this demand. Data centers, advanced manufacturing, energy and infrastructure are all moving towards larger sites, tighter time lines and higher execution risk. At that scale, customers need more than fleet. They need a partner that can mobilize thousands of machines quickly, keep them running and give operators real-time visibility and control. That is where EquipmentShare creates clear separation. Data centers show the magnitude of the shift. Rack densities have moved from roughly 8 to 12 kilowatts a decade ago to more than 100 kilowatts today with next-generation designs reaching as high as 600 kilowatts. That is driving major investments in power, cooling and new facilities, all areas where we are not only active but excel. The same pattern is playing out in advanced manufacturing, where onshoring is driving semiconductor, battery, automotive and defense-related construction. In energy, grid constraints are increasing demand for mobile and modular power, an area where we have built a leading position. And in federal and state infrastructure, public spend continues to flow into roads, bridges, water system and ports where our footprint continues to expand. One customer example captures the broader trend. A top 50 ENR customer running one of the largest renewable power projects in the world had previously chosen another rental partner because our geographic reach was not yet developed enough to support them. Earlier this year, that customer moved 100% of their spend to EquipmentShare. The reasons were specific, access control, predictive maintenance, the depth of our service technical network and the ability to manage thousands of machines through a single platform. We are seeing that pattern repeat across the customer base. T3 is what makes that possible. It turns scale into a measurable operating advantage for our customers. I'll now turn it over to Willie to talk more about the T3 platform.

Thanks, Jabbok. At its core, EquipmentShare is not simply a rental company with software attached. We have spent more than a decade building the operating system for our industry from machine hardware to data infrastructure, the application and intelligence layers, which customers use every day. The contractors we serve are not just asking for more equipment. They're asking for fewer delays, better visibility, safer job sites, higher utilization and more predictable execution. T3 is how we deliver that, and it is why customers are consolidating more spend with EquipmentShare. The capabilities customers often value most, things like access control, predictive maintenance, technician coverage and the ability to manage thousands of machines through one platform. These are not stand-alone features. They're the output of a vertically owned technology stack that we have built in-house. And on Page 7, we compare that integrated stack against industry software providers, rental peers and manufacturers at every layer, hardware, data and application. EquipmentShare designs it, we build it, own it and of course, consistently improve it. Starting with hardware, we design and build and deploy our own sensors and embedded systems across manufacturers' equipment and our own fleet. This creates a rich real-time digital twin foundation that fundamentally is different from legacy rental software and environments, which are built around static records. machines, contract, location, analog service tickets, et cetera. These are useful but often backward-looking and manually updated versus T3, which continuously captures live operating signals from equipment, job sites and workflows enabled by that foundational digital twin, so customers and our teams can see what is actually happening in real time in the field. That data then flows into the OWN data environment, capturing things like utilization, service faults, history, access events, et cetera. These operating patterns are across hundreds of manufacturers and thousands of equipment classes. The platform is where real-time data becomes shared workflows, insights, and predictive intelligence for both EquipmentShare and our customers. And because we own the full stack, the customer is not looking through some limited portal while we operate in an entirely different environment. Our teams and our customers work in one integrated multi-tenant environment on the same data model with the same real-time context. That is the opposite of the fragmented environment that drove us to start EquipmentShare. In the legacy model, contractors are forced to manage their business across this disconnected landscape of vendors and systems instead of one platform built around how the job site and industry actually work. T3 collapses that fragmentation. It allows customers to manage their resources with the same real-time operating context that our own teams use to support them. That structure also creates our AI advantage. The breakthrough is not adding AI on top of the platform. It is embedding intelligence into the operating layer of the job site itself with a level of visibility, context and control that fragmented systems cannot replicate. That vertical ownership is the point. Every machine engagement and data flows through technology we built and control, creating a closed-loop operating system that improves with scale and gives customers a level of visibility, uptime and efficiency that is difficult to match. This is showing up in the business. T3 is not a feature. It is the operating layer connecting our fleet, service network, customers and job sites. It helps us deliver measurable customer value while driving loyalty and pull-through demand across the network. And with that, I will turn the call over to Mark.

Thanks, Willie. What Willie just walked through is exactly what we are seeing in the business. Customer demand remained strong in Q1, supported by an increase in construction activity, our expanded geographic footprint, growth in fleet OEC under management and the value customers are seeing from T3. That demand showed up clearly in the Q1 results. New fleet absorption was strong across the network and customers continue to pull more of our T3-enabled equipment and on-site services into their job sites. That is an important point. In stark contrast to the industry, our organic site and revenue expansion is being driven by customers who are growing with us because they value the integrated EquipmentShare model. A new organic rental location works when 2 things come together, customer demand created through T3 and strong execution on the ground. We continue to see both in Q1. Our mature rental locations delivered 55% rental segment adjusted EBITDA margins on a trailing 12-month basis. Those are very strong site economics, and they reflect the operating efficiency, pricing discipline and customer stickiness we believe T3 helps create. As expected, our newer rental sites continue to ramp at a healthy pace, supported by pull-through demand from national and regional customers. As a reminder, when we open a new location, a significant majority of first year revenue comes from existing EquipmentShare customers already renting from us in other markets. And roughly 90% of our revenue as a company comes from national and regional contractors. We opened 19 full-service rental locations in Q1. So we are slightly ahead of our original guide. Based on that progress and the demand we are seeing, we are raising our full year guidance for full-service rental locations to a range of 427 to 435 by year-end or 431 at the midpoint. That implies 79 new rental locations in 2026 at the midpoint. We continue to be disciplined in new site selection to support customer demand. During Q1, fleet absorption was strong, mature locations continue to perform at a high level and newer cohorts continue to ramp with healthy demand behind them. That all shows up in the embedded earnings power of the network as those growth sites mature over time. Turning to the OWN Program. OWN remains a core part of how we fund our growth. Demand for OWN remains very strong. The OWN Program is a differentiated platform that opens equipment ownership to a broader pool of capital and allows us to operate equipment at a cost of capital similar to funding on the balance sheet. In Q1, we executed $102 million of equipment sales into the OWN Program. As a reminder, OWN Program transactions do not occur evenly quarter-to-quarter. We typically see larger clusters of activity in Q2 and Q4. So Q1 was consistent with how we expected the year to begin. We continue to be multiple times oversubscribed across high net worth, family office and institutional channels. And we are on pace to meet our OWN Program targets for the year based on the current CapEx plan. That demand reflects the quality of the asset class and the differentiated visibility that T3 provides participants in the program. With that, I'll turn it over to Dave.

Thanks, Mark. We're excited to report our results for the first quarter as customer demand continues to drive our organic growth and continued positive momentum. While our financial results for the quarter provide measures of our business for the year-to-date period, we also believe it is meaningful to evaluate our operating performance over the trailing 12-month period, which we have provided in our earnings release. For the first quarter, our total revenue was $989 million, reflecting a year-over-year increase of 38%. Our rental segment revenue grew 37% to $764 million, and rental segment adjusted EBITDA was $323 million, both driven by continued footprint expansion and growth of our managed fleet. Sales segment revenue was $179 million for the first quarter, up 23% year-over-year with equipment sales to the OWN Program of $102 million, up 7% year-over-year. Sales segment adjusted EBITDA was $26 million, reflecting disciplined and selective sales into the OWN Program, which, as Mark mentioned, continues to be oversubscribed. Our first quarter operating results include $17 million of noncash stock-based compensation expense related to previously disclosed equity awards granted by our Board to the founders in connection with our recently completed IPO. The IPO founders awards comprise 5 tranches of performance stock units, which only vest and become issuable when the company's stock price achieves certain defined hurdles, with the last tranche becoming issuable upon achieving a $90 billion market capitalization. For accounting purposes, the fair value of the award will be recognized as noncash stock-based compensation expense over the performance period. More information will be provided in the footnotes to our financial statements. Adjusted core EBITDA for the first quarter was $399 million, up 39%. Growth was driven by continued expansion of our full-service rental location footprint and maturing of our existing rental sites. Adjusted core EBITDA reflects our underlying operating performance by excluding items unique to our organic growth and fleet sourcing strategy, most notably OWN Program payouts and new market start-up costs. For reconciliations to our operating measures, please refer to the details provided in our earnings release. Turning to the balance sheet, liquidity and cash flows. Our total available liquidity was $1.6 billion as of March 31, comprised of $329 million in cash on hand and $1.3 billion of availability under our ABL facility. As a reminder, we replaced our prior ABL facility during the fourth quarter of last year with a new facility led by Wells Fargo, extending the maturity of outstanding borrowings to year 2030 and at a meaningful reduction in our total cost of capital. Net leverage decreased to 2.8 turns as compared to 3.2 turns a year ago, reflecting the use of proceeds from the IPO to pay down a portion of outstanding borrowings. Cash used in operating activities reflects our organic site expansion strategy, along with increased working capital corresponding to the growth in our revenues and the timing of payments. Net rental CapEx for the first quarter was $213 million after gross purchases of $328 million. In response to customer demand, we intend to invest discretionary cash flow into further site expansion, increasing fleet under our management and organic growth initiatives. We believe the investments we are making in expanding our footprint with T3 provide the best return on invested capital. Finally, with our average fleet age of approximately 30 months, we have meaningful operational flexibility throughout industry cycles, including the ability to moderate fleet purchases, pause new site openings and age the fleet if conditions warrant those actions. With that, I'll turn the call back over to Jabbok.

Thanks, Dave. Based on the strength of first quarter and what we are seeing in customer demand, we are raising our full year 2026 outlook. The updated ranges are as follows: OEC of $10.15 billion to $11.2 billion, full-service rental locations of 427 to 435. Total revenue of $5.15 billion to $5.58 billion. Rental segment revenue of $3.37 billion to $3.64 billion, approximately 29% growth at the midpoint. Adjusted core EBITDA of $1.88 billion to $2 billion. This includes $221 million of sales segment EBITDA at the midpoint, a new disclosure to provide additional segment level transparency. OWN Program payouts of $906 million to $962 million and gross rental CapEx of $2.28 billion to $2.5 billion and net rental CapEx of $819 million to $899 million (sic) [ $839 million to $919 million ]. We continue to expect OWN Program OEC at 55% to 60% of total OEC under management at year-end and over 260 mature rental site locations. Looking further out, we continue to plan towards approximately 700 full-service rental locations by 2030, opened organically and informed by customer demand. Construction productivity has been stagnant since the 1940s, not for lack of demand, but because the industry was built on fragmentation. Our thesis is simple. If contractors can run their job sites on a single technology platform, they will. That was true 40 years ago. It is true today, and it will be true a decade from now. Our approach stays the same. We scale with discipline. We build a technology platform that creates customer value. We use OWN to fund outsized demand without straining the balance sheet, and we manage the growth, margins and ROIC. EquipmentShare is built for where the industry is going, bigger job sites, more complex work and customers who need one partner delivering at scale. We appreciate your continued partnership and support. Operator, we'll now open the line for questions.

[Operator Instructions]. Your first question comes from the line of Rob Wertheimer with Melius Research.

So my first question is on revenue where -- you obviously had very strong revenue performance. And we've seen in the past, you're growing fleet a bunch, you're growing locations a bunch. So rental revenue doesn't always outstrip fleet. And in this quarter, it did by a wide margin. And so I'm just curious, did things go much more right than you expected in the quarter? Or is this just kind of maturation of some of the stores kind of starting to deliver? How would you characterize that outperformance?

Rob, thanks for the question. So it's -- as you mentioned, it's a number of things. It was a particularly good quarter as we would expect in this macro backdrop. So there's good fleet absorption, we're growing with customer demand. And so that obviously drives the fleet absorption I just mentioned. And then also site maturation as well. All those things together is what drives the revenue growth, especially when you pair up the OEC.

All right. Perfect. And then I'd like to ask just a bigger picture one, which you addressed pretty well in your opening comments, but I think investors are still trying to grapple with what is T3, what are the biggest benefits, how differentiated is it in different spots and so on. So I wonder if you could kind of just give a couple of examples of that concept of multi-tenant database and your customers all looking at the same data and their ability to manage fleet differently and better, just to make it a little bit more tangible for us. And I'll stop there.

Yes, it's Willie. So when we use the term multi-tenant and a singular data structure, it really is speaking to -- you want to think about what is the legacy environment. So in the old world, you've got fragmented systems, analog processes, you've got ERPs that a rental provider might be using and then the customer might be using. So interoperability between those was really manual, phone calls, e-mails and best case scenario, maybe a multiyear API integration. And then you contrast that with EquipmentShare. So T3 enables if we rent gear, that custody follows the contract. So there is no manual effort. At its core, there's this ledger that understands custody of that resource and that digital twin. So there's no effort that we have to do to actually extend the value in that digital twin to our clients. And there's no effort they have to do to actually consume that. It's all available within T3. And that is extremely unique. I think it is a good question you're asking because a lot of folks will look at the surface and the edges of the platform and they will look at telemetry data and how to use it and how it can implicate things like utilization and insights, et cetera. The real challenge is actually getting that data at scale to be driven and the access to it to be custody driven without human intervention, and that's what we have solved. So then, of course, we earn the right then to deliver that insight at scale. So these terms I think will be more common as we move into the AI world because it only compounds its value. So now instead of just a human being able to look at this, you suddenly have a reasoning capability where there's deterministic structured data at scale versus if you're in the old world, you're still stuck because there's no way to create that deterministic extension of data to your clients for a multi-tenant environment. It's one to many. It's not just like one provider sees it. The bank sees it, the insurance company sees it, the renting company sees it, the subrenter sees it, EquipmentShare sees it, the fueling company might have access to it. So there's this really complex orchestration of data that is natively solved with T3.

Your next question comes from the line of Mig Dobre with Baird.

Congrats on really strong start to the year. Maybe I want to follow on that discussion with Rob there. And you talked about the big win that you had with a top 50 contractor. And I guess I'm sort of curious when you're delivering these kinds of wins, what is sort of like the value proposition, the framework that really kind of comes out of this. One of the concerns that I think a lot of investors had was pricing and that being the tool that you're using to win this business. So maybe comment on whether or not that perception is accurate and comment on how you think about industry conditions and your ability to capture the value that it seems that you're bringing to the table through pricing or any other means?

Yes. As we mentioned, jobs are getting bigger and more complex. So like I was saying before, with our ability to natively extend data to any party without human intervention, it is a very unique value proposition. Now if you think about the practical examples of what that might mean, so say you have a massive job site with hundreds of companies on that job and thousands of machines. And amidst that chaos, you then try to determine who has access to the digital twin, the real-time data of all this activity. So our platform handles that natively. And when you practically think about that, you have questions like, well, can this human use this machine? And again, think about the thousands of humans that are on a job and the thousands of machines. Our platform answers that in real time. So there's no phone call. There's no theft. There's no scurrying around and the chaos of that or even over-renting a machine. So instead of going, well, I can't use that machine, so I need to call someone else to get another machine, you suddenly have this real-time ability to grant access or understand custody access. So even if we sort of narrow the scope just down to this pragmatic environment of folks in the field trying to utilize these machines because the machines are how they do work. So if you think about building a -- it doesn't matter if it's a highway, a data center, an office building, you've got humans and you have machines and that's a constructive stuff. So being able to have all of that suddenly reduce the chaos and you have this controlled environment that T3 brings means that if you're a big client and you're about to encounter that chaos, who are you going to choose to be a partner? Now we're not big enough to meet 100% of demand, and I don't know if we'll ever be big enough to meet 100% of demand. But what we do get is we get that first call. And that is absolutely an advantage we have because then, of course, instead of trying to gain market share by cutting prices, we gain market share because we get value. Of course, we want to give a good value to our clients. They -- I believe they need to rent fewer machines if they use us because suddenly, you don't have the duplication of one sub is using an aerial boom lift and then the other sub can't share it. So he has to rent his own boom lift and then the other sub can't share it and so on, you sort of see how that can propagate and create complexity and lower utilization, unsafe environment and all that. We help solve those problems. And because we help solve those problems, the demand is there. And I think the numbers speak for themselves. I mean, we ourselves look at the demand we've had for the last 10 years. And outside of M&A, nobody has seen this. And that's really because of the differentiation we bring. I'll let Jabbok speak to maybe the pricing.

Yes. I think -- thanks for the question. I think the -- what's changed for EquipmentShare over the last decade, a decade ago, we had one store. We now have the scale that we can deliver across the U.S. And we use that example. Customers have realized not only do we have the scale, but we have the sophistication of what we talked about from a technology standpoint. And this is built on a tech stack that actually solves our customers' problems. They hear about tech. We all understand AI is changing fundamentally how work is done, but we're still in a very physical industry. You still have to have access control. You still have to have visibility of your machines. You still have to have job sites where when you use EquipmentShare, you can run the safest job sites, you can run the most productive job sites. At the end of the day, our customers are in this. They have businesses. They need to make money. When you use our tech stack, when you use T3, that unlocks value. And as we talk about growth, we talk about margins. We have the highest margin in the industry and that return on capital. That's also for our customers because of the value we actually provide from technology.

Understood. My follow-up, one of the metrics that stood out to me from the quarter was the dollar utilization. And I know you guys don't specifically talk to this, but by my own math, this metric expanded something like 150 basis points year-over-year. So if you were willing to comment at all, I'm curious what's behind that? Is it better utilization of fleet relative to a year ago? Is it maybe a little bit of help from the previous discussion we had on price? And is it fair to expect continued improvement on a year-over-year basis in this metric as '26 progresses?

Yes. Thanks for the question. So like we said before, we don't really comment on seasonality. But what we can say, when you look at our customer base at about 90% being national regional contractors, T3 creating the most value on mega projects and large job sites. Those are really long-duration projects with not the sort of fleet turnover that you see in the local market. And so we definitely do see that as a tailwind in the actual yield that we're getting off of the fleet and our utilization in the market. And then I'll let Jabbok kind of talk about what we're looking at for the rest of the year and talk about the guidance on 2026.

Yes. I think when we look at the guide, we upped it from 27% at the midpoint to 29% and if we kind of take a step back for EquipmentShare today in an industry at the scale we have that's never happened in history from organic growth. And it really reflects, like Willie talked about, that customer demand driven by a differentiated solution. You see that demand. We're seeing unprecedented demand across mega projects, data centers, manufacturing, infrastructure, really across every sector that we're serving as a customer. With that said, we don't want to get over our skis. We're a very disciplined company. We're only one full quarter into the year, and that's why we raised it from 27% to 29%. If you think of our organic sites, they're maturing. We're seeing really good customer demand. So for us, we really like what we're seeing as far as today and where we're actually going.

Your next question comes from the line of Gary Liebowitz with Wells Fargo Securities.

This is Jerry Revich. I was hoping to jump in on the rental gross margin performance. So really good performance depending on the metric, up about 200 basis points year-over-year. I'm wondering if you folks can comment on what was performance on a same-store like-for-like basis for mature sites? And if you're willing to comment on what was the tailwind from new starts as a percent of total declining as your footprint grows and the denominator gets larger here.

Jerry, thanks for the question. So on the gross margin side, if you kind of compare the equipment rental segment revenues against direct COGS, we saw a nice lift in gross margin and also the leverage on the SG&A side. So both of those were good tailwinds on top of the volume. We do break out the segment -- the cohorts. We did that at the year-end, and we'll do that again for you periodically. But at a high level, we're seeing growth across our segments, like I said in the prepared comments -- the cohort of sites like I said in my prepared comments, our new sites are ramping nicely. And then the -- if you kind of think about the same-store from a margin perspective, that 55% TTM for the greater than 24 months, those mature sites was 5% and we saw strong performance against those plus the growth of the new sites is what drove the performance in Q1.

Okay. And then can we just go back to the dollar utilization part of the conversation? It looks like for the industry, dollar utilization was a nice tailwind versus normal seasonality in the first quarter and the market had been oversupplied from aerials. I know for you folks, it's a bit different. But can you just comment on the pricing trends that you're seeing in the market? It feels like from checks that for the first time in, I don't know, 18 months, 2 years, we're getting nice pickup in rental rate heading into the construction season for the industry overall. I'm wondering if you can comment and talk about if that's what you're seeing in your markets as well.

Great. Yes, Aerials is obviously part of the growth, but all across the core and advanced solutions and site solutions, we're seeing strong demand. From a pricing perspective, as we said before, we see a really stable pricing backdrop right now. There's a lot of demand, a lot of good customers with a lot of activity. And so we've seen a stable pricing backdrop for -- on our end. And given the T3 capabilities and our customer relationships, we've been able to -- to be able to command the right kind of pricing at or above the industry, which is where we target for our customers.

Your next question comes from the line of Joe Ritchie with Goldman Sachs.

So I know that you guys typically don't comment on seasonality, but historically, margins improve in 2Q and 3Q really through the prime construction season. Can you maybe just provide a little bit of color just on margins going forward as the year progresses?

Yes, Joe, thanks for the question. So as Jabbok mentioned into the rest of the year, on the revenue growth for the equipment rental revenue, we grew -- we upped the guide from 27% to 29% at the midpoint. We had a strong quarter for Q1, as you mentioned. And then like you mentioned, there is a lot of strong backdrop in the industry right now through the rest of the year, which we view as a positive sign. You can kind of see in the guide where we're implying for margins through the rest of the year. And -- but we think that the rest of '26 is a really strong backdrop, especially for the customers that we serve. And so we're -- we think that's a positive development.

Okay. Great. And then, look, there's obviously a lot of concern in the market right now regarding inflation, geopolitical events of the last quarter. I guess it doesn't seem like you guys are seeing any change in customer behavior through the quarter or into Q2. Just any comments on like whether things are getting delayed from a project perspective at all or as your suppliers are talking about the supply chain environment today. Anything changing, lead times changing? Just any color around that would be helpful.

Yes. I think -- this is Jabbok. I think as we discussed before, we're seeing unprecedented demand across all the sectors from all our customers. One of the advantages we have and the largest buyers in the world for manufacturers, we have very, very strong relationships. Those relationships kind of cross over the ups and downs from economic cycles, and that preserves our ability to maintain through the years, those relationships and that pricing from a consistency standpoint. And if you think of rental, which is different than some of the other subsectors, we already have our $9-plus billion worth of fleet. We're already monetizing that fleet. That is -- if you think of inflation and tariffs and things like that, that fleet is already owned. It's already our fleet. So I'm able to monetize that. And that is when you have excess demand and limited supply and when there's a little bit of dislocation in the market, that gives pricing power to this industry if you think of the macro. So there's something where the largest players do absolutely have an advantage in times like this.