EquipmentShare.com Inc(EQPT) - 2025 Q4 - Annual Results

Revenue Performance - Total revenue for Q4 2025 was $1,572 million, a 1% increase year-over-year, and full-year revenue reached $4,379 million, up 16% from 2024[4] - Rental Segment revenue grew 35% to $772 million in Q4 and 34% to $2,724 million for the full year, driven by significant customer demand[5] - Total revenues for the three months ended December 31, 2025, were $1,572 million, a slight increase from $1,553 million in the same period of 2024, while total revenues for the year ended December 31, 2025, reached $4,379 million, up from $3,764 million in 2024, representing a year-over-year growth of 16.3%[18] Profitability - Net income for Q4 2025 was $65 million, a 30% increase, while full-year net income was $40 million, up 1,233% from the previous year[5] - Gross profit for the three months ended December 31, 2025, was $441 million, compared to $341 million for the same period in 2024, indicating a gross profit margin increase from 22% to 28%[18] - Net income for the three months ended December 31, 2025, was $65 million, up from $50 million in the same period of 2024, while net income attributable to stockholders for the year was $3 million, a significant improvement from a loss of $37 million in 2024[18] EBITDA Metrics - Adjusted Core EBITDA for Q4 was $559 million, a 34% increase, and $1,667 million for the full year, up 32% year-over-year[5] - Core EBITDA for the year ended December 31, 2025, was $1,415 million, a 33.2% increase from $1,063 million in 2024[34] - Adjusted Core EBITDA for the year ended December 31, 2025, reached $1,667 million, up from $1,260 million in 2024[34] Operational Expansion - The company opened 95 new operational locations in 2025, ending the year with 385 locations, a 33% increase[5] - The company plans to continue its market expansion and product development initiatives, focusing on enhancing its rental and telematics services to drive future growth[18] Financial Position - The company reported total available liquidity of $1,345 million as of December 31, 2025, including $1,039 million from the asset-based revolving credit facility[14] - Total current assets increased to $1,730 million as of December 31, 2025, from $1,407 million in 2024, driven by higher accounts receivable and inventory levels[20] - Total liabilities rose to $5,099 million as of December 31, 2025, compared to $3,943 million in 2024, primarily due to an increase in long-term debt, which reached $3,268 million[20] Debt and Leverage - Net leverage increased to 3.2x as of December 31, 2025, up from 2.8x in 2024, reflecting the company's capital structure adjustments[14] - Net debt increased to $3,046 million as of December 31, 2025, from $2,235 million in 2024[36] - The net leverage ratio was 3.2x for the year ended December 31, 2025, compared to 2.8x in 2024[36] Equipment and Investment - Original Equipment Cost (OEC) under management increased to $8,780 million, reflecting a $727 million rise in Q4 alone[6] - The company invested $1,780 million in rental equipment during the year ended December 31, 2025, compared to $1,586 million in 2024, reflecting ongoing expansion efforts[22] Segment Performance - Equipment Rental and Services Operations segment revenue increased by 35.4% to $772 million for the three months ended December 31, 2025, compared to $570 million in the same period of 2024[32] - Adjusted EBITDA for the Equipment Rental and Services Operations segment rose by 46.9% to $332 million for the three months ended December 31, 2025, up from $226 million in 2024[32] - The Adjusted EBITDA margin for the Equipment Rental and Services Operations segment improved to 43.0% in Q4 2025, compared to 39.6% in Q4 2024[32] - Equipment Sales segment revenue decreased by 22.4% to $751 million for the three months ended December 31, 2025, down from $968 million in the same period of 2024[32] Future Projections - The company anticipates total revenue for 2026 to be between $5,051 million and $5,471 million, with Rental Segment revenue projected between $3,311 million and $3,587 million[10] - OWN Program payouts are expected to range from $891 million to $947 million in 2026, indicating continued growth in this segment[10]