Financial Data and Key Metrics Changes - Total revenue grew by 5.9% year over year to $4.2 billion, with rental revenue increasing by 5.8% to $3.7 billion, both setting third quarter records [5][14] - Adjusted EBITDA reached a record of over $1.9 billion, resulting in a margin of 46%, while adjusted EPS was reported at $11.7 [5][14] - Year-to-date free cash flow was $1.2 billion, with expectations to generate between $2.1 billion and $2.3 billion for the full year [9][21] Business Line Data and Key Metrics Changes - Specialty rental revenue increased by 11% year over year, driven by growth across all product offerings and the opening of 47 cold starts year to date [6][14] - Ancillary and rerent revenue grew over 10%, contributing an additional $69 million to total revenue [15] - Fleet productivity increased by 2%, contributing to an overall equipment rental (OER) growth of 4.7% [5][15] Market Data and Key Metrics Changes - The construction end market saw strong growth in both infrastructure and nonresidential construction, while the industrial end market showed particular strength within power [6][7] - The used equipment market remained healthy, with $619 million of original equipment cost (OEC) sold at a recovery rate of 54% [8][15] Company Strategy and Development Direction - The company is focused on maintaining a customer-centric model, which is seen as a key driver of growth and competitive differentiation [4][12] - Plans to spend over $4 billion on fleet this year to capitalize on current demand and anticipated growth in 2026 [8][9] - The company aims to balance organic growth through capital expenditures with inorganic growth through disciplined M&A, while returning nearly $2.4 billion to shareholders [10][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand environment, expecting momentum to carry into 2026, with a focus on being the partner of choice for large projects [4][12] - The company anticipates continued strong demand, particularly from large projects, and is adjusting its CapEx guidance accordingly [20][21] - Management acknowledged challenges related to cost dynamics, particularly in delivery and fleet repositioning, but remains focused on supporting customer growth efficiently [17][20] Other Important Information - The company returned over $730 million to shareholders in the quarter through share buybacks and dividends, with plans to return nearly $2.4 billion for the full year [10][19] - The leverage ratio remains low at less than 1.9 times, providing flexibility for future M&A opportunities [10][19] Q&A Session Summary Question: Demand and CapEx for 2026 - Management clarified that the accelerated CapEx in Q3 was to meet existing demand and not a pull forward from 2026, with expectations for growth CapEx in 2026 [24][25] Question: Pricing for Ancillary Services - Management acknowledged the need to rethink pricing for ancillary services, which have become a larger part of total rental revenue, but emphasized the importance of being responsive to customer needs [26][28] Question: Local Market Dynamics - Management indicated that local markets are currently flat, with growth primarily driven by large projects, and expressed optimism about potential improvements in the local market in 2026 [46][48] Question: Infrastructure Investment Outlook - Management noted that infrastructure remains a strong market, supported by ongoing demand and funding from various sources, including federal initiatives [99][100] Question: Margin Dynamics and Acquisitions - Management discussed the impact of acquisitions on margins, noting that while they can be dilutive, they are strategically beneficial and necessary for long-term growth [123][124]