Financial Data and Key Metrics Changes - For Q3 2025, equipment rental revenue increased approximately 30% year-over-year, driven by the acquisition of H&E Equipment Services Inc. and strong contributions from mega projects and specialty solutions [23] - Adjusted EBITDA rose 24% compared to the previous year's third quarter, benefiting from higher equipment rental revenue and used equipment sales [23] - Net income for the third quarter included $38 million of transaction costs related to the acquisition, with adjusted net income at $74 million [25] Business Line Data and Key Metrics Changes - Local accounts represented 52% of rental revenue, down from 53% a year ago on a pro forma basis, while national accounts continue to show robust private funding for large-scale projects [14] - The company is focusing on optimizing its fleet management and has made significant progress in disposing of underutilized and aged equipment [19][20] Market Data and Key Metrics Changes - The industrial spending forecast indicates strong capital and maintenance spending through the end of the decade, with non-residential construction starts in 2025 estimated at $467 billion, a 4% increase year-over-year [16] - The mega project pipeline is projected to exceed $650 billion for 2025, indicating significant growth opportunities in the construction sector [16][17] Company Strategy and Development Direction - The company is prioritizing the integration of H&E Equipment Services Inc. and has paused other M&A initiatives to focus on achieving cost and revenue synergies [10] - Plans include consolidating general rental branches and expanding specialty equipment locations, aiming for a 25% increase in specialty network next year [9][11] Management's Comments on Operating Environment and Future Outlook - Management noted that while local market growth is limited due to high interest rates, robust activity in mega projects continues to drive demand [4][14] - The company remains confident in its ability to deliver full value from the acquisition and achieve long-term growth strategies [10][12] Other Important Information - The company completed a full systems integration in just 90 days, significantly faster than the typical timeline for similar-sized companies [6] - The integration allows for real-time visibility into performance metrics and operational KPIs, enhancing decision-making capabilities [7][8] Q&A Session Summary Question: What is the status of the fleet right-sizing process? - The heavy lifting was completed in Q3, with more work expected in Q4, aiming to close this part of the process by the end of the year [31][33] Question: How does the mix of national accounts impact margins? - Management does not expect significant margin dilution from national accounts or mega projects, as these projects typically involve minimal movement and higher volumes of specialty products [35][36] Question: Can you clarify the consolidation of general rental locations? - The strategy involves opening specialty businesses within general rental branches rather than closing them, with plans for 50 new specialty locations [38] Question: Are there updates on cost and revenue synergies? - Cost synergy targets are evolving, with ongoing efficiency reviews now that the companies are on the same platform [40] Question: How is customer attrition being managed post-acquisition? - Customer attrition has stabilized, and efforts are being made to engage with former H&E Equipment Services Inc. customers to regain business [44][61]

Summary of Conference Call Records Industry Overview - The conference call discusses the advancements in enterprise-level AI applications, particularly in the ERP (Enterprise Resource Planning) sector, highlighting the integration of AI technologies to enhance various modules such as finance, supply chain, CRM (Customer Relationship Management), and EPM (Enterprise Performance Management) [1][3][4]. Key Points and Arguments 1. **AI Enhancements in ERP Systems**: AI significantly improves ERP functionalities, with domestic systems leveraging deep learning algorithms to enhance operational efficiency and value creation [1][3]. 2. **Rapid Iteration of AI Products**: ERP systems are rapidly iterating AI products based on models like GPT-4 and domestic DeepThink, improving intelligent reception capabilities [1][4]. 3. **Challenges for Domestic ERP Vendors**: Domestic ERP vendors face challenges such as insufficient feature improvements and a market that demands practical solutions rather than mere technological hype [1][5]. 4. **Huawei's AI Integration**: Huawei integrates its DeepSeek model into its self-developed ERP system, enhancing management capabilities and planning to market this solution [1][8]. 5. **Oracle's Competitive Edge**: Oracle utilizes its Fusion ERP middleware, combining deep learning and GPT algorithms to provide decision support and maintain competitive advantages [1][9][10]. 6. **AI's Impact on Efficiency**: Implementing AI can significantly enhance efficiency across various business functions, including HR, marketing, sales, supply chain, and finance [1][11]. 7. **Differences in Domestic and International ERP Markets**: The international ERP market is more capitalized and performance-driven compared to the domestic market, which has unique challenges and growth rates [1][12]. 8. **Vertical Software Companies**: Vertical software companies in China, like Guodian NARI, perform well due to their specialized offerings and pricing power [1][13]. 9. **Oracle's AI for Fusion**: Oracle's AI for Fusion helps businesses unlock AI value through predictive modeling, anomaly detection, and actionable insights [1][14][15]. 10. **Dynamic Reporting Capabilities**: Oracle's management reports are dynamic, reflecting real-time data updates and supporting multiple workflows [1][16]. 11. **Unique Advantages of Oracle**: Oracle's products are based on Java, allowing for easier integration and faster deployment compared to competitors like SAP [1][24]. 12. **Client Base in China**: Oracle has a diverse client base in China, including major companies and government departments, utilizing localized ERP systems [1][29]. 13. **Challenges for Chinese Enterprises**: Chinese enterprises face challenges in data accumulation and require robust digital transformation to leverage AI effectively [1][32]. Additional Important Content - **AI Commercialization**: The call discusses how AI commercialization can be achieved by embedding AI technologies into enterprise models, with examples from Huawei and Oracle [1][6]. - **SAP's Market Exit**: SAP is exiting the Chinese market due to its product limitations and lack of localization, which does not meet the complex needs of Chinese enterprises [1][23]. - **Oracle's Service Quality Assurance**: Oracle has implemented a compensation mechanism for service disruptions, showcasing its confidence in product quality [1][31]. This summary encapsulates the key insights and developments discussed in the conference call, focusing on the impact of AI on the ERP industry and the competitive landscape among major players like Oracle and Huawei.

Investment Rating - The report highlights ten stock picks rated as "Buy" that are expected to be resilient in the current uncertain economic environment [11][23]. Core Insights - The initial sell-off in the market was broad-based, with 99% of S&P 500 stocks declining, but the recovery has been uneven, primarily driven by technology stocks [3][11]. - A bottom-up approach is recommended to understand how policies impact individual companies, especially in light of ongoing macroeconomic and policy uncertainties [4][11]. - The report anticipates continued volatility in equity markets as macro and micro data worsen, with a focus on defensive sectors [4][11]. Summary by Relevant Sections Market Overview - The S&P 500 has outperformed the equal-weighted index, with a significant contribution from technology stocks, while many sectors, particularly recession-resilient ones like healthcare, remain below pre-sell-off levels [3][22][19]. - Only 35% of S&P 500 stocks have recovered to pre-Liberation Day levels, indicating a challenging recovery landscape [3][11]. Stock Picks - **AIG (AIG US)**: Rated "Buy" with a target price of USD 93.00, expected to benefit from its solid risk management and low leverage [6][23]. - **American Tower (AMT US)**: Rated "Buy" with a target price of USD 245.00, noted for its geographical diversification and resilience in a high-tariff environment [6][24]. - **Coca-Cola (KO US)**: Rated "Buy" with a target price of USD 82.00, positioned to leverage its brand strength and local sourcing to mitigate tariff impacts [6][29]. - **Johnson & Johnson (JNJ US)**: Rated "Buy" with a target price of USD 184.00, recognized for its diversified portfolio and strong R&D pipeline [6][30]. - **McDonald's (MCD US)**: Rated "Buy" with a target price of USD 343.00, expected to benefit from its franchise model and focus on affordability [6][34]. - **Oracle (ORCL US)**: Rated "Buy" with a target price of USD 246.00, anticipated to capitalize on AI demand and improve revenue growth [6][37]. - **Procter & Gamble (PG US)**: Rated "Buy" with a target price of USD 185.00, noted for its strong brand equity and global supply chain [6][40]. - **TechnipFMC (FTI US)**: Rated "Buy" with a target price of USD 36.00, positioned to benefit from its operational efficiencies [6][43]. - **Walmart (WMT US)**: Rated "Buy" with a target price of USD 108.00, expected to maintain its market position amid economic challenges [6]. - **Waste Management (WM US)**: Rated "Buy" with a target price of USD 265.00, recognized for its stable revenue model [6].