Hello, everyone. Thank you for joining us, and welcome to EquipmentShare Q1 2026 earnings call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. 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, Willy 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 a macro backdrop and demand environment. Willy 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 under-penetrated 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 non-residential 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 timelines, 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 kW-12 kW a decade ago to more than 100 kW today, with next generation designs reaching as high as 600 kW. That is driving major investment 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. 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 Willy 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. 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 standalone features. They're the output of a vertically owned technology stack that we have built in-house. On page seven, 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 to location, analog service tickets, et cetera. These are useful, 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. 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 the 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. With that, I will turn the call over to Mark. Thanks, Willy. What Willy 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 continued 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 two 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. 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 427-435 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 continued to perform at a high level, and newer cohorts continued 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. 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 twelve-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 non-cash 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 five 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 non-cash 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 startup 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 31st, 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 2030 and at a meaningful reduction in our total cost of capital. Net leverage decreased to 2.8x turns as compared to 3.2x 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. 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're seeing in customer demand, we are raising our full year 2026 outlook. The updated ranges are as follows: OEC of $10.15 billion-$11.2 billion. Full service rental locations of 427-435. Total revenue of $5.15 billion-$5.58 billion. Rental segment revenue of $3.37 billion-$3.64 billion. Approximately 29% growth at the midpoint. Adjusted core EBITDA of $1.88 billion-$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-$962 million, gross rental CapEx of $2.28 billion-$2.5 billion. Net rental CapEx of $819 million-$899 million. We continue to expect OWN Program OEC at 55%-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 to gross 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 will now open the line for questions. We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Your first question comes from the line of Rob Wertheimer with Melius Research. Rob, your line is open. Please go ahead. Thank you. Good morning, guys. My first question is on revenue, where, you know, you obviously had very strong revenue performance. We've seen in the past, you've grown fleet a bunch, you've grown locations a bunch. Rental revenue doesn't always outstrip fleet. In this quarter it did by a wide margin. 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? Hey, Rob. Thanks for the question. It's, as you mentioned, it's a number of things. It was a particularly, you know, good quarter as we would expect in this macro backdrop. There's good fleet absorption. We're growing with customer demand, that obviously drives the fleet absorption I just mentioned. Also site maturation as well. All those things together is what drives the revenue growth, especially when you pair it with the OEC. All right. Perfect. Then, I'd like to ask just a bigger picture one, which you addressed pretty well in your opening comments. I think investors are still trying to grapple with, you know, what is T3, what are the biggest benefits, you know, how differentiated is it in different spots and so on. I wonder if you could kind of just give a couple 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. I'll stop there. Thank you. Yeah. This is Willy. When we use the term multi-tenant and, you know, a singular data structure, it really is speaking to you wanna think about what is this, you know, the legacy environment. In the old world, you've got fragmented systems, you know, analog process. You've got ERPs that a rental provider might be using and then the customer might be using. Interoperability between those was really manual phone calls, you know, emails, and best case scenario, maybe a multi-year API integration. Then you contrast that with EquipmentShare. T3 enables if we rent gear, that custody follows the contract. There is no manual effort. At its core, there's this ledger that understands custody of that resource and that digital twin. There's no effort that we have to do to actually extend the value in that digital twin to our clients. There's no effort they have to do to actually consume that. It's all available within T3. 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 look at, you know, telemetry data and how you 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. Of course, we earn the right then to deliver that insight at scale. These terms, you know, I think will be more common as we move into the AI world because it only compounds its value. Now, instead of just a human being able to look at this, you suddenly have reasoning capability where there's deterministic structured data at scale, versus if you're in the old world, you're still stuck 'cause there's no way to actually create that deterministic extension of data to your clients or, you know, 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 sub-renter sees it, the EquipmentShare sees it. You know, the fueling company might have access to it. There's this really complex orchestration of data that is natively solved with T3. Thank you. Your next question comes from the line of Mig Dobre with Baird. Mig, your line is open. Please go ahead. Hey, thank you guys, and congrats on really strong start to the year. Maybe I wanna follow on that discussion with Rob there. You know, you talked about the big win that you had with a top 50 contractor. I guess I'm sort of curious, when you're delivering these kinds of wins, you know, what is sort of like the value proposition, the framework that really kinda 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. Maybe comment on whether or not that perception is accurate and comment how you think about industry conditions and your ability to really capture the value that it seems that you're bringing to the table through pricing or any other means. Yeah. As we mentioned, jobs are getting bigger and more complex. 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. If you think about the practical examples of what that might mean. Say you have a massive job site with, you know, 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. Our platform handles that natively. When you practically think about that, you have questions like, "Well, can this human use this machine?" 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 fax, there's no, you know, scurrying around and the chaos of that or even over-renting a machine. 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 and access. Even if we sort of narrow the scope just down to this pragmatic environment of, you know, folks in the field trying to utilize these machines, 'cause the machines are how they do work. If you think about building, it doesn't matter if it's a, you know, a highway, a data center, an office building, you've got humans and you have machines, and that's how you construct this stuff. Being able to have all of that suddenly reduce the chaos and you have this controlled environment, that T3 brings means that, you know, if you're a big client and you're about to encounter that chaos, who are you gonna choose to be your 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. 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 give value. Of course, we wanna give a good value to our clients. I believe they need to rent fewer machines if they use us because suddenly you don't have this duplication of, you know, 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, so and so on, you sort of see how that can propagate and create complexity and, you know, lower utilization, unsafe environment and all that. We help solve those problems, and because we help solve those problems, the demand is there. I think the numbers speaks of itself. I mean, I, we ourselves look at the demand we've had for the last 10 years and, you know, outside of M&A, nobody's seen this, and that's really because of the differentiation we bring. Jabbok can speak to maybe the pricing. Thanks for the question. If 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 as well 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. As we talk about growth, we talk about margins. We have the highest margins in the industry and net 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. 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. 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? Is it fair to expect continued improvement on a year-over-year basis in this metric as 2026 progresses? Thank you. Yeah, thanks for the question. Like, you know, as 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 and regional co-contractors, T3 created 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. 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. I'll let Jabbok kind of talk about what we're looking at for the rest of the year and talk about the guide a little bit more on 2026. Yeah, I think when we look at the guide, we upped it from 27% to midpoint to 29%. 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. It really reflects, like Willy 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. For us, we really like what we're seeing as far as today and where we're actually going. Thank you, guys. Your next question comes from the line of Gary Liebowitz with Wells Fargo Securities. Gary, your line is open. Please go ahead. Yes, hi, good morning. This is Gary Liebowitz. I was hoping to jump in on the rental gross margin performance. It was a really good performance there, depending on the metric, you know, 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, you know, if you're willing to comment on what was the tailwind from new starts as a percent of total, you know, declining as your footprint grows and the denominator gets larger here. Thanks. Hey, Gary. Thanks for the question. On the gross margin side, if you kinda can compare the equivalent rental segment revenues against the direct COGS, we saw a nice lift in gross margin and also the leverage on the SG&A side. Both of those were good tailwinds on top of the volume. We do break out the segment cohorts. We did that at the year-end, and we'll do that again for you periodically. At a high level, we're seeing growth across our segments. Like I said in the prepared comment, the cohorts of sites. Like I said in my prepared comments, our new sites are ramping nicely. If you kinda think about the same store from a margin perspective, that's 55% TTM for the greater than 24 months. Those mature sites was 55%. We saw strong, you know, strong performance against those, plus the growth of the new sites is what drove the performance in Q1. Okay. Then, can we just go back to the dollar utilization part of the conversation? Looks like for the industry, dollar utilization was a nice tailwind versus normal seasonality in the first quarter. You know, 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, two 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. Aerials is obviously part of the growth, all across the core and Advanced Solutions and Site Solutions, we're seeing strong demand. From a pricing perspective, as we've said in our, you know, 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. We've seen a stable pricing backdrop for on our end. You know, given the T3 capabilities and our customer relationships, we've been able to command the right kind of price and at or above the industry, which is where we target for our customers. Thank you. Your next question comes from the line of Joe Ritchie with Goldman Sachs. Joe, your line is open. Please go ahead. Thank you. Good morning, everybody. 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 on margins going forward as the year progresses? Yeah, Joe, thanks for the question. As Jabbok mentioned into the rest of the year, we, on the, on the revenue growth or the equipment rental revenue, we grew, you know, we upped the guide at, from 27% to 29% at the midpoint. We had a strong quarter for Q1, as you mentioned. Like you mentioned, there is a lot of strong backdrop in the industry right now through the rest of the year, which we, 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. We think that the, you know, the rest of 2026 is a really strong backdrop, especially for the customers that we serve. We're, you know, we think that's a positive development. Okay, great. Look, there's obviously a lot of concern in the market right now regarding inflation, you know, geopolitical events of the last quarter. I guess it doesn't seem like you guys are seeing any change in customer behavior, you know, 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 supply, you know, the supply chain environment today. Anything changing, lead times changing? Just any color around that would be helpful. Yeah. I think, it's 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. If you think of rental, which is different than some of the other sub-sectors, we already have our $9+ billion worth of fleet. We're already monetizing that fleet. That is if you think of inflation and tariffs and things like that fleet is already owned. It's already our fleet. 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. There's something where the largest players do absolutely have an advantage in times like this. Helpful. Thank you. Your next question comes from the line of Aaron Kimson with Citizens. Aaron, your line is open. Please go ahead. Great. I wanted to start with a macro question as well. From your vantage point, has there been a noticeable change in the commercial construction macro since you reported in mid-March? if so, what are the main drivers? It's actually an interesting question. You think of, just from a recovery from an economic, standpoint, I would look at this more from a macro, like a K-type recovery. You've got unprecedented demand across from onshoring manufacturing, data center mega projects. What's loosely associated, you'll see how we report our customers, when you think of residential and commercial, that's kind of stable, but in some areas and some geographical locations, those are actually going down. When you think of that, what's really fascinating about a company with our scale and with the tech stack, we have mobile fleet. We can optimize the best customers that we serve them with the highest returns. To answer your question, we're saying we bucket that as about 11%. I think the type of customers we serve, if we're looking at the, call it the commercial residential, and that's stable, but in some geographical segments you actually see a little bit of, even less than stable. Like I said, more of a K-type recovery. Okay. That's helpful. Thank you. As a follow-up, Willy, can you talk about how the pace of product development for T3 has been changing with recent model advancements? Whether you see the lowered barriers to building technology as a net threat to the ten-year tech gap y'all have talked about EquipmentShare having versus the industry, or potentially giving you a chance to compound your tech advantage relative to peers. Yeah. It's pretty exciting. The pace of development has grown by an order of magnitude, and I think that's true of any forward-thinking tech environment, where it's a software, you know, only stack. The advantage we have is that, you know, from a moat perspective. We get the tailwind and this whole new environment of, you know, software development has changed, and there's really no barrier in the software world of building something, say in a year. Like you can, if you can imagine it, you can build it. Where the barrier is and really our moat is when you start getting down to that stack into embedded layers and hardware and integrations and then, you know, whether you think about ultimately then the IP associated with things like our access control and then, you know, manufacture installs, et cetera. That's where you're in multi-year, you know, fairly complex, challenging environments to actually build that technology stack. We start from the ground up. You know, we build our own sensors. We write our own embedded software. We own that IP, and that's not just like one simple thing. You have thousands of, you know, machine product categories and hundreds of manufacturers and integrations that is required. All of that's necessary to then feed into a structure and a, you know, a structured environment of data that then, like I described before, where you need the capability then to deliver that data to many parties based on custody. There, there's a whole ecosystem there that has to develop. If you're only looking at software and building, you know, if somebody is building a simple software platform, that is, you know, that is not hard to really duplicate, and pace is really what matters now. Domain experience is what matter, context is what matters. When you think about EquipmentShare, what we have is we're not software only. We have a deep, you know, thread all the way into the hardware world that is our IP that we own and then connects to, you know, machines in the whole environment. This spans from, you know, vision systems like security systems on job sites to machines and keypads, et cetera, all that. We really don't have time to go quite into all those details, but can individually. If you move to the software side, what that gives us, we have industry-leading industry. If you think about just me, you know, leading the technology side of this, I have the advantage of knowing what it means to build at scale in this environment, in the physical world and in the software world, and that is unique. Like, when you think about our future competitors, when they may or may not turn up, they're gonna look a lot like us. They're gonna have these two worlds of data, software, hardware, et cetera, and then a whole world of operational excellence and distribution. Because then the humans who are leading that and have the view and the expertise of what should be built, which is the barrier in software, is simply what should be built. They have to have that domain expertise because LLMs and AI, there is no urge to build. They're directed by humans. Now it's really the advantage is not squarely in the box of outliers, differentiated companies, and companies that span both worlds of physical and distribution and hardware, but also on the software side. Got it. Thank you both. Your next question comes from the line of Jamie Cook with Truist Securities. Jamie, your line is open. Please go ahead. Hi, good morning, and congratulations on a nice quarter and guidance rates. I guess if you could just frame, obviously we raised the guidance, nice start to the year. It sounds like the macro is picking up as well as you're doing a good job executing. Any way you could just help us frame, you know, what you have embedded in sort of like the high end and the low end of the guidance? If we were to raise, I guess, guidance again, do you think it'd be more reflective of just macro improving or just more sort of EquipmentShare specific, you know, initiatives in terms of opening more new stores? I guess my second question is in terms of your CapEx guidance rates, can you just talk about like by equipment, like where the incremental demand is coming from? Thank you. Hey, Jamie. Thanks for the question. I'll take that in a few parts here. On the ranges and the guide, we talked about the midpoint. What kind of has the flex on the high and low range is we can pause or slow down growth in the macro environment if we wanted to. All our obviously purchase orders, we can flex if needed. On the high side too, the opposite is true. We're quite flexible from a balance sheet and fleet growth perspective and new site openings, that is kind of embodied in the range there. What would drive, as you were saying, what would drive a beat is it's pretty simple. We execute well within a good macro backdrop, both those variables drive our performance. As we continue to execute on mega projects with large customers, prove the tech differentiation to more and more customers and get adoption and drive value for our customers, that obviously will translate within a strong backdrop for the customers that we serve into stronger performance. On the CapEx side, you can see, you know, on the both the core and the advanced fleet, both are seeing great demand. We don't break that out specifically, but you can kind of see the split in our historical financials. I will also note even on especially Advanced Solutions space, we are the fastest growing Advanced Solutions organic business in the industry as well. We've seen a lot of growth and good contribution in that part of the fleet business as well. Thank you. Your next question comes from the line of Ken Newman with KeyBanc Capital Markets. Ken, your line is open. Please go ahead. Hey, thanks. Morning, guys. Nice type one beat this quarter. Wanted to just dive into the adjusted core EBITDA guide. You know, I think, it is adding back, call it $19 million in that stock-based comp this quarter. I think historically, that expense has been included in that calculation. Maybe a two-part question. First, just any color on why the change on that methodology versus last quarter? Second, you know, if we are going to start continuing to add back SBC to the adjusted core EBITDA for the rest of the year, is that gonna be similar to what we've seen this quarter? I'm just trying to get a sense of, you know, you raised the EBITDA guide by $70 million. Is that primarily just being driven by the higher stock-based comp add backs or any help there? Yeah, Ken. Let's talk about the stock-based comp for a second here. To compare SBC in 2025, $4 million was the SBC in 2025. The change in 2026 and going forward is almost entirely driven by the founder award PSU stock-based comp expense that was granted at the time o f the IPO. Of the $19 million of SBC in Q1, $17 million of that is the founder awards. To remind you what the founder awards are as well, there's five tranches, and the last tranche is a $90 billion market capitalization for the company. For us, when we think about performance and the way that those are accrued from an accounting perspective, having, you know, those tranches up to $90 billion is not really reflective of the actual earnings power of the business, which is why we included that. The raise, it's the actually original guide that we had didn't have that substantial amount of SBC in there in the first place. The SBC exclusion from adjusted core EBITDA is actually consistent from the year-over-year guide. That $70 million guide had no impact from the SBC gain that was driven by the founder awards. To answer your second question, the actual founder award expense impact in out years is noted in a footnote in the 10-Q, which is now available. You can actually go see the annual impact there, and you can derive your quarterlies accordingly. Okay. Very helpful. I appreciate that. Maybe just for my follow-up here, and I was surprised to see in the deck that the appraised value on the own fleet came down a little bit from the fourth quarter, just given that, you know, we did see the OEC on the own fleet was up slightly. And I also think used equipment prices have continued to come up in the secondary market. Maybe just any help on why the appraised value is a little bit lower or just how to think about appraised value on a go-forward basis. Yeah, that's just normal economic depreciation against the much larger OWN Program basis compared to the incremental add of new OWN Program OEC. That delta in OWN Program appraised value is entirely consistent with the normal economic depreciation that we expect that gets embedded inside of the appraised values. Well, that is not reflective of softening that we're seeing in the used market. If anything, we're actually seeing a stronger used equipment market, which to, you know, to your point, will track with the, those appraised values obviously will track with OWN Program equipment, but you have to factor in normal economic depreciation on that gear. When you do it's kind of a standard baseline comparing Q over Q, even with the new OWN Program additions. Understood. Thanks. Your next question comes from the line of Avi Jaroslawicz with UBS. Avi, your line is open. Please go ahead. Good morning. Thank you. Just wanna address what you're seeing, the specific relevant markets that's telling you to accelerate the new openings this year and raise your CapEx. Is it more about the more activity in the market or more about you taking more share than you were previously thinking? Just I get that it's both, but wondering what you would say is the bigger driver here. It is both, to answer the question. What we're seeing, and we talked about a lot. We have stores that are maturing. The stores themselves, again, we projected 27%. We raised that to 29%. If you think of the organic growth of what we're doing in this industry and the differentiator product, you're gonna see that accelerated. The stores start at zero and they ramp up. You're gonna see that add back. What's interesting, if you look at us, and I think we've talked about it before, we're at that over midpoint where there's more mature stores actually producing revenue and producing the associated EBITDA and earnings than there are actually stores that we're opening. As we do our path to 700, this is a massive industry, and we talked about that as well. If you think of our place in the industry, this is $15 trillion. If you look at pundits who have studied it, we still lag the industry dramatically from a productivity level. That's what we're actually solving for. Large industry, growing incredibly good macro drivers in our industry for all of us who are in the industry, and then our unique position really drives that growth. Okay. I guess just given the plans that you have through 2030, how should we think about how you're executing that plan? When we think of the locations that you're adding this year, is it more governed by what you think the market can support or just more governed by how quickly you can get these locations open? Yeah. We're right on track. If you think of our guide, and we're slightly above the midpoint from the stores we actually opened, we're right on track. Because of the size of the industry, not to reiterate what we talked about before, this is in spite of the industry itself. The industry, again, there's one to two trillion that pundits say we lose, and I agree with them, because of just lack of basic productivity that our tech stack actually starts solving. We're intent on going there. We're intent on solving that. We think of the different verticals that we're turning on, besides just rental. Rental is the gateway into the industry. Allows us to actually broadcast that network, allows us to serve customers. Our customers need many, many more services. What's fascinating is that customer acquisition cost goes to zero as we serve them in other segments of what they actually need. We are very, very focused. This is a physical industry. You can't just solve it with tech. Willy talked about that a bunch. You actually have to have physical distribution. Because we provide this product, because we have the scale now nationally, our customers drive that, differentiate, our customers drive that expansion. That's what we're seeing today, and we expect to see that through 2030. All right. Appreciate the time. Thank you. Your next question comes from the line of Scott Schneeberger with Oppenheimer. Scott, your line is open. Please go ahead. Thank you very much. Good morning. For my first, you all increased the 2026 guidance for total revenue by $100 million, and guidance for the rental segment increased, I think it was about $55 million, and clearly very strong and congratulations. The remaining $45 million increase, is that primarily equipment shares? You kinda touched on that. Is other revenue going to be a sizable contributor? Just looking for what's behind that. Thanks. The guide increase, if I understand the question, the guide increase was driven primarily by equipment rental and equipment sales revenue. Then Scott, just to call out, and Jabbok mentioned it in the prepared remarks, we now break out the equipment sales segment, EBITDA contribution in the guide, separately from the other, so you can kind of deconstruct those as well. It's the guide increase on revenue is getting driven by the rental segment itself. Great. Thanks. Net leverage ratio decreased from the fourth quarter was 3.2x now down to 2.8x. I understand there's seasonality, and it's probably gonna increase in the middle of the year here, but making really nice progress there. How do you see that ending 2026? Are you tracking ahead with the strong EBITDA growth that you're driving? Yeah. We're still on the same target for year-end in the low 3%. Because we have so much demand, because we're getting 60.5% mature side ROIC, our deployment of capital, you know, is obviously very favorable from a capital deployment perspective. From a leverage perspective, we're still targeting low 3% at year-end, mid to low 2%, trending the mid to low 2% in the medium to long term. Great. Thanks. Congratulations. Your next question comes from the line of Kyle Menges with Citigroup. Kyle, your line is open. Please go ahead. Great. Thanks for taking my questions. I was hoping if you guys could just talk a little bit more about your power gen offerings for data centers and just anything you're maybe exploring to add in that area. Curious if there could be an opportunity to leverage the OWN Program with power gen for data centers. Yeah, I think it's a great question. As Mark had mentioned earlier, our specialty division is the fastest-growing in our industry. As we've talked about, it's paired with our core, and the rest of the company is also growing at a very healthy amount in the industry. As we all see within the U.S. and really globally from a data center perspective, and I talked about it a little bit in the prepared remarks, you have 40-50 sq ft, which 10 years ago you used maybe 8 kW-12 kW of power. When you have today, and some are saying it's even up to a megawatt, but let's call it 500 kW-600 kW. If you have Blackwell and some of the Vera Rubin, but some of the best chips are consuming in the same amount of square footage, sometimes 40x-50x more power and then associated cooling. If you think of the power demand, you think of the cooling demand. If you think of what, from if we're just focused on specifically data center, and there's a lot more with electric vehicles and trucks and everything else from a power consumption. Data centers, you need four things. You need a building, you need cooling, you need power, and you need the actual chipsets. Three of those things, we are very focused, and I would argue we say the best in the world at supporting when you have massive acceleration. We think it's a huge part of it. Again, we're growing, we're a very disciplined company, but the fastest-growing in the specialty industry. Where does power come from? That's where you're seeing a lot of those microgrids. You're seeing natural gas in the U.S. specifically as a really good support. You're seeing turbines, you're seeing recips, you're seeing mobile modular because you have to spin up additional power and sometimes 40x-50x more power. You don't wanna strain the grid. It's something we squarely play in, and it's something that we, I would arguably say, are the best in the industry from a mobile modular. That's helpful. I am curious your thoughts as well as you see maybe some other equipment rental companies signing partnerships with construction management software companies just, you know, as maybe more of your competitors do that in equipment rental. I'm curious just how T3 can still gain share in that environment and how T3 can differentiate. Yeah. I don't think the future is really trying to cobble together a bunch of different fragmented legacy systems. I mean, it just pains me trying to think about the, you know, suffering through those types of integrations. AI has completely changed the landscape on time to value and in the software world. Like I described before, though, you know, software is no longer a moat. The moat, it can be present within users and, you know, depth of integrations, but that's quickly dissipating. The moat really becomes the integration to hardware in a physical world, and we have an extremely, you know, robust moat there. It translates then to what to build. Like, you have to have a view on the industry, you have to have a vision because now the barrier to generating code is, you know, has gone from very high to it's almost gone. Yeah, I mean, I applaud any effort to create value for a customer. I just don't think those tools are legacy systems that get, you know, thrown together with some, you know, ancient APIs. Anyway. All right. Thank you. We have reached the end of the Q&A session. This concludes today's call. Thank you for attending EquipmentShare Q1 2026 earnings call. You may now disconnect