Good morning. My name is Rob, and I'll be your conference operator today. At this time, I would like to welcome everyone to the Herc Holdings fourth quarter and full year 2022 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star followed by one on your telephone keypad. If you would like to withdraw your question, again, press the star one. Thank you. Leslie Hunziker, Senior Vice President of IR Communications, you may begin your conference. Thank you, operator, good morning, everyone. Welcome to Herc Rentals fourth quarter 2022 earnings conference call and webcast. Earlier today, our press release presentation slides and 10-K were filed with the SEC and are all posted to the events page of our IR website at ir.hercrentals.com. Today, we're reviewing our fourth quarter and full year 2022 results with comments on operations and our financials, including our view of the industry and our strategic outlook. The prepared remarks will be followed by an open Q&A. Let's move on to our safe harbor and GAAP reconciliation on slide three. Today's call will include forward-looking statements. These statements are based on the environment as we see it today and therefore involve risks and uncertainties. I would caution you that our actual results could differ materially from the forward-looking statements made on this call. You should also refer to the risk factors section of our annual report on Form 10-K for the year ended December 31st, 2022. In addition to the financial results presented on a GAAP basis, we'll be discussing non-GAAP information that we believe is useful in evaluating the company's operating performance. Reconciliations for these non-GAAP measures to the closest GAAP equivalent can be found in the conference call materials. A replay of this call can be accessed via dial-in or through a webcast on our website. Replay instructions were included in our earnings release this morning. We've not given permission for any other recording of this call and do not approve or sanction any transcribing of the call. Finally, please mark your calendars to join our meetings and presentations at three conferences this quarter. We'll be participating in the Barclays Industrial Select Conference in Miami on February 23rd, JP Morgan's High Yield Conference on March 6th, also in Miami, and Bank of America's Industrial Conference in London on March 22nd. With that, let me introduce you to our speakers. This morning, I'm joined by Larry Silber, President and Chief Executive Officer, Aaron Birnbaum, Senior Vice President and Chief Operating Officer, and Mark Irion, Senior Vice President and Chief Financial Officer. I'll now turn the call over to Larry. Thank you, Leslie, and good morning, everyone. Let's start on slide number 4. There's no question that 2022 was another exceptional year for Herc. We delivered record-level financial performance across the board. Equipment rental revenue growth was 34% on top of 24% growth in 2021. In support of the rising demand, we invested $1 billion in net fleet purchases while improving fleet productivity, as evidenced by an annual increase in dollar utilization year-over-year. We also invested in expanding our branch network by completing 18 strategic acquisitions and opening 21 greenfield locations in key markets in 2022. By focusing on rate growth and operating efficiencies, we've more than offset inflationary pressures as we delivered 160 basis points of adjusted EBITDA margin improvement and 120 basis points of higher ROIC. We're operating from a much stronger position today than at any time in our history with better systems and processes, more diverse end markets, a broader portfolio of products, a growing branch network, economies of scale, and a solid balance sheet. As one of the largest equipment rental providers with a national reach, our size, resources, and operational excellence are giving us a significant advantage in the marketplace. Moving on to slide five. From a macro standpoint, the North American equipment rental market generated 11% growth in 2022 on robust infrastructure, industrial, and other non-residential construction spending. Tailwind came from a ramp-up in domestic manufacturing after years of inadequate investment, the beginnings of allocation of federal funding for construction projects, and the ongoing shift that is now taking place in specialty categories from equipment ownership to equipment rental. Contractors understand better than ever the economic, environmental, and logistical benefits of renting equipment across categories. In 2022, Herc grew three times faster than the industry and gained one full point of share by leveraging our increased scale, network, and capabilities to ensure that we continue to meet the needs of existing and new customers and deliver on our commitments. While demand has been strong, supply constraints are ongoing. We managed to secure the fleet necessary by leveraging our purchasing power, placing orders early in the buying cycle, utilizing our solid balance sheet, and capitalizing on our preferential position as a tier-1 national equipment rental company. On slide 6, you can see the successful execution of our growth strategies also contributed to our outsized performance relative to the overall industry. We increased revenue in our core categories of aerial, material handling, and earthmoving equipment last year by investing in fleet and optimizing our branch network. Revenue from our high-margin ProSolutions business also grew in 2022 compared with 2021, incrementally benefiting from new products, new locations, and cross-selling synergies. Our innovative customer-facing digital capabilities were the catalyst to several new project wins late last year, especially at the national account level. You'll hear more about that from Aaron in a minute. At the same time, we're committed to responsible ESG operating practices built on a strong cultural foundation, a safety-first protocol, and a pledge to continue to work hard to do more to protect the environment, often in partnership with our customers and suppliers. Finally, between fleet investments, strategic M&A, dividend growth, and opportunistic share repurchases, I'm confident that Herc is allocating capital in the right areas and at the right time. We enter 2023 from a position of strength with a commitment to our growth plan, the strategies driving it, and the incredible people who execute it at such a high level. On slide number seven, in addition to continued strength in data centers, healthcare facilities, petrochem, and other key end markets, onshoring and fiscal stimulus trends have only accelerated despite concerns about a potential slowdown in the market. These mega projects represent the beginning of a multiyear flow of dollars into the industrial space. Every time you hear sustainability, climate change, and resiliency, you're hearing about growth opportunities for our company. In 2021, we outlined our three-year strategic plan to grow and strengthen our core business, diversify our products and services, and operate more efficiently as we drive higher, more durable returns. Today, we're tracking ahead of that plan as industry demand surpasses forecasts and we continue to follow the Herc playbook for superior performance. With that, I'll turn it over to Aaron Birnbaum to take you through the fourth quarter details and provide some high-level operational drivers for the year. Mark Irion is going to walk you through the fourth quarter financial metrics and share our targets for 2023. Aaron? Thanks, Larry. Good morning, everyone. Our record fourth quarter results for revenue and profitability served as a great conclusion to a year marked by strong execution, geographic expansion, and new account wins. I'm really proud of the way our team continues to focus on delivering superior products and services for our customers while executing well against our strategic growth initiatives. Execution starts with safety. Of course, safety is always at the core of everything we do. As you know from slide 9, our major internal safety program focuses on perfect days, days with with no OSHA reportable incidents, no asphalt motor vehicle accidents, and no DOT violations. I strive for 100% perfect days throughout the organization. In the fourth quarter, on our branch-by-branch measurement, all of our branch operations achieved at least 98% of days as perfect. Equally notable, our TRIR improved to.52, a best-in-class result. On slide 10, our fourth quarter results reflect the market opportunity we seized by accelerating our investment in equipment with average OEC fleet up 31% over last year's comparable period. Equipment rental revenue also increased 31% compared with the prior year fourth quarter. Our regional leaders and their teams are doing an excellent job placing our expanded fleet offering into new locations and with larger projects to incrementally drive the top line. Our core business benefited from the continued strong demand for equipment across all of our regions. Our ProSolutions business delivered double-digit growth year-over-year again in the fourth quarter. As you know, ProSolutions includes our specialty categories of mobile power and distribution, climate control, remediation, and pump equipment. This is a fast-growing, high-margin segment of the market. We are capturing share here by capitalizing on cross-selling opportunities with new and existing core business customers and leveraging the increasing density of our branch network for faster response. On slide 11, you can see our fleet composition at OEC on the left side of the page. Total fleet is now a record $5.6 billion as of December 31, 2022, 29% higher than OEC fleet at the end of 2021. You'll note that higher margin specialty fleet represents about 24% of the total, and there's room to grow. Our fleet expenditures at OEC totaled $327 million in the recent 4th quarter. At the end of 2022, we continued to accept new fleet deliveries despite seasonal demand slowdown as we prepare for additional growth in 2023. We disposed of $140 million of fleet at OEC in the recent quarter, $80 million more than last year's similar period. We effectively balanced the need to refresh some older fleet while continuing to be prudent in managing our equipment level to meet strong customer demand and address the ongoing supply chain constraints. Proceeds from fourth quarter disposals were 44% of OEC and benefited from continued strong pricing of used equipment as evidenced by our 510 basis point margin improvement on these sales. The average age of our disposals was 94 months in the fourth quarter, with average fleet age at about 48 months. In addition to a best-in-class fleet, you can see on slide 12 that we have a diverse, well-balanced customer mix made up of large national accounts and local contractors across all business sectors in North America with a wide variety of equipment needs. National account business is benefiting from traditional in-market demand and the increasing number of new multi-year reshoring and infrastructure projects being rolled out. In the fourth quarter, local accounts represented 57% of rental revenue. Our goal is to have our annual split of local and national customer revenue be about 60/40 respectively. Our acquisition and greenfield strategy supports greater local account penetration. Slide 13 is a quick snapshot of the acquisitions we made in 2022. In the fourth quarter, we completed the purchase of two additional businesses with 5 locations, which brings last year's total of 18 companies and 29 locations, as Larry mentioned. As you know, we are focused on opportunities in high growth markets that complement our current branch network and fit our strategic, financial, and cultural filters. Moreover, many of the mega industrial projects being announced are in the geographies where we have focused our acquisitions and greenfield additions such as Texas, California, Ohio, and Arizona, and the cities of Phoenix, Houston, Toronto, Detroit, and Chicago. We spent $515 million in net cash last year with an average multiple of approximately 5.5x. We see compelling revenue synergies in most every company we acquire. Over time, we can run the fleet and operations more efficiently, generating synergized multiples of approximately 3.5x-4.5x. Our acquisition process is now a core competency, having successfully integrated nearly 30 businesses with 62 locations into the Herc network over the last two years. We have efficiently assimilated these companies, teams, equipment, operations, and customer accounts to rapidly add value to our operations in line with our urban market strategy. We have a very knowledgeable, experienced, and skilled team internally made up of region operators and M&A specialists who know our markets well and can leverage relationships. This gives us confidence as we explore and evaluate new opportunities. As we look forward on slide 14, M&A is only one of our building blocks for future growth. Starting with our foundational core business, fleet CapEx, and continued investments in greenfield locations provide the launching pad for incremental growth initiatives. Our ProSolutions business also has a lot of runway. It saw growth through seven acquisitions last year in addition to a larger fleet, cross-selling benefits, and product line expansions. When it comes to winning new projects by raising the bar on customer experience, our investments in digital technology are making a difference. Our ProControl NextGen digital platform provides customers with more control and rich data to improve efficiency and lower costs on their job sites. As Larry mentioned, we launched our advanced fleet management system last summer and will continue rolling it out to our broad customer base this year. Another area of growth stems from our capabilities in providing customers with logistical expertise and full service on-site support. As an experienced manager of on-site solutions, we are well-positioned to take the primary fleet management role on large projects as well as to secure recurring revenue from long-term contracts for day-to-day rental fleet oversight, cost control, and maintenance at industrial customers' existing facilities. National accounts, as I mentioned, are also important to Herc growth as they are a legacy strength for us. As large manufacturing and infrastructure projects continue to ramp up, we are leveraging a reputation and relationships to win more than our fair share of these projects from battery and EV plants to renewable and chip facilities. Among our 2022 national account customers, the average tenure with Herc was more than 28 years. We've earned their loyalty. National accounts, as you know, are characterized by high volume and longer duration with less seasonality and cycle risk. Together, these initiatives represent the foundation and building blocks for substantial long-term growth opportunities for Herc, and our regional operations are primed and ready to advance our progress. I'd like to thank Team Herc for their commitment to growth, operational excellence, and safety. Their professionalism shows up in the execution of our services to our customers every single day. Now I'll pass the call on to Mark. Thanks, Aaron, and good morning, everyone. The steady execution of our growth strategies that we just heard about from Larry and Aaron provided strength and momentum in our results throughout 2022 and into 2023. Slide 16 summarizes some of the excellent results we achieved in 2022. Fourth quarter equipment rental revenue increased to a record $713 million from $542 million in the fourth quarter of 2021. A 31% increase, primarily due to continued volume and pricing momentum. As you heard, we're pushing hard on both our organic growth and acquisition strategies with great success. Taking a close look at the 31% rental revenue growth for the fourth quarter, about 2/3 of the growth was organic and 1/3 came from acquisitions. This validates our ability to continue to grow our established core business organically. Our organic growth is approximately two times that of the overall rental market. Our smart acquisition strategy provides a nice growth supplement by allowing us to quickly bring on key rental talent, fleet, and customers to bolster our position in strategic markets. Our ongoing focus on operating leverage continues to drive improved profitability and expanding margins. Adjusted net income in the fourth quarter of 2022 increased 37% to $103 million or $3.44 per diluted share, compared with adjusted net income of $75 million or $2.46 per diluted share in the fourth quarter of 2021. Adjusted EBITDA increased 41% year-over-year to a record fourth quarter, $361 million. We expanded our adjusted EBITDA margin by 160 basis points to 46% in Q4 2022. All in all, an excellent quarter and an excellent year. You can see we made progress across every metric on this slide and are especially pleased with our margin expansion and EBITDA flow-through of 54%. Our business model drives fast growth and expanding margins, allowing us to continue to invest in our equipment, locations and our people. In addition to creating value for our shareholders, which is clear by the 120 basis point improvement in ROIC in 2022 to 10.8%. On Slide 17, the graph on the upper left illustrates our success in consistently driving rate growth. This is always an important metric to manage, and it's especially important in the current environment with inflation creating cost pressure. In the fourth quarter, rate was up 6.6% year-over-year, with clear momentum as rate growth has increased in every quarter over the last two years. We will continue to focus on rate in 2023, we'll push hard for mid-single-digit rate growth, utilizing our proven and effective pricing tools, the discipline and professionalism of our sales team, and the rollover benefits from national account contract rate increases secured last year. The backdrop for rate remains favorable as demand continues to outpace supply, the industry appears to remain disciplined given the inflationary fleet environment. Our fleet size and OEC closed the quarter at about $5.6 billion. Continued excellence of our purchasing team has contributed to the steady delivery of fleet in 2022, which was also supplemented by fleet integrated in conjunction with acquisition activity. Our average fleet on rent at OEC in Q4 was up 29% compared with average fleet growth of 31%. Dollar utilization dipped slightly in Q4 year-over-year to 43.5%, primarily due to a return to more normal seasonality. That, combined with our taking more fleet into the winter off-season than we normally would, put pressure on utilization. In a normal supply environment, we place orders in Q4 and schedule deliveries for the spring in time for the construction season. In the current environment, we are placing orders almost a year out and taking receipt as soon as our vendors can deliver the equipment. This will impact time utilization in the seasonal first quarter of 2023 as well. By taking the new fleet now, we ensure we'll be able to respond to our customers' demand this spring. For the year, we improved dollar utilization of 43.3% and continue to move closer to our target range of mid 40% based on our current fleet mix. For 2023, we're targeting incremental improvement in annual dollar utilization as we continue to focus on rate and as we return to normal seasonal demand patterns. On slide 18, you can see we have no near-term debt maturities and have ample liquidity to fund our growth goals. Net capital expenditures exceeded cash flow from operations in 2022, with cash outflows of $250 million before acquisitions. We'll continue to deploy capital to invest in our business and drive fleet growth in this strong multi-year demand environment. Our current average ratio at 2.4x is well within our 2x-3x target range. In addition, we repurchased in excess of half a million shares of our common stock in the fourth quarter at an average price of about $110 per share, and have announced a 10% increase in our quarterly dividend for 2023 to 63 and a quarter cents, or $2.53 per share for the year. We remain confident in our business model and are committed to creating shareholder value. The rental market chart on the upper left side of slide 19 shows the continued strength in our key end markets. The ARA estimate for 2022 North American rental industry revenue is $60 billion. As Larry mentioned, that's 11% growth over 2021. There's another 5% growth forecasted for 2023, so there remains strength in the outlook and the current growth cycle should remain intact. As we've discussed, Herc's rental revenue growth is eclipsing the broader industry growth rate by a factor of two to three times. Whether you focus on 2022's total top line increase of 34% or our organic growth rate of over 20%, we expect this outperformance to continue. In this environment, the advantages of scale are magnified. The big rental companies that have diversified end markets and the ability to service the current strength in industrial mega projects will continue to get bigger, faster. Two of our key end markets are industrial and non-residential construction. Both had robust growth in 2022 and are projecting solid outlooks for 2023. Combined, these end markets reflect about two-thirds of our customer base. Both are likely to outperform other more consumer-driven end markets this year. Taking a look at the industrial spending forecast on the top right chart, IIR is projecting 13% growth in 2023 on top of 11% growth in 2022. Clearly, the industrial economy is strong and will continue to provide rental opportunities. These forecasts continue to move up for 2022 and 2023, which happened in the third quarter as well. When actual activity continues to exceed the forecasts each quarter, we are in a very robust environment. The non-residential construction starts also keep getting stronger, driven by an unprecedented amount of new mega projects that seem to be announced every day as the onshoring of U.S. manufacturing capacity continues to gather steam. Starts in 2022 are now estimated at $427 billion for eye-popping growth of 42% year-over-year, the highest level ever. The chart in our third quarter presentation had growth projected at 19%. As I said, the forecasts are having trouble keeping up with actual activity. We should emphasize that these are also just starts of new projects and are being driven by multi-year construction builds that will continue into 2023 and 2024. All these starts drive new non-residential construction put in place activity in the next year. Construction put in place activity is typically two times higher than the prior year starts. Additionally, there's another $293 billion in non-residential non-buildings or infrastructure projects slated for 2023. That's a 17% increase over 2022. There is growth all across the non-residential construction spectrum, and it is looking increasingly clear that our equipment will be in high demand in 2023. That is why we are leaning into the cycle and we'll be deploying capital to continue double-digit volume expansion to keep us cruising along in high gear. As we move to slide 20, our guidance highlights our plans for outsized growth again in 2023. Our planned net fleet CapEx of $1 billion-$1.2 billion allows us to maintain double-digit growth in fleet on rent. We should also see an increase in our used equipment sales in 2023 as we return to a more normal level of fleet replacement. With the expectations for stronger operating leverage as we roll over some of the 2022 inflationary challenges, we estimate adjusted EBITDA will be in a range of $1.45 billion-$1.55 billion, representing another year of profitable growth ranging from 18%-26%. This guidance is organic. When it comes to M&A opportunities, we have a robust pipeline that should enable us to invest another $500 million or so in acquisitions again this year, driving incremental growth to our guidance. Interest expense will continue to increase in 2023, reflecting the accumulation of the Fed rate increases and our continued M&A funding. We are experiencing all of the trends consistent with an industry in an upcycle and intend to continue to drive excellent performance as our growth strategy remains in high gear. With that, I'll turn the call back to Larry. Thanks, Mark. Everyone, please turn to slide 21. Everything we do starts with our vision, mission, and values, and a purpose statement that focuses on equipping our customers and communities to build a brighter future. We do what's right, and we're in this together. We take responsibility, we achieve results, and we prove ourselves every day. Now, operator, please open the lines for questions. At this time, I would like to remind everyone, in order to ask a question, press star, then the number one on your telephone keypad. Your first question comes from the line of Jerry Revich from Goldman Sachs. Your line is open. Yes, hi. Good morning, everyone. Good morning, Jerry. Hi. I'm wondering if you folks can expand, you know, on the M&A pipeline this year? Mark, is there an opportunity for that to be over $500 billion as we look at the impact of higher rates on a lot of the smaller players that are ABL-funded? You know, to what extent could this be an outsized year of M&A relative to the $500 million target? I mean, I'm not sure. I mean, I think we're comfortable with the pipeline. Our goal is that sort of $500 million range. You know, if something opportunistic was to come up, you know, bigger than the kind of deals that we've been doing, we'd certainly look at that. That's the sort of level that we're comfortable with, and that's the level that we're sort of looking to achieve this year. Okay. Then I'm wondering if you could just expand on the time utilization discussion. You know, you mentioned, just the timing of gear deliveries means lower time utilization in the first quarter. Are you expecting an outsized pickup in time utilization versus normal seasonality in 2Q to where we can return to, time utilization we saw during the construction season in 2022? Is that just, running time too hot that's not optimal for the business? I think, I mean, you know, the construction season typically gets you into that sort of peak time utilization zone. We'd expect to get back into, sort of 2022 levels in Q2 and Q3. You know, it's Q4 and Q1 that we're highlighting with the sort of return to a more normal seasonal slowdown, plus just taking a lot more fleet than we typically would have had some impacts over the winter. Got it. Lastly, you know, on the rate outlook, just considering the carryover effect to start the year, sounds like you're gonna be exiting with rate up in the, call it, maybe 3% range. Considering costs are slowing as well, are you expecting year-over-year margin expansion? in the back half of the year at that, you know, lower comp-driven, rate number Mark. I think you can see we've got a bit of traction in the flow-through in the back half of 2022. We're continuing that momentum through into 2023, we look to sort of see that, you know, range move from, you know, low 50s into that sort of mid 50-60 range. Typically picks up in the back half of the year, similar to what you saw this year, just as you roll over the previous year's costs and headcount increases. super. Thank you. Thanks, Jerry. Thanks, Jerry. Your next question comes from the line of Rob Wertheimer from Melius Research. Your line is open. Morning, Rob. Good morning, everybody. Hey, I had a question on acquisitions also, and you guys have obviously had a lot of margin increase over the last, well, two years, but, you know, including this year. I'm wondering if your targets are, you know, becoming, I don't know, cockier or having similar margin gain and less willing to sell? If you have any, you know, commentary on how the industry feels and whether people are still, you know, willing to come to the table with you? Well, look, yeah. I think, you know, the pipeline that we already have for 2023 is pretty robust. We still see that there is ample opportunity, you know, for, you know, for some further consolidation in the industry. We think, you know, we're in an excellent position to continue what we've been doing. We really don't see much of a change from last year or the year before. There's a big opportunity out there, Rob, in the smaller deals, which we kind of feel that, you know, there's a bit more of an advantage for us. We're, you know, adding to a district where we need scale and being new to the M&A sort of game. We feel that we've got a, you know, sort of advantage on these smaller type deals, and that's where the volume of the opportunities are in the current market. Yeah, the multiples have been great on that. Just a small question, but I know you're trying to handle all the growth that's out there and all that you can, but if you had the opportunity, would you rather be doing a bit more replacement CapEx? Do you have a catch-up to do if growth ever slows, or do you feel kind of comfortable with where fleet age is despite the COVID, you know, back and forth? I'll stop there. Thanks. We started to, Rob, in the fourth quarter, obviously selling more fleet for replacement CapEx. We believe as we go through 2023, as long as the supply chain cooperates, we'll get back to a more normal cadence. We feel good about where we are right now. You know, we're glad we started firing it back up in the fourth quarter and feel good about the flow of new and replacement in 2023. That said, we're still concerned about supply constraints, you know, in the year. While we've managed to develop a fairly normal cadence, you know, there's still supply constraints from the OEM level that we're concerned about. Yeah. Thank you. Your next question comes from a line of Neil Tyler from Redburn. Your line is open. Hey, good morning, everyone. Thanks. Larry, your answer to the previous question actually sort of brings us neatly to the topic I wanted to ask about, which was in terms of that supply and the, you know, the gross CapEx number, I guess. You know, if we see a similar pattern to the demand side of things as we've seen over the last 12 months, namely that, you know, the initial forecasts end up being raised during the year, and that, and that translates into greater demand. Is there scope for you at this stage to add much more to your gross CapEx number, or do you see the, you know, that demand manifesting either in terms of, you know, you matching it with accelerated M&A or through rate? you know, Which order do you think those things are likely to stack up if in a, in a better demand environment? Thank you. Yeah, look, great question and, you know, a number of things to sort of unpack there, but, you know, we're pretty much, you know, have on order the fleet that we expect and hope to be able to get in with a fairly normal cadence over the course of the year. Remember, our fleet is fungible, right? Certain markets might have some softness, and we'll be able to move fleet to those high-demand areas where those projects materialize and where we can capitalize on that business. We still have some room in our CapEx, you know, if we, if we choose to, you know, go after it. You know, the constraint there is the availability and ability to get it from the OEMs and their sort of limited capacity as we go through the year. Certainly, they've improved, but, you know, not to the level where, you know, we have assurances of what we're gonna get every month. We're still sort of, you know, we're still expecting, you know, certain amounts of material, but there's still a fair amount of delays and rollover, you know, going on today. I think supply is more of the constraint, rather than demand. Fortunately, as I said, our gear is fungible, and we can move it. Okay, thank you. Is there any constraint on your side of things? I mean, landing, you know, a billion and a half dollars of fleet into your business is, you know, is obviously very different to the, you know, the situation a year, even a year ago, or 2 years ago, certainly. How are the branches, you know, sort of able to cope with that and deploy it? Neil, it's Aaron again. The branches are doing a great job absorbing the fleet. We've really spent a lot of time in the past 18 months developing our teams, expanding our teams. The network's bigger, through green fields and acquisitions, our sales force has been really developed very nicely to take that fleet, find new customers. Over the top of that, you've got our national account team, which really has done a great job developing and nurturing the relationships we have on some of the larger projects in North America. We feel like all of our branches can continue to take fleets without any absorption issues in 2023. Got it. Okay, thank you very much. Thanks, Neil. Your next question comes from the line of Ken Newman from KeyBanc Capital Markets. Your line is open. Hey, good morning, guys. Morning, Ken. Hey, Ken. Obviously it sounds like demand visibility is very strong for 2023, just driven by these large mega projects that we've all been talking about. I'm curious, Larry or Mark, is there any way that you can kinda help us quantify just how much of that visibility can be framed by the new guidance? You know, what's the guide kind of implying in terms of incremental infrastructure activity or opportunities versus reshoring activity? I mean, I think it's, you know, our visibility and our revenue mix is in that really specific. You know, we're just factoring in, you know, continued strong demand. These projects do take up, you know, big chunks of fleet when you get on them. You know, there's a certain amount of visibility around that. Overall, you know, there's quite a bit of variability to the revenues and where they're coming from, and we're not specifically targeting, you know, growth in specific end markets. You know, you sort of look at that pie, there's growth all across those end markets. You know, we'll be targeting that, and we'll be looking to get our unfair share. Yeah, you know, I think, Ken, you know, I look at the mega projects as sort of like the icing on the cake. You know, the overall general markets that we cover are all very strong, and the mega projects are just sort of additive to what we're doing. I don't view that as necessarily driving this improved demand. I think, you know, the base level of demand is very strong. I guess maybe to clarify then, I mean, Just given how large these projects are scales a huge competitive advantage, is it fair to assume that you're gonna punch well above your weight relative to your market share for these larger projects? I think that's accurate, Ken. You know, there's certain things that these large projects want, right? They want a lot of fleet. They want a high level of service, almost always an on-site type operation. They want technology solutions to manage the fleet and account management, and there's really, you know, only so many national large players in the rental space that can provide all that. We do think we will, as others that are, you know, similar to us or big national players, will be able to get outsized success on those big projects. Yep. Then, just for my follow-up question here. You know, it seems like you are tracking much closer to that 5% market share target that you put out on your Investor Day, I think back in 2021. You know, obviously the fleet still feels pretty tight from an industry perspective. Do you have any updated views on what you think market share gain capture could be relative to 2022, or how do you think about longer term market share? Yeah, I mean, we're really happy to be moving that needle. Finally. That's been a long process for the company, and there's a lot of pride for us to be, you know, picking up another point in 2022. We'll continue along. We'll, you know, we're obviously committing fleet and capital to growing as fast as we can and that should lead to market share gains and we're happy, very happy about that. Thanks. Your next question comes from the line of Sherif El-Sabbahy from Bank of America. Your line is open. Hi. Good morning. Good morning. I just wanted to ask, you know, 2023 will be another year of large CapEx spend. Do you expect to be able to draw and select free cash flow positively? If not, what's the pathway to get there? Right. Yeah, no, we're looking at, you know, neutral free cash flow, I guess, at this level of fleet growth, with our current level of EBITDA expectations, before M&A. You know, while we're growing fleet at, you know, in the high 20s, that is a commitment of capital to growth and that does put a challenge on free cash flow. The trade-off's really, you know, how fast do you wanna grow the fleet versus, you know, versus free cash flow. We're betting on fleet growth and market share growth, and we're doing that with, you know, improved margins and improved utilization and creating shareholder value at this stage. That's the way we're executing on the strategy. It should be free cash flow neutral in 2023, before M&A. Thank you. Your next question comes from the line of Steven from Thompson Research Group. Your line is open. Hey, good morning. Wanted to think about these mega projects some more. Are you able to cross-sell better just by the nature of these projects combined with your own internal improvements, or do you have any initiatives there that maybe step up what you're already doing? These, these big mega projects, they pop up in different types of markets. Sometimes they're a little bit more rural than, you know, urban. With our footprint that we have nationally, we're able to support them. They typically always want a full suite of types of products. The core fleet, which we're investing heavily in, and then as they build those up, they do need a lot of climate and specialty solutions, because often they don't have shore power or permanent power inside the plant until it's, you know, further down the road of being developed. They also, depending on what their operation is and what they're doing inside the plant, they often need a lot of climate, heat or, air conditioning, dehumidification, until they get their permanent equipment installed. It's a great project for the whole suite of services that we offer. Great. Do these mega projects support greater growth in your national accounts versus local? To capture more of this mega project opportunity, do you feel like you could invest more in branches, greenfield or acquisitions closer to where these projects are happening? The first question is, yes. Usually it's the big national type mechanically electrical general contractors that go in to do these projects. There's always an element of local contractors that are supporting the project as well. It's a great opportunity when you're on those projects to work with all of that customer base. You often see the local customers get much larger, you know, and get more projects in the general area. These, as far as us, I believe your second part of your question, Steven Ramsey, was are we focused on new locations in some of these metropolitan area where these big projects are? I would say the answer to that is definitely yes. you know, we did a lot of greenfield, a lot of acquisition activity in Texas, where we see a lot of this activity going on for one. We continue to strategically look at those opportunities for our footprint as it maps out with, you know, reshoring or big projects coming online. Yeah. Also, Steve, you know, if a project's out in a rural market, we wouldn't necessarily look to open a branch or do an acquisition in a rural market. What we would do is an on-site, which would be for the duration of the project during its construction phase and operate from that type of a perspective. You know, we're not gonna chase, you know, flagpoles and chase customers, to open, you know, facilities that would be permanent overhead. We would look to have temporary overhead in those locations. Makes sense. Thanks, guys. Thank you. Your next question comes from the line of Seth Weber from Wells Fargo. Your line is open. Hi, guys. This is Lawrence Sladky on for Seth this morning. Thanks for taking my question. Just wanted to ask about quarter-over-quarter, any evidence of cancellations or pushouts related to rising interest rates or macro concerns. You guys talked a lot about, you know, increased activity from infrastructure and construction and some of these mega projects. Just wondering if any evidence of project cancellations that you've been seeing? Larry, this is Aaron. By nature of my job, I'm out in the field, you know, half the month every single month to visit the branches, customers and our sales team. You know, my ears are open to see if I hear any anecdotal concerns along those lines. I have yet to hear that. Every market I go to in North America has very robust activity, no cancellations, no postponements, no cancellation due to interest rates. Most of these jobs are big planned investment jobs, you know, strategic reshoring, some public funding, and these projects are plowing through as scheduled. Okay. Thank you. I'll leave it there. Thanks, guys. Thank you. Thank you. Your next question comes from a line of Mircea 'Mig' Dobre from Baird. Your line is open. Good morning. Thanks for taking the question. I wanna follow up on that last comment about really not seeing any cancellation and momentum remains strong. What do you make of the ABI index being below 50? I mean, obviously you have that as a key indicator for your business. I recognize that the mega projects are there, but what about the sort of regular, mom and pop, for lack of a better term, construction business? Yeah, I mean, you can see on the chart that it's, you know, it's been, you know, below 50 since October. I mean, it's obviously coming off extraordinarily high readings before that. You know, it's maybe an indication of activity 12 months to 18 months out. You know, we're focused on the activity that's in front of us. You know, there's strong demand now. There's gonna be strong demand in the next couple of quarters, and that's what we're focusing on. You know, we'll adjust as necessary to what the ABI might or might not be telling us, you know, for 2024. Understood. Clarification, I don't know if I missed this. How are you thinking about gross CapEx? And maybe can you help us understand in your current outlook what the planned fleet disposals might look like in 2023? Right. We're definitely gonna return to a normalized level of fleet disposal, so that'll sort of pick up, you know, into that 2019-ish sorta range. You know, we've been running maybe in the $200 million-$300 million zone of OEC for the last couple of years, and that'll sorta pick up to the, you know, $500 million-$600 million zone, we expect. The CapEx, the gross CapEx is rolling in faster than it was at the beginning of the year. We expect to sorta see improvements throughout this year. We're getting a steady supply. It's not as predictable as it is in a normal environment, but the supply's coming in, and we expect to be able to get enough fleet to execute on the plan. Understood. Then maybe the last question, this is kinda going back to the answer that you provided to my first question that, you know, I understand that you guys are focused on the opportunity at hand here. If conditions do change, right, if the ABI is actually telling us something valuable here, what are the things that you're looking for in your day-to-day business to make adjustments to either your CapEx or your cost structure as 2023 progresses? Yeah, look, I think we monitor on a daily basis, you know, our dollar utilization, you know, across our districts and regions. We monitor our time utilization by category. We look at what the seasonality is to make sure that, you know, the planned seasonality movement is happening as we expect, whether it's going into the spring construction season, we'll monitor that closely. Then as we proceed into the, you know, the hot weather to make sure, you know, we're seeing that seasonality adjustments happen with our, you know, our specialty businesses. Then rolling into the fall and winter, we have an adjustment there again in terms of seasonality. We monitor that, and we monitor, you know, the things I just mentioned on a daily basis, not only at, you know, at our level here, but our region executives also monitor that closely down to our branches and districts. You know, we're very close to what's happening in activity on a daily basis, Nick, and we make adjustments accordingly. No, very helpful. Thank you so much. Thanks, Nick. Your next question comes from the line of Brian Sponheimer from GAMCO. Your line is open. Hey, good morning, everyone. Good morning. Just very curious about the entertainment business. You know, you've touched on pretty much everything I wanted to talk about. This was an exciting vertical for you. I think it's gotten a little bit softer. Anything you can add there as far as whether organic or inorganic growth is something you might be looking at? I mean, it's obviously an important piece of the business for us. It's sort of been through some real cycles in the last couple of years. Real big driver of growth and mix in 2021 and less of a contributor in 2022, just as some of that the growth rate slowed down. You know, we'll remain committed and, you know, we're excited to the various parts of that business, both the sort of studio space and the entertainment space. It's an important part of our mix that we'll remain focused on. All right. If we were to think about your current level of revenue and what maybe a normalized CapEx steady state growth would look like for the business at this size, what do you think that would be? Well, I mean, I think we're in a. We're certainly looking to catch up in terms of market share and grow faster than the overall markets. It's an opportunity for us, you know. It was a strategy that we outlined in 2021 just to get in front of the cycle and really take advantage of the early growth opportunities. That's worked out, you know, even better than we could have imagined. Growing at 30%, you know, is not sustainable over the whole, you know, life cycle of this company. If it was to sorta slow down to maybe 10%-15% at the end of the cycle, that would probably be more normalized level, and that would create, you know, a lot more free cash flow than what we're currently throwing off. All right. Terrific. Well, congratulations on another great year. Look forward to seeing what 2023 holds. Thanks. Thanks, Brian. There are no further questions at this time. Ms. Leslie Hunziker, I turn the call back over to you for some final closing comments. Great. Thank you everyone for joining us on the call today. We look forward to updating you on our progress in the quarters to come. Of course, if you have any further questions, please don't hesitate to reach out to us. Have a great day. This concludes today's conference call. Thank you for your participation. You may now disconnect.