EQPT

EquipmentShare is a tech-enabled construction equipment rental provider built around its T3 sensor-to-cloud fleet-management platform, operating 352 branches across 45 states with a managed fleet exceeding 252,000 pieces of equipment. The platform and rapid scaling are genuinely differentiated, and unit economics look attractive at the gross line — gross profit grew 31.0% to $1.24B (a 60.7% gross margin) and operating income rose 36.2% to $297M (14.6% operating margin). The company turned a $40.0M net profit in FY2025, up from near-breakeven $3.00M in FY2024.

However, the financial profile carries the hallmarks of an aggressive, capital-intensive roll-up. Revenue growth decelerated sharply to just 3.2% (to $2.04B) after roughly doubling in FY2024, suggesting the easy growth phase has cooled. Net margin is razor-thin at 2.0% and ROE only 7.6%, because the rental model is capital-heavy — D&A of $365M and a balance sheet leveraged 9.66x liabilities/equity, with long-term debt up 29.3% to $3.27B against just $528M of equity. Cash fell 24.8% to $306M and operating cash flow declined 6.4% to $264M, even as the company began paying dividends ($37.0M). The diluted EPS of $0.01 makes the P/E meaningless.