The latest round of earnings from the major equipment rental platforms points to a sector still executing. Mega project activity tied to power generation, data centers, advanced manufacturing, and large-scale infrastructure continues to be a primary growth engine across the group, while specialty rental is emerging as the clearest structural driver of both revenue growth and long-term margin potential.
Sector Takeaways
- Mega project pipelines have expanded sharply, providing multi-year revenue visibility even as new projects create near-term utilization drag
- Specialty rental continues to outpace general rental across the sector, though the resulting mix shift is pressuring reported margins
- Local non-residential construction remains in equilibrium, with growth increasingly driven by share gains among top national accounts
- Balance sheets remain healthy, supporting continued investment in fleet, greenfield expansion, and M&A alongside shareholder returns
United Rentals (NYSE: URI)
United Rentals posted record first-quarter revenue, EBITDA, and EPS. Total revenue reached $4.0 billion, up 7% year over year, while rental revenue grew 9% to $3.4 billion, and adjusted EBITDA totaled $1.8 billion at a 44.1% margin. Specialty rental grew 14% year over year, supported by 17 cold starts, with construction the strongest-performing vertical and a broad pipeline of new projects spanning healthcare, infrastructure, power, manufacturing, and data centers. The company sold $680 million of OEC during the quarter at a 51% recovery rate, returned $500 million to shareholders, and spent approximately $400 million on four acquisitions, continuing a steady focus on specialty expansion and selective general rental tuck-ins. Net leverage ended the quarter at 1.9x.
Sunbelt Rentals, an Ashtead Group Company (LSE: AHT)
Ashtead’s Sunbelt Rentals came in ahead of expectations on revenue and normalized EPS for the fourth quarter, even as adjusted EBITDA fell modestly short. Fourth-quarter total revenue rose 8.9% to $2.8 billion, and full-year revenue reached a record $11.2 billion, up 3.4%, with free cash flow climbing 23% to a record $2.1 billion. Specialty was the standout segment, with rental revenue up 15.1% and utilization reaching 75%, while General Tool grew a more modest 4.4% amid flat local non-residential demand. Sunbelt acquired Reliant Asset Management for $650 million, establishing Modular Solutions as its 13th specialty line, and ended the year with net leverage of 1.6x. For fiscal 2027, Sunbelt is guiding to total revenue growth of 4.5% to 7.5% and adjusted EBITDA of $4.85 to $5.05 billion.
Herc Rentals (NYSE: HRI)
Herc delivered first-quarter equipment rental revenue of $981 million and total revenue of $1,139 million, both up 32% year over year, with adjusted EBITDA up 33% to $448 million at a 39.3% margin. The company now considers its H&E acquisition fully integrated, having added 2,500 employees and a branch network 30% larger than before the deal, and is shifting focus toward using that added scale to drive new growth. Specialty rental posted double-digit growth with 25% more locations than a year ago, and management affirmed full-year guidance of $4.275b to $4.4b in equipment rental revenue. National mega project activity, centered on manufacturing, LNG, renewables, and data centers, remains a key offset to softer local commercial demand.
EquipmentShare (NASDAQ: EQPT)
In its first quarterly report as a public company, EquipmentShare posted $989 million in first-quarter total revenue, up 38% year over year, with rental revenue up 37% to $764 million and adjusted core EBITDA up 39% to $399 million. The Company opened 22 locations during the quarter and raised its full-year 2026 outlook, now guiding to total revenue of $5.15 to $5.58 billion and 427 to 435 full-service rental locations by year-end. Management pointed to data centers & power as a particularly significant growth driver, noting that rack densities have climbed from roughly 8 to 12 kilowatts a decade ago to more than 100 kilowatts today. 87% of rental revenue is now tied to industrial and non-residential end markets. The company ended the quarter with $1.6 billion in total liquidity and net leverage of 2.8x.
Looking Ahead
Mega project pipelines continue to expand across the sector, providing multi-year revenue visibility even as new projects create near-term utilization headwinds while they ramp. Specialty rental and ancillary services continue to reshape the margin conversation, with management teams framing the resulting dilution as mix-driven rather than a sign of weakening fundamentals. Emerging levers such as dynamic pricing and new demand sources like data centers and event-driven activity point to incremental upside, while healthy balance sheets keep fleet investment, greenfield growth, and M&A firmly on the table heading into the back half of 2026.
