Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Total Revenue | $4.9 billion | up 16% |
| Rental Revenue | $4.3 billion | up 18% |
| Adjusted EBITDA | $2.3 billion | record |
| Adjusted EPS | $15.55 per share | up 33% |
| Fleet Productivity | 6.5% | Not stated |
Guidance and outlook
- Total revenue: $18 billion to $18.2 billion
- Adjusted EBITDA: $8.3 billion to $8.4 billion
- Gross rental CapEx: $5.2 billion to $5.5 billion
- Free cash flow: $2.15 billion to $2.45 billion
How management sounded
Positive (+7 on our -10 to +10 scale). Management reported record quarterly results and raised full year guidance, citing strong demand and successful execution of their growth strategy. Management sounded more upbeat than on 48% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
Pricing and Utilization
Asked: David Raso from Evercore ISI asked about the sustainability of margin improvements and pricing power.
Answer: Management noted that rate increases are necessary to offset industry inflation and expects this to continue, supported by high demand and utilization.
Cost Efficiency
Asked: Jerry Revich from Wells Fargo asked about the sustainability of labor and R&M productivity gains.
Answer: Management stated that efficiency gains are a core part of how they run the business and they expect to continue delivering margin expansion.
Capital Allocation
Asked: Angel Castillo from Morgan Stanley asked about the impact of the investment grade credit rating on capital deployment.
Answer: Management explained that the investment grade status provides better borrowing spreads but does not change their disciplined framework of investing in organic growth, M&A, and returning capital to shareholders.
Competitive Landscape
Asked: Jamie Cook from Truist Securities asked about concerns regarding market flooding from competitors.
Answer: Management expressed confidence in the industry's supply discipline and their own ability to access equipment through strong partner relationships.
What to watch before the next call
- The sustainability of high time utilization levels heading into 2027.
- The outcome of the internal 2027 planning and budget process.
- Potential for further M&A activity given the company's strong balance sheet.
