Global Machinery: Machinery Call Series Takeaways on Construction & Trucks

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Global Machinery: Machinery Call Series Takeaways on Construction & Trucks

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29 Jun 2026 04:00:00 ET │ 9 pages

Global Machinery

Machinery Call Series Takeaways on Construction & Trucks

CITI'S TAKE

On 6/25, we hosted calls with Joe Santora (President) & Robert Sandlin

(Senior Appraiser) from Irontrax, and Steve Keller (CFO) from Rush

(RUSHA). Construction activity continues to be fueled by mega projects

and Mr. Santora suggested sentiment amongst contractors is that they Kyle MengesAC

are "fleeted" for the projects in the pipeline, while economic uncertainty is +1-212-816-1817

driving them toward rental. We gather that within CE, higher tier OEMs are kyle.menges@citi.com

doing better than lower tier. In truck, we gather that the lack of remaining

Klas Bergelind build slots in 2026 could be a limiting factor to orders/builds in 2H26. A

pick-up in spot rates and some prebuy amongst large fleets has supported +44-20-7986-4018

klas.bergelind@citi.com stronger class 8 orders this year, although we sense there could be some

pause as we await a final EPA'27 ruling. There is healthy debate around Randy Marker

what non-compliance penalties could look like and some speculation that +1-212-816-3537

they could be fairly lax in 2027. randy.marker@citi.com

Siron Ng

Irontrax Takeaways -- Mr. Santora's commentary was most constructive on the +44-20-7986-4393

rental space, where he sees the paradigm shift toward renting vs buying continuing siron.ng@citi.com

for the foreseeable future. Furthermore, we gather that uncertainty amongst

contractors in the current environment is pushing them more toward rental. As it

relates to CE, Mr. Santora mentioned that contractors he has spoken with have

indicated that they are "fleeted" for the projects in the pipeline. That said, Mr.