Scaled Southern Construction Rental Check

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Scaled Southern Construction Rental Check

Equity Research

Industry Update — May 11, 2026

Machinery, Industrials & Environmental Services

Improving Outlook for Rental Rates, Utilization & Auction

Values

Our Call Jerry Revich, CFA

Our discussion with a scaled ($500+ mn) construction rental operator centered on: Equity Analyst | Wells Fargo Securities, LLC

Jerry.Revich@wellsfargo.com | 212-214-5458

(i) materially more optimistic 2026 outlook, (ii) rental pricing up in Q1 and April, with

Kevin Uherek, CFAexpectation to accelerate and (iii) auction values continue to improve.

Associate Equity Analyst | Wells Fargo Securities, LLC

Kevin.Uherek@wellsfargo.com | 212-214-6410

(i) Rental check materially more optimistic versus last quarter. Our equipment rental Gary S. Liebowitz, CFA

check struck a notably more constructive tone on rental revenue. Last quarter, he Equity Analyst | Wells Fargo Securities, LLC

expected rental revenue to be roughly stable; he now expects growth in both fleet on Gary.Liebowitz@wellsfargo.com | 212-214-5055

rent and pricing. This shift is corroborated by what we are seeing across the group: dollar Andrew Azzi, CPA

utilization at URI and HRI was ~100bps and ~200bps above normal seasonality in 1Q and Associate Equity Analyst | Wells Fargo Securities, LLC

both companies noted an improved outlook for local markets. Andrew.Azzi@wellsfargo.com | 212-214-5322

Jake Kooyman

(ii) Rental pricing is accelerating into the construction season. Our check noted that Associate Equity Analyst | Wells Fargo Securities, LLC Jake.Kooyman@wellsfargo.com | 212-214-5345

his rental rates were up year over year in March & April, an inflection from flat to down in

4Q. The operator believes that his company is positioned to push rental rates during the