EquipmentShare.com's (EQPT) raised fiscal 2026 guidance was driven by continued strong customer demand, sustained fleet utilization, and disciplined execution, Truist said in a Friday note.
The investment firm said the raise was primarily driven by the Equipment Rental segment, with management citing stronger-than-expected Q2 performance, continued market share gains and margin expansion at mature rental locations.
Truist added that the company also announced a new share repurchase authorization, to be executed opportunistically while staying within its targeted leverage framework.
The brokerage said the increase in capital spending reflects broadening strength in construction equipment demand, from earthmoving to compact equipment and should support improving rental rates and margins in the back half of the year.
The read-through is also positive for Terex's (TEX) Aerials segment and Oshkosh's (OSK) Access segment, according to the note.
Truist maintained its buy rating and a price target of $38.
Shares of EquipmentShare.com were up more than 16% in Friday trading.
Price: $18.65, Change: $+2.65, Percent Change: +16.56%