EquipmentShare.com IncEQPT
EquipmentShare.com Inc Leases Disclosure
LEASES
Leasing Activities – Lessee:
Lease arrangements with OWN Program participants: Under the OWN Program, the Company leases
equipment owned by participants. The Company accounts for these arrangements as a lease under Topic 842
whereby the Company is the lessee.
Lease arrangements with other parties: The Company, as a lessee, also leases properties, vehicles, certain
equipment used in its operations from parties not participating in the OWN Program, and aircraft under various
operating and finance leases.
The leases are noncancellable and expire on various terms through 2040. There are no material payments for
leases that have not yet commenced.
The tables below present financial information associated with the Company’s leases, as a lessee and including
the OWN Program, as of and for the years ended December 31, 2025, 2024, and 2023.
The following table presents the components of the Company’s ROU assets and liabilities related to leases
whereby the Company is the lessee and their classification in the consolidated balance sheets (In millions):
Component of Lease Balances | Balance Sheet Line Item | December 31, 2025 | December 31, 2024 | |||
Assets: | ||||||
Operating lease assets .......................... | Right of use assets, operating | $676 | $569 | |||
Finance lease equipment assets ........... | Rental equipment, net | 58 | 52 | |||
Finance lease property assets .............. | Property and other fixed assets, net | 130 | 39 | |||
Total leased assets .......................... | $864 | $660 | ||||
Liabilities: | ||||||
Operating lease liabilities, current ....... | Current portion of operating lease liabilities | $69 | $59 | |||
Finance lease liabilities, current .......... | Current portion of finance lease liabilities | 19 | 17 | |||
Operating lease liabilities, long-term .. | Operating lease liabilities, net of current portion | 655 | 555 | |||
Finance lease liabilities, long-term ...... | Finance lease liabilities, net of current portion | 169 | 71 | |||
Total lease liabilities ...................... | $912 | $702 |
The following table presents the components of the Company’s lease costs and the classification of such costs in
the consolidated statements of net income (In millions):
Statements of Net Income | Years Ended December 31, | |||||||
Component of Lease Cost | Line Item | 2025 | 2024 | 2023 | ||||
OWN Program lease payments (principal) . | OWN Program payouts | $714 | $420 | $209 | ||||
Equipment and vehicle operating lease expense .................................................... | Direct operating costs | 26 | 85 | 111 | ||||
Real estate operating lease expense ............ | Selling, general and administrative expenses | 91 | 67 | 41 | ||||
Finance lease expense: | ||||||||
Amortization of equipment leased assets .................................................. | Depreciation of rental equipment | 11 | 20 | 21 | ||||
Amortization of property leased assets .. | Selling, general and administrative expenses | 5 | – | – | ||||
Interest on lease liabilities ..................... | Interest expense, net | 9 | 12 | 9 | ||||
Short-term lease cost ................................... | Selling, general and administrative expenses | 3 | 1 | 2 | ||||
Total lease expense ..................................... | $859 | $605 | $393 | |||||
The following table provides the supplemental cash flow information related to leases (In millions):
Years Ended December 31, | |||||
2025 | 2024 | 2023 | |||
Operating cash outflows from operating leases .......................................... | $116 | $131 | $143 | ||
Operating cash outflows from finance leases ............................................. | 7 | 8 | 6 | ||
Finance cash outflows from finance leases ................................................. | 17 | 27 | 20 | ||
Total ....................................................................................................... | $140 | $166 | $169 | ||
The following table includes the weighted average lease terms and discount rates for operating and finance
leases (In millions):
December 31, 2025 | December 31, 2024 | ||
Weighted average remaining lease term (years): | |||
Operating leases .................................................................................................... | 9.83 | 10.73 | |
Finance leases ....................................................................................................... | 10.73 | 7.67 | |
Weighted average discount rate: | |||
Operating leases .................................................................................................... | 7.92% | 8.49% | |
Finance leases ....................................................................................................... | 6.89% | 7.38% |
The following table includes a summary of right of use assets obtained in exchange for new lease obligations
for the years ended December 31, 2025 and 2024 (In millions):
Years Ended December 31, | |||
2025 | 2024 | ||
Operating leases ......................................................................................................... | $188 | $228 | |
Finance leases ............................................................................................................ | 135 | 57 | |
Total ...................................................................................................................... | $323 | $285 | |
The following table includes the future maturities of lease payments for operating leases and finance leases for
years subsequent to December 31, 2025 (In millions):
Operating | Finance | ||
2026 ........................................................................................................................... | $119 | $31 | |
2027 ........................................................................................................................... | 115 | 24 | |
2028 ........................................................................................................................... | 113 | 28 | |
2029 ........................................................................................................................... | 107 | 24 | |
2030 ........................................................................................................................... | 99 | 24 | |
Thereafter ................................................................................................................... | 506 | 147 | |
Total lease payments ............................................................................................. | 1,059 | 278 | |
Less: liability accretion and imputed interest ............................................................ | (335) | (90) | |
Total lease liabilities ............................................................................................. | 724 | 188 | |
Less: current lease liabilities ...................................................................................... | (69) | (19) | |
Total long-term lease liabilities ............................................................................ | $655 | $169 |
During the year ended December 31, 2024, the Company purchased fleet equipment previously under various
operating leases for $281 million, resulting in the derecognition of $155 million of operating lease right of use assets
and $156 million of operating lease liabilities, and purchased fleet equipment previously under various finance
leases for $118 million, resulting in the derecognition of $111 million of finance lease assets and $114 million of
finance lease liabilities. The Company’s purchases of leased equipment were not material during the years ended
December 31, 2025 and 2023.
Sale Leaseback Arrangements:
During the years ended December 31, 2025, 2024 and 2023, the Company recognized an aggregate gain on
various sales of properties of $1 million, $20 million, and $10 million, respectively, in connection with the sale
leaseback transactions. The gain on these transactions is included in other income on the consolidated statements of
net income. As of December 31, 2025 and 2024, the Company also had financing obligations included on the
consolidated balance sheets of $31 million and $34 million, respectively, in connection with sale leaseback
transactions where the sales price exceeded the fair value of the respective properties. The financing liability related
to sale leaseback transactions is being amortized over the respective lease terms as a reduction to rent expense
recorded within selling, general and administrative expenses on the consolidated statements of net income.
As of December 31, 2025 and 2024, the Company had financing obligations included on the consolidated
balance sheets of $39 million and $56 million, respectively, relating to arrangements that did not meet the criteria to
be accounted for as sale leaseback transactions, and $22 million and $30 million, respectively, relating to build-to-
suit lease arrangements where the underlying property and construction had not been completed and available for its
intended use. The Company will assess these build-to-suit arrangements to determine if they meet the criteria to be
accounted for as a sale leaseback transaction once construction is complete and the property is available for its
intended use. During the years ended December 31, 2025 and 2024, the Company satisfied its obligations under
certain agreements entered into during 2024 and 2023, resulting in the transactions qualifying as successful sale
leasebacks and the derecognition of $5 million and $36 million of financing obligations, respectively. During the
years ended December 31, 2025, 2024 and 2023, the Company made payments under these financing arrangements
of $19 million, $67 million, and $24 million, respectively.
The maturities of financing obligations that did not meet the criteria to be accounted for as sale leaseback
transactions as of December 31, are as follows (In millions):
2026 ...................................................................................................................................................... | $7 |
2027 ...................................................................................................................................................... | 3 |
2028 ...................................................................................................................................................... | 4 |
2029 ...................................................................................................................................................... | 13 |
2030 ...................................................................................................................................................... | – |
Thereafter .............................................................................................................................................. | 12 |
Total ................................................................................................................................................. | $39 |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.