United Rentals, Inc. Q4 FY2025 Earnings Call

Good morning, everyone, and welcome to the United Rentals Investor Conference Call. Please be advised that this call is being recorded. Before we begin, please note that the company's press release, comments made on today's call and responses to your questions contain forward-looking statements. The company's business and operations are subject to a variety of risks and uncertainties, many of which are beyond its control. And consequently, actual results may differ materially from those projected. A summary of these uncertainties is included in the safe harbor statement contained in the company's press release. For a more complete description of these and other possible risks, please refer to the company's annual report on Form 10-K for the year ended December 31, 2025, as well as the subsequent filings with the SEC. You can access these filings on the company's website at www.unitedrentals.com. Please note that United Rentals has no obligation and makes no commitment to update or publicly release any revisions to forward-looking statements in order to reflect new information or subsequent events, circumstances or changes in expectations. You should also note that the company's press release and today's call include references to non-GAAP terms such as free cash flow, adjusted EPS, EBITDA and adjusted EBITDA. Please refer to the back of the company's recent investor presentation to see the reconciliation from each non-GAAP financial measure to the most comparable GAAP financial measure. Speaking today for United Rentals is Matt Flannery, President and Chief Executive Officer; and Ted Grace, Chief Financial Officer. I will now turn the call over to Mr. Flannery. Please go ahead, sir.

Thank you, operator, and good morning, everyone. Thanks for joining our call. As you know, in 2025, we again committed to doubling down on being our customers' partner of choice. This translates to working hand-in-hand with our customers to provide an unmatched experience across our one-stop shop of gen rent and specialty products, coupled with industry-leading technology and a world-class team. Ultimately, this all culminates in our value proposition, which not only improves the customers' productivity and efficiency, but also positions us to outperform the market. I'm pleased that our team's steadfast dedication to this commitment, in addition to an unwavering focus on safety and operational excellence resulted in another year of record revenue and EBITDA, as you saw in our results reported yesterday afternoon. Today, I'll start with a recap of our fourth quarter and full year 2025 results, followed by our expectations for 2026, which we expect to be another year of profitable growth. I'll keep my remarks brief before Ted reviews the financials in detail, and then we'll open the line for Q&A. So let's start with the quarter's results. Our total revenue grew by 2.8% year-over-year to $4.2 billion. Within this, rental revenue grew by 4.6% to $3.6 billion, both fourth quarter records. Fleet productivity increased by 0.5%, contributing to OER growth of 3.5%. Adjusted EBITDA came in at $1.9 billion, resulting in a margin of 45.2%. And finally, adjusted EPS came in at $11.09. Now let's turn to customer activity. We again saw growth across both our gen rent and specialty businesses in the quarter. Specialty continues to exhibit healthy and broad-based growth. We remain focused on expanding our specialty footprint and capitalizing on the geographic white space available. In 2025, we opened an additional 60 cold-starts, including 13 in the fourth quarter. Importantly, we remain confident that the combination of geographic expansion, the power of cross-sell and the addition of new products to our portfolio will enable us to continue growing our specialty business at a double-digit rate for the foreseeable future while also expanding our competitive moats and providing attractive returns. By vertical, our construction end markets saw growth across both infrastructure and nonresidential construction, while our industrial end markets saw particular strength within power. Similar to last quarter, data centers and power were drivers of growth, but certainly not the only ones. Our project pipeline is larger than ever, and we saw new projects kick off across health care, pharmaceuticals and infrastructure to name a few. Now turning to the used market. We sold $769 million of OEC in the fourth quarter at a 50% recovery rate. For the full year, we sold slightly less OEC than we originally forecast as we held on to some high-time used assets to meet demand. Importantly, the demand for used equipment remains healthy. For the full year, we spent nearly $4.2 billion on a combination of maintenance and growth rental CapEx, which resulted in a free cash flow generation of $2.2 billion for a free cash flow margin of 14%. I'll say it again, as I do every quarter. The combination of our industry-leading profitability, capital efficiency and the flexibility of our business model enables us to generate meaningful free cash flow throughout the cycle and in turn, allocate that capital in ways that allow us to create long-term shareholder value. In 2025, specifically, we allocated capital as we always do, first by funding organic growth and then complementing this with inorganic growth. We then return our remaining cash to shareholders. In 2025, we returned nearly $2.4 billion of excess cash flow to shareholders through a combination of our share buybacks and our dividend. Looking forward, I'm pleased to share that we plan to repurchase $1.5 billion of shares in 2026 and to increase our quarterly dividend by 10%, reflecting our third consecutive annual increase since introducing our dividend in 2023. Now let's turn to our 2026 guidance, which implies total revenue growth ex used of over 6%. This is supported by customer sentiment indicators, solid backlogs and most importantly, feedback from our field teams. In many ways, we expect the construct of demand in '26 to be similar to last year with large projects and dispersed geographic demand driving most of our growth. We'll remain focused on capital efficiency, but repositioning costs will likely remain elevated. Having said this, we're very aware of the importance of profitability and margins. Our guidance, which implies flat margins at the midpoint ex the benefit of the H&E termination fee last year, embeds cost actions we're proactively taking to improve our efficiency and support profitability. We all know yesterday's touchdowns don't win tomorrow's games. Our culture of always wanting to do more and never being satisfied with the status quo is in our DNA. This was on full display a few weeks ago when we held our annual management meeting in St. Louis. We brought together almost 3,000 team members to both celebrate our wins and to find new ways to be an even better partner to our customers as we look to outperform the end market while having an even greater focus on efficiency and profitability. We have an incredible team at United Rentals with a culture that is unmatched in our industry. This is a real differentiator and gives me confidence we can take our momentum and continue to build a best-in-class company. I'm proud to say that the team walked away from the meetings energized and ready to deliver on the expectations our guidance reflects. In closing, I'm excited for what lies ahead for United Rentals. Our team puts customers at the center of everything we do, which positions us well in both the short and long term to capitalize on the opportunities ahead of us and to continue to outpace the industry. Our strategy, business model, competitive advantages and capital discipline allow us to generate compelling shareholder returns for the long term. With that, I'll hand the call over to Ted, and then we'll take your questions.

Thanks, Matt, and good morning, everyone. As Matt just shared, we were pleased with a number of our achievements in 2025, including full year records for total revenue, rental revenue and EBITDA, strong free cash flow and attractive returns as we navigated through some of the unique dynamics woven into the current demand backdrop. Looking more closely at the fourth quarter, we were pleased with our core results, which were partially offset by a shortfall in used volumes and some choppiness in our matting business, which I'm sure we'll talk more about this morning. So with that said, let's dive into the numbers. Rental revenue increased $159 million year-over-year or 4.6% to a fourth quarter record of $3.58 billion, supported again by growth from large projects and key verticals. Within this, OER increased by $97 million or 3.5%, driven by 4.5% growth in our average fleet size and fleet productivity of 0.5%, partially offset by assumed fleet inflation of 1.5%. Also within rental revenue, ancillary and re-rent grew by over 9%, adding a combined $62 million as ancillary growth continued to outpace OER. Moving to used. We generated $386 million of proceeds at an adjusted margin of 47.2% and a 50% recovery rate on $769 million of OEC sold. This brought our full year OEC sold to $2.73 billion, up slightly from 2024, but a bit below our guidance of $2.8 billion as we held on to high-time used fleet in certain categories. Taking a step back, at this point, we think the used market has normalized coming off the extremes we saw in 2022 and 2023, and we do expect 2026 to see healthy demand. Importantly, though, we're at recovery rates that will continue to support strong unit economics across the life cycle of our fleet. Turning to EBITDA. Adjusted EBITDA came in at $1.901 billion with a $33 million increase in our rental gross profit dollars more than offset by a $39 million decline in used gross profits due primarily to the shortfall in volumes that I mentioned. On a dollar basis, SG&A ex stock comp was flat year-on-year, translating to a 20 basis point improvement as a percentage of revenue, while other non-rental lines of businesses added $7 million. Looking at profitability. On an as-reported basis, our fourth quarter adjusted EBITDA margin was 45.2%, implying 120 basis points of compression or 110 basis points, excluding the impact of used. We continue to see the same market and margin dynamics play out in the fourth quarter that we experienced all year. From a cost perspective, the biggest of these was again elevated delivery expense, driven largely by fleet repositioning costs, which we'd estimate provided roughly 70 basis points of headwind in the quarter. Beyond that, growth in ancillary is roughly another 20 basis points of headwind, while we also continue to manage through above-trend inflation in a few notable areas, including facilities and insurance. As you heard from Matt, we expect the demand construct in 2026 to look similar to 2025. We expect that most of our growth will again be led by large projects at the same time that our strategy to provide products and services to our customers is likely to drive outgrowth in ancillary revenues. With that said, our entire team is working hard to mitigate the headwinds this presents to overall margins as strategically, we continue to believe that providing our customers with these additional services is an important competitive advantage and helps drive higher OER growth. Shifting to CapEx. Fourth quarter gross rental CapEx was $429 million, bringing our full year total to $4.19 billion. Moving to returns. Our return on invested capital of 11.7% remained comfortably above our weighted average cost of capital. And turning to free cash flow, we generated $2.18 billion, translating to a healthy free cash flow margin of 13.5%. Our balance sheet remains very strong with net leverage of 1.9x at the end of December and total liquidity of over $3.3 billion. This was after returning $2.4 billion to shareholders during the year, including $464 million via dividends and $1.9 billion through repurchases. Combined, this equated to a little better than $37 per share. Now let's shift to the updated guidance we shared last night, which reflects our confidence in delivering another year of solid results. Total revenue is expected in the range of $16.8 billion to $17.3 billion, implying full year growth of 5.9% at midpoint. Within this, I'll note that we're guiding used sales to roughly $1.45 billion on OEC sold of around $2.8 billion, implying total revenue growth ex used of 6.2% at midpoint. Our adjusted EBITDA range is $7.575 billion to $7.825 billion. Excluding the H&E benefit in 2025, this implies adjusted EBITDA margins of flat at midpoint year-on-year. Importantly, this guidance embeds actions we will be taking in 2026 to offset the cost dynamics I mentioned earlier and speaks to our focus on protecting margins as we work through some of the unique factors facing us until local markets rebound. And from a cost perspective, we're better able to leverage the efficiencies that our network density will provide. On the fleet side, our gross CapEx guidance is $4.3 billion to $4.7 billion, an increase from 2025 of approximately $300 million at midpoint. This reflects our confidence in the market in 2026 and beyond. Net CapEx is expected in a range of $2.85 billion to $3.25 billion. Now within all of this, we take our 2026 maintenance CapEx at around $3.4 billion, implying growth CapEx of roughly $1.1 billion at midpoint. And finally, we're guiding to another year of strong free cash flow in the range of $2.15 billion to $2.45 billion. Shifting to capital allocation. As always, our priority is to fund profitable growth, whether it's organic or through M&A. Following this, we focus on deploying surplus cash flow in ways to maximize shareholder returns. With that in mind, we are again increasing our quarterly dividend per share by 10% to $1.97, translating to an annualized dividend of $7.88. Additionally, we intend to repurchase $1.5 billion of common stock in 2026, supported in part through our new $5 billion share repurchase program that is intended to enable buybacks for the next several years. So in total, we intend to return roughly $2 billion to shareholders this year, equating to approximately $32 per share or a return of capital yield of about 3.5% based on our current share price. So with that, let me turn the call over to the operator for Q&A.

We'll go first this morning to Steven Fisher of UBS.

I wanted to just ask you, Matt, maybe a bigger picture question on ancillary services. Using the, I guess, the baseball innings analogy, where do you think you are on the evolution of this? Is this sort of like the second or third inning where you have a much wider breadth of services left to offer here? Or are we more like kind of sixth to seventh inning and it's a more targeted list? And I guess what's the message around the ROIC on these additional sources of EBITDA and points of customer service?

Sure, Steve. It's difficult for me to define because I'm not sure what other products or services we might introduce in the future. It really depends on whether we can scale these additions. Our aim is to expand our portfolio, as new products typically accompany new services. The timing and speed of this process are uncertain. However, our overarching goal is to provide as many solutions to our customers as possible. We strongly believe in being a one-stop shop, as our partners prefer a provider that can consolidate their vendor base and offer comprehensive services across their network. This will be a key driving force for us. Regarding the return on investment for these services, it's important to note that while they may reduce our margins, they are not capital intensive. From a cash perspective, these services are profitable, even though they do dilute margins. We are not providing services without compensation. Additionally, these services are closely tied to the fleet we rent, so enhancing our offerings to customers is a crucial part of our strategy.

Very helpful. And then maybe just on M&A and the pipeline. It looks like you did some smaller deals in the fourth quarter after a quiet few quarters. Can you just talk about kind of what you added in the quarter? And then just curious how active the pipeline is? Did you continue any activity here in the first quarter? And what sort of the range of size of deals you'd consider here? Are there any sort of chunkier deals that you could still do?

Yes, regarding your question about the pipeline, it is quite strong. There are some significant deals within it, particularly in specialty areas. However, the transactions we completed at the end of the year were relatively small, such as a trench deal and a minor portable sanitation deal to enhance our presence. We also acquired an aerial company in Australia to expand our product offerings, which will enable those teams to provide more solutions to their clients there. Although these moves don’t have a significant numerical impact, they are strategically important. Looking ahead to 2026, we have engaged with a solid pipeline this year. We received three opportunities towards the end, but our focus remains on finding the right fit and the right partner. Ultimately, the financials need to make sense for us. We are selective, but there are ample opportunities available; they just need to align with our strategic and financial goals.

Ted, I'm wondering if you wouldn't mind unpacking the comments you made within specialty. You mentioned there's some variance in the portfolio on Matting. Can you just talk about the growth trajectory for the businesses, which ones are tracking better? And any additional color you want to provide on Matting would be helpful.

Yes, yes, absolutely. Thanks for the question. So we saw broad-based strength in specialty again. Matting was affected in the quarter by a pushout of really one particular project that we had expected would benefit the fourth quarter. It's a large pipeline project that simply has been pushed out. So we've got the Matting contract. We know we're going to be on it and the pipeline itself is moving forward. But that was certainly something that we had not expected, and that's just the nature of some of the large projects they do, I'd say, in their specific verticals that can move. Otherwise, every vertical was up in specialty, very pleased with the results. And going forward, just as you think about Matting, on a pro forma basis, that business was up 30% for us in '25. It was up 55% as reported. When we bought Yak, we said our goal was to double the business within 5 years, and we're very happy to report that we're ahead of plan, and we've been very happy with the business. It's going to be a little lumpier, right? And they can have just the effect of timing shifts, and that's really what you saw in the fourth quarter. But as I said, we've been super pleased with the acquisition and the growth, the returns that that's providing, and we're really optimistic with the outlook there, both within their kind of core products or end markets, pipelines and transmission lines, but also as we extend those products into other verticals. Matt, would you add anything?

No, well said. The team is doing a good job, just a little lumpier than what you folks are used to seeing from us.

Okay. Super. And then can I ask in general rental, we're seeing really strong demand for earthmoving equipment, but aerials really lagging. Is that a function of the large projects and data centers being less aerials intensive? And curious if you're seeing based on your customer checks an inflection in starts in retail and office that could be interesting as we head through '26. Curious what you're seeing on those fronts.

We're not experiencing that issue, Jerry. Our aerial usage and growth have been solid, and our entire product portfolio is performing well. We don't see a distinction between earthmoving and aerial equipment. There may be some activity on the OEM side that you are referring to, but we are not observing any changes in our customers' demand.

Regarding your question about office and retail, there are some projects that come up, but I don't think we've noticed any significant changes. Overall, the outlook for commercial seems to be rather subdued, while other sectors of the non-residential space are expected to drive what we anticipate will be strong growth.

This is Oliver on for Angel today. I was just curious on fleet productivity. Can you guys talk about what drove the year-over-year improvement this quarter? And if it's possible at a high level, what your outlook implies directionally for those factors, rate and time for 2026?

Sure, Oliver. So when we look at the 0.5% fleet productivity in Q4, there's a couple of things that I knew we need to handhold here because some things that aren't as apparent to you guys. So qualitatively, when we think about the construct of that, our full year fleet productivity was 2.2%. We're very pleased with that. That shows that we're outpacing the inflation. And just in the most simple terms, we're growing our rent revenue faster than we're growing our fleet. That's really what we're measuring here. In Q4, we had some impact. So if I think about the 2.0 that we had in Q3, which was more like a full year number versus the 0.5% in Q4, when I look at the factors, rate was positive. As a matter of fact, almost on top of each other of the benefit that we had from rate in Q3 versus Q4 in this we're exactly the same. Time was slightly less positive than we had in Q3. So that was a little bit of a drag. The big number here and why we're talking about it is mix. So just the Matting choppiness that Ted talked about, which is all bulk. That's why it shows up in mix. Those aren't serialized assets for those mats. That alone change from Q3 to Q4 was worth a point of fleet productivity. So that's the big mover there. We usually, frankly, wouldn't talk about an individual business segment, but we understand that this is unique and it was such a needle mover that we wanted to talk about it. Once again, pleased with the Matting business, but that lumpiness and because it's all bulk had a big negative mix impact on our fleet productivity. Otherwise, we would look much more similar to our full year and our Q3 numbers.

Got it. Understood. That's really helpful. And then maybe just one more, switching gears on competitive dynamics. I mean we were just curious if you've seen or heard any changes on the ground in terms of having a competitor recently IPO, whether that's potentially a positive or negative impact for you guys now and also longer term?

Yes, the situation is a bit different when comparing Wall Street and Main Street. The shift in funding sources doesn't significantly affect the market. We believe that the supply-demand dynamics remain favorable, which is reflected in our guidance and our expectation for positive fleet productivity next year. We recognize the competitive nature of the industry, and being a public entity may enhance our position. However, it's crucial for the industry to maintain discipline since we've experienced price increases on fleets over the past few years. Key factors for fleet productivity remain vital, such as maximizing utilization and achieving strong rate improvements. These are essential for the rental industry, and we are committed to these objectives, as we believe the industry is too.

This is actually Kevin Wilson on for Jamie. I wanted to ask about cold-starts. I think you're expecting 40 specialty cold-starts in 2026, which is healthy, but down a bit from the number you had 2025 and 2024. I am wondering if you could speak to the strategy there and just your strategy around the footprint over the medium term in the context of revenue growth coming from more geographically dispersed customer demand, maybe where you're finding the strongest opportunities for organic growth? Anything on the verticals within specialty you're targeting for those cold-starts this year?

All right, Kevin. I'll address your points one at a time, so please remind me later if I overlook anything. Regarding the cold-starts, we don’t evaluate these based on the calendar year, so I wouldn't place too much significance on the difference between 40 and 60. Initially, we aimed for 50 in 2025, and the team has made progress in their pipeline. However, there are still markets they want to enter. The final number will depend on finding suitable locations and talent to expand. Most of this effort will enhance our one-stop shop, focusing on specialty offerings to fill gaps, especially for some new product lines, and we’re optimistic about that. In terms of organic growth, we're seeing it across all the markets we’ve mentioned. We anticipate that demand in 2026 will resemble 2025, with large projects and specialty driving the majority of growth. This aligns with our one-stop shop strategy, which will support growth for general rental and specialty products. Additionally, in various sectors, power continues to be robust, and non-residential remains strong and resilient; even when excluding data centers, it remains positive. We are confident in these trends. The areas currently underperforming are residential, which is not a significant part of our business, and a bit of petrochemical, where the rig count in Q4 was down 8%. Other than that, there isn’t anything specific to highlight.

That's helpful. I have a follow-up regarding the growth from large projects. What can you share about the local market demand that's reflected in the revenue guidance? Can we still consider that flattish, as you mentioned last quarter? What's your level of visibility on this?

Yes, that's correct, Kevin. We still believe that it will vary from market to market. Overall, we can categorize it as relatively flat. Most of the growth, as I mentioned in my opening remarks, is coming from the significant projects. Our pipeline is the largest it's been in my 35 years in the industry. We expect more from these projects, and this does not anticipate a significant rebound in the local markets. However, we also do not expect any decline. We believe it will remain steady in the local market.

This is Randi on for Kyle. You guys mentioned that you alluded to another strong year of growth in large projects. I mean I'm just wondering, based on your recent conversations with customers and what you're seeing in the market, in your mind, what inning do you think we're in, in terms of this mega project spend? I mean it sounds like it's going to be strong this year, pretty strong this year, but more of a longer-term outlook would be super helpful in terms of how spend could go over the next couple of years.

Yes, I'll start there, Randi. I'd say the outlook for the so-called mega projects is very healthy. It's certainly hard for us to judge what inning we're in, but we certainly don't think it's later innings. And we base this on a lot of things. But frankly, we've got a pretty broad assortment of drivers within large projects. So we've talked about infrastructure. We've talked about stuff within technology. We've talked about power, certainly data centers. But at this point, we're kind of following, call it, 6, 7 or 8 tailwinds that we've been talking about for years. And when you aggregate the dollars that are expected to be invested in those areas, we think there's a very healthy amount of runway ahead of us.

Got it. That's helpful. And then I guess just in reference to some of the cost actions that you mentioned in your prepared remarks to offset some of the headwinds this year. Can you just give us some color on some of those actions you're taking and what you might expect those to contribute to margins this year?

Yes. We won't specifically label it as a contribution since it's all included in the guidance. One area of focus has been the repositioning costs we've discussed throughout the year. While large projects will continue to drive growth, those costs will still be present. However, we are implementing various measures to mitigate those costs and improve our approach. We cannot completely eliminate them; they are essential for ensuring fleet efficiency and productivity by reallocating assets to where work is needed. We are increasing our oversight and introducing new tools to assist the team, along with exploring other actions to manage hard costs. We will update on these progressions as we move forward. We are confident in our action plan to safeguard our margins, ensuring that, regardless of demand fluctuations, our focus remains on profitable growth rather than just growth for its own sake. We will ensure our team prioritizes margin protection in 2026.

We'll go next now to Tim Thein with Raymond James.

Tim here. Regarding the earlier discussion on fleet productivity, I want to highlight some of the challenges in interpreting that figure from an external perspective. However, in terms of the plan for 2026 and how you anticipate the year will unfold, is it still the case that you expect to outpace the assumed inflation? Will that be part of your targets for 2026?

Yes, embedded in that guidance is the expectation that we will at least reach the 1.5% hurdle. The ultimate outcome regarding guidance and revenue will provide clarity. There may be some fluctuations, though hopefully not as drastic in the first quarter given the mix. This is why we refrain from making specific forecasts, as the mix is unpredictable and there are many factors at play. However, the key aspects—rate and time—are still promising. While we may not see significant improvements in time, we are operating at high levels of time utilization. We'll keep monitoring that, but our focus remains on rate, and the mix will settle as it will. Ultimately, embedded in this guidance is an expectation of positive fleet productivity to help counteract inflation.

Got it. Okay. And then just in terms of your plan on fleet loadings and CapEx in '26 from a timing standpoint, given that you pulled forward a little bit more CapEx into 4Q, does that impact the timing in terms of how you expect to land that fleet in '26? Or is it more of a normal cadence?

Yes. I would say we expect a normal cadence, Tim. In Q1, we anticipate being in the 15% to 20% range. During the middle quarters, this will vary based on the speed of our deliveries and how effectively the team manages utilization, but we expect to be in the 70% to 75% range, with the remainder in Q4. This approach is quite similar to our previous practices.

Maybe to start off, Ted, I think you mentioned in your prepared remarks having to hold on to some high-time used equipment, which impacted used sales volumes this quarter. Can you give a little more color on that? And just what exactly were those categories kind of reflecting?

Yes, absolutely. So as you saw in our guidance, we initially expect or what we've consistently said is we expected to sell about $2.8 billion of OEC across the year, and we came in at about $2.73 billion. So you can see that shortfall really was in the fourth quarter specifically. And we had a number of regions that just ran busier with certain high-time assets. So you would think things that might reach high in the air. So it could be aerial products, telehandlers, things of that sort would probably be the most notable categories. And so obviously, those things were on rent. We weren't going to pull them from customers to sell them. And so that really kind of explains the deviation in terms of the used mess.

Got it. Okay. For my follow-up, I wanted to return to the margin guide. It seems you anticipate that some of the cost actions you're implementing will help offset the ancillary and delivery mix as we progress through the year. Could you provide guidance on how to view the margin progression? Do you expect changes to be more significant in the latter half of the year, or will this be noticeable from the very beginning in the first quarter?

Yes. To your point, it's something that will progress. This isn't going to be a light switch. And specifically, when you think about some of the mitigation and repositioning costs, just by definition, more of that will happen when we have more activity. So in our peak quarters of volume is when the opportunity is. But then even some of the other costs that we're taking out, it will build up along with when the costs are usually achieved, so to speak, or actually not achieved. So we'll still have some noise here in Q1. And then as we work through the year, we believe we'll start to see the benefits of some of these actions.

We'll go next now to Steven Ramsey of Thompson Research.

I wanted to touch on the growth CapEx number of $1.1 billion, I believe you said for the year. Maybe to remind us how that compared to 2025 and if the nature of the growth CapEx this year is similar to '25.

Yes. So if you look at what we did in 2025, total CapEx was, call it, with rounding $4.2 billion. Within that, there was probably something like $3.4 billion of what we would call maintenance. So that would imply something on the order of $800 million, $900 million of growth CapEx in the year. So I think in my comments, I mentioned there was an additional $300 million of growth CapEx. That will really focus on 2 areas. One is continuing to drive the growth in specialty and then taking care of large projects where we're going to need more fleet. Matt, anything you'd add there?

No, I think that covers it.

Thank you. And gentlemen, it appears we have no further questions today. Mr. Flannery, I'd like to turn the conference back to you, sir, for any closing comments.

Great. Thanks, operator, and thanks to everyone on the call. We appreciate your time. Glad you could join us today. Our Q4 investor deck has the latest updates. And as always, Elizabeth is available to answer any of your questions. So until we talk again in April, please stay safe. Operator, you can now end the call.

Thank you, Mr. Flannery, and thank you, Mr. Grace. Again, ladies and gentlemen, this brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.