United Rentals, Inc. (URI) September 2026 Conference Transcript

Perfect. Thanks, everyone, for joining us, and good afternoon. So, Angel Castillo, Head of U.S. Machinery and Construction here at Morgan Stanley, and it's my pleasure today to have Matt Flannery, CEO of United Rentals, and Ted Grace, CFO of United Rentals. So, before we get started, I just want to read a quick disclaimer. For important disclosures, please see the Morgan Stanley Research Disclosure website at www.morganstanley.com forward slash research disclosures. If you have any questions, please reach out to your Morgan Stanley representative. And with that, gentlemen, thank you for hosting us and being here today. Thanks for having us. So lots of topics to discuss. Obviously, everything around construction in the U.S. is very topical today. So maybe I figured it would be a good place to start, just a little bit bigger picture, macro and a little bit broader kind of demand backdrop, if you could kind of set the stage for it. So maybe give us the State of the Union, what you're seeing in terms of cross-construction end markets in the U.S., I'm particularly curious how, if at all, all the geopolitics, interest rate moves, energy prices, how all of that, if at all, has impacted what you're seeing in terms of construction demand in the last few months.

Well, I'll let Ted handle the geopolitics and the rest of it, but the demand environment feels great. It's really been strong. We had pretty solid expectations when we came out with guidance in January, and the years just progressed better than we had thought. The construct of the demand has been pretty similar to what our expectations were, where large projects were going to drive most of the growth, and then we expected the local markets to be stable. And that's pretty much the way it's played out, but with the exception that the large project pipeline has just accelerated. It's moved farther and faster than we had expected through the year, and the execution of the teams allowed us to raise guidance to the most recent level that we did in July. So we're really pleased with the manned environment, and the industry overall is really on a strong trajectory. Ted, you think that?

Yeah, I mean, the macro dynamics have been pretty interesting this year. You know, we came into the year not thinking you'd have diesel north of $5, but if you look at our year-to-date results, the team's done a great job managing that unexpected cost headwind. You know, it's hard to A-B test to say what would have happened had, you know, things not played out the way it has, But to Matt's point, demand ultimately has been stronger than we expected, despite whatever these headwinds, real or perceived, may be. So certainly the U.S. economy has proven to be very dynamic. I think we've seen that consistently. More recently, there's been discussion about rates and people wondering what the Fed's going to do, what's happened at the longer end of the curve. And certainly we don't sit around pretending to be armchair economists. economists, but we just remind people that if you were to look at the 10-year yield going back more than three years, it has bounced between 4% and 5%, and, you know, there is no discernible impact you've seen on a slowdown when it's even, you know, approached the upper So, you know, I guess the question the market asks is where do we go from here, but, you know, the economy and our market specifically have proven to be very resilient, right, and And that's in spite of kind of what's happened at the longer end of the curve and even as you've seen what's happened on your speculation around the shorter end of the curve. You know, we've gone from five and a quarter, five and a half to three and a half, three and three quarters. You know, we ask ourselves if we do get into a tightening cycle, you know, if it's a half a point, three quarters of a point, you're still well within a range that our industry and the economy is weathered pretty well. So I guess ultimately we'll see if we look at our customer confidence through last week, it is not showing any indications that our customers are thinking about their own prospects differently given all the debate going on at every level. So anything else you got there, Matt?

Maybe, listen, I think it's totally point-taking. You know, the economy, like you said, on the construction side, has held up far better than expected. And I think, you know, as we look at the data, I think what I want to make sure to touch on is you still have done much better than even what the underlying has been showing, right? You look at construction starts in terms of square footage. You look at construction spending, and yet you're guiding to 10% growth, right? So you talked about the mega products a little bit, but it feels like there's a little bit something here, either the data that is a little bit, you know, maybe gets restated, ends up being that it was better than we thought, or there's something that URI is doing that's ultimately delivering better results ahead of what even the industry or the macro would suggest. So I'm hoping you could kind of unpack that for a little bit for us. What are you doing in terms of differently, go-to-market, either winning more than your fair share? What is a little bit different about your results that you're driving?

So it goes back to the strategy we deployed as far back as 2010, coming out of the recession, right? we decided we have to be aligned with the largest contractors and largest projects that existed in our space. Because we learned if we wanted to have resiliency, we needed to be with people that were going to get to work through downturns, upturns, and just really counter the cyclicality story that we were burdened with. It's actually playing out really well. We spent a couple of decades building out this network and this connectivity to the largest customers and contractors in the world and it's really playing out well during these mega projects so this isn't anything new for us we've been focusing on major customers and major projects for so long that this is just a manifestation of that strategy and the other big part of that strategy is our one-stop shop strategy where we started talking about specialty once again 20 years ago and 15 years to the street in in more consistency and that strategy has developed now into seven different business units that solve different problems for our customers and as you can imagine these mega projects have more complex needs you can assume the larger the project the broader the needs are going to be so the competitive moat that that's created is really why i think you see us outperforming the industry overall and and all the data points that you point to that show maybe we shouldn't be able to have double digit growth right now yeah it's a lot of hard work it's uh sticking to the strategy, but it's building a long-term relationship that customers can count on.

The one thing I might add that tacks on to that is the vertical strategies we've introduced. So as an example, in 2016, we publicly introduced what we called our power vertical strategy. And it's not that we foresaw the electrification of the economy or AI or anything along that. We just recognized that these were very demanding customers that spent a lot of money consistently and that our differentiated value proposition could actually be truly valued by them. And so we probably got a 10-year head start on everybody else in terms of developing those relationships, not just with the E&C companies that focus on power verticals, but the utilities themselves. And we did that for a couple reasons. Not only is it a huge market, but it's obviously a pretty stable market. More recently, it's had these secular growth trends, and we've been very fortunate to be well-positioned. We did the exact same thing in infrastructure. If you go back to the acquisition of NEF, that was really predicated on our belief that we could have a differentiated value proposition in the end market, that clearly there had been dramatic underinvestment domestically in infrastructure going back probably to the 60s, 70s, or 80s, depending on how you want to look at it. That was really part of the strategic justification for the NEF acquisition. We did not foresee Congress finally passing IIJ AA. We figured at some point the bill's, you know, come due and it's going to have to be paid. So we've been very, you know, I'd say we've been fortunate in looking around the corner and building vertical strategies that complement everything else Matt talked about.

Yeah, I mean, it's definitely paid off. Again, very good performance. And I want to remind the audience, you know, if you have any questions, raise your hand at any point. I want to make sure you get a chance to ask your questions. Otherwise, I could go forever up here. But maybe just to that point as well, on the rental penetration, that's been a good story as well. maybe more for the broader industry, right? And I think part of that, one, I guess, I want to understand, I guess, where are we today in terms of that rental penetration? Where do you think that can continue to get to? Does it stabilize at a certain point? And what impact do megaprojects versus kind of local commercial have on that penetration? Does it skew it one way or another?

So ARA will report, as they measure it, rental penetrations in the high 50s. I think it might be 59% right now. That's up five or six points from five years ago. So where it can go, you let some people point to low 80% in more mature European markets. I don't really know if we know where that's going to go, but we think the total addressable market is even larger than the 80 billion that ARA speaks to. So we really think there is a secular play here. I believe that penetration in our industry is a one-way staircase. For the 30-something years I've been doing this, I haven't seen customers rely on rental and then decide to go backwards because the industry is so much better at what we do. We're so much more reliable, and I think the sophistication of the industry and the reliability of the industry allows people to take the math that works. It pencils to rent. The shared economy actually works. So we think secular penetration is a big part of the play as well.

That's super helpful, and I guess maybe to that point, You know, you've seen just continued growth, and part of that has driven, you know, perhaps more aggressive growth from other, not necessarily entrants, but smaller players or other OEMs to try to leverage the rental side of their business a little bit more. So as you look at that, you know, what is it doing from a competitive standpoint? What are you seeing in terms of, you know, discipline around supply? Any concerns around that, or, yeah, how are you thinking about, you know, that growth that you're seeing from others? I'll start, and Ted, you can add on.

But we feel really, really good about the discipline of the industry, first off. We think the supply-demand dynamics are strong. We think the demand overall is strong, which is the first part of that that you need. But even the behavior and the information that's available to the national companies has really created a disciplined industry that maybe didn't exist pre-09. So that's first and foremost. The second thing is the opportunity for the industry to continue to show discipline as a leadership group. So when you think about the top few in the industry, I think we have a leadership responsibility that we don't use our pricing power to take the air out of the room or to do anything that's not healthy for the industry, but to create more value for the customer and more services. And that's what we're spending our time and energy on doing, and I think it's paying off. This is a competitive industry. There's always new competitors in the industry. But the competitive moat that we've built, and to be fair, a couple of the other national players have built, is hard to replicate. That distribution network, 1,750 branches with all the different products that we offer, is quite an advantage that we continue to trade on.

Thank you, Justin, and all of it.

And maybe just another way to kind of unpack that a little bit further, I guess. When you say discipline, are you referring to purely supply or also on the rental rate side? Are you seeing discipline across both? Any way to kind of contextualize both differently?

For me, I would say just smart activity, so not forcing fleet into a market. One of our largest competitors pulled back on fleet a year or so ago, and they were public about it because they had absorption opportunity. I don't know that that would have happened 20 years ago. So I just think not forcing fleet into the market, making sure you're meeting the demand responsibly. while running a profitable business is what I think about when I think about discipline in the industry.

Yeah, I agree. I mean, we've talked about this discipline for a while. And I think if you go back and you think about the last few years, some of our competitors' actions, public competitors, you know, 23 and 24, really cut back their capex even as they were growing their business and growing it at healthy levels. They talked about rebalancing kind of their own capacity. And while, you know, the public saw that, privately, you know, we saw it much broader across the industry through kind of aggregated data we have access to. And so that is a critical sign of discipline. When you right-size supply-demand, that obviously puts the industry in a much better position to achieve positive rate, right? Now, through that, even though you had negative time industry-wide, the industry actually had positive rate. And I think that is the first time in the history of the industry that's ever been achieved. Ultimately, you know, supply-demand is the ultimate arbiter of rate. You know, there are other factors, but that is probably the critical one. And coming out of that episode in 25, you saw that discipline continue, where time-yout industry-wide was positive year-on-year every month, and that's continued year-to-date through 26. So, you know, I guess the summary there or the takeaway is this discipline is very real, and it's helping support companies achieve positive economics on the assets they employ, and that's critical.

That's very helpful, and I think maybe last one on kind of the supply dynamics. I think you've talked about being at kind of the highest rates of time utilization that you've been in in the past, and just what does that tell you about the backdrop that we're in today, the implications to rental rates kind of from here, or we started to see CapEx pickup. It seems like in a very kind of disciplined way, to your point, but just, yeah, What does that kind of tightness in the industry tell you?

Without talking about rates specifically, I would just say the base is there to drive productivity, right? And if we can drive that productivity through efficiency, through pricing, through making sure that we're managing our costs, that's really the goal here. And we can be a better partner to our customers, right, by driving some of that efficiency as well. So I think that's what we're focused on. That's what we laid out when we set the goals for the year, and that's really what we're talking about.

Got it. No, that's very helpful. Again, if anybody has any questions, feel free to raise your hand. Maybe just, you know, I guess continuing along those lines of investing in the business, I guess part of what I want to understand, so we talked about a little bit on the CapEx front. The M&A side, surprisingly, it was an area of always, you know, that you could always drive growth in. But increasingly, I've been kind of hearing about it as a potential risk. Like, have you gotten big enough where, you know, it's harder to increasingly move the needle, you know, with deals or acquisitions. First, how would you kind of respond to that, and how would you kind of describe, I guess, your pipeline of opportunity on the inorganic side?

The pipeline is pretty robust, and we've been talking about that each quarter for quite a few years now. We have an internal team that works really hard at generating deals as well, and we're just very disciplined about what's going to get over the transom. We've talked about our three-legged stool of it needing to be strategic, cultural and then finally that financial hurdle that needs to cross and that's that's the one that we can't get all the deals over but we're going to be very disciplined we've shown that in the past more recently in a pretty big way last year so we'll we'll continue to work this pipeline but there's not any shortage of opportunities and more importantly it's a it's a capability we've built it's a muscle that we shouldn't waste so we're pretty good integrators we're pretty good cross-sellers. So anytime we get an opportunity to add another, whether it's new product or new team to our portfolio to help serve our customers, we're not going to hesitate to do so.

I think the only thing I would add to that is if you go back and you look at our history, you know, people have this perception that we're always doing deals and we certainly are always looking. But the reality is the math will show you it can be lumpy and there can be years where we don't have much to show for all the effort and there are years where there's a lot more to show for it. So in itself, if people see a period of time where we didn't do anything deemed to be material or considerable, that's not unusual at all. There's certainly, we think, a lot of opportunity on the generant side, a lot of opportunity on the specialty side. And then there are a lot of unconventional deals, corporate liftouts and things along those lines that really are in nobody's radar screens. There are also opportunities for us as we talk about expanding our product suite and going after that much bigger TAM than sometimes people perceive.

Yeah, and I know you don't necessarily want to give us an exact kind of, you know, this is what we're after, but just curious as you think about the opportunities of the products, the seven specialty products you have or GenRent versus potentially adding another leg to the stool, I guess, where are you seeing more, perhaps, opportunity in terms of, you know, what's out there?

You're right. We won't foreshadow what we're going to do, but we would just say that we see anything that's temporary on a job site or in a plant as our right of way, as an opportunity for us to add value and help support the customer. So you could imagine that anything that falls into that purview, we're looking at.

Maybe the last one on this. Which are the three pieces that, you know, the three hurdles that people need to get through or the potential acquisition needs to get through, which of these is harder to ultimately find? Is it the, you know, the discipline on the financial side, getting it through our value? Is it the culture side? Which one of these is a little bit tougher to get across?

I'd say the first two are gating mechanisms. I think rental people overall and most of the deals we've looked at and most of the deals we've brought on board would be good fits culturally. It would be the financial and that's because the bar is high for us. We set high expectations and we're not going to wane from that responsibility.

Maybe to your point, it can be lumpy ultimately when deals get through. In the absence of that, should we We just assume that there's going to be a little bit more buyback. How are you kind of thinking about ultimately the deployment of that capital?

Yeah, I mean, the philosophy of the framework we've used for returning capital or capital allocation more generally has served us well. So it always starts with organic investment and what capital can we prudently meter into the business. It complement that with the acquisitions that you're going to fund out of free cash flow. And after that, whatever we deem to be discretionary excess free cash flow, we return. The dividend is a relatively small portion. and the balance is returned via buyback. And certainly, you know, we love when we have good deals that are going to help our customers and help our shareholders, but when we, you know, don't have the ability to deploy capital there, we're very, very comfortable buying our own stock.

You know, I think last time, you know, or the last one, I guess, in capital allocation, last time we talked, I think there was a discussion around the potential upgrade down the road to investment grade. I think, you know, just we'd love to get your thoughts as to, one, you know, What are the implications of that to your capital allocation strategy? Is there any desire to then perhaps be a little bit more cautious near term because of that, or is there just so much firepower that you can kind of do both? But, yeah, just more broadly, what would be the kind of implications of a potential investment grade upgrade?

Do you want me to start?

I would just say there's not going to be any tradeoff with firepower.

We're already living there, so if we thought there was going to be any kind of inhibitor for B&IG to execute our strategy, then we wouldn't pay.

Yeah, I mean, I think this is a reflection of the ongoing evolution and maturation of our business. You know, what had held us back, frankly, was internal corporate policy. So we had told the agencies we wanted to maintain the flexibility to use the balance sheet to drive inorganic growth. As we've grown and grown and grown, frankly, our dry powder sitting in the balance sheet, you know, is probably conservatively debt-funded capacity is $15 billion. Realistically, that's plenty. So then we asked ourselves, if we don't need it, what's the point of maintaining this policy? If you look at us and you grid us out against our largest competitor, who is IG, we actually have a better credit profile. So intuitively you'd say, all right, well, then if you can do that and you get the benefit of the spread, why wouldn't you? Because there's clearly benefit and there's not much cost, if any, because it doesn't inhibit us from large-scale acquisitions. So that was really, you know, the internal discussion Matt and I had with our team, just the time was right. And so, you know, we've now gotten, we're on positive outlook at both of the major rating agencies, you know, which puts them in a position to conceivably upgrade us within 12 months based on their own language.

That's very helpful. And I think we have a question up front here, if we could get a mic. Do we have a microphone that we could get? Danny, you want to yell? I can always repeat it, too. Thank you, Cycles.

Yeah, and the outlook for United Rentals looks also very promising, is it? Even better. So, Matt, you said outlook even, or the pipeline, more delayed, so longer visibility. How long can you look? And also I learned in the previous years talking with your company that normally you're a bit late in the project because when everything's already designed and prepared and then at late your equipment becomes on the site. So maybe even some of your visibility is even not within your own books yet, is it? Because if we think about a 10-year cycle for grid investments in the U.S., the gas pipelines for all these data centers, the power gen sets, compressors, all of that.

Yeah, we agree. We think the pipeline and the growth runway ahead is robust. And, you know, you get asked in a different way how long is this cycle. Well, I think the demand that we're seeing right now and how strong it is, despite outside of major projects, power is also a growing sector right now, there's a ton of other sectors that we serve that aren't hot right now. LNG is starting to come up.

Petrochem is not very strong right now.

Residential, which although we don't play strongly in residential, is certainly a feeder, right, into other businesses that we serve. So we have plenty of runway ahead of us, we agree. We feel really good about it. Ted laid out this construct back in 2022 at our investor day about all the tailwinds. And the point was that there were seven different tailwinds and we only needed a few to have the growth one way that we need. And I think that's manifested and with the addition of data centers has even accelerated.

Sorry, on the verticals, you said it's a special sort of target which helps to fuel the growth over the last years. I didn't see like for instance utilities as a separate but that's probably on the infrastructure so that's the power vertical strategy specific to and on the data center power generation opportunity is that a segment where you play in like providing power gen for data centers maybe you have already some data you can share in terms of megawatt you can already have in your portfolio for instance and gensets yeah so so definitely we support during the construction phase you know we would not be kind of like baseload power for you know a hyperscale data center that's running you know hundreds of megawatts or more we certainly have projects

where we could have you know 100 megawatts of generating capacity i think our total fleet size is north of two gigawatts of capacity but it does tend to be more temporary and when you're talking about that kind of base load that, you know, it's generally not going to be diesel. It's going to be natural gas, and it's either going to, you know, it's going to be high-pressure natural gas running off re-sips or turbines if you're, you know, kind of running behind the meter. Matt, would you agree? Anything I...

No. Maybe just sticking with the specialty side, you know, I think that's an area that's a little bit tougher to model because you do have seven different product lines, different, you know, slightly different end markets. So I think in the past you've said that you expect us to continue to grow double digits, right? And as you just mentioned, Matt, not every single kind of line or vertical or end market is growing at the levels that we're talking about in terms of double digits. So can you help us understand what gives you confidence in that double-digit growth? Maybe is it organic? Is it inorganic? Is it the growth that you see across some of these specific verticals? Just help us underscore that bridge or underwrite that bridge.

Yeah, first and foremost, it's the penetration opportunity within them. So we're not as deeply penetrated in just about every one of our specialty businesses. But even when we think about our more mature ones, like Trench and Power, which were our two first specialty businesses, they've been growing double digits for years and continue to grow strong double digits. Power is our largest specialty segment right now, and it's our fastest growing. And that's without getting into turbines or getting into any specialized, what we would call more niche power items. So just our experience, when you add on some of the new products that we've added on, like matting, which our national footprint still has white space, mobile storage and modular, we still have white space there. So the combination of all this, we feel very comfortable talking about double-digit growth for the foreseeable future.

And just to clarify, that's on an organic basis. So inorganic would be inorganic for that. That's on an organic basis, yeah. No, that's very helpful. And maybe to that point, I guess, because specialty also brings in some of this ancillary aspect of things, right, that you might be delivering value to your customers in other ways that perhaps margin-wise may be a little bit of a drag. We saw that a little bit last year. So, you know, can you just kind of help us understand, again, where we are in terms of that ancillary, what some of those products might be, and why, you know, it makes sense to play in that?

So ancillary revenues that really help support are rental customers. There are three big ones that we've talked about. Pickup and delivery would be the biggest of those activities. So in the vast majority of our transactions, customers ask you to deliver the asset and pick it up, right? It's convenient for them. They don't have to have the assets or the people or go through the process. Then we'd have installation services could be set up, break down. Other kind of services will provide the customer needs. Historically, they may have gone to third parties. What we've done is say, listen, we'll do that on your behalf so you can focus on building whatever you're building and not be distracted by having to hire electricians or plumbers or whatever it is. We'll do that. We do it through third-party labor. And things like fueling services. You can imagine the equipment we have on their site. A generator needs constant fueling to provide power. So those are things that we are actively working with customers to provide. It makes their lives easier. It's things they need done. It's things that aren't necessarily easy to do. So many of our competitors look at it and think, I don't want to do that. But in that, that creates an opportunity and it's a competitive advantage because we're willing to do these things. Importantly, these are profitable businesses. They are not as profitable as our core OER business, but they would come with contribution margins in the low 20s. And effectively, there's no capital employed. We've got some working capital as we're paying people and waiting to get our money. So you're talking about competitive advantage, attractive margins, strong returns, and that augment our value proposition. So that's really the reason we're pushing into this. It does have a dilutive effect, but that does not at all mean it's a bad business. It really complements what we do. We remind people, if you look at our growth versus our peers, we are considerably outpacing and it's hard to say exactly all the factors that drive that, but one of them is this whole strategy of being that partner of choice in doing big things and small things that really help add value. And so we think of our shareholders as getting the benefit of the growth and what we think are attractive economics.

Maybe just to that point, I guess two sides of that. One, I think part of what you've been delivering has been pulling levers internally, whether it's doing things internally versus third party, just making sure you manage your costs in a way that has delivered very strong results over the last couple of quarters, despite some of those factors being a little bit of a headwind. So can you just remind us what some of those levers you might be pulling are? And then on the flip side, you mentioned this is no incremental capital, but is there an opportunity there to invest in more transportation or more kind of assets for capital that can give you more, I would say, capabilities to give even more kind of value to your customer?

I'll just answer the latter part. There's not an either-or there, right? And we don't have a lack of funding capability. We don't have a lack of opportunity for growth. So one's not a tradeoff for the other. And I'll let Ted take the other part about some of the variables and the actions that were taken.

Yeah, so, you know, we came to this year, we talked about the importance of labor absorption. So if you look at kind of our disclosure, and now all companies are providing greater segment disclosure disclosure in the income statement, the team has delivered against that. The biggest thing that's benefited us from a margin perspective has been that labor productivity. You can see in a lot of metrics, we disclose labor as a percent of total revenue, rental revenue. You can see it in rental revenue per FTE, but the team's done a great job driving really strong productivity. We've also achieved strong results in R&M. So you think about some of our biggest variable costs, but repair and maintenance is one of them. The team has been able to find ways to be more efficient than they generally are, which has been helpful. And even delivery. When we came into the year, we said we thought our delivery expenses would grow at a faster rate than rental revenue. And that was part of the reason we undertook this restructuring program, was to help enable that or support that. We're at the midpoint of the year, and the team's actually been right side up on delivery costs. So if you look, our rental revenue in the second quarter is up 12.7 percent and delivery expense is up 11.7. So it's increased, you know, with volume, but the team has done a great job finding those efficiencies that we ask to them. So, you know, I'd say those are the big three that we talk about, labor, R&M, and then delivery that have offset, you know, I'd say the biggest surprise on the year has obviously been fuel costs. You know, a year ago we averaged 366 a gallon in diesel. You know, year-to-date we're running at 534. That's not something anybody anticipated when they give their initial 26 guidance. In the second quarter, one of the things we called out, you know, 70 basis points of margin expansion, you back out the one-time gain and you adjust for the outsized growth and rerun. Margin's still up 40 basis points in the core while we're absorbing the better part of 30 basis points of Edwin from gas and diesel prices in isolation. So So that tells you the team's done a fabulous job delivering, you know, against the surprise there. So what else would you mention? No, well said.

I mean, execution's been great. And, you know, we didn't want to count on growth coming into the year to hold margins flat. We made that commitment, and we gave the team a task, and that's why the restructuring happened. But I'm really pleased with the execution. And now that we have the growth on top of it, I think that's why you're seeing the results you're seeing.

And maybe with the last few minutes that we have left, it's a topic that probably warrants a lot more than a few minutes. Just to your point on the changes that the business has made over the last decade or 20 years, I think technology is an area that maybe doesn't get talked about enough that you have been investing in telematics, just broader technology. And I think for all this discussion around AI, I think maybe it doesn't get talked about how you recently announced, I guess, the AI-powered equipment agent be accessible in chat GPT and then just how much technology and AI may be benefiting your business. So could we maybe just touch on that with the last few minutes? For investors that don't necessarily run a job site, ultimately what do these tools mean? How does it change customer behavior and impact your business financially or just, again, that customer relationship?

Yeah, and that AI agent just makes it easier for people to spec what they may need for a job, and it's a fairly simple tool technology that already exists, but our job isn't to invent the technology. It's to deploy it in a way that's digestible to the customer. But we've been a technology-enabled customer for quite some time. You go back to all the way into when we started to invest in telematics, which was quite an investment when it wasn't in the early days. About 12, 15 years ago, we decided to do this. Most companies weren't spending that money. When you put that combination of all the data that that almost 400,000 telematics devices on our equipment gives us with all the capabilities of AI, all these already embedded technologies that we have in our processes can get improved really quickly and i think that's the part somebody asked us earlier today in a meeting you know how do you feel about your spend in technology you're spending enough i think we're going to all be spending significantly less because i think ai is going to be able to enhance many of these tools faster cheaper and frankly we'll probably be doing a lot of these improvements internally with the help of AI. So I actually think that the capabilities that we've already had in utilizing technology to be a better partner and the change management that's necessary, we're through all that. So now it's just a matter of taking the most modern technology and AI specifically to enhance everything from your price optimization engine to your logistics to helping a tech troubleshoot a repair for a machine. These are all things that we're working on and we did an investor day for the sell side that maybe at some point we'll get some more material out there. But this is something that each group within our business is very, very focused on.

Yeah, no, I had the pleasure of attending that. And definitely, like you said, you realize it touches every aspect of your organization. That's incredible. So as I said, I unfortunately unpacked a can of worms that now we don't get to dive deeper into. But, you know, feel free to reach out to them if you have any questions. But otherwise, again, thank you, gentlemen, for joining us. Very helpful. Thank you. Thank you, Andrew.