EquipmentShare rejects investment firm report

EquipmentShare has rejected claims from a US investment firm that the rental company’s business model underplays the financial risks associated with its OWN Program - under which half of its fleet is owned by third party investors - and that EquipmentShare’s founders, Willy and Jabbok Schlacks, are connected to some of the OWN investors.

“The recent report by Blue Orca Capital mischaracterizes EquipmentShare’s business model, financial statements, and the OWN Program”, said EquipmentShare in a statement issued last Friday.

“As an entity with a disclosed short position, [Blue Orca] stands to profit directly from short-term stock volatility driven by misleading narrative claims.

Photo: EquipmentShare

“EquipmentShare remains focused on executing its growth strategy, driving strong operational performance, and expanding its footprint across the construction technology and rental markets.

“We account for all material commercial agreements—including the OWN Program—in strict accordance with U.S. GAAP and SEC disclosure requirements. Our financial statements are independently audited by a Big 4 accounting firm.

“Our fundamentals, addressable market, and long-term momentum have never been stronger. We remain confident that the ongoing execution of our strategy and the strength of our business will continue to deliver long-term value for our shareholders.”

Blue Orca Capital is a US-based investment business that specialises in taking short positions on companies. It published its report on 24 September.

Among its claims is that investors buying equipment through the OWN Program receive loss protection and expectations that EquipmentShare will ultimately repurchase their equipment, potentially creating billions of dollars of liabilities.

EquipmentShare is the fastest growing major rental business in the US and worldwide. It is expanding its fleet and depot network ambitiously and has won a lot of work on mega projects in the US, including data centres.