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Industry Insight Report: Equipment Rental Q3-2025

Sell Your Equipment or Machinery Rental Business in Texas Lion Business Advisors

While equipment rental companies continue to benefit from infrastructure investments, recent data suggests growing caution in the construction sector. The Q3 2025 Civil Infrastructure Construction Index (CICI) dropped to 50.8, signaling tempered optimism. At Lion Business Advisors, we’ve observed that infrastructure-linked rental activity is still strong, but owners are watching backlogs, margins, and cost controls more closely. Buyers continue to favor businesses with consistent fleet utilization and diversified end-markets.

Key Trends

According to FMI’s Civil Infrastructure Construction Index, Q3 2025 sentiment has softened slightly to 50.8 from 52.2 in the previous quarter. While more than half of civil construction firms reported backlog growth this quarter, only 25% expect continued growth into Q4. Rising costs and tighter margins have made project selectivity and cost controls top priorities. For equipment rental companies, this signals an environment where pricing discipline and operational efficiency will be critical. Businesses that can prove stable utilization and margin resilience will likely be more attractive to buyers evaluating future cash flow potential.

Employment and Wage Trends

Employment in commercial and industrial machinery and equipment rental rose by 2.5% in July compared to the prior year, and by 43.4% over the past decade—more than triple the growth rate of overall private employment. Over the last three years, sector employment grew by 18.2% versus 3.7% for the private sector overall. Average hourly wages reached $33.22 in July, up 3.1% year-over-year. However, the three-year wage growth rate of 5.1% lags the overall private sector’s 13.4% increase. This signals continued demand for skilled workers but suggests wage pressures are less extreme than in other trades. From a buyer perspective, stable labor dynamics support confidence in long-term operational continuity.

Industry Forecast

Vertical IQ projects the commercial equipment rental and leasing sector to grow at a compound annual rate of 4.53% from 2025 through 2029. This outpaces general economic growth projections and reflects ongoing demand for flexible asset deployment in construction, logistics, and infrastructure. No Texas-specific updates were reported this quarter.

Outlook

We continue to see a balanced M&A environment for equipment rental businesses. Strategic buyers and regional operators are actively pursuing acquisitions that enhance market share, diversify fleets, or improve geographic coverage. Private equity interest remains selective, often favoring platform-ready businesses with recurring revenues, documented maintenance records, and modern equipment. Companies with diversified end-market exposure, especially those serving infrastructure, utilities, and industrial clients, are commanding stronger valuations. On the lower middle market side, we’ve observed increasing buyer scrutiny around fleet age, replacement costs, and CAPEX cycles.

As we head into the final quarter of 2025, equipment rental companies should continue optimizing fleet utilization and monitoring backlog trends. With infrastructure still providing a demand tailwind, now may be the right time to assess your business’s readiness for sale.

Thinking about selling your equipment rental business in the next 1–3 years? Take our Sellability Score Today to understand your options.

  • Lion Business Advisors’ quarterly industry insights incorporate data and trends sourced from internal deal flow and buyer activity, Vertical IQ, and market comparables from platforms such as Axial and BVR (Business Valuation Resources).