Capital Allocation — where the next dollar goes

Scope

The holding company's real job — not operating, but deciding where capital earns most across the entities

Cadence

Quarterly re-rank (after books close) · sits under the Enterprise V2MOM

Why this page exists

Arizona Truck and Equipment doesn't operate — it allocates capital and manages consolidated risk. Its scoreboard is not an average of the children; it's the return on every dollar deployed. This page ranks entities by where the next dollar earns most, so the north star drives allocation, not just reporting. Markers: 🟢 Confirmed · 🟡 Assumption · 🔴 Gap · 🎯 Target.

Holding structure (the capital map)

🟢 Arizona Truck and Equipment, Inc. is the holding company (formed to acquire Superior Equipment from Joe Pierce); each entity is a separate INC with its own EIN, books, and bank accounts — inter-entity deals are arm's-length B2B, no consolidated reporting.

Brandon Tomkins
├── Arizona Truck and Equipment — holding company
│   ├── Superior Equipment (SEQ) — rebuild shop
│   │   └── Superior Truck & Equipment (STE) — dealership (owned by the shop)
│   ├── Cactus Truck Parts (CTP) — used parts
│   ├── Superior Water Truck Parts (SWTP) — new parts
│   ├── Superior Truck Rental (SWTR) — rentals
│   ├── Cactus Truck Rebuilder (CTR) — tractor-trailer rebuilds
│   ├── Sedona Jeep Builders — Jeep rebuild & sale
│   ├── Turo Car Rental — Wrangler fleet on Turo
│   └── Sonoran Taco Shop — crew café
└── Desert Equipment Transport (DET) — hauling; Brandon-owned directly,
    outside the holding company, to ring-fence freight liability

🟢 The DET ring-fence and the SEQ→STE intermediate ownership are deliberate liability/history decisions (detail folded from the holding-structure analysis).

The holdco scoreboard (capital allocator KPIs)

Defined once in the Metrics Glossary → Enterprise; fed to the consolidated scoreboard.

Measure	🎯 Target	Actual	Status	Source
Consolidated ROIC	🔴 set	—	pending #55	warehouse
Operating / free cash flow	🔴 set	—	pending #55	QB
Net debt / EBITDA	🔴 set	—	pending #55	QB
Incremental ROIC by entity (ranking below)	🎯 rank	—	pending #55	this page

Entity capital ranking — where the next dollar earns most

🔴 Gap (the central stakeholder question): how engine cash is deployed across reinvestment, the adjacent bets (Sedona Jeep / Turo / Sonoran Taco), and reserves is undocumented and cannot be ranked until the GL pipeline (#55) yields per-entity returns. The framework is built; the ranking table below fills when actuals land.

Rank	Entity	Incremental ROIC	Thesis for the next dollar	Confidence
—	—	—	🔴 pending live financials (#55)	—

Working thesis (🟡, to be confirmed by the numbers): the highest-return next dollar is demand capture (phone/GHL) and the rent-to-own credit — near-zero capex, unlocks the whole rent→buy→maintain flywheel — not more fleet or more inventory. The scoreboard already reads that capture, not production, is the binding constraint.

Near-term operating priority

🟢 The water-truck engine through peak season at the 8-builds/month target (SEQ), funded by the NextGear floor plan and recycled sale proceeds (STE).

Group strategic initiatives (cross-entity intent)

Initiative	Status	Milestone	Detail
SP-MX — SWTP parts into Mexico	🟡 documented intent	🔴 set	SWTP
CTP-MX / Ritchie Bros used-parts conduit	🟡 dormant, warm contact	🔴 set	CTP
Framework-as-Product	🟡 strategic intent	🔴 set	—
Cactus Truck Rebuilder build-out	🔴 model undefined	🔴 set	—

This page changes only on a logged decision. Full legacy detail (pre-consolidation holding-structure and group-strategy write-ups) remains at the deprecated enterprise/ thesis pages.