<PAGE>

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                                 UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549

                               ----------------

                                   FORM 10-Q

  [X]          QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                    OF THE SECURITIES EXCHANGE ACT OF 1934

               For the quarterly period ended September 30, 2000

                                      OR

  [_]      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934

                         Commission File No. 001-14163

                       National Equipment Services, Inc.
            (Exact name of registrant as specified in its charter)

               DELAWARE                              36-4087016
    (State or other Jurisdiction of               (I.R.S. Employer
    Incorporation or Organization)               Identification No.)

                       1603 Orrington Avenue, Suite 1600
                           Evanston, Illinois 60201
                   (Address of principal executive offices)
                                  (Zip code)

                                (847) 733-1000
             (Registrant's telephone number, including area code)

                               ----------------

  Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes [X] No [_]

  There were 24,123,387 shares of Common Stock ($.01 par value) outstanding as
of November 6, 2000.
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<PAGE>

                       NATIONAL EQUIPMENT SERVICES, INC.

                         QUARTERLY REPORT ON FORM 10-Q

                             For the Quarter ended
                               September 30, 2000

                                     INDEX
<TABLE>
<CAPTION>
                                                                           Page
                                                                          Number
                                                                          ------
 <C>     <S>                                                              <C>
 PART I. FINANCIAL INFORMATION
 Item 1.  Financial Statements
          Consolidated Balance Sheets at September 30, 2000
          (Unaudited) and December 31, 1999 ..........................       3
          Consolidated Statements of Operations for the three and nine
          months ended September 30, 2000 and 1999 (Unaudited)........       4
          Consolidated Statements of Cash Flows for the nine months
          ended September 30, 2000 and 1999 (Unaudited)...............       5
          Notes to Consolidated Financial Statements (Unaudited)......       6
 Item 2.  Management's Discussion and Analysis of Financial Condition
          and Results of Operations...................................       8
 Item 3.  Quantitative and Qualitative Disclosures About Market Risk..      10
 PART II. OTHER INFORMATION
 Item 1.  Legal Proceedings...........................................      11
 Item 2.  Changes in Securities.......................................      11
 Item 3.  Defaults upon Senior Securities.............................      11
 Item 4.  Submission of Matters to a Vote of Security Holders.........      11
 Item 5.  Other Information...........................................      11
 Item 6.  Exhibits and Reports on Form 8-K............................      11
 SIGNATURE.............................................................     12

 INDEX OF EXHIBITS.....................................................     13
</TABLE>

                                       2
<PAGE>

PART I.  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

                       NATIONAL EQUIPMENT SERVICES, INC.
                                AND SUBSIDIARIES

                          CONSOLIDATED BALANCE SHEETS
                     (in thousands, except per share data)

<TABLE>
<CAPTION>
                                                      September 30, December 31,
                                                          2000          1999
                                                      ------------- ------------
                                                       (Unaudited)
<S>                                                   <C>           <C>
Assets
 Cash and cash equivalents..........................   $    6,267    $   33,530
 Accounts receivable, net of allowance for doubtful
  accounts of $5,042 and $5,425, respectively.......      138,120       113,136
 Inventory, net.....................................       39,759        37,016
 Rental equipment, net..............................      640,665       559,762
 Property and equipment, net........................       63,536        60,249
 Intangible assets, net.............................      363,341       383,074
 Loan origination costs, net........................        9,667        11,720
 Prepaid expenses and other assets, net.............       25,250        21,127
                                                       ----------    ----------
   Total assets.....................................   $1,286,605    $1,219,614
                                                       ==========    ==========
Liabilities
 Accounts payable...................................   $   38,775    $   45,764
 Accrued interest...................................       16,232         6,353
 Deferred income taxes, net.........................       40,444        40,444
 Accrued expenses and other liabilities.............       32,201        23,568
 Debt...............................................      915,238       856,710
                                                       ----------    ----------
   Total liabilities................................    1,042,890       972,839
                                                       ----------    ----------
Convertible preferred stock.........................       95,672        95,297
Commitments and contingencies.......................          --            --
Stockholders' Equity
Common stock, $0.01 par, 100,000 shares authorized;
 24,123 shares issued...............................          241           241
Additional paid-in capital..........................      123,606       123,606
Retained earnings...................................       43,360        33,959
Stock subscriptions receivable......................         (102)         (102)
Treasury stock at cost, 3,019 shares and 905 shares,
 respectively.......................................      (19,062)       (6,226)
                                                       ----------    ----------
   Total stockholders' equity.......................      148,043       151,478
                                                       ----------    ----------
   Total liabilities and stockholders' equity.......   $1,286,605    $1,219,614
                                                       ==========    ==========
</TABLE>


   The accompanying notes are an integral part of the consolidated financial
                                  statements.

                                       3
<PAGE>

                       NATIONAL EQUIPMENT SERVICES, INC.
                                AND SUBSIDIARIES

               CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
                     (in thousands, except per share data)

<TABLE>
<CAPTION>
                                           For the Three       For the Nine
                                           Months Ended        Months Ended
                                           September 30,       September 30,
                                         ------------------  ------------------
                                           2000      1999      2000      1999
                                         --------  --------  --------  --------
<S>                                      <C>       <C>       <C>       <C>
Revenues
 Rental revenues.......................  $127,630  $ 98,111  $345,011  $236,940
 New equipment sales...................    13,976    11,982    39,871    30,717
 Rental equipment sales................     5,585     7,128    20,714    20,417
 Parts, service and other..............    20,322    14,883    54,927    41,405
                                         --------  --------  --------  --------
   Total revenues......................   167,513   132,104   460,523   329,479
                                         --------  --------  --------  --------
Cost of revenues
 Rental equipment depreciation.........    23,923    18,286    67,872    45,946
 Cost of new equipment sales...........    10,127     9,730    29,758    24,426
 Cost of rental equipment sales........     3,505     4,774    13,468    13,762
 Other operating expenses..............    57,353    37,168   155,520   100,097
                                         --------  --------  --------  --------
   Total cost of revenues..............    94,908    69,958   266,618   184,231
                                         --------  --------  --------  --------
Gross profit...........................    72,605    62,146   193,905   145,248
Selling, general and administrative
 expenses..............................    33,340    26,229    94,395    64,465
Non-rental depreciation and
 amortization..........................     6,985     4,778    20,564    12,351
                                         --------  --------  --------  --------
Operating income.......................    32,280    31,139    78,946    68,432
Other income, net......................        86       269       280       936
Interest expense, net..................   (21,628)  (15,500)  (61,740)  (41,834)
                                         --------  --------  --------  --------
Income before income taxes.............    10,738    15,908    17,486    27,534
Income tax expense.....................     4,977     6,681     7,710    11,564
                                         --------  --------  --------  --------
Net income.............................  $  5,761  $  9,227  $  9,776  $ 15,970
                                         ========  ========  ========  ========
Basic earnings per common share........  $   0.27  $   0.39  $   0.44  $   0.68
                                         ========  ========  ========  ========
Average number of common shares used in
 basic calculation.....................    20,696    23,465    21,251    23,362
                                         ========  ========  ========  ========
Diluted earnings per common share......  $   0.20  $   0.29  $   0.32  $   0.56
                                         ========  ========  ========  ========
Average number of common shares used in
 diluted calculation...................    28,811    31,774    29,430    28,834
                                         ========  ========  ========  ========
</TABLE>


   The accompanying notes are an integral part of the consolidated financial
                                  statements.

                                       4
<PAGE>

                       NATIONAL EQUIPMENT SERVICES, INC.
                                AND SUBSIDIARIES

               CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                                 (in thousands)

<TABLE>
<CAPTION>
                                                             For the Nine
                                                             Months Ended
                                                             September 30,
                                                          --------------------
                                                            2000       1999
                                                          ---------  ---------
<S>                                                       <C>        <C>
Operating Activities
Net income..............................................  $   9,776  $  15,970
Adjustments to reconcile net income to net cash provided
 by operating activities:
 Depreciation and amortization..........................     88,436     58,297
 Gain on sale of equipment..............................     (7,162)    (6,799)
 Changes in operating assets and liabilities:
  Accounts receivable...................................    (23,399)   (20,966)
  Inventory.............................................     (1,748)   (12,068)
  Prepaid expenses and other assets.....................     (3,290)   (11,800)
  Accounts payable......................................     (7,114)    15,291
  Accrued expenses and other liabilities................     19,523     20,220
                                                          ---------  ---------
Net cash provided by operating activities...............     75,022     58,145
                                                          ---------  ---------
Investing Activities
Acquisitions, net of cash received......................    (14,427)  (217,132)
Cash received in connection with business combination...     18,000        --
Purchases of rental equipment...........................   (157,676)  (167,165)
Proceeds from sale of rental equipment..................     20,714     20,417
Purchases of property and equipment.....................    (16,699)   (17,662)
Proceeds from sale of property and equipment............      1,787      1,227
                                                          ---------  ---------
Net cash used in investing activities...................   (148,301)  (380,315)
                                                          ---------  ---------
Financing Activities
Proceeds from long-term debt............................    100,000    513,476
Payments on long-term debt and capital leases...........    (41,472)  (183,910)
Net proceeds from sale of common stock..................        --          42
Repurchase of treasury stock............................    (12,836)    (1,541)
Payments of loan origination costs......................        324        --
                                                          ---------  ---------
Net cash provided by financing activities...............     46,016    328,067
                                                          ---------  ---------
Net (decrease) increase in cash and cash equivalents....    (27,263)     5,897
Cash and cash equivalents at beginning of period........     33,530        344
                                                          ---------  ---------
Cash and cash equivalents at end of period..............  $   6,267  $   6,241
                                                          =========  =========
</TABLE>


   The accompanying notes are an integral part of the consolidated financial
                                  statements.

                                       5
<PAGE>

                       NATIONAL EQUIPMENT SERVICES, INC.
                               AND SUBSIDIARIES

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                     (in thousands, except per share data)

1. Organization

  National Equipment Services, Inc. (the "Company") is principally a holding
company organized on June 4, 1996 (date of inception) under the laws of
Delaware. The Company conducts its operations through its wholly owned
subsidiaries acquired or formed since the date of inception. The Company owns
and operates equipment rental, sales and service facilities located throughout
the United States. The Company rents various types of equipment to a diverse
customer base, including construction, petro-chemical and other industrial
users. The Company also sells new and used rental equipment, related parts,
and provides other services. The nature of the Company's business is such that
short-term obligations are typically met by cash flow generated from long-term
assets. Consequently, consistent with industry practice, the accompanying
balance sheets are presented on an unclassified basis.

2. Basis of presentation

  The accompanying unaudited financial statements as of and for the quarters
ended September 30, 2000 and 1999 have been prepared in accordance with
generally accepted accounting principles for interim financial information and
with the instructions to Form 10-Q and Article 10 of Regulation S-X. The
December 31, 1999 consolidated balance sheet was derived from audited
financial statements but does not include all of the information and footnotes
required by generally accepted accounting principles for complete financial
statements presentation. In the opinion of management, all adjustments
considered necessary for a fair presentation, consisting only of normal
recurring adjustments, have been included. Results of operations for the
interim periods are not necessarily indicative of the results that may be
expected for a full year. Due to the seasonality which impacts a significant
portion of the Company's locations, the second and third quarters of the year
are typically the most active quarters for the Company.

  The Company does not have any components of other comprehensive income that
would have to be reported in accordance with Statement of Financial Accounting
Standards No. 130, "Reporting Comprehensive Income."

  Certain reclassifications of prior year financial statement amounts have
been made to conform with the current year reporting.

3. Earnings per share

  The Company's earnings per share for the three and nine months ended
September 30, 2000 and 1999 is calculated as follows:

<TABLE>
<CAPTION>
                                             For the Three     For the Nine
                                             Months Ended      Months Ended
                                             September 30,     September 30,
                                            ----------------  ----------------
                                             2000     1999     2000     1999
                                            -------  -------  -------  -------
   <S>                                      <C>      <C>      <C>      <C>
   Net income.............................. $ 5,761  $ 9,227  $ 9,776  $15,970
   Plus interest on convertible debt, net
    of tax.................................     --       --       --       348
   Less accretion on preferred stock.......    (125)    (172)    (375)    (172)
                                            -------  -------  -------  -------
   Net income available to common
    stockholders........................... $ 5,636  $ 9,055  $ 9,401  $16,146
                                            =======  =======  =======  =======
   Weighted average shares.................  21,119   24,082   21,738   24,109
     Less unvested stock...................    (423)    (617)    (487)    (747)
                                            -------  -------  -------  -------
   Basic weighted average shares...........  20,696   23,465   21,251   23,362

   Effect of dilutive securities
     Unvested stock........................     423      617      487      747
     Convertible debt......................     --       --       --     1,175
     Convertible preferred stock...........   7,692    7,692    7,692    3,550
                                            -------  -------  -------  -------
   Diluted weighted average shares.........  28,811   31,774   29,430   28,834
                                            =======  =======  =======  =======
   Basic earnings per share................ $  0.27  $  0.39  $  0.44  $  0.68
                                            =======  =======  =======  =======
   Diluted earnings per share.............. $  0.20  $  0.29  $  0.32  $  0.56
                                            =======  =======  =======  =======
</TABLE>

                                       6
<PAGE>

                       NATIONAL EQUIPMENT SERVICES, INC.
                               AND SUBSIDIARIES

            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued)
                     (in thousands, except per share data)

4. Acquisitions

  As more fully disclosed in the Company's Form 10-K for the year ended
December 31, 1999, the Company completed nineteen acquisitions, accounted for
as purchases, at various times during 1999. In 2000, the Company purchased the
following rental equipment companies:

<TABLE>
<CAPTION>
      Acquisition
      Date            Company                       Location    Purchase Price
      -----------     ------------------------   -------------- --------------
      <C>             <S>                        <C>            <C>
      March 7, 2000   Cassidy & Lee, Inc.        Canton, MA         $9,200
                      Road Light,
                      Inc./Interstate Sign,
      March 7, 2000   Inc.                       Providence, RI      2,000
      June 21, 2000   Laser Products, Inc.       Atlanta, GA         2,000
                      St. Clair Equipment Com-
      August 31, 2000 pany                       Houston, TX         2,300
</TABLE>

  During the quarter ended June 30, 2000, the Company completed an exchange of
all of the stock of its subsidiary, Safety Lights Sales & Leasing, Inc. for
all of the stock of Texoma, Inc. and approximately $18 million in cash. No
gain or loss was recognized on this transaction.

  The following pro forma financial information represents the results of
operations as if the 1999 and 2000 acquisitions had been completed on January
1, 1999, after giving effect to certain adjustments including increased
depreciation and amortization of property and equipment and other assets,
interest expense for acquisition debt and amortization of related intangibles
and goodwill. These pro forma results have been prepared for comparative
purposes only and do not purport to be indicative of the results of operations
which would have been achieved had these acquisitions been completed as of
January 1, 1999, nor are the results indicative of the Company's future
results of operations.

<TABLE>
<CAPTION>
                                              For the Three     For the Nine
                                              Months Ended      Months Ended
                                              September 30,     September 30,
                                            ----------------- -----------------
                                              2000     1999     2000     1999
                                            -------- -------- -------- --------
      <S>                                   <C>      <C>      <C>      <C>
      Revenues............................. $167,794 $155,652 $462,117 $422,839
      Operating income..................... $ 32,354 $ 36,427 $ 80,108 $ 83,282
      Net income........................... $  6,697 $  9,277 $ 10,605 $ 12,871
      Basic earnings per share............. $   0.32 $   0.45 $   0.48 $   0.59
      Diluted earnings per share........... $   0.23 $   0.32 $   0.35 $   0.42
</TABLE>

5. Inventory

  Inventory, net consists of the following, at:

<TABLE>
<CAPTION>
                                                      September 30, December 31,
                                                          2000          1999
                                                      ------------- ------------
      <S>                                             <C>           <C>
      New equipment..................................    $17,789      $16,703
      Used equipment.................................      4,859        3,503
      Contractor supplies............................      6,221        8,577
      Parts..........................................     14,023       10,491
      Reserves for excess and obsolete inventory.....     (3,133)      (2,258)
                                                         -------      -------
                                                         $39,759      $37,016
                                                         =======      =======
</TABLE>

                                       7
<PAGE>

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
       RESULTS OF OPERATIONS (in thousands)

  The following table shows information derived from the Company's
consolidated statements of operations as a percentage of total revenues.

<TABLE>
<CAPTION>
                                                                  Nine Months
                                           Three Months Ended        Ended
                                              September 30,      September 30,
                                           --------------------  --------------
                                             2000       1999      2000    1999
                                           ---------  ---------  ------  ------
<S>                                        <C>        <C>        <C>     <C>
Rental revenues..........................       76.2%      74.3%   74.9%   71.9%
Rental equipment sales...................        3.3        5.4     4.5     6.2
New equipment sales and other............       20.5       20.3    20.6    21.9
                                           ---------  ---------  ------  ------
Total revenues...........................      100.0      100.0   100.0   100.0
Cost of revenues.........................       56.7       53.0    57.9    55.9
                                           ---------  ---------  ------  ------
Gross profit.............................       43.3       47.0    42.1    44.1
Selling, general and administrative
 expenses................................       19.9       19.9    20.5    19.6
Non-rental depreciation and amortization.        4.2        3.6     4.5     3.7
                                           ---------  ---------  ------  ------
Operating income.........................       19.2       23.5    17.1    20.8
Other income, net........................        0.1        0.2     0.1     0.3
Interest expense, net....................       12.9       11.7    13.4    12.7
                                           ---------  ---------  ------  ------
Income before income taxes...............        6.4       12.0     3.8     8.4
Income tax expense.......................        3.0        5.0     1.7     3.5
                                           ---------  ---------  ------  ------
Net income...............................        3.4%       7.0%    2.1%    4.9%
                                           =========  =========  ======  ======
</TABLE>

Results of Operations

  The Company's consolidated financial statements cover the three and nine
months ended September 30, 2000 and 1999. Comparisons of the Company's results
for these periods are significantly impacted by the fact that the Company
completed nineteen acquisitions at different times during 1999, with fourteen
completed during the first nine months of the year. Four additional
acquisitions were completed during the first nine months of 2000. The results
of operations of the businesses acquired in these acquisitions are included in
the Company's financial statements only from their respective dates of
acquisition. Due to the seasonality which impacts a significant portion of the
Company's locations, the second and third quarters of the year are typically
the most active quarters for the Company.


Results of Operations for the Three and Nine Months Ended September 30, 2000
and 1999

  Revenues. Total revenues increased to $167,513 for the three months ended
September 30, 2000 from $132,104 for the three months ended September 30,
1999. Rental revenues increased to $127,630 from $98,111 during these
respective periods. The increases were primarily the result of the acquisition
of additional businesses after the third quarter of 1999 as well as the
inclusion in 2000 of a full quarter's results for the businesses acquired in
the third quarter of 1999. The increase is also related to strong industry
demand resulting in same store rental revenue growth of 15%. Similarly, total
revenues increased to $460,523 for the nine months ended September 30, 2000
from $329,479 for the nine months ended September 30, 1999.

  Gross Profit. Gross profit increased to $72,605 for the three months ended
September 30, 2000 from $62,146 for the three months ended September 30, 1999
and to $193,905 for the nine months ended September 30, 2000 from $145,248 for
the nine months ended September 30, 1999. Gross margins decreased to 43.3%
from 47.0% and to 42.1% from 44.1% during these respective periods. The
decreases in gross margins are primarily due to the effect of increased costs
relating to 24 start-up locations over the past 21 months and soft rental
rates in some markets.

                                       8
<PAGE>

  Selling, General and Administrative Expenses. Selling, general and
administrative expenses increased to $33,340 for the three months ended
September 30, 2000 from $26,229 for the three months ended September 30, 1999
and to $94,395 for the nine months ended September 30, 2000 from $64,465 for
the nine months ended September 30, 1999. As a percentage of total revenues,
selling, general and administrative expenses remained constant at 19.9% for
the three months ended September 30, 2000 and 1999. As a percentage of total
revenues, selling, general and administrative expenses increased to 20.5% for
the nine months ended September 30, 2000 from 19.6% for the nine months ended
September 30, 1999. This increase is primarily the result of the acquisitions
in 1999 that have higher fixed costs as a percentage of revenues than the
Company and the result of higher costs associated with the start-up locations.

  Non-rental Depreciation and Amortization. Non-rental depreciation and
amortization increased to $6,985 for the three months ended September 30, 2000
from $4,778 for the three months ended September 30, 1999 and to $20,564 for
the nine months ended September 30, 2000 from $12,351 for the nine months
ended September 30, 1999. These increases were due primarily to increased
amortization expense from the acquisition of additional businesses.

  Interest Expense, net. Interest expense, net, increased to $21,628 for the
three months ended September 30, 2000 from $15,500 for the three months ended
September 30, 1999 and to $61,740 for the nine months ended September 30, 2000
from $41,834 for the nine months ended September 30, 1999. These increases
were due to additional debt necessary to complete the acquisition of
businesses during 1999, as well as an overall increase in interest rates on
the Company's revolving line of credit.

Liquidity and Capital Resources

  The Company's primary capital requirements are for the purchasing of new
rental equipment and for acquisitions. The Company's other capital
expenditures include buying vehicles used for delivery and maintenance, and
for property, plant and equipment. The Company purchases rental equipment
throughout the year to replace equipment that has been sold as well as to
maintain adequate levels of equipment to meet existing and new customer needs.
Rental fleet purchases for the Company were $157,676 and $167,165 in the first
nine months of 2000 and 1999, respectively. The Company has substantially
completed its capital expenditure program for 2000.

  For the nine months ended September 30, 2000 and 1999, the Company's net
cash provided by operations was $75,022 and $58,145, respectively. The
increase in 2000 was due primarily to higher earnings before depreciation and
amortization. For the nine months ended September 30, 2000 and 1999, the
Company's net cash used in investing activities was $148,301 and $380,315,
respectively. Net cash used in investing activities consists primarily of
expenditures for new acquisitions and purchases of rental equipment and
property and equipment. The decrease in 2000 was due primarily to reduced
acquisition activity. For the nine months ended September 30, 2000 and 1999,
the Company's net cash provided by financing activities was $46,016 and
$328,067, respectively. Net cash provided by financing activities consists
primarily of borrowings, net of repayments, under the Company's credit
facility. The decrease in 2000 was due primarily to reduced acquisition
spending, offset in part by the Company's increase in purchases of treasury
shares under its stock repurchase program during the nine months ended
September 30, 2000.

  The Company's credit facility provides for a $100,000 term loan and a
revolving credit facility up to a maximum of $650,000 (subject to availability
based on certain financial tests including a borrowing base) to meet
acquisition needs, purchase rental equipment as well as seasonal working
capital and general corporate requirements. As of September 30, 2000, $640,000
was outstanding under the credit facility. Based upon the available borrowing
base at September 30, 2000, the Company had $109,950 available on the
revolving credit facility loan. The Company believes that its credit facility,
together with funds generated by operations, will provide the Company with
sufficient liquidity and capital resources in the near-term to finance its
operations and pursue its business strategy, including acquisitions. Over the
long-term, the Company will need additional financing to continue its
acquisition strategy.

                                       9
<PAGE>

General Economic Conditions, Inflation and Seasonality

  The Company's operating results may be adversely affected by 1) changes in
general economic conditions, including changes in construction and industrial
activity, or increases in interest rates or 2) adverse weather conditions that
may temporarily decrease construction and industrial activity in a particular
geographic area. Although the Company cannot accurately anticipate the effect
of inflation on its operations, management believes this has not had a
material impact on the Company's results of operations and is not likely to in
the foreseeable future.

  The Company's revenues and operating results fluctuate due to the seasonal
nature of the industry in which the Company operates. This is more apparent in
the current year-to-date results because of the more seasonal nature of
businesses acquired during 1999 and the rental patterns of customers in its
new geographical regions (with rental activity tending to be lower in winter).

Recently Issued Accounting Pronouncements

  Statement of Financial Accounting Standards ("SFAS") No. 133, "Accounting
for Derivative Instruments and Hedging Activities," requires an entity to
recognize all derivatives as either assets or liabilities in its statement of
financial position, and measure those instruments at fair value. The
accounting for changes in the fair value of a derivative depends on the
intended use of the derivative and the resulting designation. An entity that
elects to apply hedge accounting is required to establish at the inception of
the hedge the method it will use for assessing the effectiveness of the
hedging derivative, and the measurement approach for determining the
ineffective aspect of the hedge. Those methods must be consistent with the
entity's approach to managing risk. SFAS No. 133 is effective for the
Company's fiscal quarter beginning January 1, 2001. The Company has not yet
determined the impact the new statement may have on the consolidated financial
statements.

  Staff Accounting Bulletin ("SAB") No. 101, "Revenue Recognition," provides
guidance on the recognition, presentation and disclosure of revenue in
financial statements filed with the Securities and Exchange Commission. The
SAB is effective for the Company's quarter beginning October 1, 2000. The
Company has evaluated the relevant revenue recognition criteria discussed in
this SAB and believes it should not have a material impact on the Company's
current accounting policies.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

  The Company's credit facility provides the Company with a $100 million term
loan and permits the Company to borrow up to an additional $650 million of
revolving loans provided that certain conditions and financial tests are met,
subject to a borrowing base. Borrowings under the credit facility bear
interest, at the Company's option, at a specified base rate or eurodollar rate
plus the applicable borrowing margin. At November 6, 2000, the Company had
total borrowings under the revolving facility and the term loan of $630
million, all of which is subject to interest rate risk. Each 1.0% increase in
interest rates on the unhedged variable rate debt would affect pretax earnings
by approximately $6.3 million.

  The Company uses interest rate swap contracts to hedge the impact of
interest rate fluctuations on certain variable rate debt. The Company does not
hold or issue derivative financial instruments for trading or speculative
purposes. The interest rate swap fixed the interest rate at 4.51% on $150
million of variable rate debt through October 23, 2000. The interest
differential was paid or received on a monthly basis and recognized as a
component of interest expense.

Forward Looking Statements

Note: This document contains forward-looking statements as encouraged by the
Private Securities Litigation Reform Act of 1995. All statements contained in
this document, other than historical information, are forward-looking
statements. These statements represent management's current judgement on what
the future holds. A

                                      10
<PAGE>

variety of factors could cause business conditions and the Company's actual
results to differ materially from those expected by the Company or expressed
in the Company's forward-looking statements. These factors include, without
limitation, the Company's ability to successfully integrate acquired
businesses; changes in market price or market demand; loss of business from
customers; unanticipated expenses; changes in financial markets; and other
factors discussed in the Company's filings with the Securities and Exchange
Commission.

                          PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

  Not applicable.

ITEM 2. CHANGES IN SECURITIES

  Not applicable.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

  Not applicable.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

  Not applicable.

ITEM 5. OTHER INFORMATION

  Not applicable.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

  See Index of Exhibits on page 13. The Company did not file any Current
Reports on Form 8-K for the quarterly period ended September 30, 2000.

                                      11
<PAGE>

                                   SIGNATURE

  Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized on November 13, 2000.


                                          National Equipment Services, Inc.

                                                  /s/ Dennis O'Connor
                                          By: _________________________________
                                                      Dennis O'Connor
                                                  Chief Financial Officer


Form 10-Q: For the quarter ended September 30, 2000.

                                      12
<PAGE>

                               INDEX OF EXHIBITS

<TABLE>
<CAPTION>
 Exhibit
 Number                       Description of Document
 -------                      -----------------------
 <C>     <S>                                                                <C>
 11.1    Statement re Computation of Per Share Earnings. Not required
         because the relevant computations can be clearly determined from
         the material contained in the financial statements included
         herein.
 21.1    Subsidiaries of the Company.(1)
 27.1    Financial Data Schedule.
</TABLE>
--------
(1) Incorporated by reference to the Company's Quarterly Report on Form 10-Q
    for the fiscal quarter ended March 31, 2000 (File No. 001-14163).

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