KANSAS CITY, Mo., August 03, 2026--(BUSINESS WIRE)--Custom Truck One Source, Inc. (NYSE: CTOS), a leading provider of specialty equipment to the electric utility, telecom, rail, forestry, waste management and other infrastructure-related end markets, today reported financial results for the three and six months ended June 30, 2026.
CTOS Second-Quarter Highlights
Record second quarter revenue of $563.4 million, an increase of $52.0 million, or 10.2%, compared to the second quarter of 2025
Increased Average OEC on rent by $158.5 million, or 13.1%, compared to the second quarter of 2025
Gross profit of $124.0 million, an increase of $21.4 million, or 20.9%, compared to the second quarter of 2025
Adjusted Gross Profit of $180.9 million, an increase of $24.4 million, or 15.6%, compared to the second quarter of 2025
Net income of $10.4 million, an improvement of $38.8 million, compared to the second quarter of 2025
Adjusted EBITDA of $116.8 million, an increase of $23.3 million, or 25.0%, compared to the second quarter of 2025
Reduced net leverage ratio to 3.85x at quarter-end, crossing below 4.0x, compared to 4.02x at the end of the first quarter and 4.31x at year-end 2025
Given strong conditions in the transmission and distribution ("T&D") end markets, and record first half results, increasing 2026 full year revenue guidance range from $2.005 billion - $2.12 billion to $2.1 billion - $2.2 billion and Adjusted EBITDA1 guidance range from $415 million - $440 million to $437.5 million - $455 million
"In the second quarter, we delivered record quarterly revenue and substantial year-over-year growth in revenue and Adjusted EBITDA of 10% and 25%, respectively. Sustained strength in our core T&D markets remains the primary driver of performance within our SER segment and for the Company as a whole. Our rental fleet achieved average utilization of 81.6% for the quarter, up 400 basis points from a year ago, and we ended the quarter with total OEC of $1.68 billion, the highest quarter-end level in our history, positioning us for continued SER growth through the balance of 2026," said Ryan McMonagle, Chief Executive Officer of CTOS. "STEM also had a record quarter, with external customer revenue of $345 million and equipment sales of $332 million. The strength across both segments allowed us to continue making substantial progress in reducing our net leverage. We are optimistic about the second half of 2026, as CTOS remains well-positioned to benefit from secular tailwinds in data center investment, electrification, utility grid upgrades and infrastructure spending. We remain focused on Adjusted EBITDA growth, working capital management, free cash flow generation and continued deleveraging," McMonagle added.
Summary Actual Consolidated Financial Results
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended | |||||||||||||||
(in $000s) | 2026 | 2025 | 2026 | 2025 | |||||||||||||
Rental revenue | $ | 145,060 | $ | 120,814 | $ | 282,275 | $ | 237,075 | $ | 137,215 | |||||||
Equipment sales | 383,559 | 356,112 | 676,193 | 629,975 | 292,634 | ||||||||||||
Parts sales and services | 34,827 | 34,557 | 66,600 | 66,665 | 31,773 | ||||||||||||
Total revenue | 563,446 | 511,483 | 1,025,068 | 933,715 | 461,622 | ||||||||||||
Gross Profit | $ | 123,974 | $ | 102,542 | $ | 227,037 | $ | 188,078 | $ | 103,063 | |||||||
Adjusted Gross Profit1 | $ | 180,901 | $ | 156,549 | $ | 340,161 | $ | 292,176 | $ | 159,260 | |||||||
Net Income (Loss) | $ | 10,399 | $ | (28,380 | ) | $ | 6,297 | $ | (46,171 | ) | $ | (4,102 | ) | ||||
Adjusted EBITDA1 | $ | 116,754 | $ | 93,428 | $ | 214,740 | $ | 166,854 | $ | 97,986 |
1 | Each of Adjusted Gross Profit and Adjusted EBITDA is a non-GAAP measure. Further information and reconciliations for our non-GAAP measures to the most directly comparable financial measure under United States generally accepted accounting principles ("GAAP") are included at the end of this press release. CTOS is unable to present a quantitative reconciliation of its forward-looking Adjusted EBITDA for the year ending December 31, 2026 to its most directly comparable GAAP financial measure due to the high variability and difficulty in predicting certain items that affect Adjusted EBITDA including, but not limited to, customer buyout requests on rentals with rental purchase options and income tax expense. Adjusted EBITDA should not be used to predict Net income (loss) as the difference between the measures are variable and unpredictable. |
Summary Actual Financial Results by Segment
Beginning January 1, 2026, CTOS is reporting our results under two reportable segments: (1) Specialty Equipment Rentals ("SER") and (2) Specialty Truck Equipment and Manufacturing ("STEM"). The new SER segment consists of our historical Equipment Rental Solutions ("ERS") segment (except for certain used sales to be accounted for by STEM) and a portion of our historical Aftermarket Parts and Services ("APS") segment, and the new STEM segment consists of our historical Truck and Equipment Sales ("TES") segment, certain used sales that previously were accounted for by ERS and a portion of our historical APS segment. We are also reflecting intercompany activity between the two segments, which is ultimately eliminated in consolidation. This new segment reporting reflects how CTOS's business is managed and how resources are allocated in 2026 and utilizes Adjusted EBITDA as the segments' profit measure. Segment Adjusted EBITDA is defined as segment operating income or loss before depreciation and amortization, further excluding the effects of purchase accounting adjustments and the impact of sales-type lease accounting for certain leases containing rental purchase options (or "RPOs").
Management believes this new presentation better reflects the positioning of CTOS's strategies and operations portfolio and better reflects key economic drivers, capital intensity, and margin profiles of the respective new segments, as well as aligns our external reporting with how management allocates capital and evaluates performance. Prior period amounts have been recast to reflect the change to two reportable segments.
Specialty Equipment Rentals
Three Months Ended | Six Months Ended | Three Months | ||||||||||||||
(in $000s) | June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | ||||||||||||
Revenue from external customers: | ||||||||||||||||
Rental | $ | 145,060 | $ | 120,814 | $ | 282,275 | $ | 237,075 | $ | 137,215 | ||||||
Equipment sales | 51,659 | 39,661 | 89,436 | 69,516 | 37,777 | |||||||||||
Parts sales and services | 22,100 | 22,353 | 40,871 | 43,318 | 18,771 | |||||||||||
Total revenue from external customers | 218,819 | 182,828 | 412,582 | 349,909 | 193,763 | |||||||||||
Intersegment sales | 4,113 | 15,726 | 10,903 | 27,326 | 6,790 | |||||||||||
Rental AR Provision(1) | 2,390 | 2,358 | 4,566 | 4,203 | 2,176 | |||||||||||
Sales type lease adjustment(2) | (4,318 | ) | 1,179 | (2,215 | ) | 2,436 | 2,103 | |||||||||
Total segment revenue | 221,004 | 202,091 | 425,836 | 383,874 | 204,832 | |||||||||||
Segment Expenses: | ||||||||||||||||
Cost of rental, excluding depreciation | 34,542 | 30,040 | 65,290 | 60,132 | 30,748 | |||||||||||
Cost of equipment sales, net of purchase accounting, sales-type leases and depreciation(3) | 30,884 | 25,959 | 59,356 | 43,885 | 28,472 | |||||||||||
Cost of parts and services, excluding depreciation | 17,914 | 18,993 | 35,882 | 38,970 | 17,968 | |||||||||||
Cost of intersegment sales | 3,728 | 15,726 | 9,838 | 27,326 | 6,110 | |||||||||||
Rental AR provision(1) | 2,390 | 2,358 | 4,566 | 4,203 | 2,176 | |||||||||||
Total segment cost of revenue expenses | 89,458 | 93,076 | 174,932 | 174,516 | 85,474 | |||||||||||
Selling, general and administrative expenses | 14,347 | 16,180 | 28,208 | 30,474 | 13,861 | |||||||||||
Total segment expenses | 103,805 | 109,256 | 203,140 | 204,990 | 99,335 | |||||||||||
Segment Adjusted EBITDA | $ | 117,199 | $ | 92,835 | $ | 222,696 | $ | 178,884 | $ | 105,497 |
1 | Specifically identifiable lease revenue receivables not deemed probable of collection are recorded as a reduction of rental revenue. This is classified as a segment expense for Segment Adjusted EBITDA reviewed by the chief operating decision maker. | |
2 | Impact of sales-type lease accounting for certain leases containing RPOs: this impact is excluded from the measure of Adjusted EBITDA utilized by our CODM to allocate resources and to assess the performance of our segments as we believe continuing to reflect the transactions as an operating lease better reflects the economics of the transactions given our large portfolio of rental contracts. | |
3 | Excludes the non-cash impact of purchase accounting, impact of sales-type lease accounting for certain leases containing RPOs, further excluding depreciation. |
Specialty Truck Equipment & Manufacturing
Three Months Ended | Six Months Ended | Three Months | ||||||||||||
(in $000s) | June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | ||||||||||
Revenue from external customers: | ||||||||||||||
Equipment sales | $ | 331,900 | $ | 316,451 | $ | 586,757 | $ | 560,459 | $ | 254,857 | ||||
Parts sales and services | 12,727 | 12,204 | 25,729 | 23,347 | 13,002 | |||||||||
Total revenue from external customers | 344,627 | 328,655 | 612,486 | 583,806 | 267,859 | |||||||||
Intersegment sales | 93,153 | 97,599 | 188,603 | 192,388 | 95,450 | |||||||||
Total Segment Revenue | 437,780 | 426,254 | 801,089 | 776,194 | 363,309 | |||||||||
Segment Expenses: | ||||||||||||||
Cost of equipment sales, net of purchase accounting, sales-type leases and depreciation(1) | 281,235 | 265,542 | 494,460 | 470,991 | 213,225 | |||||||||
Cost of parts and services, excluding depreciation | 9,551 | 8,634 | 18,645 | 16,078 | 9,094 | |||||||||
Cost of intersegment sales | 78,596 | 97,599 | 158,781 | 192,388 | 80,185 | |||||||||
Total segment cost of revenue expenses | 369,382 | 371,775 | 671,886 | 679,457 | 302,504 | |||||||||
Selling, general and administrative expenses | 20,042 | 16,663 | 37,622 | 32,516 | 17,580 | |||||||||
Floor plan interest expense | 11,139 | 13,764 | 21,658 | 27,061 | 10,519 | |||||||||
Total segment expenses | 400,563 | 402,202 | 731,166 | 739,034 | 330,603 | |||||||||
Segment Adjusted EBITDA | $ | 37,217 | $ | 24,052 | $ | 69,923 | $ | 37,160 | $ | 32,706 |
1 | Excludes the non-cash impact of purchase accounting. |
Consolidated Adjusted EBITDA
Three Months Ended | Six Months Ended | Three Months | |||||||||||||||||
(in $000s) | June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | |||||||||||||||
SER Adjusted EBITDA | $ | 117,199 | $ | 92,835 | $ | 222,696 | $ | 178,884 | $ | 105,497 | |||||||||
STEM Adjusted EBITDA | 37,217 | 24,052 | 69,923 | 37,160 | 32,706 | ||||||||||||||
Eliminations Adjusted EBITDA | (14,942 | ) | — | (30,887 | ) | — | (15,945 | ) | |||||||||||
Segment Adjusted EBITDA | 139,474 | 116,887 | 261,732 | 216,044 | 122,258 | ||||||||||||||
Reconciling Items: | |||||||||||||||||||
Corporate and non-allocated selling, general and administrative expenses | (22,720 | ) | (23,459 | ) | (46,992 | ) | (49,190 | ) | (24,272 | ) | |||||||||
Adjusted EBITDA | $ | 116,754 | $ | 93,428 | $ | 214,740 | $ | 166,854 | $ | 97,986 |
See the Company's Quarterly Report on Form 10-Q for the three months ended June 30, 2026 for a reconciliation of segment-level adjusted EBITDA to Consolidated income (loss) before income taxes.
Summary Combined Operating Metrics
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended | |||||||||||||
(in $000s) | 2026 | 2025 | 2026 | 2025 | ... |