Earnings Releases·Oct 26, 2026, 4:13 PM ET

Custom Truck One Source, Inc. — Third Quarter 2026 Earnings Summary

**Financial Performance:** Q3 2026 total revenue rose 2.7% YoY to $495.2 million, while Adjusted EBITDA increased 15.6% to $110.9 million (margin expanded 250 bps to 22.4%); Net income improved to $2.3 million from a $5.8 million loss in the prior year period, and net leverage decreased to 3.70x.
**Guidance Revisions:** The company raised full-year 2026 SER revenue guidance to $870–$890 million and Consolidated Adjusted EBITDA guidance to $447.5–$460 million (17–20% growth), while revising net rental fleet investment guidance up to $210–$230 million and adjusting levered free cash flow expectations to slightly positive.
**Segment Outlook:** Specialty Equipment Rentals (SER) delivered record OEC on rent of $1.39 billion with 81.5% utilization, while Specialty Truck Equipment & Manufacturing (STEM) saw orders grow 22% YoY despite a 5.5% decline in third-party new sales due to a vendor recall and hailstorm; STEM backlog reached $342 million.
**Strategic Positioning:** Management cites a "once-in-a-generation transmission demand super-cycle" driven by grid modernization and data center load growth, prioritizing production capacity for internal fleet investment over third-party sales, with earnings from incremental fleet investment expected to materialize primarily in 2027.