KANSAS CITY, Mo.–(BUSINESS WIRE)– Custom Truck One Source, Inc. (NYSE: CTOS), a prominent provider of specialized equipment for sectors such as electric utilities, telecommunications, rail, forestry, and waste management, released its financial results for the quarter ending March 31, 2026.
In the first quarter, we recorded our highest-ever first-quarter revenue and notable year-over-year growth in revenue and Adjusted EBITDA of 9% and 33%, respectively.
First-Quarter Performance Highlights
Custom Truck achieved a record revenue of $461.6 million for the first quarter, marking a $39.4 million (9.3%) increase from the same period in 2025. Significant increases were noted in various metrics:
- Average OEC on rent rose by $141.4 million (11.8%) compared to Q1 2025.
- Gross profit reached $103.1 million, a $17.5 million (20.5%) improvement year-over-year.
- Adjusted Gross Profit increased by $23.6 million (17.4%) to $159.3 million.
- Net loss improved to $4.1 million, a reduction of $13.7 million (76.9%).
- Adjusted EBITDA climbed to $98.0 million, up by $24.6 million (33.4%).
CEO’s Insights
Ryan McMonagle, CEO of CTOS, remarked, “Our T&D market performance continues to drive our company’s success. The utilization of our rental fleet averaged 81.4%, up 370 basis points from last year. We finished the quarter with an all-time high total OEC of $1.66 billion, which supports anticipated growth in 2026.” He also highlighted strong performance in the STEM segment, which achieved $268 million in revenue, excluding $95 million from internal sales to the SER segment.
Segment Reporting Overview
Starting January 1, 2026, CTOS has reorganized its reporting into two main segments: Specialty Equipment Rentals (SER) and Specialty Truck Equipment and Manufacturing (STEM). This restructuring reflects the company’s management approach and resource allocation strategy for 2026, incorporating intercompany activities and using Adjusted EBITDA as the profit measure for segments.
2026 Financial Outlook
CTOS has reaffirmed its revenue expectations for 2026, anticipating a 3% to 9% year-over-year increase, coupled with an 8% to 15% rise in Adjusted EBITDA. The company plans a net rental fleet investment of approximately $150 million to $170 million and aims to maintain its net leverage ratio significantly below four times this fiscal year.
Management’s Forward Strategy
CTOS is focused on translating market demand into profitable growth while enhancing free cash flow and further improving its balance sheet. With a relatively younger rental fleet and improving working capital dynamics, the company aims to drive higher returns on invested capital and maintain financial flexibility to support long-term customer needs.
Future Communications
CTOS has scheduled a conference call on April 28, 2026, at 9:00 a.m. ET to discuss its first-quarter results in detail. Investors can access the live webcast and presentation materials on the company’s investor relations website.
