Custom Truck One Source (CTOS) investor relations material

Executive summary

• Q1 2026 revenue reached $462 million, up 9.3% year-over-year, with Adjusted EBITDA rising 33.5% to $98 million, driven by strong end-market demand and operational execution.

• Net loss narrowed to $4.1 million from $17.8 million in Q1 2025, reflecting improved operating income.

• The business is now managed in two segments: Specialty Equipment Rentals (SER) and Specialty Truck Equipment & Manufacturing (STEM), with new segment reporting effective this quarter.

• Rental fleet utilization reached 81.4%, up 3.7 percentage points year-over-year, and OEC on rent averaged $1.34 billion, up 12%.

• STEM backlog ended Q1 at $411 million, up 22.7% sequentially, with strong order growth from local and regional customers.

Financial highlights

• Q1 2026 revenue: $462 million (+9.3% YoY); Adjusted EBITDA: $98 million (+33.5% YoY).

• SER third-party revenue: $194 million (+16% YoY); STEM third-party revenue: $268 million (+5% YoY).

• SER Adjusted EBITDA: $105.5 million (+22.6% YoY), margin 51.5% (+415 bps YoY); STEM Adjusted EBITDA: $33 million, margin 9%.

• Net rental CapEx in Q1: $49 million; OEC in rental fleet at quarter end: $1.66 billion (+6.9% YoY).

• Gross profit margin improved to 22.3% from 20.3% in Q1 2025; operating income more than doubled to $31.5 million.

Outlook and guidance

• Affirmed 2026 revenue guidance: $2.005 billion–$2.12 billion.

• Raised Adjusted EBITDA guidance to $415 million–$440 million (8%–15% YoY growth).

• SER revenue guidance: $835 million–$870 million; STEM revenue: $1.58 billion–$1.655 billion.

• Net leverage expected to fall below 4x by year-end 2026, targeting 3x in 2027.

• Management expects liquidity sources and operating cash flows to be sufficient for operating, debt service, and capital requirements over the next 12 months and beyond.