Custom Truck One Source (CTOS) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 increased 9.3% year-over-year to $461.6 million, driven by higher rental revenue and strong equipment sales.

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

• Adjusted EBITDA rose 33.5% year-over-year to $98.0 million, supported by higher fleet utilization and equipment demand.

• The business is now managed in two segments: Specialty Equipment Rentals (SER) and Specialty Truck Equipment & Manufacturing (STEM).

Financial highlights

• Rental revenue grew 18.0% year-over-year to $137.2 million, with fleet utilization up 3.7 percentage points to 81.4%.

• Equipment sales increased 6.9% to $292.6 million; parts sales and services were flat at $31.8 million.

• Gross profit margin improved to 22.3% from 20.3% in Q1 2025.

• Operating income more than doubled to $31.5 million from $12.4 million a year ago.

• Net cash from operating activities was $23.8 million, down from $55.6 million in Q1 2025 due to higher inventory levels.

Outlook and guidance

• 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.

• No formal forward guidance provided, but positive trends in rental utilization and equipment demand are highlighted.