Custom Truck One Source (CTOS) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenue of $563.4 million, up 10.2% year-over-year, and Adjusted EBITDA of $117 million, up 25%, driven by strong demand in T&D, infrastructure, utility, and forestry markets.

• Net income for Q2 2026 was $10.4 million, a significant improvement from a net loss of $28.4 million in Q2 2025, reflecting higher operating income and an income tax benefit.

• Rental fleet utilization averaged 81.6%, up 400 basis points year-over-year, with OEC on rent up 13% to $1.37 billion.

• Both SER and STEM segments posted year-over-year revenue and Adjusted EBITDA growth, with STEM segment reporting record equipment sales and a Q2 backlog of $322 million.

• Raised full-year 2026 consolidated revenue guidance to $2.1–$2.2 billion and Adjusted EBITDA to $437.5–$455 million, reflecting strong first-half performance and end-market momentum.

Financial highlights

• Q2 2026 net income: $10.4 million (EPS $0.05), compared to a net loss of $28.4 million in Q2 2025.

• Q2 2026 Adjusted EBITDA: $116.8 million, up from $93.4 million in Q2 2025.

• Gross profit for Q2 2026: $124.0 million (22.0% margin), up from $102.5 million (20.0%) in Q2 2025; Adjusted Gross Profit: $180.9 million.

• Net leverage ratio improved to 3.85x as of June 30, 2026, from 4.31x at year-end 2025.

• Cash and cash equivalents at June 30, 2026: $10.3 million; net debt at $1.66 billion.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $2.1–$2.2 billion (+8–13% YoY); Adjusted EBITDA guidance raised to $437.5–$455 million (+14–19% YoY).

• SER revenue projected at $850–$875 million; STEM revenue at $1.63–$1.7 billion.

• Levered free cash flow expected to exceed $50 million in 2026, with net leverage targeted below 4x by year-end and below 3x in 2027.

• Q3 revenue and EBITDA expected to grow year-over-year but be modestly below Q2 levels due to timing shifts.

• Net rental fleet investment for 2026 forecast at $170–$200 million, supporting mid-single digit OEC growth.