Custom Truck One Source (CTOS) Q2 2026 Earnings Call Transcript
Custom Truck One Source (CTOS) reported Q2 2026 revenue of $563.4 million (+10.2% Y/Y) and adjusted EBITDA of $116.8 million (+25%). Net income was $10.4 million ($0.05/share). Management cited record equipment sales and 81.6% fleet utilization. FY2026 guidance calls for revenue of $2.1B-$2.2B and adjusted EBITDA of $437.5M-$455M.
How this was made
The 30-second read
Why it matters
The call emphasizes record fleet investment and utilization, improved on-rent yield, and a deleveraging plan, while acknowledging emission-regulation-driven customer cost increases and margin pressure from account mix.
Market read
Traders can update models immediately using the quantified Q2 operating metrics and the explicit FY 2026 guidance and capital allocation plan.
What to watch
New sales backlog fell $89M sequentially, and STEM gross margins were pressured by national-account mix, which could offset the benefits of higher utilization and pricing discipline.
Background
Custom Truck One Source (CTOS) operates a rental fleet and sells/customizes specialty truck equipment, with results split between SER (rental) and STEM (equipment sales/customization).
Ticker impact
CTOS reported Q2 2026 results and raised FY 2026 outlook, including revenue $2.1B to $2.2B and adjusted EBITDA $437.5M to $455M.
Likely positive near-term bias as traders price in higher FY 2026 adjusted EBITDA and deleveraging path toward net leverage below 3x in 2027.
The article provides multiple decision-relevant datapoints: record ending OEC $1.68B, utilization 81.6%, net leverage improving to 3.85x, and explicit FY 2026 guidance ranges plus capex and free cash flow expectations.
Market effects
Supports the view that transmission and distribution utility capex demand is strong enough to sustain specialized equipment rental growth.
No specific regional demand changes disclosed beyond US utility market framing.
Limited, as the narrative is centered on US T&D utility demand and EPA emission standards impacts.
Counterpoint
EPA 2027 NOx standards are expected to raise customer costs, which could pressure end-demand or shift timing even if CTOS is positioned via chassis prebuys.
Key entities
- companyCustom Truck One Source Inc.
Reported Q2 2026 revenue $563.4M (+10.2% YoY), adjusted EBITDA $116.8M (+25% YoY), and provided FY 2026 guidance ranges.
- executiveRyan McMonagle
CEO who discussed a potential transmission demand super cycle and CTOS positioning for EPA 2027 NOx standards.
- executiveChristopher Eperjesy
CFO who highlighted STEM margin impacts from national-account mix and reiterated free cash flow and deleveraging focus.
