Custom Truck (CTOS) Q1 2026 Earnings Transcript

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Date

Tuesday, April 28, 2026 astatine 9 a.m. ET

Call participants

• Chief Executive Officer — Ryan McMonagle

• Chief Financial Officer — Christopher Eperjesy

• Investor Relations — Brian

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Full Conference Call Transcript

Today's treatment of our results of operations for Custom Truck One Source, Inc., oregon Custom Truck, is presented connected an humanities ground arsenic of oregon for the 3 months ended 03/31/2026 and anterior periods. Also, a reminder that opening this quarter, our fiscal reporting reflects our 2 caller operating segments: Specialty Equipment Rentals, oregon SER, and Specialty Truck Equipment and Manufacturing, oregon STEM. While our 2026 results successful our net property merchandise and SEC filing bespeak the exertion of intersegment pricing and margins, arsenic per accounting requirements for intersegment sales, the conception results for 2025 bespeak the intersegment income with nary margin, arsenic nary intersegment statement was successful spot successful the period. For an illustrative examination of what the 2025 results would person been had intersegment income been reflected with the due gross borderline and had different interior accounting policies been successful spot astatine the time, delight spot the appendix of the Q1 capitalist presumption posted connected our Investor Relations website.

Also, definite information successful the appendix of the capitalist platform for Q1 and Q2 2025 for our STEM conception was corrected to bespeak an interior error. Full twelvemonth 2025 STEM results were not impacted by the change. Joining maine contiguous are Ryan McMonagle, CEO, and Christopher Eperjesy, CFO. I volition present crook the telephone implicit to Ryan.

Ryan McMonagle: Thanks, Brian, and bully morning, everyone. 2026 is disconnected to a large start, arsenic we delivered grounds archetypal 4th gross driven by continued beardown momentum successful our halfway extremity markets and fantabulous execution by our team. In the archetypal quarter, we generated gross of $462 cardinal and adjusted EBITDA of $98 million, up much than 933% twelvemonth implicit year. The cardinal operator of our show successful the 4th was continued spot successful our Specialty Equipment Rentals segment, arsenic the betterment we experienced passim past twelvemonth successful the transmission and organisation markets continued into Q1. Our rental fleet averaged 81.4% utilization during the quarter, up 370 ground points from Q1 of past year.

This was supported by continued robust levels of OEC connected rent, which averaged $1.34 cardinal successful Q1, up 12% twelvemonth implicit year. So acold successful Q2, some measures person continued to strengthen, with utilization and OEC connected rent presently trending supra our archetypal 4th averages. We ended the 4th with full OEC of $1.66 billion, the highest quarter-end level successful our history, which volition enactment our anticipation for continued maturation successful SER revenues this year. Also, the mean property of our fleet is little than 3 years old, which we judge is 1 of the youngest fleets successful the manufacture and positions america good to enactment our customers.