Key Highlights

  • Custom Truck One Source (NYSE:CTOS) raised 2026 adjusted EBITDA guidance to USD 447.5 million to USD 460 million from USD 437.5 million to USD 455 million and lifted fleet investment to USD 210 million to USD 230 million, which trims free cash flow guidance.
  • Agilysys (NASDAQ:AGYS) raised fiscal 2027 revenue guidance to USD 374 million to USD 378 million, subscription growth to at least 34% from at least 32% and adjusted EBITDA to 25% of revenue from 24%, after record revenue of USD 93.4 million.
  • Phillips Edison & Company (NASDAQ:PECO) raised the floor of 2026 core FFO guidance to USD 2.75 to 2.79 per share from USD 2.73 to 2.79 after core FFO of USD 0.71, up 9.2%, and kept same-center NOI growth guidance at 3.50% to 4.00%.
  • All three guided with stated risks: fleet spending cuts cash at Custom Truck, one-time product revenue helped Agilysys, and refinancing costs and tenant failures could hurt Phillips Edison in the coming quarters.

Custom Truck One Source (NYSE:CTOS): EBITDA raised, free cash flow lowered

Custom Truck One Source rents and sells specialty trucks and equipment to utility, infrastructure and construction customers. Its Specialty Equipment Rentals segment produced adjusted EBITDA of USD 121.9 million, up 22.5%, at a 54.6% margin against 52.4%. Average equipment on rent rose 10.5% to USD 1.39 billion, and the yield was 39.4% against 38.2%. In the equipment manufacturing and sales segment, adjusted EBITDA was USD 36.6 million, but third-party new equipment sales fell 5.5% because a vendor recall and hail damage shifted more than USD 20 million of deliveries into the fourth quarter. That timing effect explains the revenue shortfall. Fleet utilization reached 81.5% against 79.3% a year earlier. CEO Ryan McMonagle said record demand across core transmission and distribution markets drove 16% year-over-year adjusted EBITDA growth, and described the fleet investment as capital behind visible, long-duration demand, with the larger earnings benefit arriving in 2027. Guidance now has rental segment revenue at USD 870 million to USD 890 million from USD 850 million to USD 875 million, net rental fleet investment at USD 210 million to USD 230 million from USD 170 million to USD 200 million, and levered free cash flow slightly positive rather than above USD 50 million. CFO Chris Eperjesy expects fourth-quarter revenue and adjusted EBITDA to rise both year over year and sequentially. Raising fleet spending cuts free cash flow, so Custom Truck One Source (NYSE:CTOS) is trading near-term cash for future earnings, and ending equipment value of USD 1.76 billion is a large asset base to finance. Net leverage of 3.70 times is lower but still significant. The equipment sales line is exposed to supplier recalls and weather.

Agilysys (NASDAQ:AGYS): revenue and margin outlook lifted

Agilysys sells point-of-sale, property management and related software to hotels, resorts, casinos and stadiums. For the quarter ended September 30, 2026, total revenue was USD 93.4 million. The company's customers include hotels, resorts, casinos and stadiums, so demand follows hospitality capital budgets. Subscription and maintenance revenue was USD 62.2 million against USD 51.0 million, professional services were USD 19.2 million against USD 18.2 million, and products were USD 12.0 million against USD 10.1 million. Recurring revenue made up 66.6% of the total, up from 64.3% a year earlier. Gross margin rose to 64.6% from 61.7%, which helped adjusted EBITDA reach 25.9% of revenue. GAAP net income was USD 13.2 million. Cash rose to USD 137.6 million from USD 116.9 million at fiscal year-end, while free cash flow was USD 14.8 million against USD 15.0 million. CEO Ramesh Srinivasan said the business continues to grow ahead of previous expectations, citing subscription growth, higher-than-expected one-time product revenue, industry investment in modern point-of-sale technology, a record sales quarter and record backlog despite strong implementation results. The company raised its outlook: total fiscal 2027 revenue of USD 374 million to USD 378 million, subscription revenue growth of at least 34% from at least 32%, and adjusted EBITDA of 25% of revenue from 24%. Agilysys (NASDAQ:AGYS) has no buyback program in place, and the only repurchases in the six months were USD 1.2 million of shares withheld for employee taxes, so cash is accumulating on the balance sheet. The 19th consecutive record quarter extends a streak that began years ago, though growth rates can slow as the base gets larger. The beat was partly helped by one-time product revenue, which management itself called higher than expected, so some of the upside will not recur.

Phillips Edison & Company (NASDAQ:PECO): core FFO floor raised by 2 cents

Phillips Edison owns grocery-anchored neighborhood shopping centers, and its third quarter produced USD 0.49 of net income per diluted share against USD 0.20 a year earlier. Nareit FFO, a REIT measure that adds back depreciation, was USD 0.69, and core FFO, which also strips one-time items, was USD 0.71. Same-center NOI of USD 122.4 million rose 5.3%. Occupancy stood at 97.5% leased overall, with inline small-shop space at 95.1% against 99.0% for anchors. The company bought three shopping centers and land parcels for USD 181.8 million and sold assets worth USD 87.1 million. Consensus EPS of USD 0.15 on one data page does not match REIT reporting, so FFO is the better yardstick. The most important number is the combined leasing spread of 25.5%, meaning new and renewed leases were signed at rents about a quarter above those they replaced. New leases rose 26.3% and renewals 25.2%, the highest renewal spread the company has reported. Spreads this wide reflect scarce supply of well-located retail space, strong demand from grocers and service tenants, and rents that lagged inflation on older leases. CEO Jeff Edison said Phillips Edison & Company (NASDAQ:PECO) delivered another quarter of strong results and that the operating environment remains solid, a view backed by the near-full occupancy figures. Rents on older leases had simply lagged what the market now pays. Guidance for same-center NOI growth was kept at 3.50% to 4.00%, below the quarterly pace of 5.3%. The 2026 core FFO range of USD 2.75 to 2.79 raises the lower end by 2 cents and keeps the top. At the midpoint of USD 2.77, the company expects roughly full-year earnings in line with the quarter's run rate, which suggests management is not assuming further acceleration.

Where Things Stand

The answer is that all three lifted ranges, but the lifts differ in quality. Agilysys (NASDAQ:AGYS) raised revenue, subscription growth and margin. Custom Truck One Source (NYSE:CTOS) raised EBITDA while lowering free cash flow. Phillips Edison & Company (NASDAQ:PECO) raised only the floor of its range by 2 cents. The common theme is demand strength in power grid work, hospitality software and grocery-anchored retail. Guidance is management's estimate and can change. This is not investment advice.