Highlights

  • Total revenue for the three months ended September 30, 2026 was $495,224 thousand, and net income was $2,305 thousand.
  • Rental revenue was $152,696 thousand for the quarter, and sales order backlog was $341,920 thousand at September 30, 2026.
  • Equipment sales were $309,597 thousand, against $320,583 thousand a year earlier, and parts sales and services were $32,931 thousand.
  • Management raised 2026 adjusted EBITDA guidance to $447.5 million to $460 million, from a prior range of $437.5 million to $455 million.

Custom Truck One Source, Inc. (NYSE: CTOS) shares were trading at USD 10.32 on October 27, 2026, up 14.54%, with a relative volume at time of 4.68. The specialty equipment provider filed its 10-Q for the quarter ended September 30, 2026 on October 26, 2026, and held its third quarter earnings call on October 27, 2026, where management raised 2026 adjusted EBITDA guidance.

Custom Truck One Source is incorporated in Delaware and lists its principal executive offices in Kansas City, Missouri. It rents and sells specialty equipment, aftermarket parts and services, and provides repair, maintenance and customization services. Customers include electric utility transmission and distribution, telecommunications, rail, forestry, waste management and other infrastructure-related industries in North America. Beginning January 1, 2026, it reports two segments: Specialty Equipment Rentals and Specialty Truck Equipment & Manufacturing. As of September 30, 2026, its rental fleet comprised more than 10,850 units. Its fiscal year ends December 31.

Third Quarter 2026 Results

Total revenue was $495,224 thousand for the three months ended September 30, 2026, against $482,058 thousand a year earlier. Rental revenue was $152,696 thousand, against $127,142 thousand. Equipment sales were $309,597 thousand, against $320,583 thousand, which the company tied to lower unit sales volume. Management said third-party sales were affected by its decision to prioritize production for the rental fleet.

Gross profit was $113,280 thousand and operating income was $38,079 thousand, against $32,629 thousand. Operating expenses were $75,201 thousand, against $68,124 thousand, which the filing attributes mainly to higher transaction and other expenses and higher compensation. Net income was $2,305 thousand, against a net loss of $5,756 thousand. Diluted earnings per share were $0.01, against a loss of $0.03.

Adjusted EBITDA, a non-GAAP measure, was $110,942 thousand, against $95,963 thousand. Fleet utilization was 81.5%, against 79.3%, and OEC on rent yield was 39.4%, against 38.2%. For the nine months, total revenue was $1,520,292 thousand and net income was $8,602 thousand, against a net loss of $51,927 thousand.

Balance Sheet, Cash Flow and Leverage

Cash and cash equivalents were $14.6 million at September 30, 2026, against $6.3 million at December 31, 2025. Outstanding borrowings under the ABL Facility were $710.0 million, against $698.0 million. Availability under the ABL Facility was $234.3 million. Long-term debt, net, was $1,652,562 thousand. The company reported a Net Leverage Ratio of 3.70, a non-GAAP measure, against 3.85 at June 30, 2026.

Net cash from operating activities for the nine months was $231.7 million, against $262.8 million a year earlier. The company said the decrease was primarily from a higher use of cash for inventories. Net cash used in investing activities was $232.9 million. The filing lists its indebtedness and the restrictions in its debt agreements among its risk factors.

2026 Outlook

On the call, management said it is raising full year adjusted EBITDA guidance for the third time this year, to $447.5 million to $460 million. It raised Specialty Equipment Rentals revenue guidance to $870 million to $890 million, from $850 million to $875 million. It affirmed consolidated revenue guidance of $2.1 billion to $2.2 billion.

Management raised its 2026 net rental fleet investment to $210 million to $230 million. It revised levered free cash flow guidance to slightly positive, from more than $50 million. It said it expects non-rental capital expenditures of $40 million to $50 million, and net leverage well below 4x at year end. Management said it expects double digit adjusted EBITDA growth in 2027 and will provide 2027 guidance with fourth quarter results.