Custom Truck One Source : First Quarter 2026 Presentation

Published: 2026-04-27 16:20:17 ET CTOS

Published on 04/27/2026 at 04:20 pm EDT

Q1 2026 INVESTOR PRESENTATION

NYSE:CTOS

April 2026

HIGH-GROWTH END MARKETS

NEW SEGMENT REPORTING

STRONG Q1 FINANCIAL PERFORMANCE

Growth underpinned by secular megatrends across end markets

Clearer two segment reporting

Record Q1 consolidated revenue of $462M

TsD end market experiencing unprecedented growth resulting from AI-driven data center spending, electrification, grid modernization and storm hardening

Specialty Equipment Rental (SER)

$401M of LTM Adjusted EBITDA1

Specialty Truck s Equipment Manufacturing (STEM)

$137M of LTM Adjusted EBITDA1

Consolidated Adjusted

EBITDA of $G8M

Adjusted EBITDA 33% YoY growth

Infrastructure growth supported by replacement cycle and new public works projects

Compelling investment opportunity with exposure to secular mega trends in TsD and Infrastructure end markets

Effective January 1, 2026, the Company realigned its reportable segments from three segments (Equipment Rental Solutions, Truck and Equipment Sales, and Aftermarket Parts and Services) to two segments: SER and STEM. Historical period results have been recast to conform to the current segment presentation. Please refer to the Appendix on pages 53-56 for the

calculation of these figures. 3

Record Q1 revenue and 33% Adj. EBITDA YoY growth driven by strong core TsD end-markets and continued rental momentum

Revenue

$462 Million

Record first quarter

Adjusted Gross Profit

+17%

Q1 2026 vs. Q1 2025

Adjusted EBITDA

+33%

Q1 2026 vs. Q1 2025

OEC on Rent

+12%

Q1 2026 vs. Q1 2025

Record Q1 revenue

Record Q1 revenue of $462 million drove Adj. EBITDA of $98 million (+33% YoY)

Adj. gross profit of $159 million, +17% YoY

SER segment total revenue +12% YoY driven by sustained performance in core TCD market; rental revenue +18% YoY

Continued rental momentum in Q1

Fleet utilization averaged 81.4% in Q1, +370 bps YoY

Average OEC on rent of $1.344 billion increased by +$141 million, or 12%, YoY

OEC on rent yield of 38.9% increased by 40 basis points YoY

Improving outlook for 2026

Sales order backlog of $411 million increased sequentially by $76 million, or 23%

Reaffirming full-year consolidated revenue outlook; raising the full-year Adjusted EBITDA outlook to reflect strong Q1

Raising Both Ends of Full-Year Adjusted EBITDA Outlook Range: $415M - $440M

Net leverage declined to 4.0x; remain on track to be meaningfully below 4.0x by year-end 2026, with 3.0x target in 2027

Scaled, Differentiated Platform National scale and ability to manage full equipment lifecycle results in both lower costs and higher equipment resale values, driving exceptional unit economics

Large, Growing, Resilient End Markets Participation in high growth end markets

with long-term secular growth drivers; outsized exposure to Transmission C

Distribution ("TCD") (60% of total revenue, 76% of SER segment revenue)

Mission-Critical Applications Fleet of specialty equipment and vehicles are essential assets to large projects with high cost of failure/downtime across TCD, Infrastructure, Telecom, Rail and more

Recurring s Visible Revenue Mix Strategic and recurring customer relationships and high-margin rental business provide durable cash flow, earnings visibility and meaningful wallet share opportunities

Meaningful Operating Leverage Internal production and customization capabilities provide scale benefits, pricing strength, synergies, and a structural cost advantage to drive meaningful margin expansion

Cash Flow Inflection Recent investment cycle now driving improved conversion as fleet now among youngest in the industry (<3 years) and maintenance capex moderates

Disciplined Capital Allocation Clear capital allocation priorities centered around continued leverage reduction, fleet optimization, investment in growth markets and driving superior shareholder returns

O U R P U R P O S E :

Power the people who strengthen our nation's infrastructure

Leading National Provider of Specialty Equipment Serving the TsD and Infrastructure End Markets

Kansas City, MO

1GG6

~2,500

10,350+

250+

8,000+

Global HQ

Founded

Employees1

Fleet Units1

Product Variations

Customers1

Locations2

END MARKET s BUSINESS MIX

End Market Revenue

Consolidated Revenue1,3

Consolidated Adjusted EBITDA1,4,5

Rental Fleet OEC1,6

$1.G44

Billion

(FY'25)

Infrastructure7 40%

T&D 60%

STEM

$1,651M

$1.G83

Billion

(LTM Q1'26)

SER

$833M

Specialty8 25%

$1.655

Billion

(@ 03/31/26)

Utility 75%

STEM

$137

$408

Million

(LTM Q1'26)

SER

$401

As of, or for the twelve-month period ended, March 31, 2026.

Excludes third-party service locations. As of April 27, 2026.

Consolidated Revenue excludes intersegment sales, but the segment revenue figures include intersegment sales.

Consolidated Adjusted EBITDA is a non-GAAP measure. Please refer to the supplemental information provided in the Appendix for reconciliations to the most comparable GAAP measure.

Consolidated Adjusted EBITDA includes the impact of eliminations from intersegment sales while the segment total Adjusted EBITDA figures exclude this impact.

OEC represents the original equipment cost exclusive of the effect of purchase accounting adjustments applied to rental equipment acquired in business combinations and any rental equipment held for sale.

Infrastructure includes Infrastructure, Waste, Rail, Telecom and Other.

Specialty includes Rail, Telecom, and Other.

Highly compelling operating model driven by unique market position and scope of capabilities

National scale creates operating leverage and synergies that give us a structural cost advantage for our customers

Differentiated customer value proposition and ability to meet varied and dynamic needs throughout the

project lifecycle

Highly customizable fleet lends agility to quickly adapt to meet changing customer needs or enter new attractive markets

Unique scope of asset base and capabilities creates highly recurring and strategic customer relationships with meaningful wallet share opportunity

Clear and differentiated value creation model for customers

and stakeholders

Business model results in both lower costs and higher equipment resale values, driving exceptional unit economics

Extensive internal production capabilities and available inventory leads to reduced lead times and customer certainty for on-time equipment delivery

Transmission s Distribution

Allowing workers to safely construct Clearing trees and other vegetation

and maintain power lines, growth from areas surrounding transformers and other electrical power lines

infrastructure

Roll-Off Trucks

Flatbed Trucks

Reliable custom equipment for essential jobs with high cost of failure and downtime

Infrastructure

Road s Bridges

Waste

Rail

Telecom

Transport equipment and materials,

collect liquid in the construction process, perform heavy lifting and manage dust control and soil compaction

Collection and transportation

of municipal solid waste and construction C demolition (commercial) waste

Trucks that can drive on rail

lines for use in maintenance, construction and inspection of railways

Install, maintain and repair

above and below ground communications networks

KEY EQUIPMENT AND TRUCKS

Substantial overlap between markets; Infrastructure trucks also used in T&D end markets

Bucket Trucks

Digger Derricks

Boom Trucks

Track Equipment

Vacuum Trucks

Dump Trucks

Heavy Haul Tractors

Hi-Rail Section Trucks

Water Trucks

Cable Placers

Pole s Reel Trailers

Knuckleboom Trucks

Pulling s Stringing

Forestry Buckets

Trailers

Service Trucks

Hi-Rail Service Trucks

Hi-Rail Scissor Lifts

Bucket Vans 9

Significant exposure to high-growth megatrends, particularly within Transmission s Distribution and Infrastructure

Transmission s Distribution

Infrastructure

Road s Bridges / Waste

Rail

Telecom

Major projects driven by AI data center growth, grid upgrades and strengthening, renewable energy investment, manufacturing reshoring, and frequent mandated maintenance

Aging U.S. infrastructure and ~$1.2T of federal funding drive sustained replacement, modernization and expansion

Aging rail infrastructure drives extensive replacement / refurbishment spend, while increasing consumer usage and freight transportation needs are driving investment

Expanded nationwide broadband offerings via the BEAD program, build-out and implementation of 5G, and significant recurring maintenance of existing networks

60%

of FY'25 Revenue

40%

of FY'25 Revenue1

8.7%

CAGR 2020-2025

~$102 billion

U.S. IOU capex (2025)

7.4%

CAGR 2020-2025

~$310 billion

U.S. non-power capex (2025)

6.G%

CAGR 2020-2025

~$14 billion

North America Rail capex (2025)

3.1%

CAGR 2020-2024

~$90 billion

U.S. Telecom/Broadband capex (2024)

(1) Infrastructure revenue includes Infrastructure, Waste, Rail, Telecom and Other. 10

Source: SEC Filings, Third-Party Market Research, Edison Electric Institute, Power Insights, FMI, US Telecom

Strong transmission s distribution capex growth driven by durable and diverse megatrends

Load Growth

Aging Grid Infrastructure

AI and Data Center Expansion

Electrification

Manufacturing Reshoring

Aging Grid

Storm Resiliency

AI workloads and cloud migration are driving higher compute intensity and power requirements

Growing power demand from data centers and digital infrastructure is accelerating power grid investments

Tariffs, geopolitical risk and supply-chain disruptions are accelerating reshoring; helped by federal incentives (CHIPS, IRA)

Aging grid assets well past their intended useful life is driving elevated replacement and maintenance spend

More frequent and severe weather events are forcing utilities to increase investment in grid resilience

+23%

2025-2030 U.S.

Data Center Power

Demand CAGR

+17%

2025-2030 U.S.

Transmission Specialty

Truck Rental Market CAGR

~$450 billion

Planned investment by U.S. companies to support onshoring of critical manufacturing

50-60 years

10-20 years beyond 40-year useful life of transformers installed during peak build cycle

+18%

CAGR of extreme weather events since 2019

Market growth further supported by rising rental penetration and increased TsD outsourcing due to project cost management, access to specialized equipment, heightened demand/extended lead times and labor shortages

Source: Third-Party Market Research

Forecasted load growth and required grid modernization expected to drive significant TsD investment wave

Projected U.S. Data Center Power Demand

('000s TWh)

0.7

0.6

0.5

0.4

0.3

0.2 0.2

0.1 0.1 0.1 0.1

Five-Year Nationwide Load Growth Forecast

(2029 Summer Peak Demand Growth, GW)

3G GW

23 GW

67 GW

With Updates: 128 GW

U.S. IOU Electric TsD Capex

($ millions)

Distribution Transmission

$140,000

$120,000

$100,000

$80,000

$60,000

$40,000

$20,000

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025P

2026P

2027P

2028P

2029P

2022 FERC

Forecasted Peak Demand: 840 GW

2023 FERC

Forecasted Peak Demand: 859 GW

2024 FERC

Forecasted Peak Demand: 947 GW

Recent inflection in power demand is largely driven by data centers and AI, as it accounts for

~72% of incremental power demand growth from 2025-2030

In just two years, the 5-year load growth forecast increased by 5x; this follows a period of essentially zero growth in the prior decade

Total TCD spending among U.S. Investor-Owned Utilities projected to grow at an 8.4% CAGR through 2029; Transmission to grow at 15%+ CAGR

Outsourcing Trends Expected to Drive TsD Contractor Equipment Rental Market Growth of ~13% CAGR Over the Next Five Years

Source: Third-Party Market Research, Grid Strategies, Power Insights

Aging infrastructure replacement cycle and new required spend supported by federal funding (IIJA, IRA, CHIPS Act)

Average Age of Infrastructure Exceeds Average Life Expectancy

(Years)

Top Construction Projects by Value and Location (2022 - 2024; Bubble Size Indicates Size of Investment)

U.S. Non-Power Infrastructure Capex

($ millions)

$400,000

50 50 50 50

$350,000

$300,000

$250,000

$200,000

$150,000

$100,000

$50,000

Roads Bridges Rail Water Pipes Levees

A large installed base of U.S. infrastructure is reaching the end of its life cycle, driving replacement to maintain safety and reliability

Manufacturing reshoring is accelerating and will require substantial investment in surrounding infrastructure

Stable and growing capex on critical infrastructure projects expected to support

>5% CAGR through this decade

Total non-power infrastructure spending is projected to grow at a 5.4% CAGR to $377 billion by 202G

Source: Third-Party Market Research, U.S. Army Corps of Engineers and the American Society of Civil Engineers (Aging Infrastructure), Construction Dive (Manufacturing Nearshoring)

Serving 8,000+ blue chip customers across TsD, Infrastructure/Telecom, and Rail end markets

Transmission s Distribution

Infrastructure

Road s Bridges / Waste

Rail

Telecom

8,000+

Customers served

<4%

Maximum revenue from any single customer

24%

Revenue contribution from top 15 customers

~20 Years

Average tenure with top customers

National

Industry-leading footprint and equipment breadth

Note: Metrics are as of and for the year ended 12/31/25, unless otherwise noted.

41 locations in the U.S. and Canada, including new locations in Portland, OR (June 2025) and Orlando, FL (October 2025)

Highlights our continued confidence in the strength of the rental markets and reinforces our commitment to our growth strategy

SER: More than 300 technicians located across our branches; with opportunities

to invest in Pacific NW, Northern California,

NY/NJ Metro, Carolinas

STEM: Regional production centers; adding capacity in Casa Grande, AZ and Kansas City, MO

National footprint provides flexibility in managing the rental fleet and superior customer service for rental and sales customers

New Location

Opened in June 2025

New Location

Opened in

October 2025

Simplified reporting structure better reflects operational decision making and capital allocation strategy

Specialty Equipment Rentals (SER)

Specialty Truck s Equipment Manufacturing (STEM)

Core rental revenues, sale of rental assets, aftermarket parts and services

New and used (non-rental) sales, production and manufacturing activities, aftermarket parts and services

KPIs and Measures1

Revenue by Category Adjusted EBITDA

Adj. Gross Profit C Margin OEC on Rent

Utilization Net Capex

On Rent Yield (ORY) Asset-Level Returns

Fleet Size C Age

KPIs and Measures1

Revenue by Category New Sales Backlog

Adjusted EBITDA Net Order Trends

Simplified, two-segment reporting provides greater visibility into a more accurate sum-of-the-parts valuation

(1) Please see the Appendix for definitions of certain of the Key Performance Indicators and Measures.

Durable rental model: high-utilization fleet + recurring revenue + high margin = strong, predictable Adj. EBITDA generation

TsD Sector Expertise

Fleet Age

Strong Utilization

Attractive Contract Duration

Best-in-Class Service

76%

81.4%

12-13 Months

300+

Revenue from TCD

Customers

Years

Fleet utilization as of

Q1 2026

Average contract duration

Rental Service Technicians

Serving TCD contractors and IOUs across distribution, transmission and substation work

We believe we have one of the youngest fleets in the industry

High time utilization due to strategic focus on in-demand assets, proven fleet management strategy and rapid service response

Average contract duration of 12-13 months provides strong forward revenue visibility and reduces re-pricing risk across the rental fleet

In-house team services equipment at a lower rate than external providers, while a young fleet requires less repair C maintenance

2025 Full Year Financial Highlights

Segment Strategy s Growth Objectives

$810M

Revenue (33% of total)1

$442M

Adj. Gross Profit2 (55% margin)

Gain Utility End-Market Share

Grow Specialty Penetration

$384M

Adj. EBITDA2 (47% margin)

~83.6%

Q4 2025 Avg. Fleet Utilization

Expand End-Market Exposure

Leverage Service Network

Figures are shown as a percentage of total SER and STEM revenue, including the impact of intersegment sales, and before any consolidating eliminations.

Figures are shown on an "as adjusted" basis. Please refer to the supplemental information in the Appendix for the calculation of these figures.

Capital-light, in-house production and supply chain + aftermarket lifecycle revenue = durable, high return business

Dominant Market Position

Large Installed Base

Full-Spectrum Product Portfolio

Strong Order Book s Backlog

Vertical Integration

20,000+

20+

$411M

~20%

Specialty Truck Upfitter

in N. America

Trucks and trailers sold

2022-2025

Product Categories

Sales order backlog

as of Q1 2026

Third-party sales from vertically

integrated products and growing

Dominant across all five value chain steps: upfit, distribution, parts, service and used sales

Tremendous scale and large installed base

Captive preferred supplier to SER, intersegment flow drives margin certainty and fleet lead times

Up 20% since the end of Q1 2025, with continued strong order flow from local and regional customers

Protects supply chain and expands margin

2025 Full Year Financial Highlights

Segment Strategy s Growth Objectives

$1,656M

Revenue (67% of total)1

$25GM

Gross Profit2 (16% margin)

Gain Market Share with National

and Regional Customers

Expand Aftermarket

Parts s Service

$134M

Adj. EBITDA2 (8% margin)

+4% Revenue Growth

Record Annual Revenue

Optimize Inventory and Working Capital

Extend Vertical Integration

Figures are shown as a percentage of total "as adjusted" SER and STEM revenue, including the impact of intersegment sales, and before any consolidating eliminations.

Figures are shown on an "as adjusted" basis. Please refer to the supplemental information in the Appendix for the calculation of these figures.

Dealers

Rental

Sales

Rent-to-Purchase

Bucket Trucks

Service Trucks

TsD

Specialty

Light Trucks and Other

Telecom

Tractors

Heavy Haul Trailers

Chip Trucks

Hi-Rail

Flatbeds

Refuse Trucks

Roll-Offs

Vegetation

Track Equipment

Complementary business segments lend broad capabilities across the full value chain, creating a stronger unified company

SER Focus

STEM Focus

Both

Production s Manufacturing

Distribution s Sales

Aftermarket

Disposition

Used Sales

Re-Manufacturing

Auction

Chassis OEM

Bodies s Attachments OEM

Upfitters

Parts

Service

Revenue Streams

End Markets

TsD Contractors and IOUs

Infrastructure

Waste

Telecom

Rail

Other Markets (Transportation, Gen Rent, Municipal, etc.)

Product Categories

Digger Derricks

Vacuum Trucks

Pulling s Stringing

Dump Trucks

Boom Trucks s Knucklebooms

Water Trucks

Mixers

Pickup Trucks

Propane Trucks

RT + AT Cranes

Box Trucks

Municipal

Heavy Duty (Class 7-8)

Medium Duty (Class 3-6)

Truck Chassis Class

Light Duty (Class 1-2)

Deleveraging Focus

Expect to reduce net leverage to meaningfully below 4x in 2026 and targeting 3x in 2027

Cash Flow Discipline

Capex C FCF Focus

Fleet Optimization

Utilization C Asset Mix

Specialty Rental Growth

High-Margin Recurring Revenue

Lifecycle Monetization

Sales, Rentals, Parts C Service

Two best-in-class segments

STEM: Grow revenue and drive higher margins

SER: Grow specialty rental and optimize fleet

Cash flow conversion as a core operating discipline

Continued reduction of inventory months on hand toward <6 months and substantially lower net rental fleet investment in 2026

Disciplined capital allocation with clear path to deleveraging

Balance sheet strength supports growth strategy

SER accounts for >70% of Adj. EBITDA before eliminations

Proven ability to profitably grow during challenging macroeconomic backdrop

(: millions, except where indicated)

Total Revenue ($M)

$2,500

$1,G83

$2,000 $1,865 $1,802 $1,G44

$1,484 $1,573

$1,500

$1,000

$500

2021 2022 2023 2024 2025 LTM

Adj. Gross Profit1 ($M) and

Adj. Gross Margin (%)

$700 50.0%

$625 $628 $651

$600 $555 $574

40.0%

$500 $462 35.3% 33.5%

31.G% 32.2% 32.8%

$400

30.0%

$300 31.1%

$200 20.0%

$100

$0 10.0%

2021 2022 2023 2024 2025 LTM

Adj. EBITDA2 ($M) s Adj.

EBITDA Margin (%)

$500 50.0%

$427

$3G3 $384 $408

$400

$333 $340 40.0%

$300

30.0%

25.0%

$200 22.4% 22.G%

18.8% 1G.7% 20.6%

20.0%

$100

$0 10.0%

2021 2022 2023 2024 2025 LTM

7.1% Revenue CAGR (FY'21 - LTM Ǫ1'2c)

8.4% Adj. Gross Profit CAGR (FY'21 - LTM Ǫ1'2c)

4.G% Adjusted EBITDA CAGR (FY'21 - LTM Ǫ1'2c)

Adjusted Gross Profit is a non-GAAP measure. 2021 figures are pro forma. Please refer to the supplemental information provided in the Appendix for reconciliations to the most comparable GAAP measures.

Consolidated Adjusted EBITDA is a non-GAAP measure. Refer to the supplemental information provided in the Appendix for reconciliations to the most comparable GAAP measures.

LTM figures are as of March 31, 2026.

Strong growth driven by improved rental fundamentals, strong demand across core markets led by TsD

(: millions, except where indicated; sum of individual items may not equal total amounts due to rounding)

Revenue: $462M

+G% vs Q1'25

$422

$32

$274

$116

Q1'25

Rental Equipment Sales Parts & Services

$462

$293

$137

Q1'26

$32

Adj. Gross Profit1 : $15GM

Adj. EBITDA1 : $G8M

+17% vs Q1'25

+33% vs Q1'25

$159

$98

$136

$73

Q1'25 Q1'26

Q1'25

Q1'26

Record Q1 Revenue

Driven by momentum in core TCD markets and strong execution across segments

Adj. Gross Profit Expansion Stronger operational performance, improved rental fundamentals, and significant KPI improvement

33% Adj. EBITDA Growth YoY Reflective of strong rental performance, high utilization and effective cost management

Adjusted Gross Profit and Adjusted EBITDA are non-GAAP measures. Refer to the supplemental information provided in the Appendix for reconciliations to the most comparable GAAP measures.

Q1 2026 rental revenue +18% YoY driven by rising utilization

(: millions, except where indicated; sum of individual items may not equal total amounts due to rounding)

$1G

$38

$21

$30

$116

$137

Q1'26

Q1'25

Q1'26

Q1'25

$182 $11

$15

$105

Rental Equipment Sales Parts & Services Intersegment Sales, Sale-Type Lease Adjustment & Rental AR Provision".

$205

Segment Adj. EBITDA: $105M

+$1GM/+23% YoY

Revenue: $205M

+$23M/+13% YoY

$86

Strong Rental Revenue Growth

Broad-based growth led by Rental +18% and Equipment Sales

+26% demonstrating strong end market demand and fleet utilization across core verticals

23% Adj. EBITDA Growth YoY

Operating leverage on revenue growth combined with disciplined SGCA management drove EBITDA expansion

Q1 2026 improved average utilization and OEC on Rent, driven by continued momentum in TsD end markets

(: millions, except where indicated)

Avg. OEC on Rent: $1,344M

+$141M vs Q1'25

Avg. Utilization: 81.4%

+370bps vs Q1'25

On Rent Yield: 38.G%

+40bps vs Q1'25

Utilization s Average OEC on Rent

$1,044 71.7%

$1,083 73.2%

$1,211

78.G%

$1,177

76.G%

$1,207 77.6%

$1,262

7G.3%

$1,377

83.6%

$1,344

81.4%

Q2'24

Avg. O

Q3'24

EC on Rent U

Q4'24

tilization

Q1'25

Q2'25

Q3'25

Q4'25

Q1'26

On Rent Yield

Utilization 81.4%: Increased 370 basis points compared to the prior year; mid-70% to mid-80% range across most of fleet and end markets

OEC on Rent +$141M YoY: fleet deployment gains driven by TCD end market strength

On Rent Yield 38.G%:

40.0%

38.4%

38.6%

38.5%

38.6%

38.2%

38.7%

38.G%

Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26

Fleet Age (Years)

3.0

2.G

3.0

3.4 3.3 3.2 3.1

Increased 40 basis points compared to the prior

year and 20 basis points sequentially; in line with expected high-30% to low-40%

range; continued opportunity for rate improvement as transmission mix grows

2026 Momentum Intact: Q1'26 exhibited expected seasonal rebound from the end of Q4'25, with activity remaining strong so far in Q2'26 with OEC on Rent and utilization above the averages for Q1'26

Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26

Q1 2026 revenue increase driven by third-party revenue growth; backlog continues to expand supported by core end-markets

(: millions, except where indicated; sum of individual items may not equal total amounts due to rounding)

Q1'26

Equipment Sales Intersegment Sales

Q2'24 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26

Q1'25

Q1'26

$363

Parts & Services

Backlog

Backlog Months

$244

$255

$G5

3.7

$335

3.0

$280

4.5

$411

3.7

$335

4.8

4.2

$420

$369

$13

$396

4.6

$478

5.7

$33

$13

Backlog: $411M

+$76M/+23% QoQ

Revenue: $363M

+$13M/+4% YoY

$350

$11

Segment Adj. EBITDA: $33M

+$20M/+150% YoY

Third-Party Revenue Growth

Revenue growth was driven by a YoY increase in third-party revenue of 5%, driven by increased demand for forestry vehicles

Strong YoY Growth

Reflects growth in third-party revenue but also is impacted by reported 2025 intersegment sales not reflecting any gross margin

Strong Backlog Growth

Backlog has grown to $411M (>$130M over the past two quarters), reflecting strong order flow within core end-markets

Focused on organic investment, debt reduction, and fleet management to drive levered cash flow and shareholder returns

(: millions, except where indicated)

Growth1 and Net Rental2 Capex

$7G

Net Leverage Ratio

$71

$67

$64

$57

$63

$4G

$36

$41

$33

$25

$11

$15

$18

4.6x

4.8x

4.7x

4.5x

4.1x

4.4x

4.3x 4.0x

<4.0x

3.0x

Q2'24

Q3'24

Q4'24

Q1'25

Q2'25

Q3'25

Q4'25

Q1'26

2026

2027

Target

Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Q1'26

Elevated period of capital investment in fleet now behind us - average unit age now <3 years, among lowest in the industry

Expect reduced maintenance capex in 2026 which should also support

improved levered cash flow

Expect to continue to reduce inventory in 2026 and to focus levered cash flow on debt reduction

Remain committed to achieving net leverage meaningfully below 4x in fiscal 2026

Targeting 3x net leverage in 2027

Growth Capex is defined as fleet additions in excess of maintenance and replacement requirements, resulting in a net increase in earning assets and revenue capacity.

Net Rental Capex is defined as total capital expenditures for the rental fleet less cash proceeds from the sale of vehicles from the rental fleet.

(: millions, except where indicated; sum of individual items may not equal total amounts due to rounding)

85%+ of Outstanding Debt is Covered by $1.41B Total OLV(1) of Rental Fleet Strong Available Liquidity and No Significant Maturities Until 202G

Fixed 58% / Floating 42%

Debt maturities

$1,60G

Notes Payable s 2023 Notes Payable s 2023

Credit Facility Credit Facility

$18

$16

Notes Payable s 2023 $1

Credit Facility Notes Payable s 2023

Credit Facility

Notes Payable

Notes Payable s 2023 Credit Facility

ABL Facility

202G Secured Notes

2026 2027 2028 202G 2030 and Thereafter

Total Orderly Liquidation Value as of December 31, 2025, effective date as per third-party appraisal.

Reflects the refinancing of a portion of the Notes Payable in April 2026 after the close of Q1 2026.

Substantial OLV of the rental fleet provides

significant coverage of our outstanding debt

Rental fleet OLV(1) ↑$187M since the end of 2023

Total Available Liquidity: $458M

ABL availability + cash of $267M

Ability to upsize the ABL Facility by more than

$190M based on suppressed availability

Total available liquidity has averaged just under

$490M over the last two years

2025 Actual

2026 Outlook1

YoY

Commentary

Total Revenue

$1.944B

$2.005B - 2.120B

+3% to +9%

SER Revenue(2)

$810M

$835M - 870M

+3% to +7%

OEC on rent, utilization and margin all performing ahead of expectations; TCD demand at record levels, further growth supported by vocational market, with lower overall sales impacted solely by expected lower YoY sales to SER

STEM Revenue(2)

$1.656B

$1.580B - 1.655B

-5% to +0%

Continued strong order flow, particularly from local and regional customers; third-party revenue projected to grow +3-10% in 2026, with lower overall sales impacted solely by expected lower YoY sales to SER

Adjusted EBITDA(3)

$384M

$415M - 440M

+8% to +15%

Raised guidance from $410 - $435M

Net OEC

$1.637B

+MSD%

Gross Rental Capex

$457M

$340M - 360M

Net Rental Capex

$251M

$150M - 170M

Inventory months on hand is expected to continue trending toward the targeted level of below six months

Levered FCF(3)

($77M)

≥$50M

Anticipated continued benefit from inventory reduction

Net Leverage(3)

4.31x

<4.0x

Expect to be meaningfully below 4x during 2026, achieve 3x net leverage target in fiscal 2027

We are unable to present a quantitative reconciliation of our forward-looking Adjusted EBITDA, Levered Cash Flow, and Net Leverage Ratio for the year ending December 31, 2026 and future periods to their respective most directly comparable GAAP financial measure due to the high variability and difficulty in predicting certain items that affect such GAAP measures including, but not limited to, customer buyout requests on rentals with rental purchase options and income tax expense. Adjusted EBITDA, Levered Cash Flow, and Net Leverage Ratio should not be used to predict their respective most directly comparable GAAP measure as the differences between the respective measures are variable and unpredictable.

Effective January 1, 2026, the Company realigned its reportable segments from three segments (ERS, TES and APS) to two segment: SER and STEM. Historical period results have been recast to conform to the current segment alignment. Please refer to the Appendix of this document for the calculation of the respective figures.

Adjusted EBITDA, Levered Cash Flow and Net Leverage Ratio are non-GAAP measures. Please refer to the Appendix of this document for definitions of each. Please refer to the supplemental information provided in the appendices of investor presentations (available on our Investor Relations website) for reconciliations of Adjusted EBITDA, Levered Cash Flow and Net Leverage Ratio to the most comparable GAAP measure.

Ending OEC - Ending Original Equipment Cost ("OEC") is the original equipment cost of units at the end of the measurement period. OEC represents the original equipment cost and excludes the effect of adjustments to rental equipment fleet acquired in business combinations. OEC is the basis for calculating certain of the measures set forth below. Additionally, the pricing of our rental contracts and equipment sales prices for our equipment is based upon OEC, and we measure a rate of return from our rentals and sales using OEC. OEC is a widely used industry metric to compare fleet dollar value independent of depreciation.

Average OEC on Rent - Average OEC on Rent is calculated as the weighted-average OEC on rent during the stated period.

Fleet Utilization - Fleet Utilization is defined as the total number of days the rental equipment was rented during a specified period of time divided by the total number of days available during the same period and weighted based on OEC. Utilization is a measure of fleet efficiency expressed as a percentage of time the fleet is on rent and is considered to be an important indicator of the revenue generating capacity of the fleet.

OEC on Rent Yield - OEC on Rent Yield ("ORY") is a measure of return realized by our rental fleet during a period. ORY is calculated as rental revenue (excluding freight recovery and ancillary fees) during the stated period divided by the average OEC on rent for the same period. For periods less than 12 months, ORY is adjusted to an annualized basis.

Sales Order Backlog - Sales Order Backlog consists of purchase orders received for customized and stock equipment. Sales order backlog should not be considered an accurate measure of future net sales.

Adjusted Gross Profit - Adjusted Gross Profit is defined as Gross Profit excluding depreciation of rental equipment and is a financial performance measure that we use to monitor our results from operations. We believe the exclusion of depreciation expense of the rental fleet provides a meaningful measure of financial performance because it provides useful information relating to profitability that reflects ongoing and direct operating expenses, such as freight costs and fleet maintenance costs, related to our rental fleet. Although management evaluates and presents this non-GAAP measure for the reasons described herein, please be aware that this non-GAAP measure has limitations and should not be considered in isolation or as a substitute for revenue, gross profit or any other comparable operating measure prescribed by GAAP. In addition, we may calculate and/or present this non-GAAP financial measure differently than measures with the same or similar names that other companies report, and as a result, the non-GAAP measure we report may not be comparable to those reported by others.

Consolidated Adjusted EBITDA - Consolidated Adjusted EBITDA is defined as net income (loss), as adjusted for provision for income taxes, interest expense, net (excluding interest on floorplan financing), depreciation of rental equipment and non-rental depreciation and amortization, and further adjusted for the impact of the fair value mark-up of acquired rental fleet, business acquisition and merger-related costs, including integration, the impact of accounting for certain of our rental contracts with customers that are accounted for under GAAP as sales-type lease and stock compensation expense. This non-GAAP measure is subject to certain limitations.

Segment Adjusted EBITDA - Segment Adjusted EBITDA is defined as segment operating income or loss before depreciation and amortization, further excluding the effects of purchase accounting adjustments and the impact of sales-type lease accounting for certain leases containing rental purchase options (or "RPOs").

Levered Cash Flow - Net cash provided by operating activities, less cash flow for investing activities, excluding acquisitions, plus acquisition of inventory through floor plan payables - non-trade less repayment of floor plan payables - non-trade, both of which are included in cash flow from financing activities in our Consolidated Statements of Cash Flows.

Net Leverage Ratio - Net leverage ratio is a non-GAAP performance measure used by management and we believe it provides useful information to investors because it is an important measure to evaluate our debt levels and progress toward leverage targets, which is consistent with the manner our lenders and management use this measure. We define net leverage ratio as net debt divided by Adjusted EBITDA for the previous twelve-month period ("last twelve months," or "LTM").

(: millions, except where indicated; sum of individual items may not equal total amounts due to rounding)

Q1 25 Q2 25 Q3 25 Q4 25 Q1 26

Net income (loss)

(18) $

(28) $

(6) $

21 $

(4)

Interest expense

Income tax expense (benefit)

(8)

(1)

(6)

Depreciation and amortization

EBITDA

110

Adjustments:

Non-cash purchase accounting impact (1)

Transaction and other costs (2)

Sales-type lease adjustment (3)

Share-based payments (4)

Adjusted EBITDA

73 $

93 $

96 $

121 $

Adjusted EBITDA is defined as net income (loss), as adjusted for provision for income taxes, interest expense, net (excluding interest on floorplan financing), depreciation of rental equipment and non-rental depreciation and amortization, and further adjusted for the impact of the fair value mark-up of acquired rental fleet, business acquisition and merger-related costs, including integration, the impact of accounting for certain of our rental contracts with customers that are accounted for under GAAP as sales-type lease and stock compensation expense. This non-GAAP measure is subject to certain limitations.

Represents the non-cash impact of purchase accounting, net of accumulated depreciation, on the cost of equipment and inventory sold. The equipment and inventory acquired received a purchase accounting step-up in basis, which is a non-cash adjustment to the equipment cost pursuant to our ABL Credit Agreement and Indenture.

Represents transaction and other costs related to acquisitions of businesses; costs associated with closed operations; costs associated with restructuring and business optimization activities (inclusive of systems establishment costs); employee retention and/or severance costs; costs related to start-up/pre-openings and openings of locations; reconfiguration or consolidation of facilities or equipment conversion costs. These adjustments are presented as adjustments to net income (loss) pursuant to our ABL Credit Agreement and Indenture.

Represents the impact of sales-type lease accounting for certain leases containing rental purchase options (or "RPOs"), as the application of sales-type lease accounting is not deemed to be representative of the ongoing cash flows of the underlying rental contracts. The adjustments are made pursuant to our ABL Credit Agreement and Indenture.

Represents non-cash share-based compensation expense associated with the issuance of restricted stock units.

(: millions, except where indicated; sum of individual items may not equal total amounts due to rounding)

2021

2022

2023

2024

2025

Pro Forma

Net income (loss)

(91)

39 $

51 $

(29)

(31)

Interest expense

106

105

Income tax expense (benefit)

(1)

Depreciation and amortization

244

223

219

236

265

EBITDA

258

346

372

313

342

Adjustments:

Non-cash purchase accounting impact (1)

Transaction and other costs (2)

Sales-type lease adjustment(3)

Gain on sale leaseback transaction(4)

(23)

Share-based payments (5)

Change in fair value of derivative and warrants (6)

(20)

(2)

(1)

Adjusted EBITDA

323

393

427

340

384

Special charges related to leasing receivables and inventory (7)

Adjusted EBITDA, including special items

333 $

393 $

427 $

340 $

384

During Q4 2024, the Company closed on a sale leaseback transaction with an unrelated third party. The Company sold 8 properties with a combined net book value of $29.0 million for gross proceeds of $53.8 million, which was reduced by transaction costs and other fees of

$1.3 million, for net cash proceeds of approximately $52.5 million. Additionally, $3.2 million from the proceeds were used to repay a note payable. The Company recognized a gain of $23.5 million on this transaction.

(: millions, except where indicated; sum of individual items may not equal total amounts due to rounding)

2021

Actual

Pro Forma

Net income (loss)

(182) $

(91)

Interest expense

Income tax expense (benefit)

Depreciation and amortization

209

244

EBITDA

100

258

Adjustments:

Non-cash purchase accounting impact (1)

Transaction and other costs (2)

Loss on extinguishment of debt (3)

Sales-type lease adjustment(4)

Share-based payments (5)

Change in fair value of derivative and warrants (6)

Adjusted EBITDA

278

323

Special charges related to leasing receivables and inventory (7)

Adjusted EBITDA, including special items

278 $

333

Loss on extinguishment of debt represents a special charge, which is not expected to recur. Such charges are adjustments pursuant to our credit agreement.

adjustments are made pursuant to our ABL Credit Agreement and Indenture.

(: millions, except where indicated; sum of individual items may not equal total amounts due to rounding)

Q1 25

Q2 25

Q3 25

Q4 25

Q1 26

Revenue:

Rental

116 $

121 $

127 $

142 $

137

Equipment sales

274

356

321

354

293

Parts sales and services

Total revenue

422

511

482

528

462

Cost of Revenue:

Cost of revenue

287

355

327

348

282

Depreciation of rental equipment

Total cost of revenue

337

409

381

405

359

Less: Depreciation of rental equipment

(50)

(54)

(55)

(57)

(56)

Cost of revenue excluding depreciation

287

355

327

348

302

Adjusted gross profit

136

157

156

180

159

Less: Depreciation of rental equipment

(50)

(54)

(55)

(57)

(56)

Gross profit - GAAP

86 $

103 $

101 $

123 $

103

Adjusted Gross Profit is defined as Gross Profit excluding depreciation of rental equipment and is a financial performance measure that we use to monitor our results from operations. We believe the exclusion of depreciation expense of the rental fleet provides a meaningful measure of financial performance because it provides useful information relating to profitability that reflects ongoing and direct operating expenses, such as freight costs and fleet maintenance costs, related to our rental fleet. Although management evaluates and presents this non-GAAP measure for the reasons described herein, please be aware that this non-GAAP measure has limitations and should not be considered in isolation or as a substitute for revenue, gross profit or any other comparable operating measure prescribed by GAAP. In addition, we may calculate and/or present this non-GAAP financial measure differently than measures with the same or similar names that other companies report, and as a result, the non-GAAP measure we report may not be comparable to those reported by others.

(: millions, except where indicated; sum of individual items may not equal total amounts due to rounding)

2021 2022 2023 2024 2025

Pro Forma

Revenue:

Rental $ 422 $ 464 $ 479 $ 443 $ 506

Equipment sales 941 982 1,253 1,223 1,304

Parts sales and services 120 127 133 136 133

Total revenue 1,484 1,573 1,865 1,802 1,944

Cost of Revenue:

Cost of revenue

1,022

1,018

1,240

1,229

1,316

Depreciation of rental equipment

184

172

171

183

216

Total cost of revenue

1,205

1,189

1,411

1,412

1,532

Less: Depreciation of rental equipment

(184)

(172)

(171)

(183)

(216)

Cost of revenue excluding depreciation

1,022

1,018

1,240

1,229

1,316

Adjusted gross profit

462

555

625

574

628

Less: Depreciation of rental equipment

(184)

(172)

(171)

(183)

(216)

Gross profit - GAAP

278 $

384 $

454 $

390 $

412

(: millions, except where indicated; sum of individual items may not equal total amounts due to rounding)

Current YTD Period March 31, 2026

Less Prior YTD Period March 31, 2025

Add: Prior Fiscal Year December 31, 2025

LTM Adjusted Gross Profit March 31, 2026

Revenue:

Rental

137

$ 116

$ 506

$ 527

Equipment sales

293

274

1,304

1,323

Parts sales and services

133

Total revenue

462

422

1,944

1,983

Cost of Revenue:

Cost of revenue

282

287

1,316

1,332

Depreciation of rental equipment

216

222

Total cost of revenue

359

337

1,532

1,554

Less: Depreciation of rental equipment

(56)

(50)

(216)

(222)

Cost of revenue excluding depreciation

302

287

1,316

1,332

Adjusted gross profit

159

136

628

651

Less: Depreciation of rental equipment

(56)

(50)

(216)

(222)

Gross profit - GAAP

103

$ 86

$ 412

$ 429

(: millions, except where indicated; sum of individual items may not equal total amounts due to rounding)

2021 2021

Actual Pro Forma

Rental $ 370 $ 422

Revenue:

Equipment sales 695 941

Parts sales and services 102 120

Total revenue 1,167 1,484

Cost of Revenue:

Cost of revenue

800

1,022

Depreciation of rental equipment

157

184

Total cost of revenue

957

1,205

Less: Depreciation of rental equipment

(157)

(184)

Cost of revenue excluding depreciation

800

1,022

Adjusted gross profit

367

462

Less: Depreciation of rental equipment

(157)

(184)

Gross profit - GAAP

210 $

278

Disclaimer

Custom Truck One Source Inc. published this content on April 27, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 27, 2026 at 20:19 UTC.