Custom Truck One Source : First Quarter 2026 Earnings Presentation
CTOS
Published on 04/28/2026 at 10:17 am 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
6
1
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
2
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)
3
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
4
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
5
Meaningful Operating Leverage Internal production and customization capabilities provide scale benefits, pricing strength, synergies, and a structural cost advantage to drive meaningful margin expansion
6
Cash Flow Inflection Recent investment cycle now driving improved conversion as fleet now among youngest in the industry (<3 years) and maintenance capex moderates
7
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
6
Leading National Provider of Specialty Equipment Serving the TsD and Infrastructure End Markets
Kansas City, MO
1GG6
~2,500
10,350+
250+
8,000+
41
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
(FY'25)
Infrastructure7 40%
T&D 60%
STEM
$1,651M
(LTM Q1'26)
SER
$833M
Specialty8 25%
(@ 03/31/26)
Utility 75%
STEM
$137
(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
~$90 billion
U.S. Telecom/Broadband capex (2024)
(1) Infrastructure revenue includes Infrastructure, Waste, Rail, Telecom and Other. 10
Source: SEC Filings, Third-Party Market Research, Edison Electric Institute, Power Insights, FMI, US Telecom
Strong transmission s distribution capex growth driven by durable and diverse megatrends
Load Growth
Aging Grid Infrastructure
AI and Data Center Expansion
Electrification
Manufacturing Reshoring
Aging Grid
Storm Resiliency
AI workloads and cloud migration are driving higher compute intensity and power requirements
Growing power demand from data centers and digital infrastructure is accelerating power grid investments
Tariffs, geopolitical risk and supply-chain disruptions are accelerating reshoring; helped by federal incentives (CHIPS, IRA)
Aging grid assets well past their intended useful life is driving elevated replacement and maintenance spend
More frequent and severe weather events are forcing utilities to increase investment in grid resilience
2025-2030 U.S.
Data Center Power
Demand CAGR
2025-2030 U.S.
Transmission Specialty
Truck Rental Market CAGR
Planned investment by U.S. companies to support onshoring of critical manufacturing
10-20 years beyond 40-year useful life of transformers installed during peak build cycle
CAGR of extreme weather events since 2019
Market growth further supported by rising rental penetration and increased TsD outsourcing due to project cost management, access to specialized equipment, heightened demand/extended lead times and labor shortages
Source: Third-Party Market Research
Forecasted load growth and required grid modernization expected to drive significant TsD investment wave
Projected U.S. Data Center Power Demand
('000s TWh)
0.7
0.6
0.5
0.4
0.3
0.2 0.2
0.1 0.1 0.1 0.1
Five-Year Nationwide Load Growth Forecast
(2029 Summer Peak Demand Growth, GW)
3G GW
23 GW
67 GW
With Updates: 128 GW
U.S. IOU Electric TsD Capex
($ 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
43
45
29
28
30
20
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
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%
<3
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
#1
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 productsand 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)
Disclaimer
Custom Truck One Source Inc. published this content on April 28, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 28, 2026 at 14:16 UTC.