Custom Truck One Source Reports Record Q3 2026 Results and Raises Full-Year Guidance
Custom Truck One Source (CTOS) delivered strong third-quarter 2026 results, characterized by a 15.6% year-over-year increase in adjusted EBITDA to $110.9 million. The company's rental segment saw significant growth, with revenue rising 20.1% due to high demand in the utility end-markets and transmission sectors. This demand is described by management as being part of a potential 'once in a generation' super cycle driven by grid modernization and data center expansion. To capitalize on this demand, CTOS has strategically increased its net rental fleet investment guidance for the full year to between $210 million and $230 million. While this aggressive capital allocation led to a downward revision of levered free cash flow expectations from over $50 million to 'slightly positive,' the company raised its full-year adjusted EBITDA and SER revenue guidance, signaling confidence in long-term earnings growth.
Tickers: $STEM
Topics: EBITDA guidance financial results fleet utilization rental revenue revenue growth