Custom Truck One Source Q2 revenue up on utility transmission, distribution markets strength; raises FY outlook

Custom Truck One Source

03/08/2026 21:21

Overview
US specialty equipment provider's Q2 revenue rose 10%, beating analyst expectations
Adjusted EBITDA for Q2 increased 25%, beating analyst expectations
Company raised full-year 2026 revenue and adjusted EBITDA guidance after record first half

Outlook
Custom Truck One Source raises 2026 revenue guidance to $2.1 bln-$2.2 bln
Company lifts 2026 Adjusted EBITDA guidance to $437.5 mln-$455 mln
Company expects levered free cash flow to exceed $50 mln in 2026

Result Drivers
UTILITY T&D DEMAND - Co said sustained strength in utility transmission and distribution markets was the primary driver of performance in Q2
RENTAL FLEET UTILIZATION - Co achieved average rental fleet utilization of 81.6% in Q2, up 400 basis points from a year ago, supporting record rental revenue
EQUIPMENT SALES GROWTH - STEM segment equipment sales increased 4.9% in Q2, driven by demand for utility and forestry vehicles

Company press release: ID:nBw7LmQSka

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$563.40 mln
$509.78 mln (6 Analysts)
Q2 Net Income
 
$10.40 mln
 
Q2 Adjusted EBITDA
Beat
$116.80 mln
$101.74 mln (6 Analysts)
Q2 Adjusted Gross Profit
 
$180.90 mln
 
Q2 Gross Profit
 
$124 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the auto vehicles, parts & service retailers peer group is "buy"
Wall Street's median 12-month price target for Custom Truck One Source Inc is $11.50, about 13.3% above its July 31 closing price of $10.15
The stock recently traded at 53 times the next 12-month earnings vs. a P/E of 78 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)