Custom Truck One Source Revenue Reaches $495.2 Million as 2026 Outlook Rises
Key Facts
Custom Truck One Source reported revenue of $495.2 million in the third quarter of 2026, up 2.7% from the same period a year earlier, according to a company statement published via Business Wire. The absolute increase in revenue was $13.2 million. Rental revenue rose 20.1% year over year, while adjusted EBITDA was $110.9 million, up 15.6% from the third quarter of 2025. The company said adjusted EBITDA increased $15 million from the same period. Net income also turned positive at $2.3 million, compared with a net loss of $5.8 million in the third quarter a year earlier, an improvement of $8.1 million.
Rental fleet indicators reflected continued activity growth during the quarter, with the average value of rental equipment reaching $1.39 billion, a record level, according to the company. That value increased $132.2 million, or 10.5%, compared with the third quarter of 2025. Fleet utilization was 81.5%, while the return on rental equipment value was 39.4%. These figures put rental revenue growth in the context of an increase in the value of operating equipment and improved utilization. In the second quarter, the company had reported rental revenue up 20.1% year over year, attributing that at the time to improved fleet utilization and higher rental volume.
The company raised its 2026 outlook for its specialty equipment rental segment to a range of $870 million to $890 million, compared with its previous forecast of $850 million to $875 million. It also raised its full-year adjusted EBITDA range to $447.5 million to $460 million, from $437.5 million to $455 million. The company said this was its third adjustment to its adjusted EBITDA outlook during the year. Its August forecast had put segment revenue at $850 million to $875 million, the previous range that the company has now raised. The revision lifts both the low and high ends of the segment and adjusted EBITDA forecasts.
The company said more than $20 million in third-party STEM equipment deliveries shifted from the third quarter to the fourth quarter. It attributed the delay to a supplier recall and hailstorm damage at a Kansas City facility, and said sales fell by more than $20 million as a result. The chief financial officer said the delayed units remain in the backlog. The company expects consolidated revenue and adjusted EBITDA to increase in the fourth quarter both year over year and sequentially. This places the delayed deliveries among the factors the company expects to be reflected in results for the following quarter.
The company also raised its estimate for net investment in the rental fleet in 2026 to about $210 million to $230 million, from the previous range of $170 million to $200 million. At the same time, it now expects slightly positive funded free cash flow for the year, after its previous guidance was for more than $50 million. The company said the additional investment is aimed at fleet growth. The change in cash investment, alongside the higher rental revenue outlook, shows that expanding rental equipment is part of its plan for the year. In August, the company had forecast segment revenue of $850 million to $875 million before raising that range.
The chief financial officer said growing demand for electric utility transmission equipment could represent the early stages of an exceptional, long-term demand cycle. He added that the company now expects another year of double-digit adjusted EBITDA growth in 2027. The company is scheduled to discuss its third-quarter results on a call on October 27, 2026, at 9:00 a.m. Eastern time. The company's shares, which trade under the ticker CTOS, closed at $9.06 on October 23, 2026. The call follows the earnings announcement and revisions to its full-year outlook and fleet investment.