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.
Outlook raised for 2026
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.
Analyst coverage and valuation
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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