Custom Truck One Source delivered Q4 revenue of $528.2 million, a 1.4% increase year-on-year but 9.1% below the $581 million consensus. Adjusted EPS came in at $0.13, more than double the $0.06 estimate, while adjusted EBITDA was $120.7 million, representing a 22.9% margin. Backlog stood at $335.3 million, down 9.1% from a year earlier.

The rental business achieved record utilization of nearly 84%, the highest level in almost three years, driven by robust demand in transmission and distribution markets. Management highlighted that the average fleet age fell below three years, supporting higher efficiency, reduced maintenance capital spending and enhanced customer service.

Equipment sales revenue was pressured as some customers accelerated purchases early in the year and deferred deliveries, resulting in TES segment headwinds. New sales orders rose 21% year-on-year, and backlog rebounded above $370 million in early 2026, indicating improving demand momentum.

For FY26, the company guided to $422.5 million of adjusted EBITDA at the midpoint, aligning with analyst expectations. Plans to lower maintenance capital expenditures and inventory aim to boost free cash flow, while a new partnership with HyAV and a shift to two reporting segments are designed to expand offerings and improve operational clarity.