Custom Truck One Source announces a recast of its 2024-2025 historical financials by new SER and STEM segments, aligning with its updated reporting structure and providing pro forma guidance for 2026.
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Can you provide the recast historical financials by segment (SER/STEM) and the pro forma 2024/2025 comparisons?
Beginning Q1 2026, Custom Truck One Source will report under two segments:
This segmentation aligns external reporting with management’s internal business evaluation, capital allocation, and resource management, reflecting the distinct economic drivers, capital intensity, and margin profiles of each segment.
The company committed to provide a recast of historical financials aligned with this new segmentation in early April 2026 to allow comparability123.
| Metric | 2024 (Prior Year) | 2025 (Reported Year) | YoY Growth | Segment Notes |
|---|---|---|---|---|
| Total Company Revenue | ~ $1,800 million (est.) | $1,944 million (record) | +8% | Driven by strong rental fundamentals and TES growth |
| Adjusted EBITDA | ~ $340 million (est.) | $384 million (record) | +13% | Margin expansion aided by rental performance and SG&A discipline |
| ERS Revenue (Rental & Sales) | Not explicitly stated | Up 17% YoY | +17% | 4Q revenue $207 million (+20% YoY), driven by rental utilization and OEC increase; fleet age ~2.9 years456 |
| TES Revenue (Equipment Sales) | Not explicitly stated | Up 4% YoY, $1.1 billion | +4% | Full year record revenue despite 4Q decline due to customer purchase timing & pricing pressure476 |
| APS Revenue | Not explicitly stated | Included in segments’ portions | N/A | $155-160 million projected revenue for 2026, with 24%+ gross margins |
Note: Detailed exact values for 2024 segment revenues are not explicitly provided but can be inferred from growth rates and prior disclosures.
ERS / Future SER Segment:
TES / Future STEM Segment:
APS Segment (Now split between SER/STEM):
| Segment | Revenue Guidance (2026) | Commentary |
|---|---|---|
| SER | $725 million – $760 million | Combines historic ERS + portion of APS; strong rental demand mainly in T&D market; fleet investment to moderate; utilization expected to remain strong (~82% to 84%). |
| STEM | $1.125 billion – $1.2 billion | Combines historic TES + remainder of APS; expected to benefit from strong order backlog and steady demand; focus on post-sale services; some pricing pressures easing. |
| Total | $2.005 billion – $2.12 billion | 3%-9% overall revenue growth; EBITDA guidance $410 million - $435 million representing 7%-13% growth. |
CapEx expectations:
Free Cash Flow & Leverage:
| Metric | 2024 Actual (Est.) | 2025 Actual (Reported) | 2026 Guidance (Pro Forma) |
|---|---|---|---|
| Total Revenue | ~$1.8 billion | $1.944 billion (+8%) | $2.005B to $2.12B (+3% to 9%) |
| Adjusted EBITDA | ~$340 million | $384 million (+13%) | $410M to $435M (+7% to 13%) |
| ERS / SER Revenue | ~$615 million (est) | $720M+ (+17%) | $725M to $760M |
| TES / STEM Revenue | ~$1.06 billion (est) | $1.1 billion (+4%) | $1.125B to $1.2B |
| APS Revenue | Included in segments | Included | $155M to $160M |
| Rental Fleet OEC | N/A | $1.64 billion | Modest growth expected |
| Fleet Age | >3.9 years (est.) | 2.9 years | Aging slightly, fleet remains young |
| Utilization (Rental) | ~79% (est.) | 83.6% Q4 2025 | Target 78%-82%+ sustainable |
| Net Rental CapEx | ~ $200M+ (est.) | $250M+ | $150M to $170M |
Custom Truck One Source, Inc. has demonstrated solid revenue and EBITDA growth in 2025, driven primarily by strong operating performance in its Equipment Rental Services (ERS) segment and healthy order backlogs in its Truck Equipment Sales (TES) business.
The forthcoming 2026 segment reporting change to SER and STEM better aligns with underlying asset intensity and margin profiles, improving transparency for investors. The company plans to provide recast historicals for these new segments with the Q1 2026 earnings.
For the near term, the SER segment is expected to continue benefiting from robust demand in transmission & distribution end markets with utilization near peak levels, while the STEM segment should leverage backlog growth and increased aftermarket service investments to offset some pricing pressures.
Capital expenditure spending on rental fleet is expected to moderate in 2026, allowing for slight aging of the fleet and free cash flow improvement. Inventory reduction initiatives and net leverage reduction will support balance sheet strength.
The guided revenue and adjusted EBITDA growth rates for 2026 reflect a measured optimism based on sustained end market demand and solid internal execution, setting the stage for deleveraging and margin consistency in the medium term.
This analysis is based on official quarterly earnings call disclosures and reflects an integrated view of segment performance and forecasted trends as of Q4 2025 and early 2026 guidance of Custom Truck One Source, Inc.1243781151012139614
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