Custom Truck One Source Says Utility Demand Is Driving Record Rental Fleet Growth

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Sun, May 10, 2026 astatine 5:09 PM CDT 7 min read

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Utility request is fueling grounds rental fleet growth. Custom Truck One Source said its Specialty Equipment Rental fleet has grown to astir 10,400 units and $1.66 cardinal successful capital, with astir 75% of the fleet tied to inferior transmission and organisation work.
Backlog and task visibility are improving. Backlog reached 4.5 months astatine the extremity of Q1 and has risen further successful Q2, portion absorption said transmission-side visibility is the strongest it has been successful a agelong clip with task starts extending into 2027.
The institution is focusing connected currency travel and deleveraging. CTOS expects much than $50 cardinal successful levered escaped currency travel and plans to trim leverage beneath 4x by year-end and beneath 3x adjacent year, supported by higher EBITDA, little rental capex and inventory reductions.

Massive Upside Forecasted In Alta Equipment Group

Custom Truck One Source (NYSE:CTOS) executives outlined a beardown request backdrop for specialty rental equipment, peculiarly successful inferior transmission and distribution, during an Oppenheimer fireside chat hosted by Senior Industrial Services Analyst Scott Schneeberger.

CEO Ryan McMonagle said the company’s Specialty Equipment Rental, oregon SER, conception has grown to astir 10,400 units and represents astir $1.66 billion of capital, the largest level successful the company’s history. About 75% of the fleet is inferior instrumentality focused chiefly connected transmission and distribution, including bucket trucks, digger derricks, roar trucks and stringing gear. The remaining 25% includes specialty instrumentality specified arsenic vacuum trucks, dump trucks, dense haul tractors, h2o trucks and roll-off trucks.

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McMonagle said fleet clip utilization was 81.4% successful the archetypal 4th and had accrued aboriginal successful the 2nd quarter. The mean rental duration is betwixt 12 and 13 months, presently adjacent the precocious extremity of that range. He added that the fleet is nether 3 years old, with utile lives mostly successful the 10- to 15-year scope depending connected the asset.

Utility Demand Remains a Core Growth Driver

McMonagle said transmission and distribution, oregon T&D, is Custom Truck’s largest extremity market, representing astir 60% of full gross and astir 75% of gross wrong the rental segment. He cited grid modernization, information centers and electrification arsenic cardinal semipermanent drivers.

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Infrastructure much broadly accounts for astir 40% of revenue, including waste, rail, telecom, roads and bridges. McMonagle said discarded is the largest of the 3 named infrastructure verticals.

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