Core Insights - Custom Truck One Source, Inc. (CTOS) reported a revenue of $528.18 million for Q4 2025, a 1.4% increase year-over-year, but missed consensus estimates by approximately 9% [1][4] - The company's earnings per share (EPS) improved to $0.09 from $0.04 a year ago, surpassing consensus estimates of around $0.07 [2][4] - CTOS achieved a record full-year revenue of $1.944 billion, reflecting a 7.9% increase compared to 2024, and reported an 18% growth in Adjusted EBITDA for Q4 [2][3] Financial Performance - Quarterly net income decreased to $20.9 million from $27.6 million in Q4 2024, indicating some financial pressures [2] - Adjusted EBITDA for the full year reached approximately $384 million, with a 13% increase compared to the previous year [2][3] - The company maintains a low debt-to-equity ratio of 0.17, indicating manageable debt levels [3] Liquidity and Future Outlook - CTOS has a current ratio of 1.33, suggesting reasonable short-term liquidity to cover current liabilities [3] - Despite the revenue shortfall in Q4, the overall results indicate strong annual performance and positive EPS momentum, setting the stage for continued focus on growth and deleveraging in 2026 [3]

Core Insights - Custom Truck One Source reported record quarterly revenue of $528 million for Q4 2025, with adjusted EBITDA of $121 million, reflecting an 18% year-over-year increase. Full-year revenue reached $1.944 billion, an 8% increase from 2024, with adjusted EBITDA up 13% [7][8]. Segment Performance - APS (Advanced Power Solutions) generated $37 million in revenue for Q4, maintaining a gross margin of 27%. The full-year gross margin was just under 24%, improving by nearly 120 basis points year-over-year [1]. - TES (Truck and Equipment Sales) reported Q4 equipment sales of $284 million, down 8% year-over-year due to customers advancing capital spending and deferring deliveries. Full-year revenue was $1.1 billion, up 4% and the highest in the segment's history [2]. - ERS (Equipment Rental Solutions) achieved Q4 revenue of $207 million, a 20% increase year-over-year, with full-year revenue growing 17%. Utilization averaged 83.6% in Q4, up approximately 470 basis points from Q4 2024 [3][5]. Financial Performance - The company reported a Q4 net income of approximately $21 million but a full-year GAAP net loss of about $31 million, affected by a prior year gain from a sale-leaseback transaction. Excluding this gain, underlying net income improved due to higher gross profit and lower interest expenses [4]. - The average OEC (Original Equipment Cost) on rent was just under $1.4 billion in Q4, up 14% year-over-year, with management noting historically high levels of utilization and OEC on rent [5][6]. Strategic Initiatives - A strategic partnership with Hiab was highlighted, aimed at broadening the product portfolio and enhancing service capabilities in various markets [10]. - The company is investing in expanding aftermarket service capacity to support TES customers and grow parts and service revenue [11]. Balance Sheet and Cash Flow - The company ended 2025 with net debt of $1.65 billion and net leverage of 4.3x, an improvement from the previous year. Working capital progress was noted, with inventory declining by over $100 million in Q4 [12][13]. - Net rental capital expenditures exceeded $40 million in Q4, with total rental fleet OEC reaching almost $1.64 billion, a record high [14]. 2026 Outlook - Full-year 2026 guidance projects revenue between $2.005 billion and $2.12 billion, with adjusted EBITDA of $410 million to $435 million, indicating year-over-year growth of 3% to 9% in revenue and 7% to 13% in adjusted EBITDA [15]. - The company plans to reduce net investment in the rental fleet to approximately $150 million to $170 million in 2026, down from over $250 million in 2025, while still growing the rental fleet at a mid-single-digit rate [15]. Reporting Changes - Starting with the quarter ending March 31, 2026, the company will shift to two reportable segments: Specialty Equipment Rentals (SER) and Specialty Truck Equipment and Manufacturing (STEM) [16].

Core Insights - Custom Truck One Source, Inc. (CTOS) reported revenue of $528.18 million for the quarter ended December 2025, marking a year-over-year increase of 1.4% and an EPS of $0.09, up from $0.04 a year ago [1] - The reported revenue fell short of the Zacks Consensus Estimate of $581.67 million by 9.2%, and the company did not deliver an EPS surprise as the consensus estimate was also $0.09 [1] Revenue Breakdown - Equipment sales generated $353.93 million, compared to the average estimate of $421.83 million from two analysts [4] - Parts sales and services brought in $32.28 million, below the two-analyst average estimate of $39.17 million [4] - Equipment Rental Solutions (ERS) revenue was $207.12 million, exceeding the average estimate of $187.46 million [4] - Truck and Equipment Sales (TES) revenue reached $283.96 million, compared to the average estimate of $368.8 million [4] - Rental revenue amounted to $141.98 million, slightly above the two-analyst average estimate of $139.37 million [4] - ERS rental revenue was $137.15 million, surpassing the average estimate of $134.43 million [4] - ERS equipment sales totaled $69.97 million, exceeding the average estimate of $53.03 million [4] - Aftermarket Parts and Services (APS) rental revenue was $4.83 million, slightly below the average estimate of $4.94 million [4] - APS parts and services revenue was $32.28 million, below the average estimate of $39.17 million [4] - Total APS revenue was $37.11 million, compared to the average estimate of $44.12 million [4] Stock Performance - Shares of Custom Truck One Source have declined by 7.5% over the past month, while the Zacks S&P 500 composite has decreased by 2.3% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Financial Data and Key Metrics Changes - In Q4 2025, the company generated revenue of $528 million, with adjusted EBITDA of $121 million, reflecting an 18% year-over-year increase [4][12] - For the full year 2025, revenue reached a record $1.944 billion, up 8% from 2024, and adjusted EBITDA was $384 million, a 13% increase [4][12] - GAAP net income for Q4 was approximately $21 million, while the full year showed a net loss of about $31 million, impacted by a prior year gain on a sale leaseback transaction [14] Business Line Data and Key Metrics Changes - In the Equipment Rental Services (ERS) segment, Q4 revenue was $207 million, up 20% year-over-year, driven by strong rental revenue and sales activity [14] - The Total Equipment Sales (TES) segment saw Q4 revenue of $284 million, down 8% year-over-year, but full year revenue was up 4% to $1.1 billion, marking a record [6][17] - The Aftermarket Parts and Services (APS) segment reported Q4 revenue of $37 million, with a stable gross margin of 27% [18] Market Data and Key Metrics Changes - The rental fleet utilization averaged just under 84% in Q4, the highest in almost three years, with average OEC on rent at nearly $1.4 billion, up 14% year-over-year [5][15] - The new sales order backlog for TES ended the year at $335 million, up 20% from Q3, and has continued to grow into 2026, currently around $370 million [7][18] Company Strategy and Development Direction - The company plans to move to a two-segment reporting structure starting Q1 2026, aligning with how the business is currently managed and providing clearer insights for investors [10][24] - A strategic partnership with Hiab aims to enhance service capabilities and broaden the product portfolio, supporting long-term growth strategies [8][9] - The company expects to invest approximately $150 million-$170 million in its rental fleet in 2026, a significant reduction from over $250 million in 2025 [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustained demand across key end markets, particularly in transmission and distribution, and anticipates continued growth in 2026 [20][21] - The company expects revenue for 2026 to be in the range of $2.005 billion to $2.12 billion, with adjusted EBITDA between $410 million and $435 million, indicating year-over-year growth [10][23] - Management highlighted the importance of strong relationships with strategic suppliers and customers as key to success [11] Other Important Information - The company aims to reduce inventory levels to below six months on hand, targeting a decrease of approximately $100 million in gross inventory by the end of 2026 [80] - The company reported a net leverage ratio of 4.3 times at the end of 2025, with plans to reduce it to below 4x by the end of 2026 [19][22] Q&A Session Summary Question: What do you expect to see in the market to achieve the high end of the guidance range? - Management indicated strong demand in P&D and vocational markets, with potential upside from reduced political and economic uncertainty [28][30] Question: How do you view the pricing environment and its contribution going forward? - Management noted good demand and opportunities for price increases, with OEC on rent showing positive year-over-year growth [31][32] Question: Can you comment on the sustainability of the high utilization rates? - Management acknowledged that while utilization peaked in Q4, they expect to maintain strong levels due to fleet de-aging and operational execution [36][38] Question: How do you expect the TES segment to perform throughout the year? - Management expressed confidence in growth, supported by a strong backlog and increased orders won, despite previous pull-forward effects [46][50] Question: What is the outlook for gross margins in ERS and TES? - Management indicated that ERS gross margins are expected to remain strong, while TES margins may stabilize within a targeted range [62][65]

Financial Data and Key Metrics Changes - In Q4 2025, the company generated revenue of $528 million, with Adjusted EBITDA of $121 million, reflecting an 18% year-over-year increase [4][12] - For the full year 2025, total revenue reached $1.944 billion, an 8% increase compared to 2024, while Adjusted EBITDA was $384 million, up 13% year-over-year [4][12] - GAAP net income for Q4 was approximately $21 million, while the full year recorded a net loss of about $31 million, impacted by a prior year gain on a sale leaseback transaction [14] Business Line Data and Key Metrics Changes - The Equipment Rental Services (ERS) segment saw Q4 revenue of $207 million, a 20% increase year-over-year, driven by strong rental revenue and sales activity [14] - The Truck Equipment Sales (TES) segment reported Q4 equipment sales of $284 million, with full year revenue up 4% to $1.1 billion, marking the highest annual level ever [17][7] - The Aftermarket Parts and Services (APS) segment had Q4 revenue of $37 million, with a stable gross margin of 27% [18] Market Data and Key Metrics Changes - The rental fleet utilization averaged just under 84% in Q4, the highest in almost three years, with average OEC on rent at approximately $1.4 billion, up 14% year-over-year [5][12] - The new sales order backlog for TES ended the year at $335 million, up 20% from Q3, and has continued to grow into 2026, currently standing at around $370 million [7][18] Company Strategy and Development Direction - The company plans to move to a two-segment reporting structure starting Q1 2026, aligning with how the business is currently evaluated and providing enhanced transparency to investors [10][24] - A strategic partnership with Hiab aims to broaden the product portfolio and enhance service capabilities, supporting long-term growth strategies [8][9] - The company expects to reduce net investment in the rental fleet in 2026 to approximately $150 million-$170 million, down from over $250 million in 2025, while still achieving growth [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustained demand across key end markets, particularly in transmission and distribution, and anticipates continued growth in 2026 [20][21] - The company expects revenue for 2026 to be in the range of $2.005-2.12 billion, with Adjusted EBITDA between $410-435 million, indicating year-over-year growth [10][23] - Management highlighted the importance of strong relationships with strategic suppliers and customers as key to success [11] Other Important Information - The company aims to generate more than $50 million of levered free cash flow and reduce net leverage to below 4x by the end of fiscal 2026 [22] - Inventory levels are expected to decline further, with a target to reduce gross inventory by approximately $100 million by the end of 2026 [80] Q&A Session Summary Question: What do you expect to see in the market to achieve the high end of the guidance range? - Management indicated strong demand in P&D and potential improvements in the vocational market as positive drivers [30] Question: How do you view the pricing environment and its contribution going forward? - Management noted good demand and opportunities for price increases, with OEC on rent showing positive trends [32] Question: Can you sustain the high utilization rate of 84%? - Management acknowledged that while 84% is above the typical range, they are confident in maintaining strong utilization levels due to fleet management and age [36][38] Question: How do you expect the TES segment to perform throughout the year? - Management expressed confidence in growth based on backlog and orders won, with a smoothing of performance expected compared to the previous year [50] Question: What is the outlook for gross margins in ERS and TES? - Management provided guidance for gross margins in ERS to remain in the mid-70% range, while TES is expected to stay within a 15%-18% range [62][65]

Financial Data and Key Metrics Changes - In Q4 2025, the company generated revenue of $528 million, with adjusted EBITDA of $121 million, reflecting an 18% year-over-year increase [4][13] - For the full year 2025, revenue reached a record $1.944 billion, up 8% from 2024, and adjusted EBITDA was $384 million, a 13% increase [4][13] - GAAP net income for Q4 was approximately $21 million, while the full year showed a net loss of about $31 million, impacted by a prior year gain on a sale leaseback transaction [14] Business Line Data and Key Metrics Changes - In the Equipment Rental Services (ERS) segment, Q4 revenue was $207 million, up 20% year-over-year, driven by strong rental revenue growth [14] - The Total Equipment Sales (TES) segment reported Q4 equipment sales of $284 million, with full year revenue up 4% to $1.1 billion, marking the highest annual level ever [18][19] - The Aftermarket Parts and Services (APS) segment had Q4 revenue of $37 million, with a stable gross margin of 27% [19] Market Data and Key Metrics Changes - The rental fleet utilization averaged just under 84% in Q4, the highest in almost three years, with average OEC on rent at approximately $1.4 billion, up 14% year-over-year [5][16] - The new sales order backlog for TES ended the year at $335 million, up 20% from Q3, and has continued to grow into 2026, currently around $370 million [7][19] Company Strategy and Development Direction - The company plans to move to a two-segment reporting structure starting Q1 2026, aligning with how the business is currently evaluated [11][25] - A strategic partnership with Hiab aims to enhance service capabilities and broaden the product portfolio, supporting long-term growth [9] - The company is investing in expanding aftermarket service capacity to support TES customers post-sale and grow parts and service revenue [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustained demand in the transmission and distribution (T&D) markets, expecting continued growth in 2026 [6][21] - The company anticipates revenue for 2026 in the range of $2.005 billion to $2.12 billion, with adjusted EBITDA between $410 million and $435 million [11][24] - Management noted that macroeconomic uncertainties could impact performance, but strong fundamentals in end markets provide optimism [27] Other Important Information - The company expects to reduce maintenance CapEx in 2026 compared to 2025, contributing to increased free cash flow generation [22] - Inventory levels are projected to decline further, with a target to reduce gross inventory by approximately $100 million [82] Q&A Session Summary Question: What do you expect to see in the market to achieve the high end of your guidance range? - Management indicated strong demand in P&D and potential improvements in the vocational and infrastructure markets as positive drivers [30] Question: How do you view the pricing environment and its contribution going forward? - Management noted good demand and opportunities for price increases, with OEC on rent showing positive year-over-year growth [34] Question: Can you sustain the high utilization rate of 84%? - Management stated that while 84% is above the typical range, they believe they can maintain strong utilization levels due to effective fleet management and a younger fleet age [40] Question: What is the expected performance of the TES segment throughout the year? - Management expressed confidence in the TES segment's growth, supported by a strong backlog and order trends [50] Question: How do you expect inventory levels to change this year? - Management aims to reduce inventory levels further, targeting a decrease of about $100 million [82]

分组1 - Custom Truck One Source, Inc. (CTOS) reported quarterly earnings of $0.09 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.04 per share a year ago [1] - The company posted revenues of $528.18 million for the quarter ended December 2025, which missed the Zacks Consensus Estimate by 9.2%, compared to $520.74 million in the same quarter last year [2] - The stock has increased approximately 10.8% since the beginning of the year, while the S&P 500 has declined by 0.7% [3] 分组2 - The earnings outlook for Custom Truck One Source is uncertain, with current consensus EPS estimates at -$0.06 for the coming quarter and $0.04 for the current fiscal year on revenues of $443.17 million and $2.1 billion, respectively [7] - The Zacks Rank for Custom Truck One Source is currently 4 (Sell), indicating expectations of underperformance in the near future [6] - The Automotive - Original Equipment industry, to which Custom Truck One Source belongs, is ranked in the top 32% of over 250 Zacks industries, suggesting a favorable industry outlook [8]

Custom Truck One Source 4th Quarter 2025 Investor Presentation March 10, 2026 CONFIDENTIAL DRAFT1 Safe Harbor This presentation includes certain financial measures that have not been prepared in a manner that complies with generally accepted accounting principles in the United States ("GAAP"), including, without limitation, Adjusted Gross Profit, Adjusted Gross Margin, EBITDA and Adjusted EBITDA (collectively, the "non-GAAP financial measures"). These non-GAAP financial measures may exclude items that are s ...

Fleet and Equipment - Custom Truck owns a fleet of over 10,400 specialty rental equipment units with an average age of approximately 2.9 years, which is considered young by rental fleet standards [22]. - The equipment rental fleet consists of over 10,400 units, making it one of the largest specialty equipment rental fleets in North America [46]. - The average age of the rental fleet is 2.9 years as of December 31, 2025, with over 77% utilization on average in the last two years [53]. - The company plans to invest in its rental fleet to meet growing demand, focusing on enhancing selling efforts and adding in-demand equipment [58]. - Fleet utilization improved to 79.4% in 2025, up by 5.1% from 74.3% in 2024, indicating stronger operational efficiency [212]. Financial Performance - Total revenue for the year ended December 31, 2025, increased by 7.9% to $1,943,957, driven by higher rental revenue and strong equipment sales [206]. - Rental revenue rose by 14.3% to $506,198, accounting for 26.0% of total revenue, compared to 24.6% in 2024 [206]. - Equipment sales increased by 6.7% to $1,304,483, representing 67.1% of total revenue, slightly down from 67.9% in 2024 [206]. - Gross profit for 2025 was $411,892, a 5.5% increase from $390,270 in 2024, with a gross margin of 21.2% [206]. - The company reported a net loss of $31,052 for 2025, an increase in loss of 8.4% compared to a net loss of $28,655 in 2024 [206]. Market Dynamics - Total capital expenditures among U.S. investor-owned utilities in the electric utility T&D end-market are projected to be approximately $102 billion in 2025, driven by a multi-year spending cycle [29]. - The Infrastructure Investment and Jobs Act includes approximately $1.2 trillion in spending, with over 75% of the funds allocated as of September 2025, positively impacting all end-markets [28]. - The U.S. electricity demand from data centers is expected to reach 106 gigawatts by 2035, representing a 165% increase from approximately 40 gigawatts in 2025 [31]. - Total infrastructure capex spend in the U.S. in 2025 is estimated to be over $310 billion, projected to increase to approximately $365 billion by 2029 [38]. - Government spending on infrastructure projects significantly impacts customer demand; any decrease in funding could lead to reduced revenues [115]. Strategic Initiatives - The company aims to grow equipment sales across both current and new customers, leveraging its national and local sales approach [59]. - A focused initiative to grow third-party service capacity will be launched in 2026, starting at locations in Fontana, CA, and Wyandanch, NY [60]. - The company has identified additional attractive geographic markets for potential expansion, both through strategic acquisitions and internal growth [61]. - The company continues to focus on six primary end-markets, including Electric Utility Transmission and Distribution, Telecom, and Infrastructure, which are expected to drive future growth [204]. Employee and Workplace Initiatives - The company had approximately 2,500 employees across more than 40 locations in North America as of December 31, 2025, with about 2% covered by collective bargaining agreements [73]. - The company provided 29 paid internship opportunities in 2025 to students from vocational high schools and university programs [79]. - The company offers a comprehensive benefits program, including medical, vision, dental, life, and disability insurance, along with a 401(k) savings program that includes a company matching component [88]. - The company emphasizes talent development through leadership programs, with over 200 frontline and emerging leaders trained in 2025 [84]. - The company is committed to fostering an inclusive workplace and actively recruits military veterans, collaborating with organizations to support their transition to civilian careers [81]. Risks and Challenges - The company faces risks related to supply chain disruptions, which could adversely affect its ability to manufacture and market products [99]. - Disruptions in supply chains, including semiconductor shortages and labor issues, could materially impact the ability to meet customer demand and generate revenue [114]. - Competition for skilled technicians could increase labor costs and hinder the ability to meet customer demand, adversely affecting financial results [108]. - Future political and economic uncertainties may lead to reduced customer spending and impact overall financial performance [120]. - The company requires significant cash to service its indebtedness, which is dependent on future operating performance and refinancing options [133]. Compliance and Regulatory Environment - The company is subject to various governmental regulations, including environmental laws, which could impact operations if compliance issues arise [70]. - Compliance with environmental and safety regulations may increase operational costs and impact business feasibility [147]. - Climate change poses risks that could disrupt operations and require additional expenditures, affecting financial performance [151]. - Increased scrutiny on ESG initiatives may lead to higher compliance costs and impact the company's reputation [154]. - Policymakers are considering extensive disclosures on climate-related and ESG information, potentially leading to increased compliance costs for the company [156]. Stock and Debt Management - Total indebtedness as of December 31, 2025, was $1,660.8 million, including $920.0 million in 2029 Secured Notes and $698.0 million under the Asset Based Lending Facility [130]. - As of December 31, 2025, the company has $1,355.4 million in variable rate debt, exposing it to interest rate risk [140]. - Each one-eighth percentage point increase in interest rates would increase interest expense by approximately $1.7 million per year [140]. - The company has a stock repurchase program authorized for up to $80 million, with no expiration date, to be executed based on market conditions [179].

Revenue Performance - Record fourth quarter revenue of $528.2 million, an increase of $7.4 million or 1.4% compared to Q4 2024[5] - Full-year revenue reached $1.944 billion, an increase of 7.9% compared to 2024[5] - Total revenue for the twelve months ended December 31, 2025, was $1,943,957, an increase of 7.8% compared to $1,802,280 for the same period in 2024[33] - Total revenue for Q4 2025 was $528.184 million, slightly up from $520.740 million in Q4 2024, indicating a 0.9% growth[47] - Rental revenue increased to $506,198 for the twelve months ended December 31, 2025, up 14.3% from $442,953 in 2024[33] - Rental revenue increased to $141.981 million in Q4 2025 from $125.461 million in Q4 2024, marking a 13.3% increase[47] - Rental revenue for Q4 2025 reached $137,152,000, up from $120,863,000 in Q4 2024, representing a growth of 13.4%[48] - Equipment sales for Q4 2025 were $353.925 million, slightly down from $359.325 million in Q4 2024, a decrease of 1.1%[47] - Equipment sales for Q4 2025 were $69,968,000, compared to $51,612,000 in Q4 2024, reflecting a growth of 35.5%[48] Profitability Metrics - Adjusted EBITDA for Q4 was $120.7 million, an increase of $18.7 million or 18.4% compared to Q4 2024[5] - Adjusted EBITDA for Q4 2025 was $120.741 million, compared to $102.020 million in Q4 2024, representing a 18.3% increase year-over-year[43] - Gross profit for the twelve months ended December 31, 2025, was $411,892, representing a gross margin of 21.2% compared to 21.7% in 2024[33] - Adjusted Gross Profit for Q4 2025 was $179.823 million, compared to $167.633 million in Q4 2024, reflecting a 7.3% increase[47] - Gross profit for Q4 2025 was $68,770,000, compared to $56,551,000 in Q4 2024, showing a growth of 21.5%[48] Financial Position - Total OEC (Original Equipment Cost) at year-end was $1.64 billion, the highest in company history[3] - As of December 31, 2025, total debt outstanding was $1,660.8 million, with a net leverage ratio of 4.3 times[19] - Net debt as of December 31, 2025, was $1,654,486,000, an increase from $1,543,845,000 as of December 31, 2024[50] - The net leverage ratio improved to 4.31 as of December 31, 2025, down from 4.55 in the previous year[51] - Cash and cash equivalents increased to $6,273 as of December 31, 2025, from $3,805 at the end of 2024[34] - Total assets decreased to $3,441,454 as of December 31, 2025, down from $3,501,967 in 2024[34] - Total current liabilities decreased to $873,330 as of December 31, 2025, compared to $1,000,701 in 2024[34] Future Projections - For 2026, consolidated revenue is projected to be between $2,005 million and $2,120 million, with Adjusted EBITDA guidance of $410 million to $435 million[23] - Revenue from Equipment Rental Solutions (ERS) is expected to be between $725 million and $760 million, while Truck and Equipment Sales (TES) is projected at $1,125 million to $1,200 million[23] - Net rental fleet investment is anticipated to be approximately $150 million to $170 million, a significant reduction from over $250 million in 2025[27] - Levered free cash flow is expected to exceed $50 million, with a target net leverage ratio below four times by the end of fiscal 2026[27] Segment Performance - The Equipment Rental Solutions (ERS) segment saw a 13.5% increase in rental revenue in Q4 2025 compared to Q4 2024[14] - The Truck and Equipment Sales (TES) segment experienced a 7.7% revenue decrease in Q4 2025 compared to Q4 2024 due to earlier customer capital expenditures[15] - The Aftermarket Parts and Services (APS) segment revenue decreased by $3.4 million or 8.5% in Q4 2025, primarily due to lower demand[16] Operational Metrics - Average utilization of the rental fleet was 83.6%, the highest level in nearly three years[5] - Sales order backlog at the end of the year was $335.3 million, up $55.5 million sequentially[5] - Sales order backlog increased by over $55 million (nearly 20%) in Q4 2025, remaining within the targeted range of four to six months LTM TES new sales[27] - The average fleet age ended 2025 at just over 2.9 years, allowing for reduced rental fleet investment while pursuing growth[27] - Demand for equipment in the transmission and distribution utility market remains at record levels, with expectations for further growth in the vocational rental market[27] Accounting and Reporting Changes - A new segment reporting structure will be implemented in 2026, consisting of Specialty Equipment Rentals (SER) and Specialty Truck Equipment and Manufacturing (STEM) to better reflect business management and resource allocation[20][21] Loss and Cash Flow - Full-year net loss was $31.1 million compared to a net loss of $28.7 million in 2024[5] - Net loss for the twelve months ended December 31, 2025, was $(31,052), compared to a net loss of $(28,655) in 2024[35] - Net cash flow from operating activities for the twelve months ended December 31, 2025, was $310,112, significantly higher than $121,985 in 2024[35] - The company reported depreciation and amortization of $263,880 for the twelve months ended December 31, 2025, compared to $235,839 in 2024[35] - The company recognized a gain of $23.5 million from a sale leaseback transaction involving 8 properties with a net book value of $29.0 million[44]