Custom Truck One Source, Inc.

Ladies and gentlemen, thank you for standing by and welcome to the Custom Truck OneSource's fourth quarter and full year 2025 earnings conference call. Please note this conference call is being recorded. I would now like to hand the conference call over to your host today, Brian Perman, Vice President of Investor Relations for Custom Truck OneSource.

Thank you, Operator, and good morning. Before we begin, we would like to remind you that management's commentary and responses to questions on today's call may include forward-looking statements which, by their nature, are uncertain and outside of the company's control. Although these forward-looking statements are based on management's current expectations and beliefs, actual results may differ materially. For discussion of some of the factors that could cause actual results to differ, please refer to the risk factor section of the company's filings with the SEC. Please note that you can find reconciliations of the historical non-GAAP financial measures discussed during the call in the press release we issued this morning. That press release and our fourth quarter investor presentation are posted on the investor relations section of our website. This morning, we also filed our 2025 10K with the SEC. Today's discussion of our results of operations for Custom Truck OneSource, Inc., or Custom Truck, is presented on a historical basis as of before the three months and year ended December 31st, 2025 and prior periods. Joining me today are Ryan McMonigle, CEO, and Chris Deferge, ICCFO. I will now turn the call over to Ryan.

Thanks, Brian, and good morning, everyone. We delivered a strong finish to 2025 with record quarterly revenue driven by continued momentum in our core end markets and strong execution by our team. In the fourth quarter, we generated revenue of $528 million. Adjusted EBITDA was $121 million, up more than 18% year over year. For the full year 2025, we saw record revenue of $1.944 billion, up 8%, and adjusted EBITDA was $384 million, up 13% compared to 2024, and ahead of the midpoint of our guidance. The key driver of our performance in the quarter was continued strength in our rental business as the improvements we saw in the third quarter in the transmission and distribution markets continued in the Q4. Our rental fleet averaged just under 84% utilization during the quarter, the highest in almost three years, supported by continued growth in OEC on rent. Average OEC on rent in Q4 was just under $1.4 billion, up 14% year-over-year. During Q4, both utilization and OEC on rent reached historically high levels, while we saw the anticipated seasonal slowdown in both measures in December. So far in 2026, both have rebounded as expected, with utilization currently at approximately 82%, an OEC on rent well above the year-end level. We ended the year with total OEC of $1.64 billion, the highest quarter-end level in our history, supporting our expectation for continued growth in our rental business. Our trucks and equipment continue to power the people who strengthen and build critical infrastructure in the U.S. and Canada. The market has been focused on the durability of demand in T&D and our ability to convert improving rental KPIs into earnings and cash flow. And we believe our Q4 results speak directly to that. Bidding activity and ongoing conversations with our customers lead us to believe that these conditions will persist through 2026 and beyond. While TES performance in the fourth quarter was below our expectations, in-market demand is healthy. and order activity remains strong. While TES saw sequential revenue growth in the quarter, revenue was down 8% year-over-year, primarily due to our customers pulling forward capital spending to earlier in the year in anticipation of potential tariffs and price increases and an atypical year-end dynamic in which some customers deferred deliveries in the 2026. Additionally, we did not fully experience the anticipated lift in spending of our customers taking advantage of the accelerated depreciation provisions in last year's federal tax and spending bill. Despite those facts, TES finished the year with revenue of $1.1 billion, up 4% for the full year, and our highest annual level ever. New sales order backlog ended the year at $335 million. up more than $55 million, or 20% from Q3. Our backlog has continued to grow so far in 2026, and as of yesterday, stands at around $370 million. As we've noted in prior periods, backlog can move quarter to quarter with delivery timing and production schedules, so we also focus on order activity and conversion. We saw strong year-over-year net order growth of 21% in Q4 driven by year-over-year growth of 12% and orders won during the quarter, with particular strength coming from local and regional customers. Despite slower growth in the infrastructure and market, the continued strength in order growth in our ongoing conversations with our customers provide us with the confidence to expect another year of growth in TES. This confidence is increased by our recently announced strategic partnership with HIAP a manufacturer of truck-mounted cranes and forklifts. This partnership strengthens our ability to serve customers across multiple end markets while supporting our long-term growth strategy. It broadens our product portfolio, enhances our service capabilities, and allows us to deliver more complete solutions in key markets we already serve, such as building supply, forestry, and rail. In addition, this year, To better support our TES customers post-sale and grow our parts and service revenue, we are investing in a focused initiative to expand our aftermarket service capacity. This effort, which will impact multiple locations in our existing branch network, will ensure that our TES customers continue to get the high level of post-sale service that they have come to expect from Custom Truck. Both the HIAT partnership and our expanded parts and service offering highlight our commitment to continuing to invest in TES and position our sales business to grow its presence and market share and to strengthen our connection with our customers. Before I turn it over to Chris, I want to highlight a few items related to 2026. First, beginning with the quarter ending March 31st, 2026, we will move from our current three-segment reporting and will report results under two segments, specialty equipment rentals, or SDR, and specialty truck equipment and manufacturing, or STEM. This change aligns our segment reporting with how we currently evaluate the business and provides enhanced transparency to investors. With a clear basis of comparison to the industry peers of each of our primary businesses, We plan to provide additional details prior to reporting Q1 2026 earnings, including recapping historical financials and our 2026 guidance to align with the new reporting structure. Second, we are providing our full year 2026 outlook. We expect revenue in the range of 2.005 to $2.12 billion in adjusted EBITDA in the range of 410 to $435 million. Chris will provide additional details in a few minutes. Our 2026 guidance reflects our continued optimism about our business as long-term sustained in-market demand buoyed by secular megatrends and our ability to provide exceptional execution on behalf of our customers set us apart from our competition. Our longstanding relationships with our strategic suppliers and customers continue to be keys to our success. I continue to have the highest degree of confidence in the custom truck team and want to thank everyone for their hard work and dedication that helped achieve our strong results in 2025. We look forward to updating everyone soon. With that, I'll turn it over to Chris to walk through the numbers in more detail.