Custom Truck One Source, Inc.

Hello, everyone. Thank you for joining us and welcome to Custom Truck OneSource Inc.' 's first quarter 2026 earnings conference call. After today's prepared remarks, we will host a question and answer session. If you'd like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Brian Perman, Vice President, Investor Relations. Brian, please go ahead.

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 a discussion of some of the factors that could cause actual results to differ, please refer to the risk factors section of the company's filings with the SEC. Additionally, please note that you can find reconciliations of the historical non-GAAP financial measures discussed during the call in the press release we issued yesterday after the market closed. That press release and our first quarter investor presentation are posted on the investor relations section of our website. Yesterday afternoon, we also filed our first quarter 2026 10Q with the SEC. Today's discussion of our results of operations for Custom Truck OneSource Inc. or Custom Truck is presented on an historical basis as of or for the three months ended March 31, 2026 and prior periods. Also, a reminder that beginning this quarter, our financial reporting reflects our two new operating segments, Specialty Equipment Rentals or SER and Specialty Truck Equipment and Manufacturing or STEMM. While our 2026 results in our earnings press release and SEC filing reflect the application of intersegment pricing and margins, as per accounting requirements for intersegment sales, the segment results for 2025 reflect the intersegment sales with no margin, as no intersegment agreement was in place in the period. For an illustrative comparison of what the 2025 results would have been had intersegment sales been reflected with the appropriate gross margin and had other internal accounting policies been in place at the time, please see the appendix of the Q1 investor presentation posted on our investor relations website. Also, certain data in the appendix of the investor deck for Q1 and Q2 2025 for our STEM segment was corrected to reflect an internal error. Full year 2025 STEM results were not impacted by the change. Joining me today, Ryan McMoneagle, CEO, and Chris Epperjesse, CFO. I will now turn the call over to Ryan.

Thanks, Brian, and good morning, everyone. 2026 is off to a great start as we delivered record first quarter revenue driven by continued strong momentum in our core end markets and excellent execution by our team. In the first quarter, we generated revenue of $462 million and adjusted EBITDA of $98 million. up more than 9% and 33% year over year. The key driver of our performance in the quarter was continued strength in our specialty equipment rentals segment, as the improvement we experienced throughout last year in the transmission and distribution markets continued into Q1. Our rental fleet averaged 81.4% utilization during the quarter, up 370 basis points from Q1 of last year. This was supported by continued robust levels of OEC on rent, which averaged $1.34 billion in Q1, up 12% year over year. So far in Q2, both measures have continued to strengthen with utilization in OEC on rent currently trending above our first quarter averages. We ended the quarter with total OEC of $1.66 billion, the highest quarter in level in our history. which will support our expectation for continued growth in SER revenues this year. Also, the average age of our fleet is less than three years old, which we believe is one of the youngest fleets in the industry and positions us well to support our customers. 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 trending results over recent quarters speak directly to that. Bidding activity and ongoing conversations with our customers lead us to believe that these conditions will persist throughout 2026 and beyond. Performance of our specialty truck and equipment manufacturing segment in the first quarter was strong. reflecting continued healthy in-market demand and order flow. For Q1, STEM revenue, excluding sales to our SER segment, were up 5% year over year. We also saw gross margin expand in the quarter, driven by significant cost out and productivity improvements led by our production team. New sales order backlog ended the first quarter at $411 million. up more than $76 million or 23% from the end of Q4. Our backlog has continued to grow so far in Q2. 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 13% in Q1. with particular strength coming from our 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 STEM, not including intersegment sales to our SER segment. CTAS is well positioned with our young rental fleet, current inventory positions, and strong relationships with our chassis OEM partners to navigate the impact of the EPA's 2027 admission standards. We are affirming our previous full year 2026 revenue outlook, which we updated earlier this month solely to reflect our new segment reporting with no change to consolidated guidance. We expect consolidated revenue in the range of $2.005 to $2.12 billion. Given strong conditions in the T&D end markets, we are raising both the bottom and top ends of our adjusted EBITDA guidance and now project a range of $415 to $440 million. Despite some macroeconomic volatility, we continue to be optimistic about our business. Long-term, sustained in-market demand is buoyed by secular megatrends, and our ability to provide exceptional execution on behalf of our customers sets us apart from our competition. Our long-standing 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 the first quarter. We look forward to updating everyone soon. With that, I'll turn it over to Chris to walk through the numbers in more detail.