Custom Truck One Source, Inc.

Ladies and gentlemen, thank you for standing by and welcome to Custom Truck One Source's second quarter 2026 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 One Source.

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 factor 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 second quarter investor presentation are posted on the investor relations section of our website. Yesterday afternoon, we also filed our second quarter 2026 10Q with the SEC. Today's discussion of our results of operations for Custom Truck One Source, Inc. or Custom Truck as of or for the three months ended June 30, 2026 and prior periods. Also a reminder that beginning last quarter, our financial reporting now reflects our two new reportable segments, Specialty Equipment Rentals or SER and Specialty Truck Equipment and Manufacturing or STEM. 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 Q2 investor presentation posted on our investor relations website. Joining me today are Ryan McMonagle, CEO, and Chris Eperjesy, CFO. I want to now turn the call over to Ryan.

Thanks, Brian, and good morning, everyone. We delivered record revenue in the second quarter, having a strong first half, driven by continued strong momentum in our core end markets and outstanding execution by our team. In the second quarter, we generated revenue of $563 million and adjusted EBITDA of $117 million, up 10% and 25% year-over-year, respectively. Our specialty equipment rental segment continues to deliver consistently strong performance, driven by sustained and growing demand in the transmission and distribution, or T&D, markets. Our rental fleet averaged 81.6% utilization during the quarter, up 400 basis points from Q2 of last year. This was supported by continued robust levels of OEC on rent, which averaged $1.37 billion in Q2, up 13% year over year. So far in Q3, both measures have continued to show year over year growth. We believe that we are in the early stages of what could be a once-in-a-generation transmission demand super cycle. We ended the quarter with total OEC of $1.68 billion, the highest quarter end level in our history, which will support our expected continued growth in SER revenues in the second half of this year. Also, our average fleet age is just over three years old, which we believe is one of the youngest fleets in the industry and positions us well to support our customers' needs across the country. 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 through the remainder of 2026 and beyond. Our specialty truck equipment and manufacturing segment had record performance in the second quarter, with equipment sales reaching an all-time quarterly high for the company and reflecting continued healthy in-market demand and order flow. For Q2, STEM revenue, excluding sales to our SER segment, was up 5% versus Q2 of 2025, which at the time was a record for non-fourth quarter equipment sales. New sales order backlog ended the second quarter at $322 million. down $89 million from the end of Q1 on record Q2 deliveries. Despite the decrease in our backlog in Q2, intra-quarter order flow remains strong and our backlog has grown so far in Q3. We continue to see strong sales demand in the utility and market, especially focused on transmission equipment. In the infrastructure and market, we have seen less growth, but our ongoing conversations with our customers and the pace of bidding and our order activity combined to provide us with the confidence to expect another year of growth and third-party customer revenue for STEM. With respect to the EPA 27 NOx emission regulations, the EPA introduced its proposed changes to the rules in early July, which maintained the 2027 NOx standards while adding non-conformance penalty provisions. The regulations are expected to be finalized later this year, Given our current inventory position, the chassis pre-buy actions we have already taken, and our strong relationships with our chassis OEM partners, we believe CTAS is well positioned to navigate the impact of the upcoming emissions standards changes. Given our strong year-to-date performance, robust conditions in the T&D and markets, and our outlook for the rest of the year, we are increasing our previous full-year 2026 consolidated revenue and adjusted EBITDA outlooks. We expect consolidated revenue in the range of $2.1 to $2.2 billion and adjusted EBITDA in the range of $437.5 to $455 million. Long-term sustained in-market demand buoyed by secular megatrends combined with 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 extraordinary results in the second 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.