Custom Truck One Source Q4 Earnings Call Highlights

McMonagle attributed the quarter’s show chiefly to spot successful rentals, peculiarly arsenic improving conditions successful transmission and organisation (T&D) continued from the 3rd 4th into the 4th quarter. The rental fleet averaged conscionable nether 84% utilization successful the period, which absorption described arsenic the highest level successful astir 3 years, supported by maturation successful archetypal instrumentality outgo (OEC) connected rent.

Average OEC connected rent successful the 4th was conscionable nether $1.4 billion, up 14% twelvemonth implicit year, and absorption said some utilization and OEC connected rent reached historically precocious levels during the quarter. While the institution experienced an anticipated seasonal slowdown successful December, McMonagle said aboriginal 2026 trends person rebounded, with utilization astir 82% and OEC connected rent “well above” the year-end level.

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CFO Chris Eperjesy said the company’s results reflected “stronger operating show crossed the concern and improved rental fundamentals,” particularly successful T&D markets. On a GAAP basis, the institution reported fourth-quarter nett income of astir $21 million, but a full-year GAAP nett nonaccomplishment of astir $31 million. Eperjesy noted year-over-year comparability was affected by a $23.5 cardinal summation from a sale-leaseback transaction successful the 4th fourth of 2024; excluding that gain, helium said underlying nett income improved connected higher gross profit, disciplined SG&A management, and little involvement expense.

• ERS (Equipment Rental Solutions): Fourth-quarter gross was $207 million, up 20% twelvemonth implicit year, driven by double-digit maturation successful some rental gross and rental income activity. Full-year ERS gross grew 17%. Utilization averaged 83.6% successful Q4, up astir 470 ground points from Q4 2024, and mean OEC connected rent was $1.38 billion, up $166 million, oregon 14%. On-rent output successful Q4 was 38.7%, with absorption citing opportunities for further complaint betterment arsenic transmission premix grows and pricing subject holds.

• TES (Truck and Equipment Sales): Fourth-quarter instrumentality income were $284 million, and absorption said show was beneath expectations. McMonagle said gross declined 8% twelvemonth implicit year, mostly owed to customers pulling guardant superior spending earlier successful the twelvemonth amid anticipated tariffs and terms increases, on with an “atypical year-end dynamic” wherever immoderate customers deferred deliveries into 2026. Eperjesy besides cited continued pricing unit connected definite motortruck sales. For the afloat year, TES gross totaled $1.1 billion, up 4% and the highest yearly level successful the segment’s history.

• APS: Fourth-quarter gross was $37 million, with gross borderline unchangeable astatine 27%. Full-year APS gross borderline was conscionable nether 24%, improving by astir 120 ground points twelvemonth implicit year.