Q3 2025 Custom Truck One Source Inc Earnings Call

Third quarter 2025 earnings conference call.

All lines have been placed on mute to prevent any background noise.

After the Speakers' remarks, there will be a question and answer session.

If you'd like to ask a question at that time. Please press Star then the number one on your telephone keypad.

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Thank you.

I'd like to turn the call over to your host today to Brian Berman, Sir you may begin.

Thank you 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 the Companys control.

Although these forward looking statements are based on management's current expectations and beliefs actual results may differ materially.

Speaker #2: Ladies and gentlemen , thank you for standing by . My name is Colby , and I will be your conference operator today . At this time , I would like to welcome you to the Custom Truck One Source, Inc. third quarter 2020 Earnings conference call .

Colby: Ladies and gentlemen, thank you for standing by. My name is Colby, and I will be your conference operator today. At this time, I would like to welcome you to the Custom Truck One Source, Inc. Q3 2025 earnings conference call. All lines have been placed on mute to prevent any background noise, and after the speakers' remarks, there will be a question and answer session. If you'd like to ask a question at that time, please press star, then the number one on your telephone keypad. If you would like to withdraw your question at any time, press star one again. Thank you. I'd like to turn the call over to your host today, to Brian Perman. Sir, you may begin.

For a discussion of some of the factors that could cause actual results to differ.

Refer to the risk factors section of the company's filings with the SEC.

Additionally, please note that you can find reconciliations of historical non-GAAP financial measures discussed during the call and the press release, we issued yesterday afternoon.

Speaker #2: All lines have been placed on mute to prevent any background noise . And after the speakers remarks , there will be a question and answer session .

Speaker #2: If you'd like to ask a question at that time , please press star . Then the number one on your telephone keypad . If you would like to withdraw your question at any time , press star one .

Press release in our third quarter Investor presentation are posted on the Investor Relations section of our website.

We filed our third quarter 2025, 10-Q, with the SEC yesterday afternoon.

Speaker #2: Again . Thank you . I'd like to turn the call over to your host today to Brian Perman , sir . You may begin .

Today's discussion of our results of operations for bus and truck loan sourcing or custom truck is presented on an historical basis as well or for the three months ended September 32025 and prior periods.

Speaker #3: Thank you . 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 .

Brian Perman: Thank you. 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 with the historical non-GAAP financial measures discussed during the call in the press release we issued yesterday afternoon. That press release and our third quarter investor presentation are posted on the investor relations section of our website. We filed our third quarter 2025 10-Q with the SEC yesterday afternoon.

With me today, Orion Mcmonagle, CEO and Christopher J C. CFO I will now turn the call over to Ryan.

Thank you, Brian and welcome everyone to todays call building on our momentum from the second quarter custom truck had a strong third quarter, delivering 20% adjusted EBITDA growth and 8% revenue growth versus Q3 2024.

Speaker #3: 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.

Speaker #3: 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 .

Third quarter performance was characterized by continued solid fundamental demand in our core T&D markets and excellent execution by our team leading to strong results in both our <unk> and Pts segments and overall year over year revenue growth for the quarter.

Cost control power to the people, who strengthen and build our nation's infrastructure. Our trucks are used to build and maintain the grid on a daily basis.

Brian Perman: Today's discussion of our results of operations for Custom Truck One Source, Inc., or Custom Truck, is presented on a historical basis as of or for the three months ended September 30, 2025, and prior periods. Joining me today are Ryan McMonagle, CEO, and Christopher Eperjesy, CFO. I will now turn the call over to Ryan.

Offsetting business activity and strong intra quarter order flow continue to reinforce our optimism about achieving our expected growth targets in 2025.

As a result, we are reaffirming our previous fiscal 2025 revenue and adjusted EBITDA guidance.

Ryan McMonagle: Thank you, Brian, and welcome everyone to today's call. Building on our momentum from the second quarter, Custom Truck One Source, Inc. had a strong third quarter, delivering 20% adjusted EBITDA growth and 8% revenue growth versus Q3 2024. Third quarter performance was characterized by continued solid fundamental demand in our core T&D markets and excellent execution by our team, leading to strong results in both our ERS and TES segments and overall year-over-year revenue growth for the quarter. Custom Truck One Source, Inc. powers the people who strengthen and build our nation's infrastructure. Our trucks are used to build and maintain the grid on a daily basis. Our steady business activity and strong intra-quarter order flow continue to reinforce our optimism about achieving our expected growth targets in 2025. As a result, we are reaffirming our previous fiscal 2025 revenue and adjusted EBITDA guidance.

While Chris will discuss our segment performance in greater detail.

I'd like to highlight some key trends.

In <unk>, our utility contractor customers continue to see sustained and increased levels of activity, which they expect to persist for the foreseeable future driven largely by spending tied to unprecedented secular growth and electricity demand.

At several recent articles highlight the real bottleneck in the AI Buildout is electricity.

Current industry projections estimate that total T&D capex among U S investor owned utilities for the five year period from 2025 to 2029.

Approximately 600 billion.

The overall annual growth rate of spending is expected to be almost 10% with transmission spending expected to grow at more than 15% annually through 2029.

We feel these trends in the utility end market have been among the key factors driving the growth in our OFC on rents over the last year and position us well for 2026.

Ryan McMonagle: While Chris will discuss our segment's performance in greater detail, I'd like to highlight some key trends. In ERS, our utility contractor customers continue to see sustained and increased levels of activity, which they expect to persist for the foreseeable future, driven largely by spending tied to unprecedented secular growth and electricity demand. As several recent articles highlight, the real bottleneck in the AI buildout is electricity. Current industry projections estimate that total T&D CapEx among U.S. investor-owned utilities for the five-year period from 2025 to 2029 to be approximately $600 billion. The overall annual growth rate of spending is expected to be almost 10%, with transmission spending expected to grow at more than 15% annually through 2029.

For the third quarter average that we see on rent was more than $1 $2 6 billion in <unk>.

17% year over year increase.

We ended the third quarter with over one $3 billion of OECD on rent and have continued to see growth so far in the fourth quarter.

Average utilization in the quarter was just over 79% up more than 600 basis points versus Q3 of last year and the highest level in more than two years.

We continue to see mid 70, percents to mid 80% utilization rates across most of our fleet.

Inventory in the long term resilience of our end markets.

These trends drove a year over year increase in our rental revenue of 18% in the quarter.

Ryan McMonagle: We feel these trends in the utility end market have been among the key factors driving the growth in our OEC on rents over the last year and position us well for 2026. For the third quarter, average OEC on rent was more than $1.26 billion, a 17% year-over-year increase. We ended the third quarter with over $1.3 billion of OEC on rent and have continued to see growth so far in the fourth quarter. Average utilization in the quarter was just over 79%, up more than 600 basis points versus Q3 of last year and the highest level in more than two years. We continue to see mid-70% to mid-80% utilization rates across most of our fleet, demonstrating the long-term resilience of our end markets.

With total IRS segment revenue up more than 12% versus Q3 of last year.

Because of the sustained strong demand, we decided in the quarter to accelerate rental fleet, Capex, which Chris will discuss in more detail.

We believe this spending will position us well for continued growth in 2026.

At the end of Q3, our total OTC was just over $1 $62 billion, our highest quarter end level ever.

Coming off near record segment sales last quarter Ges continued to see good sales performance in the third quarter.

The year over year growth of 6% in the year to date growth of eight 5% versus the first three quarters of last year.

While our backlog was down in the quarter, we continued to see strong intra quarter order flow, particularly among our local and regional customers.

Ryan McMonagle: These trends drove a year-over-year increase in rental revenue of 18% in the quarter, with total ERS segment revenue up more than 12% versus Q3 of last year. Because of the sustained strong demand, we decided in the quarter to accelerate rental fleet CapEx, which Chris will discuss in more detail. We believe this spending will position us well for continued growth in 2026. At the end of Q3, our total OEC was just over $1.62 billion, our highest quarter-end level ever. Coming off near-record segment sales last quarter, TES continued to see good sales performance in the third quarter, posting year-over-year growth of 6% and year-to-date growth of 8.5% versus the first three quarters of last year. While our backlog was down in the quarter, we continued to see strong intra-quarter order flow, particularly among our local and regional customers.

This reflects the current availability of equipment broadly in the market.

With total ERS segment Revenue up more than 12% versus Q3 of last year.

Which decreases the need for customers to place orders far in advance.

Signed orders in the quarter from this portion of our customer base were up more than 40% year over year.

Because of the sustained. Strong demand. We decided in the quarter to xcelerate rental, Fleet capex, which Chris will discuss in more detail.

Driving overall order growth of over 30%.

We believe this spending will position us well for continued growth in 2026.

With the supply of certain vocational vehicles remaining at elevated levels across the market.

Segment gross margin was down slightly in Q3 compared to the prior quarter.

At the end of Q3, our total oec was just over 1.62 billion dollars, our highest quarter in level ever.

However, it remained within our expected range of 15% to 18%.

Coming up near record segment sales. Last quarter teas. We continue to see good sales performance in the third quarter.

Overall, our current pace of orders and the continued strong demand for vocational vehicles across our end markets combined to provide us with confidence in our outlook for <unk> for the rest of the year.

Year-over-year growth of 6% and year-to-date growth of 8.5%, versus the first 3 quarters of last year.

We continue to believe that accelerated depreciation provisions contained in the recent federal spending and tax Bill will benefit custom trucks, particularly for sales of used and new vehicles in the fourth quarter.

Ryan McMonagle: This reflects the current availability of equipment broadly in the market, which decreases the need for customers to place orders far in advance. Signed orders in the quarter from this portion of our customer base were up more than 40% year-over-year, driving overall order growth of over 30%. With a supply of certain vocational vehicles remaining at elevated levels across the market, segment gross margin was down slightly in Q3 compared to the prior quarter. However, it remained within our expected range of 15% to 18%. Overall, our current pace of orders and the continued strong demand for vocational vehicles across our end markets combine to provide us with confidence in our outlook for TES for the rest of the year.

While our backlog was down in the quarter, we continued to see strong intra quarter order flow, particularly among our local and Regional customers.

This reflects the current availability of equipment broadly in the market.

Since the end of the third quarter, we've seen this reflected in our backlog, which has grown so far in the fourth quarter to over $350 million.

Which decreases the need for customers to place orders, far in advance.

With respect to the tariff landscape, we continue to feel that as a result of our mitigation actions taken earlier this year with.

Signed orders in the quarter from this portion of our customer base were up more than 40% year-over-year. Driving overall order growth of over 30%,

With tariffs, we'll have a limited direct cost impact on our business this year.

With its supply of certain location, Vehicles remaining at elevated levels across the market.

However, we continue to hear about hesitancy related to new equipment purchase decisions from some of our customers as a result of economic uncertainty continued high interest rates and the overall inflationary pricing environment to which the tariffs have contributed.

Segments gross margin was down slightly in Q3 compared to the prior quarter. However, it remained within our expected range of 15% to 18%.

We are reaffirming our full year 2025 guidance, our strong year to date results, our robust order flow and resilient end market demand continues to drive our expected growth across our consolidated business. This year.

Ryan McMonagle: We continue to believe that accelerated depreciation provisions contained in the recent federal spending and tax bill will benefit Custom Truck One Source, Inc., particularly for sales of used and new vehicles in the fourth quarter. Since the end of the third quarter, we've seen this reflected in our backlog, which has grown so far in the fourth quarter to over $350 million. With respect to the tariff landscape, we continue to feel that as a result of our mitigation actions taken earlier this year, the tariffs will have a limited direct cost impact on our business this year. However, we continue to hear about hesitancy related to new equipment purchase decisions from some of our customers as a result of economic uncertainty, continued high interest rates, and the overall inflationary pricing environment to which the tariffs have contributed. We are reaffirming our full year 2025 guidance.

Overall, our current pace of orders and the continued strong demand for vocational vehicles across our markets combined, provide us with confidence in our outlook for Q3, for the rest of the year.

Despite some volatility in the macro environment, our business outlook remains positive.

We continue to believe that accelerated depreciation, Provisions contained, in the recent federal spending and tax bill will benefit custom truck, particularly for sales of used and new vehicles in the fourth quarter.

Long term sustained end market demand buoyed by secular mega trends and our ability to provide exceptional execution on behalf of our customers set us apart from our competition.

Since the end of the third quarter, we've seen this reflected in our backlog, which has grown so far in the fourth quarter to over 350 million dollars.

Our multi decade relationships with strategic suppliers, and our long tenured and diversified customer base will continue to be key to our success.

With respect to the Tariff landscape, we can continue to feel that as a result of our mitigation actions taken early this year.

The tariffs will have a limited direct cost impact on our business this year.

I continue to have the highest degree of confidence in the customer team and want to thank everyone for their hard work and dedication that helped achieve these results. This quarter. We look forward to updating everyone on our progress on next quarter's call with that I'll turn it over to Chris to discuss our third quarter.

However we continue to hear about hesitancy related to new equipment purchase decisions from some of our customers as a result of economic uncertainty continued High interest rates. In the overall inflationary pricing environment to which the tariffs have contributed.

Ryan McMonagle: Our strong year-to-date results, our robust order flow, and resilient in-market demand continue to drive our expected growth across our consolidated business this year. Despite some volatility in the macro environment, our business outlook remains positive. 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 multi-decade relationships with strategic suppliers and our long-tenured and diversified customer base will continue to be key 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 these results this quarter. We look forward to updating everyone on our progress on next quarter's call. With that, I'll turn it over to Chris to discuss our third quarter results in detail.

The results in detail.

Thanks, Ryan for the third quarter, we generated $482 million of revenue $156 million of adjusted gross profit and $96 million of adjusted EBITDA up, 8%, 13% and 20% respectively versus Q3 of 2024.

We are reaffirming our full year 2025 guidance, our strong year-two date results, our robust order flow and resilient in market demand, continue to drive our expected growth. Our Consolidated business this year,

Despite some volatility in the macro environment, our business outlook remains positive.

On a year over year basis, all our rental segment Kpis improved in the quarter average utilization of the rental fleet for Q3 was over 79% compared to 73% in Q3 of the prior year.

Long-term, sustained market demand, driven by secular mega trends and our ability to provide exceptional execution on behalf of our customers, sets us apart from our competition.

Average always see on rent in the quarter was over $1 $2 6 billion compared.

Our multi-day and our long tenured and diversified customer base, will continue to be keys to Our Success.

Compared to under $1 1 billion in.

In Q3 of 2024.

Both metrics so far in Q4 are higher than the averages we experienced in Q3 currently standing at more than $1 3 billion.

And over 80% respectively.

As of today or we see on rent is up more than a $180 million or 15% versus a year ago.

Christopher Eperjesy: Thanks, Ryan. For the third quarter, we generated $482 million of revenue, $156 million of adjusted gross profit, and $96 million of adjusted EBITDA, up 8%, 13%, and 20% respectively versus Q3 of 2024. On a year-over-year basis, all our rental segment KPIs improved in the quarter. Average utilization of the rental fleet for Q3 was over 79% compared to 73% in Q3 of the prior year. Average OEC on rent in the quarter was over $1.26 billion compared to under $1.1 billion in Q3 of 2024. Both metrics so far in Q4 are higher than the averages we experienced in Q3, currently standing at more than $1.3 billion and over 80% respectively. As of today, OEC on rent is up more than $180 million, or 15% versus a year ago.

I continue to have the highest degree of confidence in the Customs team and want to thank everyone for their hard work and dedication. That helped achieve these results. This quarter. We look forward to updating everyone on our progress on next quarter's. Call with that. I'll turn it over to Chris to discuss our third quarter of the results and detail.

The RF segment had $169 million of revenue in Q3 up more than 12% from $151 million in Q3 of 2020 for.

Rental revenue was up meaningfully on a year over year basis, showing 18% growth rental asset sales were essentially flat and are up 20% year to date compared to the first three quarters of last year.

Thanks Ryan for the third quarter. We generated 482, million of Revenue, 156 million of adjusted gross profit and 96 million of adjusted, Eva up 8%, 13% and 20%, respectively, versus Q3 of 2024.

Segment adjusted gross profit was $104 million for Q3 up 19% from Q3 of last year.

On a year-over-year basis. All our rental segment, kpis. Improved in the quarter, average, utilization of the rental Fleet for Q3 was over, 79% compared to 73% in Q3 of the prior year.

Adjusted gross margin for <unk> was 62% in the quarter more than 370 basis points higher versus the same period last year, driven by a higher mix of rental revenue as well as improved rental margins of almost 76% and sustained rental asset sales margins in the mid 20% range.

Average oec on rent in the quarter was over 1.26 billion dollars compared to under 1.1 billion dollars in Q3 of 2024.

Both metrics so far in Q4 are higher than the average as we experienced in Q3 currently standing at more than 1.3 billion dollars and over 80% respectively.

Unrent yield was 38, 2% for the quarter down slightly from Q3 of last year, but still within our expected upper 30% to lower 40% range.

Christopher Eperjesy: The ERS segment had $169 million of revenue in Q3, up more than 12% from $151 million in Q3 of 2024. Rental revenue was up meaningfully on a year-over-year basis, showing 18% growth. Rental asset sales were essentially flat and are up 20% year to date compared to the first three quarters of last year. Segment adjusted gross profit was $104 million for Q3, up 19% from Q3 of last year. Adjusted gross margin for ERS was 62% in the quarter, more than 370 basis points higher versus the same period last year, driven by a higher mix of rental revenue as well as improved rental margins of almost 76% and sustained rental asset sales margins in the mid-20% range. On-rent yield was 38.2% for the quarter, down slightly from Q3 of last year, but still within our expected upper 30% to lower 40% range.

As of today, oec on rent is up more than $180 million or 15% versus a year ago.

Net rental Capex in Q3 was $79 million and our fleet age is just below three years.

The RS segment had 169 million of Revenue in Q3 up. More than 12% from 151 million in Q3 of 2024.

We see in the rental fleet ended the quarter at over $162 billion.

Up almost $130 million versus the end of Q3 2024.

More than $60 million in the quarter, reflecting our strategic investment given the strong demand environment, we continue to experience across our primary end markets, particularly in T&D.

Rental revenue was up meaningfully on a year-over-year basis, showing 18% growth. Rental asset sales were essentially flat and are up 20% year to date compared to the first three quarters of last year.

Segment, adjusted. Gross profit was 104 million for Q3 up 19% from Q3 of last year.

We expect to continue to invest in the fleet in the fourth quarter, resulting in high single digit percentage or we see growth versus the end of 2024, which is higher than previously expected.

And the Tes segment coming off near record sales in Q2, we sold $275 million of equipment in Q3 up 6% year over year.

Us was 62% in the quarter more than 370 basis points higher versus the same period last year, driven by a higher mix of rental Revenue as well as improved rental margins of almost 76% and sustained rental asset sales margins in the mid 20% range.

Gross margin in the segment in Q3 was 15% down from Q3 2024.

Christopher Eperjesy: Net rental CapEx in Q3 was $79 million, and our fleet age is just below three years. Our OEC in the rental fleet ended the quarter at over $1.62 billion, up almost $130 million versus the end of Q3 2024 and up more than $60 million in the quarter, reflecting our strategic investment given the strong demand environment we continue to experience across our primary end markets, particularly in T&D. We expect to continue to invest in the fleet in the fourth quarter, resulting in high single-digit percentage OEC growth versus the end of 2024, which is higher than previously expected. In the TES segment, coming off near-record sales in Q2, we sold $275 million of equipment in Q3, up 6% year over year. Gross margin in the segment in Q3 was 15%, down from Q3 2024.

On rent, yield was 38.2% for the quarter down slightly from Q3 of last year, but still within our expected, upper 30% to lower 40% range.

We expect gross margins to improve in the coming quarters as supplier vocational equipment in the market comes more into balance reducing some of the pricing pressure we've seen this year.

Net rental cap backs in Q3 were $79 million, and our fleet age is just below 3 years.

P Es, new sales backlog decreased by $55 million in the quarter driven by continued strong sales activity.

Our oec in the rental Fleet ended the quarter at over 1.62 billion.

At three months of LTM TBS sales, our TPS backlog is slightly below our targeted historical average range.

However, net orders in Q3 remained strong at $220 million of more than 24% compared to Q3 of 2024.

Up almost 130 million versus the end of Q3 2024, and up more than 60 million in the quarter, reflecting our strategic investment given the strong demand environment we continue to experience across our primary end markets, particularly in T&D.

So far in Q4, which is historically, our highest quarter of Pts sales. We've continued to see strong order flow and our backlog has grown to over $350 million.

We expect to continue to invest in the fleet in the fourth quarter, resulting in high single digit percentage oec growth versus the end of 2024, Which is higher than previously expected.

That combined with the ongoing feedback from our customers regarding their equipment needs for the remainder of the year provides us with confidence that we will see strong revenue growth in TTS. This year, but we do believe it will be closer to the low end of our guidance range.

In the teas segment, coming off near-record sales in Q2, we sold $275 million of equipment in Q3, up 6% year-over-year.

Christopher Eperjesy: We expect TES gross margins to improve in the coming quarters as supply of vocational equipment in the market comes more into balance, reducing some of the pricing pressure we've seen this year. TES new sales backlog decreased by $55 million in the quarter, driven by continued strong sales activity. At three months of LTM TES sales, our TES backlog is slightly below our targeted historical average range. However, net orders in Q3 remain strong at $220 million, up more than 24% compared to Q3 of 2024. In Q4, which is historically our highest quarter of TES sales, we've continued to see strong order flow, and our backlog has grown to over $350 million.

In Q3 was 15% down from Q3 2024.

Our strong and long standing relationships with our chassis body and attachment vendors continue to be an important driver of <unk> production.

We expect teas gross margins to improve in the coming quarters as supply of vocational equipment in the market, comes more into balance reducing some of the pricing pressure. We've seen this year,

Our current level of inventory positions us well to meet our production growth and sales goals for the year as well as help mitigate any impact from tariffs.

PES, new sales, backlog decrease by 55 million in the quarter driven by continued strong sales activity.

Our Acs business posted revenue of $38 million in the quarter up 3% compared to Q3 of last year.

At 3 months of LTM, teas sales. Our teas backlog is slightly below our targeted historical average range.

Adjusted gross margin in the segment was over 26% for Q3 up both year over year and sequentially.

However, net orders in Q3 remain strong, at 220 million, over 24% compared to Q3 of 2024.

Our year to date adjusted gross margin and EPS remains in our expected mid 20% range.

Borrowings under our ABL at the end of Q3 were $708 million, an increase of $38 million versus the end of Q2, largely to fund both rental and non rental capex and certain other working capital needs.

Christopher Eperjesy: That, combined with the ongoing feedback from our customers regarding their equipment needs for the remainder of the year, provides us with confidence that we will see strong revenue growth in TES this year, but we do believe it will be closer to the low end of our guidance range. Our strong and long-standing relationships with our chassis, body, and attachment vendors continue to be an important driver of TES production. Our current level of inventory positions us well to meet our production, fleet growth, and sales goals for the year, as well as help mitigate any impact from tariffs. Our APS business posted revenue of $38 million in the quarter, up 3% compared to Q3 of last year. Adjusted gross margin in the segment was over 26% for Q3, up both year over year and sequentially. Our year-to-date adjusted gross margin in APS remains in our expected mid-20% range.

So far in Q4, which is historically our highest quarter of tea sales, we've continued to see strong order flow, and our backlog has grown to over $350 million.

As of the end of Q3, we had $238 million available and over $230 million of suppressed availability under the ABL, resulting in substantial liquidity for the company.

That, combined with the ongoing feedback from our customers regarding their equipment needs for the remainder of the year, provides us with confidence that we will see strong revenue growth in teas this year. However, we do believe it will be closer to the low end of our guidance range.

Are strong and long-standing relationships with our chassis body and attachment vendors continue to be an important driver of Tes production.

With LTM adjusted EBITDA of $365 million.

We finished Q3 with net leverage of 453 times the sequential improvement.

Our current level of inventory positions us. Well to meet our production Fleet growth and sales goals for the year as well as help mitigate any impact from tariffs.

Did make progress on our planned inventory reduction with inventory down almost $54 million in the quarter. This contributed to a reduction in our floorplan balances of almost $57 million.

Our APS business posted revenue of 38 million in the quarter up 3%, compared to Q3 of last year.

We continue to expect to reduce our inventory in Q4 and into next year, which should contribute to lower balances on our floorplan lines as well as reduced borrowings on the ABL.

Adjusted gross margin in the segment was over 26% for Q3 up both year-over-year and sequentially.

Christopher Eperjesy: Borrowings under our ABL at the end of Q3 were $708 million, an increase of $38 million versus the end of Q2, largely to fund both rental and non-rental CapEx and certain other working capital needs. As of the end of Q3, we had $238 million available and over $230 million of suppressed availability under the ABL, resulting in substantial liquidity for the company. With LTM adjusted EBITDA of $365 million, we finished Q3 with net leverage of 4.53 times, a sequential improvement. We did make progress on our planned inventory reduction, with inventory down almost $54 million in the quarter. This contributed to a reduction in our floor plan balances of almost $57 million. We continue to expect to reduce our inventory in Q4 and into next year, which should contribute to lower balances on our floor plan lines as well as reduced borrowings on the ABL.

Our year-to-date adjusted gross margin in APS remains in our expected mid-20% range.

However, given the strong demand environment that we are expecting to continue into 2026 and beyond we now expect to reduce our inventory by $125 million $250 million compared to the level at the end of last year.

We intend to use our levered free cash flow to reduce our net leverage and to continue to target a level of below three times. This remains a primary and important goal for us and one that we expect to achieve by the end of fiscal 2026.

Borrowing is under our abl at the end of Q3 where 708 million an increase of 38 million versus the end of Q2 largely to fund, both rental and non-real capex and certain other working capital needs. As of the end of Q3, we had 238 million available in over 230 million dollars of suppressed, availability under the AVL resulting in substantial liquidity for the company.

We are reiterating our previous 2025 guidance with total revenue in the range of $1 97 to 2.06 billion.

With LTM adjusted IBA of 365 million. We finished Q3 with net leverage of 4.53 times the sequential Improvement.

And adjusted EBITDA in the range of $370 million to $390 million.

We did make progress on our planned. Inventory reduction with inventory down almost 54 million in the quarter.

However, given the sustained rental demand and the IRS, we now plan to invest more than previously expected in our rental fleet. This year, resulting in net rental capex of approximately $250 million.

this contributed to a reduction, in our floor plan balance is of almost 57 million

In addition, we expect our non rental capex to be higher this year as well as we have taken the opportunity to fund some additional production and manufacturing improvements at our Kansas City location.

Christopher Eperjesy: Given the strong demand environment that we're expecting to continue into 2026 and beyond, we now expect to reduce our inventory by $125 million to $150 million compared to the level at the end of last year. We intend to use our levered free cash flow to reduce our net leverage and to continue to target a level of below three times. This remains a primary and important goal for us and one that we expect to achieve by the end of fiscal 2026. We are reiterating our previous 2025 guidance with total revenue in the range of $1.97 to $2.06 billion and adjusted EBITDA in the range of $370 to $390 million. However, given the sustained rental demand in ERS, we now plan to invest more than previously expected in our rental fleet this year, resulting in net rental CapEx of approximately $250 million.

We continue to expect to reduce our inventory in Q4 and into next year, which should contribute to lower balances on our floor plan lines, as well as reduced borrowings on the AL.

Which should result in expanded production capacity and better position us for growth across our segments.

However, given the strong demand environment that we are expecting to continue into 2026 and Beyond. We now expect to reduce our inventory by 125 million to 1550 million compared to the level at the end of last year.

While our segment guidance remains unchanged, we do expect Urs. The finished the year with revenues in the upper half of our $660 to $690 million range.

Yes to finish the year with revenues closer to the lower end of the $1, one six to $1 billion to $1 billion range.

We intend to use our leverage free, cash flow to reduce our net leverage, and to continue to Target a level of below. 3 times, this remains a primary and important goal for us and 1 that we expect to achieve by the end of fiscal 2026.

The extent of the benefit we get from our customer spending on new and used equipment. As a result of the accelerated depreciation provisions is likely to be a key determining factor as to where in our guidance ranges. We ended up for both <unk> and TPS.

6 billion and adjusted even on the range of 370 to 390 million.

As a result of higher than expected rental and non rental capex as well as a decrease in our planned inventory reduction we now expect our levered free cash flow to be less than our previous $50 million target. However, we are confident that the incremental capex will yield strong returns that will result in higher sustained levels of levered free cash.

Christopher Eperjesy: In addition, we expect our non-rental CapEx to be higher this year as well, as we have taken the opportunity to fund some additional production and manufacturing improvements at our Kansas City location, which should result in expanded production capacity and better position us for growth across our segments. While our segment guidance remains unchanged, we do expect ERS to finish the year with revenues in the upper half of our $660 to $690 million range and TES to finish the year with revenues closer to the lower end of the $1.16 to $1.21 billion range. The extent of the benefit we get from our customers spending on new and used equipment as a result of the accelerated depreciation provisions is likely to be a key determining factor as to where in our guidance ranges we end up for both ERS and TES.

However, given the sustained rental demand in ERS. We now plan to invest more than previously expected in our rental. Fleet this year resulting in net rental, capex of approximately, 250 million.

So going forward.

In closing I want to Echo <unk> comments regarding our continued strong business outlook.

In addition we expect our non-real cap backs to be higher this year as well as we have taken the opportunity to fund some additional production and Manufacturing improvements at our Kansas City location which should result in expanded production capacity and better position us for growth across our segments.

Despite some macroeconomic uncertainty this year our year to date results and the continued strong fundamentals of our end markets allow us to be optimistic about the long term demand drivers in our industry and our ability to produce double digit adjusted EBITDA growth this year.

With that I will turn it over to the operator to open the line for questions operator.

While our segment guidance remains unchanged, we do expect ERS to finish the year with revenues, in the upper half of our 660 to 690 million range, and teas to finish the year with revenues closer to the lower end of the 1.16 to 1.21 billion dollar range.

Thank you we will now begin the question and answer session.

You want to ask a question. Please press Star then the number one on your telephone keypad to raise your hand and entered the queue.

Christopher Eperjesy: As a result of higher than expected rental and non-rental CapEx, as well as the decrease in our planned inventory reduction, we now expect our levered free cash flow to be less than our previous $50 million target. However, we are confident that the incremental CapEx will yield strong returns that will result in higher sustained levels of levered free cash flow going forward. In closing, I want to echo Ryan's comments regarding our continued strong business outlook. Despite some macro-economic uncertainty this year, our year-to-date results and the continued strong fundamentals of our end markets allow us to be optimistic about the long-term demand drivers in our industry and our ability to produce double-digit adjusted EBITDA growth this year. With that, I will turn it over to the operator to open the line for questions. Operator?

The extent of the benefit, we get from our customers spending on new and used equipment as a result of the accelerated depreciation. Provisions is likely to be a key determining Factor as to where, in our guidance ranges, we end up for both ERS and tees.

We'd like to withdraw your question at any time again simply press star one.

Thank you.

Your first question comes from the line of Scott Schneeberger from Oppenheimer. Your line is open.

Hey, good morning, guys, it's Daniel on for Scott.

So it seems like the momentum is really strong here can you guys. Please elaborate on the visibility you feel you have for 2026 and sustained.

As a result of higher than expected rental and non- rental cap acts as well as the decrease in our planned inventory reduction. We now expect our leverage free cash flow to be less than our previous fionn dollar Target. However, we are confident that the incremental capex will yield strong returns that will result in higher sustained levels of levered, free cash flow going forward.

In closing, I want to Echo Ryan's comments regarding our continued strong business Outlook,

Same with momentum.

Sure Yes.

Here from me Daniel and Thanks for the question, Yes, we're seeing really good demand in the utility sector in transmission and distribution.

We talked about on the call are our remarks, we're seeing demand increase especially around transmission in particular, so as everybody is hearing that it does feel like we're heading into.

Despite some macroeconomic uncertainty this year, our year-to-date results and the continued strong fundamentals of our end markets allow us to be optimistic about the long-term demand drivers in our industry and our ability to produce double-digit adjusted EBIT growth this year.

With that, I will turn it over to the operator, to open the line for questions, operator.

Colby: Thank you. We will now begin the question and answer session. If you'd like to ask a question, please press star, then the number one on your telephone keypad to raise your hand and enter the queue. If you'd like to withdraw your question at any time, again, simply press star one. Thank you. Your first question comes from the line of Scott Schoneburger from Oppenheimer. Your line is open.

A strong cycle of transmission demand.

And so thats the decision that we made in Q3.

Were to invest more into the rental fleet.

Thank you. We will now begin the question and answer session. If you'd like to ask a question please press star. Then the number 1 on your telephone keypad, to raise your hand and enter the queue.

Some of that will carry into Q4 as well.

And we think that's what sets us up really well for 2026. So we said on the call with what we see on rent average one $2 6 million for the quarter and finished the quarter at $1 3 billion and has continued to grow into October so utilization on rental is back into the 80 is north of 80% at this point.

If you'd like to withdraw your question at any time again, simply press star 1.

Thank you.

[Analyst]: Hey, good morning, guys. It's Donny along from Scott. It seems like the momentum is really strong here. Could you guys please elaborate on the visibility you feel you have for 2026 to sustain this momentum, please? Thank you.

Your first question comes from the line of Scott, Shaunie burger from Oppenheimer. Your line is open.

And so that's I think why we're really comfortable with the impact of that heading into 2026.

Ryan McMonagle: Sure. Yeah. Good to hear from you, Daniel. Thanks for the question. Yes, we're seeing really good demand in the utility sector and transmission and distribution. As we talked about on the call, our remarks, we're seeing demand increase, especially around transmission in particular. As everybody's hearing, it does feel like we're heading into a strong cycle of transmission demand. The decisions that we made in Q3 were to invest more into the rental fleet. Some of that will carry into Q4 as well. We think that's what sets us up really well for 2026. We said on the call that OEC on rent averaged $1.26 billion for the quarter. It finished the quarter at $1.3 billion and has continued to grow into October. Utilization on rental is back into the 80 is north of 80% at this point.

Got it thank you.

And on <unk> and.

OFC on ramp to yield could you discuss how you think about that going forward on how you feel about the pricing environment.

Yeah, we've guided obviously high <unk> to low <unk> from an OE from and on rate yield perspective, Daniel and.

We've seen yield increase a bit in September and into October.

Versus what we average for the quarter. So we've seen that as a positive thing.

Obviously, two things in play there right. One is as we shift more towards transmission slightly higher yield that we've talked about and so I would expect that to continue.

Hey, good morning guys. It's uh Donnie Long from Scott. Uh so it seems like momentum is really strong here. Can you guys please elaborate on the visibility you feel you have for 2026 to sustain this uh sustained this momentum please. Thank you. Sure. Yeah. Good to hear from you Daniel. And thanks for the question. Um, yes. We're seeing uh, really good demand in the utility sector and transmission and distribution. Um, and as we talked about on the call, on our, our, our our remarks, we're seeing, um, demanding increase, especially around transmission, um, in particular. So as everybody's hearing, or it does feel like we're heading into, uh, a strong cycle of transmission demand. Um, and so that's the decisions that we made in Q3 uh, were to were to invest more into the rental Fleet. Uh, some of that will carry in the Q4 as well, um, and we think that's what sets us up really well for 2026. So we said on the call that oec on rent, average 1.26 billion for the quarter.

And then as utilization increases.

We've been able to.

Take advantage of some pricing opportunities, where it makes sense, obviously, we have to price the market we have to be competitive in the market and so that's obviously, what we're what we're dealing with on a day to day basis, but I think it should be in the range that we've guided to and we should I would expect that it will increase a bit from where we are.

Ryan McMonagle: That's, I think, why we're really comfortable with the impact of that heading into 2026.

It finished the quarter at 1.3 billion and can and has continued to grow into October. So utilization on rental is back into the 80s north of 80% at this point. Uh, and so that's I think why we're really comfortable with the impact of that heading into 2026.

[Analyst]: Got it. Thank you. Honing in on the ERS and OEC on rent yield, could you discuss how you think about that going forward and how you feel about the pricing environment?

Where it was in Q3 of this year.

Got it thank you I'll pass it over thanks, so much.

Ryan McMonagle: Yeah. We've guided, obviously, high 30s to low 40s from an on-rent yield perspective, Daniel. We've seen a yield increase a bit in September and into October versus what we averaged for the quarter. We've seen that as a positive thing. Obviously, two things in play there, right? One is as we shift more towards transmission, slightly higher yield that we've talked about. I would expect that to continue a bit. As utilization increases, we've been able to take advantage of some pricing opportunities where it makes sense. Obviously, we have to price the market. We have to be competitive in the market. That's obviously what we're dealing with on a day-to-day basis. I think it should be in the range that we've guided to. I would expect that it would increase a bit from where it was in Q3 of this year.

Got it. Thank you. Um, honing in on on ERS. And um and OC on rent yield. Uh could you discuss how you think about that going forward and how you feel about the the pricing environment?

Thanks Dana.

Your next question comes from the line of Joseph <unk> from R. W. Baird. Your line is open.

Great Good morning, everybody.

I guess.

I wanted to ask a little bit about the cash flow.

<unk> on the color on that.

Taking the Capex.

To kind of capitalize on the growth that youre seeing.

But maybe.

Maybe just a little bit.

Clarification on the inventory reduction and the timing of that you said kind of in the 26 to get that down by the $125 million to $150 million from year end 24, I'm just trying to think about.

What that means is that is that more second half of 2006 I just wondering how long is kind of elevated.

Capex is going to be before dose because inventory will start coming down.

Yeah, uh, We've, we've guided obviously high 30s to low 40s from an OE from an on-ramp yield, uh, perspective, Daniel and, um, you know, we've seen, uh, yield increase a bit in, uh, in September and into October, uh, versus where, what, we average for the quarter. So we've seen that as a positive thing. Um, you know, obviously 2, 2 things in play there, right? 1 is, as we shift more towards transmission, uh, slightly higher yield that we've talked about and so would expect that to continue, um, a bit. And then, as utilization increases, um, you know, we've been able to take advantage of some pricing opportunities where it makes sense, obviously, we have to price the market, we have to be competitive in the market and so that's obviously what we're, what we're dealing with on a day-to-day basis. But, you know, I think it should be in the range that we've guided to. And, and we should, I would expect that. It would increase a bit from where we, uh,

And then maybe a corollary to that would be just on the free cash flow guidance, saying that elaborate being under the $50 million.

[Analyst]: Got it. Thank you. I'll pass it over. Thanks so much.

Of this year.

Ryan McMonagle: Thanks, Daniel.

Got it. Thank you. I'll pass it over. Thanks so much.

Thanks Danielle.

Colby: Your next question comes from the line of Justin Hauke from Baird. Your line is open.

I guess, it's been kind of a use of cash all year.

Trying to think about the fourth quarter any do you expect to kind of continue to use cash in <unk> or would that be a cash inflow quarter. Thanks.

Justin Hauke: Great. Good morning, everybody. I guess I wanted to ask a little bit about the cash flow. I appreciate all the color on the uptick in the CapEx to kind of capitalize on the growth that you're seeing. Maybe just a little bit more clarification on the inventory reduction and the timing of that. You said kind of end of 2026 to get that down by the $125 to $150 million from year-end 2024. Just trying to think about what that means. Is that more second half of 2026? I just don't know how long this kind of elevated CapEx is going to be before those inventory levels start coming down. Maybe the corollary to that would be just on the free cash flow guidance saying the levered being under the $50 million. I guess it's been kind of a use of cash all year.

Your next question comes from the line of Justin Hawk from RW bird. Your line is open.

Yeah. Thanks, Justin this is Chris.

And maybe I wasn't clear so the $125 million to $150 million reduction versus the start of the year will occur by the end of this year and so we do expect to see I think I think through Q3, I think we're only down 14 or $15 million. So you should expect another 100, and a 100 I guess would be $135 million of further.

Reduction in Q4.

And so I think at peak last summer. We said we were just under 11 months of whole goods inventory on hand, I think now were just under eight we've set a target of trying to get the fix I think the into and beyond into 2026 relates to getting that further getting down to six months by the end of next fiscal year.

Oh, great. Good morning everybody. Um, I guess, uh, I, I wanted to ask a little bit about the, the cash flow, um, appreciate all the color on the, the uptick in the capex. Um, you know, to kind of capitalize on the the growth that you're seeing. Um, the maybe just, you know, a little bit more clarification on the, the inventory reduction and the timing of that, you said, kind of in the 26 to get that, you know, down by the 125 to 150 million from year end. 24, just trying to think about um,

So I do expect to generate free cash flow in the fourth quarter, but it's given the incremental investment in the rental fleet and the timing of some of that inventory reduction.

Justin Hauke: I'm just trying to think about the fourth quarter. Do you expect to kind of continue to use cash in fourth quarter? Or will that be a cash inflow quarter? Thanks.

Not going to have for the full year, we won't have any meaningful free cash flow.

Christopher Eperjesy: Yeah. Thanks, Justin. This is Chris. Maybe I wasn't clear. The $125 million to $150 million reduction versus the start of the year will occur by the end of this year. We do expect to see, I think through Q3, we're only down $14 million or $15 million. You should expect another $110 million to, I guess, $135 million of further reduction in Q4. At peak last summer, we said we were just under 11 months of whole goods inventory on hand. Now we're just under 8. We've set a target of trying to get to 6. The into and beyond into 2026 relates to getting that further, getting down to six months by the end of next fiscal year. I do expect we'll generate free cash flow in the fourth quarter.

Okay. Okay.

You know what that means is that is that more second half of the 26? I just don't know how long this kind of elevated. Um, you know, capex is going to be before those those inventory levels start coming down and um, and then maybe the coral area to that would be just on the the free cash flow guidance saying the the lever being under the the 50 million. I I guess it's it's been kind of a use of cash all year. I'm just trying to think about the fourth quarter and do you expect to kind of continue to use cash and 42? Or will that be a cash inflow quarter? Thanks.

You for clarifying that.

And I guess just on the non rental capex the uptick on the production capabilities can can you quantify just kind of how much that is as we kind of think about.

I don't know.

The difference for for next year versus bad investments.

Yes.

The answer is it really is just expanding some of our capabilities here on our KC campus.

And I would think of it and the magnitude of $10 million to $15 million kind of impact and it really is.

Land building and putting some equipment in those facilities.

And so I think next year, we get back I think historically, we've been 25% to $40 million of non rental capex.

Christopher Eperjesy: Given the incremental investment in the rental fleet and the timing of some of that inventory reduction, we're not going to have, for the full year, any meaningful free cash flow.

I think it'll be continue to be similar as we move forward.

Got it okay. I appreciate that those are my questions for now thank you.

Thanks Jess.

Justin Hauke: Okay. Thank you for clarifying that. I guess just on the non-rental CapEx, the uptick on the production capabilities, can you quantify just kind of how much that is as we kind of think about, I don't know, the difference for next year versus that investment?

Yeah, thanks Justin. This is Chris um and maybe I wasn't clear. So the 125 to 150 million dollar reduction versus the start of the year will occur by the end of this year. And so we do expect to see I think uh I think through Q3 I think we're only down 14 or 15 million so you should expect another 10 to 100 and I guess it'd be 135 million or further reduction in Q4. And so, you know, I think a peak last summer. We said we were just under 11 months of whole goods inventory on hand. I think. Now we're just under 8, we've set a target of trying to get the 6, I think the into and Beyond into 2026 relates to getting that further, you know, getting down to 6 months by the end of next fiscal year. Um and so I do have stuck with generate free cash flow in in the fourth quarter. But it it's you know given the incremental investment in the rental Fleet and the timing of some of that inventory reduction. Um you know, we're not going to have for the full year. We won't have any meaningful free cash flow.

Your next question comes from the line of NIM Kathryn.

Frank.

One is open.

Hi, good morning.

<unk> Kaplan Entre Nicole delays.

So.

on the, the non-real capex, the the uptick on the production capabilities can, can you quantify just kind of how much um that is is we kind of think about um,

I was wondering what was the latest on your.

The latest major utility T&D customers ability to execute projects and I kind of touched almost just like it had a little bit of elaboration and it seems like also the industry is back on track after and delays in 2024 and 2025 basically is that kind of the right way to think about it that we're back on track.

Christopher Eperjesy: Yeah. The answer is it really is just expanding some of our capabilities here on our Kansas City campus. I would think of it in the magnitude of $10 to $15 million kind of impact. It really is land, building, and putting some equipment in those facilities. I think next year we get back, historically we've been $25 to $40 million of non-rental CapEx. I think it'll continue to be similar as we move forward.

I don't know that that the difference for for next year is versus that investment.

Yes, I think thats, a great way to think about it I think we're seeing we've seen distribution really picked up throughout the year and I think it's back in a very good spot from a utilization and from a demand to purchase new equipment.

Seeing transmission pick up it's been a significant pick up as it normally is in the fall and obviously, that's what we've been investing into and it feels like it's got very good tailwind behind it when it comes to the transmission projects that are in process and under construction and will continue to meet our equipment. So yes, I'd say it's.

Justin Hauke: Got it. Okay. Appreciate that. Those are my questions for now. Thank you.

Yeah. So I mean the answer is it it really is just expanding some of our capabilities here on our KC campus, um, you know, and I would think of it in the magnitude of 10 to 15 million dollars, kind of impact. And it really is, you know, land Building and, you know, and putting some equipment in those, uh, facilities. Um, you know. And so, you know, I think we next year, we get back, you know, I think historically, we've been 25 to 40 million dollars of non-real capex. Um, you know, I think it would be continued to be similar, uh, as we move forward.

Christopher Eperjesy: Thanks, Justin.

Got it. Okay. Uh I appreciate that. That those are my questions for now. Thank you.

Thanks Justin.

Colby: Your next question comes from the line of Niamh Kaplan from Deutsche Bank. Your line is open.

Your next question.

It's back to normal and continuing to improve on the track.

From Doha Bank, your line is open.

Justin Hauke: Hi, good morning. This is Niamh Kaplan on for Nicole DeBlase. I was wondering, what was the latest on your utility T&D customers' ability to execute projects? I know you kind of touched on this, but just I can have a little bit of elaboration. It seems like also the industry is back on track after delays in 2024 and 2025. Basically, is that kind of the right way to think about it, that we're back on track?

This mission set.

Okay, perfect and can you provide more color on the drivers of the 30% organic growth in Etfs.

Hi, good morning. This is uh, Nam Kaplan on for Nicole de Blaze. Um,

so,

If you could touch on the customer types as well.

And then on the backlog was that only down year over year due to lockdown.

Our prior year comp because you had some past due backlog last year.

Ryan McMonagle: Yeah, I think that's a great way to think about it. I think we're seeing distribution really pick up throughout the year. I think it's back in a very good spot from a utilization and from a demand to purchase new equipment. We're seeing transmission pick up. It's been a significant pickup as it normally is in the fall. Obviously, that's what we've been investing into. It feels like it's got very good tailwinds behind it when it comes to transmission projects that are in process and under construction and will continue to need our equipment. Yes, I'd say it's back to normal and continuing to improve on the transmission side.

Yes.

I was wondering what was the latest on your util? Um, the latest on your utility tnd, customers ability to execute projects. I know you kind of touched on this but just like have a little bit of elaboration and it seems like also the industry is back on track after delays in 2024 and 2025 basically, is that kind of the right way to think about it that way, back on track.

Yeah I'll take the second question that you may have to repeat the first part of your first question because I don't think we heard.

You gave a percentage that I don't think we are familiar with but on the backlog. We said historically, we're not really a backlog driven business. We are in kind of an order driven business and if you go back and look at the history. We have continued to pose in 'twenty three we posted 30% new sales growth last year, 7%. This year on a year to date basis almost.

9% and in that period, the backlog has come down almost $600 million, we've continued to post growth quarter after quarter.

Ian did talk about in his prepared remarks, we have seen the backlog grow almost 25 or a little over 25% a year in the first three weeks of October. So we're back close to $360 million of backlog. So we're feeling really good about.

Justin Hauke: Okay. Perfect. Can you provide more color on the drivers of the 30% organic growth within TES? Maybe if you could touch on the customer types as well. On the backlog, was that only down year over year due to a prior year comp because you had some past due backlog last year?

Yeah, I think that's a, that's a great way to think about it. I think we're seeing we've seen uh distribution. Uh, really pick up throughout the year. Um, and I think it's back in a very good spot from a utilization and from a demand to to purchase new equipment, uh, and then we're seeing transmission pick up. It's it's been a significant pick up. Is it normally is um, in the fall and obviously, that's what we've been investing into. And it feels like that's it's got very good, Tailwind behind it. When it comes to transmission projects that are in process and under construction and and will continue to meet our equipment. So yeah, I'd say it's it's back to normal and continue to improve, um, on the transmission side.

Kind of the guidance, we're giving an overall just the health of the new sales business, but maybe if you.

Could just clarify the first question for us.

Christopher Eperjesy: Yeah. I'll take the second question. You may have to repeat your first question because I don't think we heard or you gave a percentage that I don't think we're familiar with. On the backlog, we've said historically we're not really a backlog-driven business. We're kind of an order-driven business. If you go back and look at the history, we've continued to post, in 2023, we posted 30% new sales growth. Last year, 7%. This year, on a year-to-date basis, almost 9%. In that period, the backlog has come down almost $600 million. We've continued to post growth quarter after quarter. Ryan did talk about in his prepared remark, we have seen the backlog grow almost 25% or a little over 25% year in the first three weeks of October. We're back close to $360 million of backlog.

Okay, perfect and C. Can you provide more color on the drivers of the 30% organic growth than TS? And you know, maybe if you could touch on the, the customer at times as well. Um, and then on, on the backlog was that only down uh year-over-year due to like a uh, a prior year comp because you had some past due backlog last year.

Was it that you are talking about 30% intra quarter order growth is that what youre referring to.

Yes, with MTS and differing strategy you had in the release.

Sure.

Yes, no thats it.

We just wanted to make sure you're asking the right question. The thing though in addition to backlog what we're watching really closely and what we have we have good visibility to is how orders are coming in.

Within the quarter.

So there is no there is a meaningful so.

That 30% as an increase in signed orders when we compare Q3 of 'twenty.

<unk> 25 for Q3 of 2024, and I think that's what we're feeling comfortable.

About the growth we expect in Q4, and obviously the performance 85% growth we've seen year to date in the Pts segment. So in addition to backlog, we're watching kind of the intra quarter order flow.

Christopher Eperjesy: We're feeling really good about the guidance we're given and overall just the health of the new sales business. If you could just clarify the first question for us.

Kind of in a real time basis and Thats, what we wanted to share with you all soon but that's why I think we have we have comfort in the full year number.

Ryan McMonagle: I think, yeah, was it the 30, you're talking about 30% intra-quarter order growth? Is that what you're referring to?

We've talked about for Tes.

Okay very helpful.

The second question and you may have to repeat the first part. Your first question because I don't think we heard you. You gave a percentage that I don't think we're familiar with but on the backlog, you know, we've said historically you know, we're not really a backlog, driven business, we're in kind of an order driven business and if you go back and look at the history, you know we've continued to post, you know, in 23, we posted 30%, new sales growth. Last year 7% this year on a year-to-date basis almost 9% and in that period the backlog has come down, almost 600 million you know and we've continued to post go growth quarter after quarter. Um Ryan did talk about in his prepared remarks, we have seen the backlog grow, almost 25, or a little over 25% here in the first 3 weeks of October. So we're back close to 36060 million of of backlog. So we're, you know, we're feeling really good about, uh, you know, kind of the guidance we're giving in, in overall, just the, the health of the new sales business. But may, if you could just clarify the first question for us, I think. Yeah. Was it the 30 you're talking about 30% intra?

Justin Hauke: Yeah, within TES. I'm pretty sure that's what you had in the release.

Just to follow up on that if I may.

Order order order growth? Is that what you're referring to?

Details on the customer type.

Ryan McMonagle: Yeah. No, we just wanted to make sure we were asking the right question. The thing that, in addition to backlog, what we're watching really closely and what we have good visibility to is how orders are coming in within the quarter. There is a meaningful, so that 30% is an increase in signed orders when we compare Q3 of 2025 to Q3 of 2024. I think that's where we're feeling comfortable about the growth we expect in Q4 and obviously the performance, the 8.5% growth we've seen year to date in the TES segment. In addition to backlog, we're watching kind of the intra-quarter order flow in a real-time basis. That's what we wanted to share with you all too. That's why I think we have comfort in the full year number that we've talked about for TES.

Okay.

Yeah, within TS something. I'm pretty sure that we had a relationship. Yes.

Yes, we're seeing.

We are seeing.

Really strong demand in the utility segment. So that's both our utility contractors in our forestry contractors, where we're seeing really strong demand.

Talked about some of the comments we're seeing.

A bit more hesitation in some of the infrastructure end markets.

Yeah, no, that's a. We just wanted to make sure we were asking the right question. The thing that in addition to backlog, what what we're watching really closely and what we have, we have good visibility to is how orders are coming in within the quarter. Um, and so there is a, you know, there's a meaningful. So we're that, that 30% is an increase and and signed orders when we compare Q3 of

Things like refuse in some of our dump truck, where there is a bit more inventory in the market that we talked about in the prepared remarks, but I would say there is still a good mix of our large national customers and our small or smaller customers as well and so no significant shift there other than maybe skewing a little bit more towards T&D, where we're seeing it.

Stronger demand in infrastructure is a little bit softer from a demand perspective.

Alright got it. Thank you very much for your time I will pass it on.

Justin Hauke: Okay. Very helpful. Just to follow up on that, if I may, any details on the customer type?

Of 25 to Q3 of 2024. And I think that's where we're feeling comfortable. Um, about, uh, the growth, we expect in Q4 and and obviously, the, the performance, the 8 and a half percent growth, we've seen year to date, um, in the teas segment. So in addition to backlog, we're watching kind of the intra quarter order flow, um, kind of in a real-time basis. And that's what we wanted to share, uh, with you all too. But that's why I think we have, we have um, Comfort Inn in the full year number um that we've talked about for teas.

Thanks.

Your next question comes from the line of Brian Murphy from Stifel. Your line is open.

Okay, very helpful. And, um, just follow up on that if I may, any details on the customer type?

Ryan McMonagle: Yeah. We're seeing it's a good, we are seeing really a strong demand in the utility segment. That's both our utility contractors and our forestry contractors where we're seeing really strong demand. As we talked about some in the comments, we're seeing a bit more hesitation in some of the infrastructure end markets, things like refuse and some of our dump truck, where there's a bit more inventory in the market that we talked about in the prepared remarks. I'd say there's still a good mix of our large national customers and our small, our smaller customers as well. No significant shift there other than maybe skewing a little bit more towards T&D where we're seeing a stronger demand and infrastructure is a little bit softer from a demand perspective.

Yeah. Thanks, good morning, everybody.

Touched on this a little bit, but open to get a little bit more color.

Hoping you can give us an update on what youre seeing from a large transmission.

Pipeline perspective, what's the latest you're hearing from your customers regarding to win some of these large projects that have been discussed are going to come to fruition.

Yeah.

We're seeing good demand there Brian for sure and so we have we have seen a meaningful uptick in our transmission utilization late in the third quarter and into the fourth quarter. So that's driving a lot of the increase that we talked about.

On the call and I think we have strong expectations for 2026, there as well.

There are a couple of very specific projects that are in process now that are driving that demand and then theres a lot of floating going on to that is for early 2026 also so really good demand there I think thats, where we the comment that we made some additional capex investment. That's why we did add to the rental fleet to grow that part of the rental fleet further.

Justin Hauke: All right. Got it. Thank you very much for your time. I will pass it on.

Yeah, we're seeing, uh, it's a good. Uh, we are seeing really a strong demand in the utility segment, so that's both our utility contractors and our forestry contractors, uh, where we're seeing, uh, really strong demand because we talked about some in the comments. We're seeing um, a bit more hesitation in some of the infrastructure, um, in markets. Um, think, you know, things like refused and some of our dump truck where there's a bit more inventory in the market that we talked about in the prepared remarks. But you know, I'd say there, there's still a good mix of our large National customers and our small, our smaller customers as well. Um and so no significant shift their other than maybe skewing a little bit more towards tnd where where we're seeing a stronger demand and and infrastructure is a little bit softer uh from a demand perspective.

Christopher Eperjesy: Thanks.

All right, got it. Thank you very much for your time. I will pass it on.

Thanks.

Colby: Your next question comes from the line of Brian Brophy from Stifel. Your line is open.

Ryan McMonagle: Yeah, thanks. Good morning, everybody. You touched on this a little bit, but hoping to get a little bit more color. Hoping you can give us an update on what you're seeing from a large transmission pipeline perspective. What's the latest you're hearing from your customers regarding when some of these large projects that have been discussed are going to come to fruition? Thanks.

Your next question comes from the line of Brian, Brophy from stifel. Your line is open.

Because we're seeing good demand.

Our customers are talking about.

Okay. Thanks, and then just to touch on one project.

In particular I wanted to ask on Green Lake.

Obviously, it's been discussed as a project you guys have been involved with and we saw some headlines intra quarter regarding a pause in activity.

Christopher Eperjesy: Yeah. We're seeing good demand there, Brian, for sure. We have seen a meaningful uptick in our transmission utilization late in the third quarter and into the fourth quarter. I think that's driving a lot of the increase that we talked about on the call. I think we have strong expectations for 2026 there as well. There are a couple of very specific projects that are in process now that are driving that demand. There's a lot of quoting going on too that is for early 2026 also. Really good demand there. I think that's where we made some additional CapEx investment. That's where we did add to the rental fleet to grow that part of the rental fleet further because we're seeing the good demand that our customers are talking about.

Yeah, thanks. Good morning, everybody. Um, you touched on this a little bit, but I’m hoping to get a little bit more color. Um, hoping you can give us an update on what you’re seeing from a large transmission pipeline perspective. What’s the latest you’re hearing from your customers regarding when some of these large projects that have been discussed are going to come to fruition? Uh, thanks.

Doesn't seem like it's impacting your fourth quarter based on some of the comments you made but just maybe any updated thoughts you can provide on this project and if we could see an impact this quarter. Thanks.

Yes.

It's still been it's not impacting the fourth quarter, we're still seeing good demand.

On transmission I think thats, what it's always interesting when you get into these strong transmission cycles, I think customers don't want to return gear because they know that they may not see it again.

So I think it shouldn't should not be an impact in our fourth quarter.

Yeah.

That transmission sector as I said is staying very strong and from an overall utilization perspective.

Ryan McMonagle: Okay. Thanks. Just to touch on one project in particular, I wanted to ask on GreenLink. Obviously, it's been discussed as a project you guys have been involved with. We saw some headlines in your quarter regarding a pause in activity. It doesn't seem like it's impacting your fourth quarter based on some of the comments you made, but just maybe any updated thoughts you can provide on this project and if we could see an impact this quarter. Thanks.

Yeah. Uh, we're we're seeing good demand there, Brian, uh, for sure. And so we have, uh, we have seen a, a meaningful uptick in our transmission utilization, uh, late in the third quarter and into the fourth quarter. So I think that's that's driving a lot of the increase that we talked about, um, on the call and I think we have uh, strong expectations for 2026 there as well. Um, there's a there are a couple very specific projects, right? That are that are, um, in process now that that are driving, that demand and then there's a lot of quoting going on too. That is, um, for early 2026 also. So really good demand there. I think that's where we the comment that we made some additional capex investment. That's where we did add to the rental Fleet to grow that part of the rental Fleet further. Uh because we're seeing the the good demand that um our customers are talking about

Okay. Thank you I'll pass it on.

Thanks, Brian.

Your next question comes from the line of Mike <unk> from D. A Davidson your line is open.

Good morning.

Can we back up a couple of questions that you had mentioned some comments about the infrastructure sector and so that's good.

<unk>.

Any kind of.

All rounded out by just talking a consensus on how it's going in the telecom World and Israel.

Christopher Eperjesy: Yeah. No, it's still been, it's not impacting the fourth quarter. We're still seeing good demand on transmission. I think that's what's always interesting when you get into these strong transmission cycles, customers don't want to return gear because they know that they may not see it again too. I think it should not be an impact in our fourth quarter. That transmission sector, as I said, is staying very strong, right, from an overall utilization perspective.

Okay. Thanks and then just to touch on 1 Project in uh in particular wanted to ask on greenlink um obviously it's been discussed as a project. You guys have been involved with and we saw some headlines in recorder regarding a pause in activity. Um, it doesn't seem like it's impacting, your fourth quarter based on some of the comments you made. But just maybe any updated thoughts. You can provide on this project and if we could see an impact, this quarter, thanks.

As well.

Yes, I think.

We're seeing look across the board, we're seeing growth right and so I think that's important to say we are seeing the strongest growth in transmission and distribution.

Just given what's going on there. So we are we are within telecom and rail we're seeing some activity pick up as you know telecom and rail.

Less than 5% of our revenue. So we're seeing some growth in rail we're seeing in telecom a lot of discussion a lot of quoting happening.

Ryan McMonagle: Okay. Thank you. I'll pass it on.

Know it's uh it's it's still been, it's not impacting, the fourth quarter. We're still seeing good demand um on transmission. I think that's what's always interesting when you get into these strong transmission Cycles as I I think customers don't want to return gear because they know that they may not see it again, um, too. So you know, I think it it, it shouldn't should not be an impact in our fourth quarter. Um, and uh, you know, that transmission sector as I said is, is staying very strong right from an overall utilization perspective.

I would expect it expect that should pick up some in the fourth quarter and then into 2026 as well. So overall its growth the strongest growth is in transmission and distribution.

Christopher Eperjesy: Thanks, Brian.

Okay, thank you. I'll pass it on.

Thanks Brian.

Colby: Your next question comes from the line of Mike Schlitzke from D.A. Davidson. Your line is open.

And then just where there is more competition from an inventory perspective, and things like dump trucks of water trucks or some of our our refuse product categories.

Your next question comes from the line of Mike schleske from da, Davidson your line is open.

[Analyst]: Good morning. Can we back up a couple of questions? You had mentioned some comments about the infrastructure sector and how that's going. Could you maybe kind of round it out by just talking a few sentences on how it's going in the telecom world and in rail as well?

Uh, good morning. Um can we back up a couple of questions? You had mentioned some comments about the infrastructure sector and and how that's going.

We are seeing.

Less growth.

any um, kind of

Mike.

Got it.

I'll round it up by just talking a few sentences on how it's going in the telecom world and in rail.

And then turning to the team.

Ryan McMonagle: Yeah. I think we're seeing, look, across the board, we're seeing growth, right? I think that's important to say. We're seeing the strongest growth in transmission and distribution just given what's going on there. We are within telecom and rail, we're seeing some activity pick up. As you know, telecom and rail are less than 5% of our revenue. We're seeing some growth in rail. We're seeing telecom, a lot of discussion and a lot of quoting happening. Expect that should pick up some in the fourth quarter and then into 2026 as well. Overall, it's growth. The strongest growth is in transmission and distribution. Just where there's more competition from an inventory perspective in things like dump trucks or water trucks or some of our refuse product categories, we're seeing less growth, or is the right way to say it, Mike.

As well.

Okay.

<unk>.

Certainly headlines from some data center operators as they build the data center there.

Sure.

Also building or contracting for energy production assets.

Close by on site, a few miles away not along.

Grid connection as far as <unk> 56, compared I guess.

Now all of the data centers, but some of them are kinda co locate your energy.

Yeah, I think, uh, we're seeing, across the board, we're seeing growth, right? And so, I think that's important to say we're seeing the strongest growth in transmission and distribution, just given what's going on there. So, we are, um, you know, we are within telecom and rail, we're seeing some activity pick up as, you know, telecom and rail are, um, uh, less than 5% of our revenue. So, we're seeing, um, some growth in rail. We're seeing telecom, a lot of discussion, and a lot of quoting happen.

With constant trucks still play a role in a project like that.

The explorer pipeline opportunities, where people are just saying we can't wait for the utility is going to build out our own infrastructure.

We have an impact on pricing and margin.

When you have the project flow, it's much closer to the data center than others.

Okay.

Yes, it's a great question, Mike and I think the way we're thinking about it is it is very good overall demand for T&D for us So to me it feels like Theres a lot of generation that's coming online in some cases as temporary generation two and so to me. That's why I think we're getting comfortable that there should be a sustained period of long demand here. So in some cases.

Happening. Um, you know, inspect expect that should pick up some in the fourth quarter and then uh, into 2026 um as well. But overall, it's growth. The strongest growth is in transmission and distribution. Um, and then, uh, just where there's more competition from an inventory perspective and things like dump trucks or water trucks or some of our, uh, our refuge product categories. Uh, we're seeing um, uh, less growth or is the right way to say it, like,

[Analyst]: Got it. Turning to the T&D, it starts with the headlines from some data center operators. As they build the data center, they're also building or contracting for energy production assets, either close by, on-site, a few miles away, not a long grid connection as far as distance is concerned, I guess. Not all of the data centers, but some of them are trying to co-locate the energy. Does Custom Truck One Source, Inc. still play a role in a project like that? Does it accelerate the pipeline opportunities when people are just saying, "We can't wait for the utilities to build at least some of our own infrastructure"? Does it have an impact on pricing and margins when you have a project where it's much closer to the data center than others?

It's temporary generation right to get the data center up and then the expectation is the utility will come back through and bring a transmission line or a substation or whatever's needed right for that particular.

Got it. Um and then turning to the uh to start the headlines from some data center operators as they build the data center their their their uh also building or Contracting for energy production assets, you know, other clothes by on-site, a few miles away, you know, not a long um,

You have a project and Thats, where I think it feels like it's going to be good sustained demand for custom truck and for our trucks.

Grid connection as far as distance is concerned, I guess.

And both of those cases.

Now, all of the data centers, but some of them are trying to co-locate the energy. The custom trucks still play a role in a project like that.

Got it.

And then a question I get some more comments on your on the Capex plan that you put out here for the rest of 'twenty five.

Does any of this pull forward from 2006 I'm trying to figure out is there a point we could pause.

Does the accelerate the path line opportunities where people are just saying, we can't wait for the utilities to build at least our own infrastructure. It would have an impact on pricing and margins. Uh, when you have a project for it's much closer to the to the data center than others,

On the Capex.

Ryan McMonagle: Yeah, it's a great question, Mike. I think the way we're thinking about it is it is very good overall demand, right, for T&D for us, right? To me, it feels like there's a lot of generation that's coming online that in some cases is temporary generation too. To me, that's why I think we're getting comfortable that there should be a sustained period of long demand here. In some cases, it's temporary generation, right, to get the data center up. The expectation is the utility will come back through and bring a transmission line or a substation or whatever's needed, right, for that particular project. That's where I think it feels like it's going to be good sustained demand for Custom Truck One Source, Inc. and for our trucks in both of those cases.

Kind of.

Harvest, what you've got and pay down some more debt, but at some point.

The answer is yes.

No we are.

The age of our fleet pulling back three or four years ago was a little over four years. We're now I think a $2 nine or right around $2 nine years. So.

That's a half a billion dollars $600 million investment to do that over time.

But the short answer to your question is we should start to see some improved free cash flow certainly as we're able to pull back on some of that net investment.

Great.

This kind of thought that you had said.

One for you.

A little bit above four years.

Yeah, it's a great question Mike and I think the way we're thinking about it is is it is very good overall, Demand right? For tnd for us, right? And so to me it feels like there's a lot of generation that's coming online and in some cases is temporary generation to. And so to me, if that's why I think we're getting comfortable that there should be a sustained period of long demand here. So, in some cases, it's temporary generation right to get the data center up. And then the expectation is the utility will come back through and, and, and bring a transmission line or a substation or whatever is needed, right for that particular project. And that's where I think it feels like it's going to be good sustained demand for custom truck and for our trucks um, in uh, in both of those cases.

[Analyst]: Got it. Chris, can I get some more comments on your CapEx plan that you put out here for the rest of 2025? Does any of this pull forward from 2026? I'm trying to figure out, is there a point where you pause in the CapEx, kind of harvest what you've got, and pay down some more debt at some point?

Back to <unk> and so forth.

How far would you take it like I guess I'm curious where the competition is their average age in and.

Got it. Um, and then Chris can I get some more comments on your on the capex plan that you put out here for the rest of 25?

How close would you get to the competition.

Yeah, well, while still being in the.

Does any of this pull forward from Q2? I'm trying to figure out. Is there a point where you pause, um, in the CapEx?

And with the kind of figure out how long you might be able to put your assets for us.

Christopher Eperjesy: The answer is yes. As you know, the age of our fleet going back three or four years ago was a little over four years. We're now, I think, at 2.9 or right around 2.9 years. That's a $500 million, $600 million investment to do that over time. The short answer to your question is we should start to see some improved free cash flow, certainly, as we're able to pull back on some of that investment.

Kind of, uh, harvest what you've got and pay down some more debt at some point.

If you would.

I tried to find a way to harvest some cash flow.

Yes, it's a great question.

There is not there's not great data out there, but we do think that we are.

Yes.

The youngest utility rental fleet, that's out there and so youre right. Mike there is the ability to agents and so to me. If you kind of use the bounds of where we are today of under 329 or whatever the exact number is right now.

The answer is yes. Um, as you know we've you know, our the age of our Fleet, going back, 3 or 4 years ago was a little over 4 years where now I think at 2.9 or right around 2.9 years so you know that's a half a billion dollars, 600 million dollar investment to do that over time and uh but the short answer to your question is we should start to see some you know improved uh

Think about the fact that we were over four <unk>.

Free cash flow. Certainly, as we're able to pull back on some of that that investment

[Analyst]: Great. Chris, can I just follow up there? You had said you were once four years. I think you were once even a little bit above four years, depending upon how far back you count NESCO and so forth. How far would you take it? I guess I'm curious where the competition is with their average age and how close would you get to the competition while still being the newest. I'm trying to figure out how long you might be able to rent your assets for if you were to try to find a way to harvest some cash flow.

Just a few years ago to me that's a that's a pretty good band that you can live in <unk>.

great. Chris can I spell out there? You had said

Loud.

And a lot of age and allow ourselves to age our fleet and therefore generate.

You were once for you, thank you, want you a little bit above 4 years, I think about how far back you count, Nesco and so forth. Um,

Generate cash flow that way, so I'll give you that as a pretty good band to think about and still have a very strong performing fleet, where we take care of the customer in a very competitive.

From an overall age perspective.

Great. Thank you and I appreciate you've got a lot of opportunities coming in and so on the issue of balance.

I appreciate it I'll pass it along thank you.

Thanks, Mike.

Ryan McMonagle: Yeah, it's a great question. Look, there's not great data out there, but we do think that we are the youngest fleet, the youngest utility rental fleet that's out there. You're right, Mike, there is the ability to age it. To me, if you kind of use the bounds of where we are today of under three, 2.9, or whatever the exact number is right now, and you think about the fact that we were over four just a few years ago, to me, that's a pretty good band that you can live in and allow to age and allow ourselves to age our fleet and therefore generate cash flow that way. I'd give you that as a pretty good band to think about and still have a very strong performing fleet where we take care of the customer and are very competitive from an overall age perspective.

What's your assets for? Um, if you were to, uh, I tried to find a way to harvest some cash flow.

Okay.

Thank you again, if you'd like to ask a question. Please press Star then the number one on your telephone keypad.

There are no further questions in queue I'd.

I would like to turn the conference back over to Tom Ryan Mcmonagle for any closing remarks.

Thanks, everyone for your time today and your interest in custom truck. We look forward to speaking with you on our next quarterly earnings call and in the meantime, please don't hesitate to reach out with any questions. Thank you again and have a good day.

This concludes today's conference call you may now.

[Analyst]: Great. Thank you. I appreciate you've got a lot of opportunities coming in, you want to make sure you're balanced. I appreciate it. I'll pass it along. Thank you.

Yeah, it's a, it's a great question and look, it's, there's not a, there's not great data out there. But we do think that we are, um, the youngest, uh, Fleet, uh, the youngest utility rental Fleet that's out there. And so, you're right, Mike, there is the ability to age it. And so to me, you know, if you kind of use the bounds of where we are today of under 3 2.9%, we were over 4. Um, just a few years ago to me that's a that's a pretty good band that you can live in um you know and allow to in a lot of age and allow ourselves to age our Fleet and therefore generate um generate cash flow that way. So I I give you that as a pretty good band to think about and still have a very strong performing Fleet where we take care of the customer and are very competitive uh from an overall age perspective.

Ryan McMonagle: Thanks, Mike.

Great. Uh thank you and I appreciate. You've got a lot of opportunities coming in so you don't want to miss through your balance. So anyway I appreciate it. I'll pass it along, thank you.

Thanks Mike.

Colby: Thank you. Again, if you'd like to ask a question, please press star then the number one on your telephone keypad. There are no further questions in queue. I'd like to turn the conference back over to Ryan McMonagle for any closing remarks.

Thank you again. If you would like to ask a question, please press star then the number 1 on your telephone keypad,

There are no further questions in queue.

Ryan McMonagle: Great. Thanks, everyone, for your time today and your interest in Custom Truck One Source, Inc. We look forward to speaking with you on our next quarterly earnings call. In the meantime, please don't hesitate to reach out with any questions. Thank you again and have a good day.

I'd like to turn the conference back over to Ryan McMonagle for any closing remarks.

Colby: This concludes today's conference call. You may now disconnect.

Great. Uh, thanks everyone for your time today and your interest in Custom Truck. We look forward to speaking with you on our next quarterly earnings call. And in the meantime, uh, please don't hesitate to reach out with any questions. Thank you again and have a good day.

this concludes today's conference call, you may now disconnect