“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.” (CEO)
“The real bottleneck in the AI build-out is electricity.” (CEO)
“...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.” (CEO)
“We continue to expect to reduce our inventory in Q4 and into next year...this remains a primary and important goal for us and one that we expect to achieve by the end of fiscal 2026.” (CFO)
“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 our ability to produce double-digit adjusted EBITDA growth this year.” (CFO)
OEC on rent averaged $1.26B in Q3, finished at $1.3B, continued growing into October; rental utilization north of 80%.
On-rent yield guided high 30s to low 40s; yield increased in September/October vs Q3 average, expected to rise slightly within range.
Mgmt stance: Bullish — strong transmission cycle and rising utilization/pricing provide confidence for 2026.
Q2 — Justin Hauke
Topic: Cash flow, inventory reduction, and non-rental CapEx
Key points:
Inventory reduction of $125M–$150M vs start of year will occur by end of 2025; Q3 only down ~$14M–$15M, implying ~$110M–$135M reduction in Q4.
Whole goods inventory on hand fell from under 11 months (peak last summer) to under 8 months; target of 6 months by end of fiscal 2026.
Q4 expected to generate free cash flow, but full-year levered FCF under $50M due to rental fleet investment and inventory timing.
Non-rental CapEx increase of $10M–$15M for KC campus expansion; historically $25M–$40M, similar going forward.
Mgmt stance: Neutral — inventory reduction on track but FCF constrained near term by growth investments.
Q3 — Naim Kaplan
Topic: Utility T&D project execution and PES growth drivers
Key points:
Distribution demand picked up through 2025, now in a “very good spot”; transmission saw significant fall pickup with strong tailwinds from projects under construction.
PES organic growth 30% (signed orders Q3 2025 vs Q3 2024); backlog down year-over-year partly due to prior-year past-due backlog.
Mgmt stance: Bullish — T&D back on track and improving; intra-quarter order flow supports comfort in TES full-year growth.
Q4 — Ryan McMonagle (answering Naim Kaplan)
Topic: TES order growth and customer mix
Key points:
Signed orders in Q3 2025 increased 30% vs Q3 2024; TES year-to-date growth 8.5%.
Strong utility demand (contractors and forestry); infrastructure end markets (refuse, dump truck) softer due to inventory.
Customer mix skewed more toward T&D; no significant shift between large national and smaller customers.
Mgmt stance: Bullish — utility-driven order growth provides visibility for Q4 and full-year TES performance.
Q5 — Brian Brophy
Topic: Large transmission pipeline and GreenLink project
Key points:
Transmission utilization saw meaningful uptick late Q3 and into Q4; strong expectations for 2026.
Specific projects in process driving demand; additional CapEx added to rental fleet for transmission growth.
GreenLink project pause headlines not impacting Q4; customers reluctant to return gear due to strong transmission cycle.
Mgmt stance: Bullish — transmission demand robust and sustained; GreenLink impact negligible in near term.