CTOSMEDIUM SIGNALOPERATIONAL10-K

CTOS is restructuring from three reporting segments (ERS, TES, APS) to two segments (SER and STEM) beginning Q1 2026, reflecting a CEO-driven reassessment of performance evaluation and resource allocation.

This segment reorganization suggests management is consolidating operations to improve efficiency and streamline decision-making across the specialty equipment business. The timing coincides with ongoing Infrastructure Act deployment, where less than 50% of federal funds have been allocated as of November 2024, indicating potential future growth opportunities that may benefit from the new organizational structure.

Comparing 2026-03-10 vs 2025-03-04View on EDGAR →
FINANCIAL ANALYSIS

The company's balance sheet shows improved liquidity with cash growing substantially to $6.3M, while current liabilities decreased by 12.7% to $873.3M. Inventory declined by 11.3% to $930.9M alongside an 11% reduction in current assets, suggesting tighter working capital management. Share buybacks increased modestly to $32.6M, indicating continued capital return to shareholders despite the operational restructuring.

FINANCIAL STATEMENT CHANGES
Cash & Equivalents
Balance Sheet
+64.9%
$3.8M→$6.3M

Cash position surged 64.9% — strong cash generation or capital raise providing significant financial cushion.

Current Liabilities
Balance Sheet
-12.7%
$1.0B→$873.3M

Current liabilities reduced — improved short-term financial position and working capital health.

Share Buybacks
Cash Flow
+12.4%
$29.0M→$32.6M

Share repurchases increased 12.4% — management returning capital, signals confidence in intrinsic value.

Inventory
Balance Sheet
-11.3%
$1.0B→$930.9M

Inventory reduced 11.3% — lean inventory management or demand outpacing supply.

Current Assets
Balance Sheet
-11%
$1.3B→$1.2B

Current assets declined 11% — monitor working capital adequacy and short-term liquidity.

LANGUAGE CHANGES
NEW — 2026-03-10
PRIOR — 2025-03-04
ADDED
This report includes statistical and other industry and market data that we obtained from industry publications and research, surveys, and studies conducted by third parties.
We have not independently verified the information contained in such sources.
Through December 31, 2025, we managed our business in our three reporting segments: Equipment Rental Solutions ( ERS ), Truck and Equipment Sales ( TES ), and Aftermarket Parts and Services ( APS ).
Recently, our Chief Executive Officer reevaluated how he assesses performance and allocates resources across our business.
This review resulted in a change in the reporting of management s internal financial information.
As a result, beginning in the three months ending March 31, 2026, we will report our results under two reportable segments: (1) Specialty Equipment Rentals ( SER ) and (2) Specialty Truck Equipment and Manufacturing ( STEM ).
Upon implementation, the new SER segment will consist of our historical ERS segment and a portion of our historical APS segment, and the new STEM segment will consist of our historical TES segment and a portion of our historical APS segment.
We will also begin reflecting intercompany activity between the two segments, which will ultimately be eliminated in consolidation.
This new segment reporting reflects how CTOS s business is managed and how resources are allocated in 2026, and management believes this new presentation better reflects the positioning of CTOS s strategies and operations portfolio.
Management expects to provide more information on the new two segments in early April.
REMOVED
We manage our business in our three reporting segments: Equipment Rental Solutions ( ERS ), Truck and Equipment Sales ( TES ), and Aftermarket Parts and Services ( APS ).
Custom Truck owns one of the industry s largest fleets of specialty rental equipment focused on electric utility transmission and distribution ( T D ), rail, telecommunications, and infrastructure end-markets through our ERS segment.
As of December 31, 2024, our fleet is comprised of more than 10,000 units with an average unit age of approximately 3.2 years, which we believe is young by rental fleet standards and compares favorably to the long useful life of the equipment.
Our comprehensive APS offering expands opportunities to serve our equipment rental and sales customers through the convenience of a single vendor for all their specialty equipment, tools and accessories needs.
The Infrastructure Act was amended and renamed to the Infrastructure Investment and Jobs Act.
Recent data released by the Federal government indicates that, as of November 2024, less than 50% of the funds from the Infrastructure Act have been allocated.
Third-party industry research supports this and suggests that spending from the Infrastructure Act should continue for at least the next two to three years.
From 2015 to 2023, the compound annual growth rate ( CAGR ) for capital expenditures relating to transmission, distribution and solar in North America was approximately 5%, 9% and 31%, respectively.
From 2023 through 2028, capital expenditures in these categories are forecasted to grow at CAGRs of approximately 9%, 6%, and 18%, respectively.
Capital expenditure spend in the electric utility T D end-market were estimated to be approximately $95 billion in 2024.
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