Effective January 1, 2026, CTOS realigned its reportable segments from three segments (Equipment Rental Solutions, Truck and Equipment Sales, and Aftermarket Parts and Services) to two segments: Specialty Equipment Rental (SER) and Specialty Truck & Equipment Manufacturing (STEM). This realignment is designed to better reflect key economic drivers, capital intensity, and margin profiles, and to align external reporting with how management allocates capital and evaluates performance.

Expected impact: Clearer segment reporting, improved capital allocation efficiency, and better visibility into the distinct margin profiles of the rental and manufacturing businesses.

A concerted effort to reduce inventory levels and floor plan balances, targeting inventory months on hand of below six months. This is coupled with a planned reduction in net rental fleet investment to $150 million - $170 million in 2026 (down from over $250 million in 2025).

Expected impact: Significant working capital improvement, enhanced free cash flow generation (targeting levered free cash flow >$50 million), and accelerated debt deleveraging.

Development and commercialization of the Load King Lightning PTO, an electric power take-off alternative designed to power hydraulic systems responsible for operating utility equipment. This technology allows the vehicle's engine to remain off during stationary operations, offering hybrid compatibility and standard outlet charging.

Expected impact: Enables customers to save an average of 2,000 gallons of diesel fuel and reduce approximately 44 tons of CO2 emissions per vehicle annually, while achieving an 85% noise reduction and lower maintenance costs.