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Custom Truck One Source (CTOS)
NYSE:CTOS
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Custom Truck One Source
(NYSE:CTOS)
Rating:66Neutral
Price Target:
$5.00
▲(5.49%Upside)
Custom Truck One Source (CTOS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.07B
Dividend YieldN/A
Average Volume (3M)519.68K
Price to Earnings (P/E)―
Beta (1Y)1.54
Revenue Growth-0.61%
EPS Growth-248.58%
CountryUS
Employees2,619
SectorIndustrials
Sector Strength88
IndustryRental & Leasing Services
Share Statistics
EPS (TTM)-0.08
Shares Outstanding226,475,770
10 Day Avg. Volume377,936
30 Day Avg. Volume519,676
Financial Highlights & Ratios
PEG Ratio0.96
Price to Book (P/B)1.65
Price to Sales (P/S)0.00
P/FCF Ratio-3.83
Enterprise Value/Market Cap0.81
Enterprise Value/Revenue0.13
Enterprise Value/Gross Profit2.91
Enterprise Value/Ebitda0.66
Forecast
1Y Price Target
$5.63Price Target Upside18.78% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Custom Truck One Source Business Overview & Revenue Model
Company DescriptionCustom Truck One Source (CTOS) is a leading provider of specialized truck and heavy equipment solutions in North America. The company operates across various sectors, including construction, utility, forestry, oil and gas, and infrastructure. CTOS offers a comprehensive range of products and services, including equipment sales, rentals, custom manufacturing, and aftermarket parts and services, catering to the diverse needs of its industrial clients.
How the Company Makes MoneyCustom Truck One Source generates revenue through a multifaceted business model comprising equipment sales, rentals, and services. The company earns income by selling new and pre-owned specialized trucks and heavy equipment. It also provides rental solutions for short-term and long-term needs, which is a significant revenue stream. Additionally, CTOS offers custom equipment manufacturing services tailored to specific client requirements. The company's aftermarket services, including parts and maintenance, contribute to its earnings by providing continuous support to clients. Strategic partnerships with manufacturers and suppliers enhance its product offerings and market reach, further supporting its revenue generation.
Custom Truck One Source Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 17.62%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
The earnings call presented several positive highlights, including strong revenue growth, increased rental demand, and record-high equipment sales in TES. However, challenges such as pressure on gross margins, economic uncertainty due to tariff policies, and flat ATS segment performance were noted. Despite these challenges, the reaffirmation of full-year guidance suggests a cautiously optimistic outlook.Q1-2025 Updates
Positive Updates
Strong Year-Over-Year Revenue Growth
Total revenue for Q1 2025 was $422 million, a significant increase driven by robust demand in core T&D markets, resulting in a 13% year-over-year revenue growth for the ERS segment.
Increased Utilization and Rental Demand
Average OEC on rent for Q1 was over $1.2 billion, a 13% year-over-year increase, with utilization rates just under 78%, up 440 basis points from last year.
Record-High Equipment Sales Performance in TES
TES segment experienced significant net order growth with a backlog increase of over $51 million or 14%, and ending with the strongest March in company history.
Reaffirmed Full Year 2025 Guidance
Custom Truck reaffirmed its fiscal 2025 revenue guidance of $1.97 billion to $2.06 billion and adjusted EBITDA guidance of $370 million to $390 million.
Negative Updates
Pressure on Gross Margins
TES segment gross margin was 15.1%, down from Q1 2024, impacted by mix and improved inventory levels, although still within the expected range of 15% to 18%.
Economic Uncertainty and Tariff Challenges
Evolving U.S. tariff policies introduced greater economic uncertainty with shifting cross-border production and increased inventory levels to mitigate potential impacts.
Flat ATS Segment Revenue
ATS business posted revenue of $35 million, flat compared to Q1 of the previous year, with adjusted gross profit margin down due to higher material costs.
Company Guidance
In the first quarter of 2025, Custom Truck One Source Inc. reported a strong financial performance across its primary markets. The company's revenue reached $422 million, with an adjusted EBITDA of $73 million and an adjusted gross profit of $136 million. The ERS segment experienced a 13% year-over-year revenue growth, with rental revenue and rental asset sales increasing by 9% and 26%, respectively. The average OEC on rent for Q1 topped $1.2 billion, reflecting a 13% year-over-year increase, while average utilization rose to just under 78%, up 440 basis points from Q1 2024. The TES segment also showed promising signs, with a 14% increase in backlog of over $51 million for the quarter and sequential monthly sales growth. Custom Truck reaffirmed its fiscal 2025 guidance, projecting total revenue between $1.97 billion and $2.06 billion, adjusted EBITDA in the range of $370 million to $390 million, and net rental CapEx of under $200 million. Despite challenges such as evolving tariffs and high interest rates, the company maintains optimism about meeting its growth targets, supported by strong order flow and sustained demand across its markets.Custom Truck One Source Financial Statement Overview
Summary
Custom Truck One Source shows strong operational efficiency with solid EBIT and EBITDA margins. However, it faces profitability challenges due to negative net income and inconsistent revenue growth. The balance sheet is moderately leveraged with a stable equity position, but return on equity is negatively impacted by losses. Cash flows are strong from operations but strained by high capital expenditures.Income Statement
Custom Truck One Source demonstrates a mixed performance in its income statement. The gross profit margin for TTM is approximately 21.53%, showing a solid ability to cover costs. However, the net profit margin remains negative at -1.03%, indicating challenges in maintaining profitability. Revenue growth has been inconsistent, with a notable decrease from 2023 to 2024. The EBIT margin at 8.18% and EBITDA margin at 18.25% for TTM suggest reasonable operational efficiency despite overall profitability issues.68
Positive
Balance Sheet
The balance sheet reflects a moderately leveraged company with a debt-to-equity ratio of approximately 0.13 in TTM, indicating a manageable level of debt relative to equity. The equity ratio is 22.95%, suggesting a reasonable proportion of assets financed by equity. However, the company's return on equity is negative due to negative net income, posing a risk to shareholder returns.55
Neutral
Cash Flow
Cash flow analysis shows a positive trend in operating cash flow for the TTM at $96.52M, but free cash flow growth is complex due to significant capital expenditures. The operating cash flow to net income ratio is notably strong, highlighting effective cash generation relative to net income. However, the free cash flow to net income ratio is strained due to negative net income and high capital investments.60
Neutral
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.39B | 1.80B | 1.87B | 1.57B | 1.17B | 302.74M | Gross Profit |
| 299.65M | 390.27M | 454.26M | 383.75M | 210.01M | 76.44M | EBIT |
| 126.24M | 126.36M | 170.95M | 161.86M | 9.29M | 17.25M | EBITDA |
| 329.46M | 373.76M | 408.38M | 359.12M | 104.84M | 94.56M | Net Income Common Stockholders |
| -14.34M | -28.66M | 50.71M | 38.91M | -181.50M | -21.28M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 5.38K | 3.81M | 10.31M | 14.36M | 35.90M | 3.41M | Total Assets |
| 3.54B | 3.50B | 3.37B | 2.94B | 2.68B | 768.40M | Total Debt |
| 102.53K | 2.43B | 2.20B | 1.83B | 1.60B | 727.66M | Net Debt |
| 2.48B | 2.42B | 2.19B | 1.81B | 1.56B | 724.25M | Total Liabilities |
| 2.73B | 2.64B | 2.45B | 2.05B | 1.83B | 799.47M | Stockholders Equity |
| 813.42M | 861.31M | 917.20M | 888.44M | 858.51M | -31.07M |
| Cash Flow | Free Cash Flow | ||||
| -4.09M | -276.33M | -395.07M | -294.82M | -49.46M | -25.59M | Operating Cash Flow |
| 152.10M | 121.98M | -30.88M | 45.97M | 138.93M | 42.83M | Investing Cash Flow |
| -154.15M | -187.49M | -176.60M | -218.94M | -1.43B | -29.31M | Financing Cash Flow |
| 90.66M | 58.28M | 202.88M | 153.90M | 1.32B | -16.41M |
Custom Truck One Source Technical Analysis
Positive
4.74
Price Trends
4.18
Positive
4.52
Positive
4.43
Positive
Market Momentum
0.11
Negative
61.09
Neutral
80.73
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTOS, the sentiment is Positive. The current price of 4.74 is above the 20-day moving average (MA) of 4.52, above the 50-day MA of 4.18, and above the 200-day MA of 4.43, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 61.09 is Neutral, neither overbought nor oversold. The STOCH value of 80.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CTOS.
Custom Truck One Source Risk Analysis
Custom Truck One Source disclosed 24 risk factors in its most recent earnings report. Custom Truck One Source reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Custom Truck One Source Peers Comparison
Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $2.90B | 12.23 | 22.80% | 1.64% | 7.31% | 91.99% | |
73 Outperform | $6.37B | 13.48 | 16.41% | 2.12% | 6.21% | 47.05% | |
66 Neutral | $4.07B | 27.35 | 9.60% | 2.25% | 8.34% | -63.02% | |
66 Neutral | $1.07B | ― | -3.76% | ― | -0.61% | -248.58% | |
66 Neutral | $4.51B | 12.29 | 5.40% | 3.67% | 4.15% | -12.21% | |
61 Neutral | $209.44M | ― | -73.72% | 3.61% | -2.09% | -977.36% |
* Industrials Sector Average
Performance Comparison
CTOS
Custom Truck One Source
4.74
0.16
3.49%
HRI
Herc Holdings
121.19
-9.14
-7.01%
MGRC
Mcgrath Rentcorp
117.03
13.94
13.52%
R
Ryder System
150.05
32.35
27.49%
ALTG
Alta Equipment Group
6.26
-2.21
-26.09%
Custom Truck One Source Corporate Events
Business Operations and StrategyFinancial Disclosures
Custom Truck One Source Reports Q1 2025 Financial Results
Neutral
Apr 30, 2025
On April 30, 2025, Custom Truck One Source, Inc. reported its financial results for the first quarter of 2025, showing a revenue increase to $422.2 million, up 2.7% from the previous year. Despite a net loss of $17.8 million, the company experienced growth in rental revenue and rental asset sales, particularly within its Equipment Rental Solutions segment, and reaffirmed its 2025 guidance, citing strong demand in its core markets and a robust backlog in its Truck and Equipment Sales segment.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.