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Custom Truck One Source, Inc. (CTOS)
:CTOS
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Custom Truck One Source
(NYSE:CTOS)
Rating:67Neutral
Price Target:
$6.50
▲(10.36% Upside)
Custom Truck One Source (CTOS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.35B
Dividend YieldN/A
Average Volume (3M)851.00K
Price to Earnings (P/E)―
Beta (1Y)1.52
Revenue Growth6.21%
EPS Growth-177.57%
CountryUS
Employees2,619
SectorIndustrials
Sector Strength78
IndustryRental & Leasing Services
Share Statistics
EPS (TTM)-0.13
Shares Outstanding226,559,590
10 Day Avg. Volume878,021
30 Day Avg. Volume851,001
Financial Highlights & Ratios
PEG Ratio0.25
Price to Book (P/B)1.31
Price to Sales (P/S)0.63
P/FCF Ratio-4.08
Enterprise Value/Market Cap2.68
Enterprise Value/Revenue2.45
Enterprise Value/Gross Profit11.22
Enterprise Value/Ebitda9.34
Forecast
1Y Price Target
$7.10Price Target Upside20.54% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
Custom Truck One Source Business Overview & Revenue Model
Company DescriptionCustom Truck One Source, Inc. provides specialty equipment rental services to the electric utility transmission and distribution, telecommunications, rail, other infrastructure-related industries in North America. It operates through Equipment Rental Solutions, Truck and Equipment Sales, and Aftermarket Parts and Services segments. The Equipment Rental Solutions owns new and used specialty equipment, including truck-mounted aerial lifts, cranes, service trucks, dump trucks, trailers, digger derricks, and other machinery and equipment. The Truck and Equipment Sales segment offers new equipment for sale to be used for end-markets which can be modified to meet customers specific needs. The Aftermarket Parts and Services segment provides truck and equipment maintenance and repair services as well as sale of specialized aftermarket parts. The company was formerly known as Nesco Holdings, Inc. and changed its name to Custom Truck One Source, Inc. in April 2021. Custom Truck One Source, Inc. was founded in 1988 and is headquartered in Kansas City, Missouri.
How the Company Makes MoneyCustom Truck One Source generates revenue through several key streams, primarily from the sale and rental of specialized trucks and equipment. The company earns income by manufacturing and customizing vehicles tailored to the specific requirements of various industries. Additionally, CTOS offers rental services, allowing customers to access equipment without the need for long-term investment. Aftermarket services, including parts sales and maintenance support, contribute significantly to the revenue, fostering repeat business and customer loyalty. Strategic partnerships with manufacturers and suppliers enhance the company's offerings and market reach, while its strong presence in niche markets helps maintain consistent earnings.
Custom Truck One Source Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: 3.33%|
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Positive
The earnings call presents a strong performance with significant growth in revenue and EBITDA, driven by robust demand and strategic execution. While there are some concerns about the TES backlog decline and potential tariff impacts, the company's proactive measures and strong order flow provide confidence in continued growth.Q2-2025 Updates
Positive Updates
Strong Revenue and EBITDA Growth
Custom Truck delivered a 21% revenue growth and a 17% adjusted EBITDA growth in Q2 2025 compared to Q2 2024, driven by strong demand in core T&D markets and excellent execution by the team.
ERS Segment Performance
ERS segment revenue increased by more than 23% year-over-year, with rental revenue and rental asset sales showing 17% and 40% growth, respectively. Average utilization also improved by 600 basis points to just under 78%.
TES Segment Achievements
TES segment sales surpassed $100 million for two consecutive months for the first time, leading to a 22% year-over-year sales growth and more than 30% sequential growth.
Strong Order Flow
Overall signed orders grew by just under 35% year-over-year, driven by a 45% increase from local and regional customers.
Negative Updates
TES Segment Backlog Decline
TES new sales backlog decreased by $85 million in the quarter, attributed to strong sales activity.
Tariff Concerns
Tariffs remain an area of focus, but proactive inventory management has mitigated the cost impact for 2025.
Company Guidance
During the second quarter of 2025, Custom Truck One Source Inc. reported significant financial growth, with a 21% increase in revenue and a 17% rise in adjusted EBITDA compared to Q2 2024. The company's core segments, ERS and TES, demonstrated strong performance driven by robust demand in T&D markets. ERS revenue jumped over 23% year-over-year, with rental asset sales growing by 40% and rental revenue by 17%. The TES segment achieved record sales milestones, with two consecutive months of sales exceeding $100 million, marking a year-over-year growth of more than 22%. Average OEC on rent surpassed $1.2 billion, a 16% increase from the previous year, while utilization rates rose to just under 78%, up nearly 600 basis points from Q2 2024. The company reaffirmed its 2025 guidance, projecting total revenue between $1.97 billion and $2.06 billion and adjusted EBITDA in the range of $370 million to $390 million. Despite a decrease in TES backlog, strong order flow and customer feedback support expectations for double-digit revenue growth in TES for the year. Custom Truck plans to invest in its rental fleet to support this demand, with net rental CapEx projected at approximately $200 million.Custom Truck One Source Financial Statement Overview
Summary
Custom Truck One Source shows strong revenue growth and improved cash flow management, but profitability margins remain below industry standards and leverage is high. Continued focus on reducing debt and enhancing net margins is crucial.Income Statement
Custom Truck One Source has shown a strong revenue growth trajectory, particularly when comparing the TTM (Trailing-Twelve-Months) period to the previous year. Gross Profit Margin is healthy at approximately 22.8% for TTM, indicating good cost management. However, Net Profit Margin has remained low, showing a slight improvement but still below industry standards. The EBIT and EBITDA margins indicate strong operating efficiency.67
Positive
Balance Sheet
The company's Debt-to-Equity Ratio has improved slightly over the years, yet remains relatively high, indicating potential leverage risk. Return on Equity is modest, reflecting challenges in translating equity into profit. While the Equity Ratio shows a stable position, it suggests moderate asset financing through equity.55
Neutral
Cash Flow
There is a significant improvement in Free Cash Flow in the TTM period, showcasing effective cash management. The Operating Cash Flow to Net Income Ratio is robust, indicating strong cash flow from operations relative to net income. However, historical negative Free Cash Flow in prior periods highlights previous challenges in cash generation.72
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.48B | 1.80B | 1.87B | 1.57B | 1.17B | 302.74M |
| Gross Profit | 322.97M | 390.27M | 454.26M | 383.75M | 210.01M | 76.44M |
| EBITDA | 388.06M | 373.76M | 408.38M | 359.12M | 104.84M | 94.56M |
| Net Income | -18.24M | -28.66M | 50.71M | 38.91M | -181.50M | -21.28M |
Balance Sheet | ||||||
| Total Assets | 3.58B | 3.50B | 3.37B | 2.94B | 2.68B | 768.40M |
| Cash, Cash Equivalents and Short-Term Investments | 5.26M | 3.81M | 10.31M | 14.36M | 35.90M | 3.41M |
| Total Debt | 2.51B | 2.43B | 2.20B | 1.83B | 1.60B | 727.66M |
| Total Liabilities | 2.79B | 2.64B | 2.45B | 2.05B | 1.83B | 799.47M |
| Stockholders Equity | 790.13M | 861.31M | 917.20M | 888.44M | 858.51M | -31.07M |
Cash Flow | ||||||
| Free Cash Flow | 136.28M | -276.33M | -395.07M | -294.82M | -49.46M | -25.59M |
| Operating Cash Flow | 192.30M | 121.98M | -30.88M | 45.97M | 138.93M | 42.83M |
| Investing Cash Flow | -160.17M | -187.49M | -176.60M | -218.94M | -1.43B | -29.31M |
| Financing Cash Flow | 2.45M | 58.28M | 202.88M | 153.90M | 1.32B | -16.41M |
Custom Truck One Source Technical Analysis
Positive
5.89
Price Trends
5.35
Positive
4.76
Positive
4.85
Positive
Market Momentum
0.15
Positive
55.83
Neutral
58.32
Neutral
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 5.89 is above the 20-day moving average (MA) of 5.87, above the 50-day MA of 5.35, and above the 200-day MA of 4.85, indicating a bullish trend. The MACD of 0.15 indicates Positive momentum. The RSI at 55.83 is Neutral, neither overbought nor oversold. The STOCH value of 58.32 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $2.94B | 11.64 | 23.85% | 1.61% | 8.78% | 117.40% | |
74 Outperform | $7.43B | 15.55 | 16.38% | 1.80% | 3.68% | 6.61% | |
67 Neutral | $1.35B | ― | -4.37% | ― | 6.21% | -177.57% | |
67 Neutral | $4.18B | 145.88 | 1.41% | 2.17% | 11.41% | -92.67% | |
66 Neutral | £2.68B | 13.05 | 3.30% | 3.25% | 2.40% | -22.21% | |
56 Neutral | $3.47B | 38.00 | 15.74% | 1.16% | -3.52% | -46.60% | |
55 Neutral | $268.88M | ― | -77.23% | 2.84% | -3.46% | -222.37% |
* Industrials Sector Average
Performance Comparison
CTOS
Custom Truck One Source
5.89
1.45
32.66%
HEES
H&E Equipment Services
94.64
49.06
107.63%
HRI
Herc Holdings
124.76
-11.43
-8.39%
MGRC
Mcgrath Rentcorp
119.56
15.43
14.82%
R
Ryder System
180.02
44.03
32.38%
ALTG
Alta Equipment Group
8.02
2.18
37.33%
Custom Truck One Source Corporate Events
Business Operations and StrategyFinancial Disclosures
Custom Truck One Source Q2 2025 Revenue Surges 20.9%
Positive
Jul 30, 2025
On July 30, 2025, Custom Truck One Source reported its financial results for the second quarter of 2025, showing a significant increase in total revenue by 20.9% to $511.5 million compared to the same period in 2024. Despite a net loss of $28.4 million, the company experienced growth in all segments, with notable increases in rental revenue and equipment sales, and reaffirmed its guidance for 2025, highlighting its strong market position and expected growth driven by demand for vocational vehicles and infrastructure investments.
The most recent analyst rating on (CTOS) stock is a Buy with a $5.00 price target. To see the full list of analyst forecasts on Custom Truck One Source stock, see the CTOS Stock Forecast page.
Executive/Board ChangesShareholder Meetings
Custom Truck One Source Confirms Director Elections
Neutral
Jun 12, 2025
On June 12, 2025, Custom Truck One Source held its annual stockholders meeting, where key proposals were voted on. The election of four Class C directors was confirmed, with Fred Ross, Georgia Nelson, Mary Jackson, and Ryan McMonagle all securing their positions until the 2028 meeting. Additionally, Ernst & Young LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025, reflecting continued confidence in their financial oversight.
The most recent analyst rating on (CTOS) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on Custom Truck One Source stock, see the CTOS Stock Forecast page.
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.