Custom Truck One Source (CTOS) AI Stock Analysis

• Market Cap: $1.36B
• Dividend Yield: N/A
• Average Volume (3M): 707.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.57
• Revenue Growth: 7.39%
• EPS Growth: 34.57%
• Country: US
• Employees: 2,619
• Sector: Industrials
• Sector Strength: 72
• Industry: Rental & Leasing Services
• EPS (TTM): -0.03
• Shares Outstanding: 226,559,590
• 10 Day Avg. Volume: 734,640
• 30 Day Avg. Volume: 707,797
• PEG Ratio: 0.25
• Price to Book (P/B): 1.31
• Price to Sales (P/S): 0.63
• P/FCF Ratio: -4.08
• Enterprise Value/Market Cap: 2.89
• Enterprise Value/Revenue: 2.03
• Enterprise Value/Gross Profit: 10.72
• Enterprise Value/Ebitda: 9.52
• 1Y Price Target: $7.40
• Price Target Upside: 23.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): -0.16
• Revenue Forecast (FY): $2.00B

• Rating: 50 Neutral
• Price Target: $6.00 ▲(0.33% Upside)

The overall stock score is primarily impacted by financial challenges, including declining revenues and high leverage. However, strong earnings call performance and positive future outlook provide some optimism. Technical indicators suggest neutral momentum, while valuation metrics are poor due to negative earnings.

Positive Factors

Revenue Growth

The company's strong revenue growth, driven by demand in core T&D markets, indicates robust market positioning and potential for sustained expansion.

Increased Utilization

Higher utilization rates reflect efficient asset use and strong demand, supporting revenue stability and operational efficiency.

Positive Outlook for 2026

Strategic investments and anticipated demand growth in the T&D sector suggest a favorable long-term outlook and market opportunity.

Negative Factors

High Leverage

High leverage can increase financial risk and limit flexibility, potentially impacting the company's ability to invest and grow.

Declining Revenue Trend

A declining revenue trend may indicate challenges in maintaining market share and competitiveness, affecting long-term growth prospects.

Economic Uncertainty Impact

Economic uncertainty can lead to reduced customer spending, impacting sales and revenue growth, and posing challenges to financial stability.

Custom Truck One Source Business Overview & Revenue Model

Company Description

Custom 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 Money

Custom Truck One Source generates revenue through several key streams: the sale of new and used trucks and equipment, which constitutes a significant portion of its income; rental services that provide customers with flexible access to specialized equipment without the need for outright purchase; and parts and service offerings that ensure ongoing maintenance and support for its products. Additionally, CTOS benefits from strategic partnerships with manufacturers and suppliers, enabling the company to offer a diverse range of products and leverage economies of scale. The company's focus on customization and customer service also helps to build long-term relationships, leading to repeat business and a steady revenue flow.

Custom Truck One Source Financial Statement Overview

Summary

Custom Truck One Source is facing financial challenges with declining revenues, negative profitability, high leverage, and cash flow constraints. The company needs to address these issues to improve its financial health and stability.

Income Statement

The income statement shows a declining revenue trend with a significant drop in the TTM period. Gross profit margin has decreased slightly, and the company is experiencing negative net profit margins, indicating challenges in profitability. EBIT and EBITDA margins are positive but have declined compared to previous years, reflecting operational challenges.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage which could pose financial risks. The return on equity is negative in the TTM period, reflecting losses. The equity ratio is low, suggesting limited equity financing relative to total assets.

Cash Flow

Cash flow analysis shows negative free cash flow growth and a negative free cash flow to net income ratio, indicating cash flow challenges. Operating cash flow to net income ratio is positive but low, suggesting limited cash generation from operations relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.94B	1.80B	1.87B	1.57B	1.17B	302.74M
Gross Profit	366.89M	343.43M	410.09M	340.39M	165.65M	76.44M
EBITDA	413.15M	380.66M	414.78M	359.12M	104.84M	33.14M
Net Income	-24.35M	-28.66M	50.71M	38.91M	-181.50M	-21.28M
Balance Sheet
Total Assets	3.54B	3.50B	3.37B	2.94B	2.68B	768.40M
Cash, Cash Equivalents and Short-Term Investments	13.06M	3.81M	10.31M	14.36M	35.90M	3.41M
Total Debt	2.49B	2.43B	2.20B	1.83B	1.60B	727.66M
Total Liabilities	2.76B	2.64B	2.45B	2.05B	1.83B	799.47M
Stockholders Equity	784.68M	861.31M	917.20M	888.44M	858.51M	-31.07M
Cash Flow
Free Cash Flow	-62.30M	-353.63M	-511.64M	-358.74M	-31.19M	-25.87M
Operating Cash Flow	406.44M	44.68M	-147.45M	-17.95M	157.20M	42.55M
Investing Cash Flow	-256.39M	-187.49M	-176.60M	-218.94M	-1.43B	-29.31M
Financing Cash Flow	-145.78M	135.58M	319.44M	217.82M	1.30B	-16.13M

Custom Truck One Source Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTOS, the sentiment is Negative. The current price of 5.98 is below the 20-day moving average (MA) of 6.09, below the 50-day MA of 6.10, and above the 200-day MA of 5.34, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 47.09 is Neutral, neither overbought nor oversold. The STOCH value of 64.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CTOS.

Custom Truck One Source Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
R	73 Outperform	$7.61B	15.99	16.26%	1.81%	1.68%	9.91%
WLFC	71 Outperform	$900.69M	7.91	18.91%	0.85%	27.90%	19.25%
WSC	69 Neutral	$3.49B	15.84	21.15%	1.52%	-3.64%	867.62%
HRI	67 Neutral	$5.17B	-61.34	-4.05%	1.81%	19.40%	-120.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MGRC	58 Neutral	$2.62B	17.99	12.70%	1.79%	4.77%	-35.44%
CTOS	50 Neutral	$1.36B	-54.02	-3.00%	―	7.39%	34.57%

Custom Truck One Source Corporate Events

Custom Truck One Source Q3 2025 Financial Results

On October 27, 2025, Custom Truck One Source reported its financial results for the third quarter of 2025, showing a 7.8% increase in total revenue compared to the same period in 2024. The company also saw a significant improvement in adjusted EBITDA, which rose by 19.6%, and a decrease in net loss by 66.9%. This growth was driven by strong performance in their core T&D markets and an increase in OEC on rent. The company reaffirmed its 2025 guidance, indicating confidence in its market positioning and the ongoing demand for its products, particularly in light of the increasing power demand and utility grid upgrades.