Custom Truck Secures Cooperative Purchasing Contract with Sourcewell
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 16 hours ago
0mins
Source: Newsfilter
- Contract Awarded: Custom Truck One Source has been awarded a cooperative purchasing contract through Sourcewell, marking a significant expansion in its reach within the electric utility and infrastructure markets, which is expected to enhance sales efficiency and market share.
- Procurement Efficiency: The contract enables eligible agencies, including municipal transit authorities and state and local governments, to purchase products directly from Custom Truck, saving time and administrative work by eliminating the need for their own solicitation processes.
- Increased Customer Trust: CEO Ryan McMonagle stated that being selected by Sourcewell is an exciting milestone for the company, reinforcing customer trust in Custom Truck and is expected to foster partnerships with local, state, and federal agencies across North America.
- Market Potential: Since its establishment in 1978, Sourcewell has facilitated services for over 50,000 participating agencies, and by streamlining procurement through competitively awarded contracts, Custom Truck aims to leverage this opportunity to expand its influence in government, educational, and nonprofit sectors.
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Analyst Views on CTOS
Wall Street analysts forecast CTOS stock price to fall
2 Analyst Rating
1 Buy
0 Hold
1 Sell
Hold
Current: 9.680
Low
6.50
Averages
7.25
High
8.00
Current: 9.680
Low
6.50
Averages
7.25
High
8.00
About CTOS
Custom Truck One Source, Inc. is a provider of specialty equipment, parts, tools, accessories and services to the electric utility transmission and distribution, telecommunications and rail markets in North America. The Company’s segments include Equipment Rental Solutions (ERS), Truck and Equipment Sales (TES)and Aftermarket Parts and Services. The ERS segment owns a range of new and used specialty equipment, including truck-mounted aerial lifts, cranes, service trucks, dump trucks, trailers, digger derricks and other machinery and equipment. The TES segment consists of the production and sale of new and used specialty equipment and vocational trucks, which includes equipment from original equipment manufacturers (OEMs) across its end-markets, as well as its Load King brand. The APS segment includes the sale of specialized aftermarket parts, including captive parts related to its Load King brand, used in the maintenance and repair of the equipment it sells and rents.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Custom Truck Secures Cooperative Purchasing Contract with Sourcewell
- Contract Awarded: Custom Truck One Source has been awarded a cooperative purchasing contract through Sourcewell, marking a significant expansion in its reach within the electric utility and infrastructure markets, which is expected to enhance sales efficiency and market share.
- Procurement Efficiency: The contract enables eligible agencies, including municipal transit authorities and state and local governments, to purchase products directly from Custom Truck, saving time and administrative work by eliminating the need for their own solicitation processes.
- Increased Customer Trust: CEO Ryan McMonagle stated that being selected by Sourcewell is an exciting milestone for the company, reinforcing customer trust in Custom Truck and is expected to foster partnerships with local, state, and federal agencies across North America.
- Market Potential: Since its establishment in 1978, Sourcewell has facilitated services for over 50,000 participating agencies, and by streamlining procurement through competitively awarded contracts, Custom Truck aims to leverage this opportunity to expand its influence in government, educational, and nonprofit sectors.
See More
Analysis of Risks and Opportunities in Small-Cap Investments
- Clarus Performance Stagnation: Clarus (CLAR) has seen flat sales over the past five years, indicating its failure to effectively expand operations, and declining earnings raise concerns about its long-term growth sustainability; with a current stock price of $2.92, its price-to-sales ratio stands at a mere 0.4x, reflecting market pessimism about its future prospects.
- Custom Truck Integration Challenges: Custom Truck One Source (CTOS) has only achieved an annual growth rate of 4.3% over the past two years, significantly below industry standards, and its earnings per share have plummeted by 45.4% annually, leading to investor doubts about its ability to sustainably generate shareholder value; trading at $10.25 per share, it carries a high price-to-earnings ratio of 59x, raising concerns about its profitability.
- PennyMac Performance Decline: PennyMac Mortgage Investment Trust (PMT) has experienced a 23.1% annual decline in sales over the past five years, with earnings per share decreasing more than revenue, indicating worsening profitability; currently priced at $10.55 per share, it trades at 0.7x price-to-book ratio, highlighting increasing market challenges.
- Risks of Small-Cap Investments: Small-cap stocks often suffer from mispricing due to a lack of analyst coverage, and while potential returns can be significant, the financial performances of companies like Clarus, CTOS, and PMT illustrate the difficulties in expanding competitive advantages, prompting investors to carefully assess risks versus rewards.
See More
Custom Truck Reports Record Q1 2026 Earnings
- Significant Revenue Growth: Custom Truck reported record first-quarter revenue of $462 million and adjusted EBITDA of $98 million for Q1 2026, reflecting strong demand in the Specialty Equipment Rentals segment, which is expected to drive overall growth for the year.
- Enhanced Rental Efficiency: The average utilization rate of the rental fleet reached 81.4%, with total OEC on rent at $1.34 billion, indicating robust performance in the rental market and further solidifying the company's competitive position in the industry.
- Accelerated Order Backlog: The new sales order backlog ended the first quarter at $411 million and has continued to grow in Q2, signaling strong market demand and providing support for future revenue growth.
- EBITDA Guidance Increase: Management raised the 2026 adjusted EBITDA guidance to a range of $415 million to $440 million, reflecting the rental business's outperformance and improved operational execution, showcasing the company's confidence in future performance.
See More
Custom Truck One Reports Q1 Earnings and 2026 Outlook
- Earnings Highlights: Custom Truck One's Q1 GAAP EPS of -$0.02 beats expectations by $0.03, with revenue of $461.62 million reflecting a 9.3% year-over-year increase, surpassing estimates by $10.34 million, indicating strong market performance.
- 2026 Revenue Outlook: The company anticipates consolidated revenue growth of 3% to 9% for 2026, with adjusted EBITDA expected to rise by 8% to 15%, reflecting optimism about future profitability and market demand.
- Capital Expenditure Plans: Net rental fleet investment for 2026 is projected to be approximately $150 million to $170 million, significantly reduced from over $250 million in 2025, demonstrating prudent management of capital expenditures and optimized resource allocation.
- Cash Flow and Leverage Ratio: Levered free cash flow is expected to exceed $50 million for 2026, with the net leverage ratio anticipated to be meaningfully below four times by the end of fiscal 2026, while the long-term target remains below three times by 2027, indicating ongoing improvements in financial health.
See More
Custom Truck One Source Earnings Preview
- Revenue Performance: Custom Truck One Source reported revenues of $528.2 million last quarter, reflecting a 1.4% year-over-year increase, which, while beating EPS estimates, significantly missed revenue expectations, indicating pressure in market competition.
- Market Expectations: This quarter, the market anticipates a 7.6% year-over-year revenue growth for the company, an improvement from the 2.7% increase recorded in the same quarter last year, reflecting cautious optimism among investors regarding future growth.
- Analyst Confidence: Over the past 30 days, the majority of analysts covering the company have reaffirmed their estimates, suggesting confidence in the company's stability heading into earnings, despite multiple revenue misses over the past two years.
- Industry Comparison: In the industrial distributors segment, peers Richardson Electronics and United Rentals reported revenue growth of 3.1% and 7.2%, respectively, both exceeding expectations, indicating a positive trend in the industry, while Custom Truck's stock has risen 35.1% over the past month.
See More
Cantor Fitzgerald Initiates Overweight Rating on CTOS with $11 Price Target
- Market Positioning Advantage: Cantor Fitzgerald initiated coverage of Custom Truck One Source (CTOS) with an Overweight rating and an $11 price target, indicating the company is well-positioned to benefit from utility grid upgrades and infrastructure spending, which is expected to drive market share growth.
- Financial Recovery: In 2025, CTOS reported a record revenue of $1.94 billion and adjusted EBITDA of $383.6 million, driven by stronger rental demand and higher equipment utilization, showcasing the company's recovery momentum following a challenging 2024.
- Future Cash Flow Outlook: CTOS is projected to generate adjusted EBITDA of $410 million to $435 million in 2026, with net leverage falling below 4 times, indicating significant potential for debt reduction and free cash flow generation.
- Increased Transparency: Starting in 2026, CTOS plans to report separate results for its Equipment Rental Solutions and Sales segments, which will enhance transparency and help investors better understand the business model, potentially increasing strategic flexibility and future monetization options.
See More
Custom Truck Secures Cooperative Purchasing Contract with Sourcewell
- Contract Awarded: Custom Truck One Source has been awarded a cooperative purchasing contract through Sourcewell, marking a significant expansion in its reach within the electric utility and infrastructure markets, which is expected to enhance sales efficiency and market share.
- Procurement Efficiency: The contract enables eligible agencies, including municipal transit authorities and state and local governments, to purchase products directly from Custom Truck, saving time and administrative work by eliminating the need for their own solicitation processes.
- Increased Customer Trust: CEO Ryan McMonagle stated that being selected by Sourcewell is an exciting milestone for the company, reinforcing customer trust in Custom Truck and is expected to foster partnerships with local, state, and federal agencies across North America.
- Market Potential: Since its establishment in 1978, Sourcewell has facilitated services for over 50,000 participating agencies, and by streamlining procurement through competitively awarded contracts, Custom Truck aims to leverage this opportunity to expand its influence in government, educational, and nonprofit sectors.
See More
Analysis of Risks and Opportunities in Small-Cap Investments
- Clarus Performance Stagnation: Clarus (CLAR) has seen flat sales over the past five years, indicating its failure to effectively expand operations, and declining earnings raise concerns about its long-term growth sustainability; with a current stock price of $2.92, its price-to-sales ratio stands at a mere 0.4x, reflecting market pessimism about its future prospects.
- Custom Truck Integration Challenges: Custom Truck One Source (CTOS) has only achieved an annual growth rate of 4.3% over the past two years, significantly below industry standards, and its earnings per share have plummeted by 45.4% annually, leading to investor doubts about its ability to sustainably generate shareholder value; trading at $10.25 per share, it carries a high price-to-earnings ratio of 59x, raising concerns about its profitability.
- PennyMac Performance Decline: PennyMac Mortgage Investment Trust (PMT) has experienced a 23.1% annual decline in sales over the past five years, with earnings per share decreasing more than revenue, indicating worsening profitability; currently priced at $10.55 per share, it trades at 0.7x price-to-book ratio, highlighting increasing market challenges.
- Risks of Small-Cap Investments: Small-cap stocks often suffer from mispricing due to a lack of analyst coverage, and while potential returns can be significant, the financial performances of companies like Clarus, CTOS, and PMT illustrate the difficulties in expanding competitive advantages, prompting investors to carefully assess risks versus rewards.
See More
Custom Truck Reports Record Q1 2026 Earnings
- Significant Revenue Growth: Custom Truck reported record first-quarter revenue of $462 million and adjusted EBITDA of $98 million for Q1 2026, reflecting strong demand in the Specialty Equipment Rentals segment, which is expected to drive overall growth for the year.
- Enhanced Rental Efficiency: The average utilization rate of the rental fleet reached 81.4%, with total OEC on rent at $1.34 billion, indicating robust performance in the rental market and further solidifying the company's competitive position in the industry.
- Accelerated Order Backlog: The new sales order backlog ended the first quarter at $411 million and has continued to grow in Q2, signaling strong market demand and providing support for future revenue growth.
- EBITDA Guidance Increase: Management raised the 2026 adjusted EBITDA guidance to a range of $415 million to $440 million, reflecting the rental business's outperformance and improved operational execution, showcasing the company's confidence in future performance.
See More
Custom Truck One Reports Q1 Earnings and 2026 Outlook
- Earnings Highlights: Custom Truck One's Q1 GAAP EPS of -$0.02 beats expectations by $0.03, with revenue of $461.62 million reflecting a 9.3% year-over-year increase, surpassing estimates by $10.34 million, indicating strong market performance.
- 2026 Revenue Outlook: The company anticipates consolidated revenue growth of 3% to 9% for 2026, with adjusted EBITDA expected to rise by 8% to 15%, reflecting optimism about future profitability and market demand.
- Capital Expenditure Plans: Net rental fleet investment for 2026 is projected to be approximately $150 million to $170 million, significantly reduced from over $250 million in 2025, demonstrating prudent management of capital expenditures and optimized resource allocation.
- Cash Flow and Leverage Ratio: Levered free cash flow is expected to exceed $50 million for 2026, with the net leverage ratio anticipated to be meaningfully below four times by the end of fiscal 2026, while the long-term target remains below three times by 2027, indicating ongoing improvements in financial health.
See More
Custom Truck One Source Earnings Preview
- Revenue Performance: Custom Truck One Source reported revenues of $528.2 million last quarter, reflecting a 1.4% year-over-year increase, which, while beating EPS estimates, significantly missed revenue expectations, indicating pressure in market competition.
- Market Expectations: This quarter, the market anticipates a 7.6% year-over-year revenue growth for the company, an improvement from the 2.7% increase recorded in the same quarter last year, reflecting cautious optimism among investors regarding future growth.
- Analyst Confidence: Over the past 30 days, the majority of analysts covering the company have reaffirmed their estimates, suggesting confidence in the company's stability heading into earnings, despite multiple revenue misses over the past two years.
- Industry Comparison: In the industrial distributors segment, peers Richardson Electronics and United Rentals reported revenue growth of 3.1% and 7.2%, respectively, both exceeding expectations, indicating a positive trend in the industry, while Custom Truck's stock has risen 35.1% over the past month.
See More
Cantor Fitzgerald Initiates Overweight Rating on CTOS with $11 Price Target
- Market Positioning Advantage: Cantor Fitzgerald initiated coverage of Custom Truck One Source (CTOS) with an Overweight rating and an $11 price target, indicating the company is well-positioned to benefit from utility grid upgrades and infrastructure spending, which is expected to drive market share growth.
- Financial Recovery: In 2025, CTOS reported a record revenue of $1.94 billion and adjusted EBITDA of $383.6 million, driven by stronger rental demand and higher equipment utilization, showcasing the company's recovery momentum following a challenging 2024.
- Future Cash Flow Outlook: CTOS is projected to generate adjusted EBITDA of $410 million to $435 million in 2026, with net leverage falling below 4 times, indicating significant potential for debt reduction and free cash flow generation.
- Increased Transparency: Starting in 2026, CTOS plans to report separate results for its Equipment Rental Solutions and Sales segments, which will enhance transparency and help investors better understand the business model, potentially increasing strategic flexibility and future monetization options.
See More
