Custom Truck One Reports Q1 Earnings and 2026 Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy CTOS?
Source: seekingalpha
- 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.
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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: 8.740
Low
6.50
Averages
7.25
High
8.00
Current: 8.740
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 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 Unveils Load King Innovations at Work Truck Show 2026
- Enhanced Service Truck Performance: At the Work Truck Show in Indianapolis, Custom Truck unveiled the Voyager®AMX+, a new 14-foot configuration that combines lightweight aluminum construction with enhanced capabilities, featuring a 12,000-lb capacity crane designed to improve field service team efficiency and payload capacity.
- Eco-Friendly Electric Equipment: The Load King Outback 28SC-30, the latest addition to the tracked equipment line, features a full lithium battery electric PTO that reduces noise and environmental impact, addressing the growing demand for eco-friendly equipment in utility and infrastructure projects while enhancing safety in confined workspaces.
- Positive Market Response: Strong booth traffic and industry attention at the Work Truck Show reinforce Custom Truck's commitment to solving real customer challenges, showcasing its integrated
See More
Custom Truck One Source Reports Record Revenue and EBITDA for 2025
- Record Financial Performance: Custom Truck One Source achieved $528 million in revenue and $121 million in adjusted EBITDA for Q4 2025, with full-year revenue reaching $1.944 billion, an 8% increase, indicating strong market demand and growth potential.
- Strong Rental Business: The average rental fleet utilization was nearly 84% in Q4, marking a near three-year high, with total rental assets at $1.4 billion, up 14% year-over-year, demonstrating the company's sustained competitiveness in the rental market.
- Strategic Partnership: The company announced a strategic partnership with Hiab aimed at broadening its product portfolio and supporting long-term growth, while also planning to expand aftermarket service capacity to enhance parts and service revenue, further solidifying its market position.
- Optimistic 2026 Outlook: Management provided guidance for 2026 revenue in the range of $2.005 billion to $2.12 billion and adjusted EBITDA between $410 million and $435 million, reflecting confidence in sustained strong market demand, particularly in the transmission and distribution sectors.
See More
Custom Truck Reports Record Q4 2025 Revenue Amid Challenges
- Record Quarterly Revenue: Custom Truck One Source Inc achieved a record revenue of $528 million in Q4 2025, driven by strong execution and momentum in core markets, showcasing the company's competitive position in the industry.
- Strong Rental Business: The rental business reported a utilization rate of nearly 84%, the highest in almost three years, indicating the company's capability to meet customer demands and is expected to drive future revenue growth.
- Growing Order Backlog: The company ended 2025 with a strong order backlog of $335 million, up 20% from Q3, and further increased to $370 million in early 2026, reflecting sustained market demand.
- Strategic Partnership: A strategic partnership with Hab is expected to enhance service capabilities and support long-term growth, although the TES segment underperformed in Q4 with an 8% year-over-year revenue decline.
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 Unveils Load King Innovations at Work Truck Show 2026
- Enhanced Service Truck Performance: At the Work Truck Show in Indianapolis, Custom Truck unveiled the Voyager®AMX+, a new 14-foot configuration that combines lightweight aluminum construction with enhanced capabilities, featuring a 12,000-lb capacity crane designed to improve field service team efficiency and payload capacity.
- Eco-Friendly Electric Equipment: The Load King Outback 28SC-30, the latest addition to the tracked equipment line, features a full lithium battery electric PTO that reduces noise and environmental impact, addressing the growing demand for eco-friendly equipment in utility and infrastructure projects while enhancing safety in confined workspaces.
- Positive Market Response: Strong booth traffic and industry attention at the Work Truck Show reinforce Custom Truck's commitment to solving real customer challenges, showcasing its integrated
See More
Custom Truck One Source Reports Record Revenue and EBITDA for 2025
- Record Financial Performance: Custom Truck One Source achieved $528 million in revenue and $121 million in adjusted EBITDA for Q4 2025, with full-year revenue reaching $1.944 billion, an 8% increase, indicating strong market demand and growth potential.
- Strong Rental Business: The average rental fleet utilization was nearly 84% in Q4, marking a near three-year high, with total rental assets at $1.4 billion, up 14% year-over-year, demonstrating the company's sustained competitiveness in the rental market.
- Strategic Partnership: The company announced a strategic partnership with Hiab aimed at broadening its product portfolio and supporting long-term growth, while also planning to expand aftermarket service capacity to enhance parts and service revenue, further solidifying its market position.
- Optimistic 2026 Outlook: Management provided guidance for 2026 revenue in the range of $2.005 billion to $2.12 billion and adjusted EBITDA between $410 million and $435 million, reflecting confidence in sustained strong market demand, particularly in the transmission and distribution sectors.
See More
Custom Truck Reports Record Q4 2025 Revenue Amid Challenges
- Record Quarterly Revenue: Custom Truck One Source Inc achieved a record revenue of $528 million in Q4 2025, driven by strong execution and momentum in core markets, showcasing the company's competitive position in the industry.
- Strong Rental Business: The rental business reported a utilization rate of nearly 84%, the highest in almost three years, indicating the company's capability to meet customer demands and is expected to drive future revenue growth.
- Growing Order Backlog: The company ended 2025 with a strong order backlog of $335 million, up 20% from Q3, and further increased to $370 million in early 2026, reflecting sustained market demand.
- Strategic Partnership: A strategic partnership with Hab is expected to enhance service capabilities and support long-term growth, although the TES segment underperformed in Q4 with an 8% year-over-year revenue decline.
See More
