Custom Truck One Source Inc
NYSE:CTOS
Custom Truck One Source Inc
Custom Truck One Source Inc. is a dynamic player in the specialty equipment industry, seamlessly blending its operations across a triad of core services: sales, rentals, and support of specialty trucks and equipment. Carved from a strategic vision of providing a one-stop solution, the company emerged as a leader in servicing the utilities and infrastructure sectors. Its operations include selling and leasing an impressively vast fleet composed of boom trucks, cranes, and specialized equipment tailored to the unique demands of telecommunications and electric utility customers. Through this integrative model, not only does the company address the immediate equipment needs of its clients, but it also ensures that their operational workflows remain uninterrupted. Custom Truck effectively positions itself as an indispensable partner, thereby solidifying a steady revenue stream fuelled by robust, long-term customer relationships.
The company's business model thrives on the synergy between its rental and sales operations, augmented by its support services. By offering maintenance, customization, and repair options, Custom Truck enhances the lifespan and value proposition of its products, cultivating brand loyalty and trust. This full-circle service approach allows the company to capture diverse revenue channels while mitigating the fluctuations typical in cyclical market demands. Its centralized facilities host not only the equipment but also the technical expertise essential for tailoring solutions that meet varied customer needs. As a result, the harmonious interplay between its diversified offerings and value-added services not only defines Custom Truck One Source Inc.’s competitive edge but also strategically powers its financial performance and market resilience.
Custom Truck One Source Inc. is a dynamic player in the specialty equipment industry, seamlessly blending its operations across a triad of core services: sales, rentals, and support of specialty trucks and equipment. Carved from a strategic vision of providing a one-stop solution, the company emerged as a leader in servicing the utilities and infrastructure sectors. Its operations include selling and leasing an impressively vast fleet composed of boom trucks, cranes, and specialized equipment tailored to the unique demands of telecommunications and electric utility customers. Through this integrative model, not only does the company address the immediate equipment needs of its clients, but it also ensures that their operational workflows remain uninterrupted. Custom Truck effectively positions itself as an indispensable partner, thereby solidifying a steady revenue stream fuelled by robust, long-term customer relationships.
The company's business model thrives on the synergy between its rental and sales operations, augmented by its support services. By offering maintenance, customization, and repair options, Custom Truck enhances the lifespan and value proposition of its products, cultivating brand loyalty and trust. This full-circle service approach allows the company to capture diverse revenue channels while mitigating the fluctuations typical in cyclical market demands. Its centralized facilities host not only the equipment but also the technical expertise essential for tailoring solutions that meet varied customer needs. As a result, the harmonious interplay between its diversified offerings and value-added services not only defines Custom Truck One Source Inc.’s competitive edge but also strategically powers its financial performance and market resilience.
Revenue Growth: Custom Truck One Source delivered Q3 revenue of $482 million, up 8% year-over-year, with strong growth in both rental (ERS) and equipment sales (TES) segments.
EBITDA Momentum: Adjusted EBITDA grew 20% year-over-year to $96 million, driven by robust demand in core transmission and distribution (T&D) markets.
Strong Rental Metrics: Rental segment saw average OEC on rent increase 17% YoY to $1.26 billion, with utilization exceeding 79%—the highest in over two years.
Guidance Reaffirmed: Management reaffirmed full-year 2025 revenue guidance of $1.97–$2.06 billion and adjusted EBITDA of $370–$390 million.
CapEx Increase: The company raised its expected net rental CapEx for the year to about $250 million to capitalize on continued demand, especially for T&D projects.
Inventory & Cash Flow: Inventory reduction goal for 2025 was revised to $125–$150 million, but higher CapEx will result in levered free cash flow being below the prior $50 million target this year.
Positive Outlook: Management expects strong demand into 2026, citing major secular trends in electricity infrastructure and growing order backlogs, especially in T&D.
