Custom Truck One Source, Inc. Reports Third Quarter 2025 Results
Custom Truck One Source, Inc., a leading provider of specialty equipment to various infrastructure-related end markets, has released its financial results for the third quarter of 2025. The company reported significant growth in revenue and adjusted EBITDA, alongside a notable reduction in net loss compared to the same period last year.
Financial Highlights
For the three months ended September 30, 2025, Custom Truck One Source, Inc. reported:
- Total revenue of $482.1 million, an increase of 7.8% compared to the third quarter of 2024.
- Gross profit of $100.8 million, up 9.7% year-over-year.
- Adjusted gross profit of $155.5 million, a 12.9% increase from the previous year.
- Net loss of $5.8 million, a significant improvement from the $17.4 million loss in Q3 2024.
- Adjusted EBITDA of $96.0 million, up 19.6% year-over-year.
Business and Operational Highlights
The company saw substantial growth in its Equipment Rental Solutions (ERS) segment, with rental revenue increasing by 17.7% year-over-year. The Truck and Equipment Sales (TES) segment also performed well, with a 6.0% increase in revenue compared to Q3 2024. The Aftermarket Parts and Services (APS) segment saw a modest 3.0% increase in revenue.
Average fleet utilization reached 79.3%, the highest level in over two years, driven by increased rental volume and higher average OEC on rent.
Strategic Initiatives and Corporate Developments
Custom Truck One Source, Inc. reaffirmed its full-year revenue and adjusted EBITDA guidance for 2025. The company plans to invest an additional $50 million in its rental fleet, expecting high-single-digit fleet growth. Despite a decrease in TES backlog, the company remains optimistic about its strong order flow and robust demand for vocational vehicles.
Management's Perspective
Ryan McMonagle, Chief Executive Officer of Custom Truck One Source, Inc., highlighted the company's strong performance in core T&D markets and the positive impact of mega trends driving the utility end market. He expressed confidence in the company's ability to benefit from the spending required for data center and electrification investments, as well as utility grid upgrades.
Future Outlook
The company expects 2025 to be a year of double-digit consolidated revenue and adjusted EBITDA growth. While the TES segment may come in at the lower end of revenue guidance due to macroeconomic uncertainties, the ERS segment is expected to perform at the higher end of its revenue guidance. The company also anticipates a meaningful reduction in its net leverage ratio by the end of the fiscal year.
Original SEC Filing: Custom Truck One Source, Inc. [ CTOS ] - 8-K - Oct. 27, 2025