Custom Truck One Source earnings surpass expectations but revenue falls short

2026-03-10 16:05:37

Kansas City, Missouri - On Tuesday, Custom Truck One Source, Inc. (NYSE: CTOS) reported fourth-quarter earnings that exceeded profit expectations but fell short of revenue forecasts.

Following the announcement, the company’s stock price declined 0.08% in after-hours trading.

The specialty equipment supplier reported adjusted earnings per share of $0.09 for the quarter, beating the analyst consensus of $0.07 by $0.02.

However, revenue was $528.2 million, below the expected $584.68 million, despite a 1.4% increase from $520.8 million in the same period last year. This revenue figure set a record for the company’s fourth quarter.

For fiscal 2026, Custom Truck One Source issued a revenue guidance of $2.01 billion to $2.12 billion, with a midpoint of $2.065 billion, below the analyst consensus of $2.1 billion.

The company expects adjusted EBITDA of $410 million to $435 million, with a midpoint of $422.5 million, representing a year-over-year growth of 7% to 13%.

CEO Ryan McMonagle stated, “In the fourth quarter, we achieved a record quarterly revenue, with both revenue and adjusted EBITDA improving sequentially and year-over-year. Fourth-quarter adjusted EBITDA grew 18%, and full-year growth was 13%. The significant improvement in our core T&D market experienced in Q3 continued into Q4, enabling our ERS segment to achieve 20% revenue growth in Q4 and 17% for the full year.”

The company’s equipment rental solutions division drove performance, with rental income increasing 13.5% to $137.2 million, and fleet utilization reaching 83.6%, the highest level in nearly three years.

Average rental OEC grew 13.7% year-over-year. Truck and equipment sales revenue declined 7.7% to $284 million due to customer purchasing timing.

Full-year revenue for fiscal 2025 reached a record $1.94 billion, up 7.9% from $1.8 billion in 2024. Full-year adjusted EBITDA increased 12.9% from $339.7 million to $383.6 million.

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