Custom Truck One Source (NYSE:CTOS) Announces Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Custom Truck One Source (NYSE:CTOS) released its quarterly earnings results on Tuesday. The company reported $0.09 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.07 by $0.02, FiscalAI reports. The business had revenue of $528.18 million during the quarter, compared to analyst estimates of $584.76 million. Custom Truck One Source had a negative return on equity of 5.28% and a negative net margin of 1.26%.Custom Truck One Source’s revenue for the quarter was up 1.4% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.12 earnings per share.

Here are the key takeaways from Custom Truck One Source’s conference call:

• Record 2025 results — Q4 revenue of $528M and Adjusted EBITDA of $121M (up >18% YoY); full-year revenue of $1.944B (+8%) and Adjusted EBITDA of $384M (+13%).
• Rental business strength — utilization neared 84% (multi?year high) and average OEC on rent was ~$1.38B in Q4 (+14% YoY), with quarter?end OEC at $1.64B supporting durable rental demand and reduced net rental CapEx guidance for 2026.
• TES mixed performance but improving backlog — Q4 TES sales fell 8% YoY due to pull?forwards and timing, but full?year TES was a record $1.1B (+4%) and backlog rose to roughly $370M, aided by a new Hiab partnership and aftermarket investments.
• Balance sheet progress and 2026 outlook — net leverage improved to 4.3x, inventory declined >$100M in Q4, and management guides 2026 revenue of $2.005–2.12B and Adjusted EBITDA of $410–435M while targeting >$50M levered FCF and sub?4x leverage by year?end.
• Reporting change — beginning Q1 2026 the company will realign to two segments (SER and STEM) and will recast historical results and guidance to match the new presentation.

Custom Truck One Source Price Performance

Shares of Custom Truck One Source stock opened at $5.66 on Wednesday. The company has a market capitalization of $1.28 billion, a price-to-earnings ratio of -47.13 and a beta of 1.14. The company has a quick ratio of 0.22, a current ratio of 1.27 and a debt-to-equity ratio of 2.08. The stock’s 50-day simple moving average is $6.63 and its 200-day simple moving average is $6.27. Custom Truck One Source has a 52 week low of $3.18 and a 52 week high of $7.75.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Parallel Advisors LLC purchased a new stake in Custom Truck One Source during the 4th quarter valued at approximately $28,000. BNP Paribas Financial Markets lifted its holdings in shares of Custom Truck One Source by 92.1% in the second quarter. BNP Paribas Financial Markets now owns 5,859 shares of the company’s stock worth $29,000 after buying an additional 2,809 shares in the last quarter. Quantbot Technologies LP purchased a new position in shares of Custom Truck One Source in the second quarter worth $35,000. Dynamic Technology Lab Private Ltd bought a new position in shares of Custom Truck One Source during the fourth quarter worth $67,000. Finally, Jane Street Group LLC bought a new position in shares of Custom Truck One Source during the second quarter worth $58,000. 90.07% of the stock is owned by hedge funds and other institutional investors.

Custom Truck One Source News Summary

Here are the key news stories impacting Custom Truck One Source this week:

• Positive Sentiment: Record Q4 revenue and strong rental business — Management said Q4 was a record quarter driven by outsized rental growth, which management highlighted as a durable, higher?margin growth engine. Custom Truck One Source Roars into Record Q4
• Positive Sentiment: EPS beat / move toward profitability — The company reported $0.09 EPS for Q4, which beat some consensus figures and management discussed a path back to positive full?year profitability. This supports upside to margins if revenue mix shifts toward rentals and services. Custom Truck One Source earnings up next
• Positive Sentiment: Management projects growth after a record year — Company commentary and the earnings presentation emphasized growth initiatives and expected expansion after the strong finish to 2025. Investors focused on execution of rental expansion. Custom Truck One Source Projects Growth
• Neutral Sentiment: Earnings call materials available — The earnings call transcript and slide deck provide more detail on segmentation, rental utilization, and capital allocation; useful for digging into assumptions but not new headline news. Earnings Call Transcript
• Neutral Sentiment: Analyst coverage notes — Several outlets parsed key metrics versus estimates (mixed takeaways on EPS vs revenue); analysts will likely update models after guidance clarification. Zacks analysis
• Negative Sentiment: Revenue missed expectations — Q4 revenue of ~$528.2M came in well below consensus (~$585M), a key reason for the stock decline as top?line weakness raises questions about demand and near?term growth. Revenue miss article
• Negative Sentiment: FY2026 revenue guidance below/at Street expectations — Management gave revenue guidance roughly $2.0–$2.1B, at or slightly under consensus, which tempered enthusiasm and implies limited near?term upside to sales growth. BusinessWire press release
• Negative Sentiment: Profitability and leverage remain concerns — The company still shows a negative net margin and negative ROE, and balance sheet leverage is notable; investors worried that slower revenue ramp could pressure free cash flow and returns. Yahoo earnings summary

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on CTOS. JPMorgan Chase & Co. lifted their price objective on Custom Truck One Source from $6.00 to $6.50 and gave the company an “underweight” rating in a research report on Wednesday, January 14th. Weiss Ratings restated a “sell (d-)” rating on shares of Custom Truck One Source in a research note on Wednesday, January 21st. Two investment analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average target price of $7.25.

Custom Truck One Source Company Profile

Custom Truck One Source, Inc (NYSE: CTOS) is a North American provider of specialty rental equipment, parts and services. The company’s fleet encompasses a wide range of assets, including cranes, aerial work platforms, trench safety and shoring equipment, fluid management solutions, generators and other industrial machinery. Customers rely on Custom Truck One Source to support projects in construction, energy, telecommunications, industrial manufacturing, municipalities and large-scale events.

Headquartered in Plano, Texas, Custom Truck One Source has expanded through a combination of organic growth and strategic acquisitions to establish a network of more than 140 branch locations across the United States and Canada.