Custom Truck One Source Reports Record Q4 and Annual Revenue

Rental business drives strong finish to 2025, but equipment sales disappoint

Mar. 10, 2026 at 4:48pm

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Custom Truck One Source (NYSE:CTOS) reported record quarterly and annual revenue for 2025, driven primarily by strength in its rental business. The company saw double-digit growth in rental revenue and rental sales activity, with utilization reaching the highest level in nearly three years. However, equipment sales performance was below expectations, with management citing customers pulling forward capital spending earlier in the year and an 'atypical year-end dynamic' where some customers deferred deliveries into 2026.

Why it matters

Custom Truck One Source's strong rental performance highlights the continued demand for specialty equipment, particularly in the transmission and distribution markets. The company's ability to maintain pricing discipline and grow its rental fleet size are positive signs. However, the softer-than-expected equipment sales raise questions about broader economic conditions and customer spending patterns heading into 2026.

The details

For the fourth quarter, Custom Truck One Source reported revenue of $528 million, a record for the company, with adjusted EBITDA of $121 million, up more than 18% year over year. For the full year, the company posted record revenue of $1.944 billion, up 8% from 2024, and adjusted EBITDA of $384 million, up 13%. The rental business, known as Equipment Rental Solutions (ERS), saw fourth-quarter revenue grow 20% year over year, driven by double-digit increases in both rental revenue and rental sales activity. Utilization averaged 83.6% in Q4, up roughly 470 basis points from the prior year period. In contrast, the Truck and Equipment Sales (TES) segment saw fourth-quarter revenue decline 8% year over year, which management attributed to customers pulling forward capital spending earlier in the year and an 'atypical year-end dynamic' where some deliveries were deferred into 2026.

  • Custom Truck One Source reported its fourth-quarter and full-year 2025 results on March 10, 2026.
  • The company's fourth-quarter results were driven by strong rental momentum, particularly in the transmission and distribution markets, throughout the quarter.
  • For the full year 2025, Custom Truck One Source posted record revenue of $1.944 billion, up 8% from 2024.

The players

Custom Truck One Source

A North American provider of specialty rental equipment, parts and services, with a fleet encompassing a wide range of assets including cranes, aerial work platforms, trench safety and shoring equipment, fluid management solutions, generators and other industrial machinery.

Ryan McMonagle

The CEO of Custom Truck One Source.

Chris Eperjesy

The CFO of Custom Truck One Source.

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What they’re saying

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— Robert Jenkins, San Francisco resident

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee

What’s next

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The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.