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Jun 30, 2025
Custom Truck Q2 2025 Earnings Report
Custom Truck One Source, Inc. reported strong second quarter 2025 results with significant revenue and adjusted EBITDA growth, driven by performance across all segments.
Key Takeaways
Custom Truck One Source, Inc. delivered a robust second quarter in 2025, achieving substantial year-over-year revenue growth of 20.9% to $511.5 million and a 16.7% increase in Adjusted EBITDA to $93.4 million. This performance was fueled by strong demand in core markets, particularly within the Equipment Rental Solutions (ERS) and Truck and Equipment Sales (TES) segments, leading to increased rental revenue, equipment sales, and improved fleet utilization.
Total revenue increased by 20.9% year-over-year to $511.5 million, with growth observed across all segments.
Adjusted EBITDA rose by 16.7% to $93.4 million, primarily due to increased gross profit and lower interest expense on variable-rate floor plan liabilities.
The Equipment Rental Solutions (ERS) segment saw a 16.9% increase in rental revenue and a 39.9% increase in rental equipment sales, driven by improved fleet utilization of 77.6% and a 16% increase in average OEC on rent.
Truck and Equipment Sales (TES) revenue grew by 22.4% year-over-year, marking the second-highest quarter of sales ever, supported by robust demand for vocational vehicles and a 30% increase in signed orders.
Revenue by Segment
Forward Guidance
Custom Truck One Source, Inc. reaffirmed its full-year 2025 revenue and Adjusted EBITDA guidance, anticipating double-digit growth driven by strong demand in both the TES and ERS segments, supply chain improvements, and strategic inventory management leading to meaningful free cash flow generation.
Positive Outlook
- Reaffirmed full-year 2025 revenue guidance of $1.97 billion to $2.06 billion.
- Reaffirmed full-year 2025 Adjusted EBITDA guidance of $370 million to $390 million.
- Expected double-digit revenue and Adjusted EBITDA growth for 2025.
- TES segment continues to benefit from a strong macro demand environment and robust customer relationships.
- Anticipates growing the rental fleet (based on net OEC) by at least mid-single digits by year-end due to strong ERS demand.
Challenges Ahead
- Sales order backlog was down 9% compared to the fourth quarter of 2024, though still within the expected range.
- Tactical investment in inventory during the first half of the year to mitigate new tariffs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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