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Sep 30
Custom Truck Q3 2025 Earnings Report
Custom Truck One Source, Inc. reported its financial results for the third quarter of 2025, showing increased revenue and adjusted EBITDA, despite a net loss.
Key Takeaways
Custom Truck One Source, Inc. delivered a strong third quarter in 2025, with total revenue increasing by 7.8% year-over-year to $482.1 million and Adjusted EBITDA growing by 19.6% to $96.0 million. The company experienced a net loss of $5.8 million, a significant improvement from the $17.4 million net loss in the prior year's quarter. Growth was primarily driven by strength in core T&D markets and substantial growth in the Equipment Rental Solutions (ERS) segment.
Total revenue for Q3 2025 reached $482.1 million, marking a 7.8% increase compared to Q3 2024.
Adjusted EBITDA grew by 19.6% year-over-year to $96.0 million, driven by increased gross profit and lower interest expense.
The net loss significantly decreased by 66.9% to $5.8 million in Q3 2025, compared to a $17.4 million net loss in Q3 2024.
The Equipment Rental Solutions (ERS) segment saw substantial growth in OEC on rent and achieved an average utilization of over 79%, the highest in more than two years.
Custom Truck
Custom Truck
Custom Truck Revenue by Segment
Revenue by Segment
Equipment Rental Solutions Revenue
CapyFin.comTruck and Equipment Sales Revenue
CapyFin.comAftermarket Parts and Services Revenue
CapyFin.com Forward Guidance
Custom Truck One Source, Inc. reaffirmed its full-year 2025 revenue and Adjusted EBITDA guidance, expecting double-digit consolidated revenue and Adjusted EBITDA growth. The company anticipates investing an additional net $50 million in its rental fleet, leading to high-single-digit fleet growth. While strong order flow is expected for TES, macroeconomic uncertainty and high interest rates may lead to the lower end of TES revenue guidance. The company also expects a meaningful reduction in its net leverage ratio by year-end.
Positive Outlook
- Reaffirming full-year 2025 revenue and Adjusted EBITDA guidance, reflecting confidence in the business and momentum across core segments.
- Continued expectation for double-digit consolidated revenue and Adjusted EBITDA growth in 2025.
- Anticipated investment of up to an additional net $50 million in the rental fleet, leading to at least high-single-digit fleet growth.
- Strong demand environment expected to continue into 2026 and beyond, particularly in core utility markets.
- Permanent reinstatement of accelerated depreciation provisions could be a catalyst for year-end equipment sales and provide upside to current expectations.
Challenges Ahead
- TES segment revenue is now expected to come in at the lower end of guidance due to continued macroeconomic uncertainty and high interest rates, particularly impacting smaller customers.
- Sales order backlog was down 29% compared to the third quarter of 2024, falling just below the expected range of four to six months.
- Levered free cash flow is expected to be less than the previous $50 million target.
- Inventory reduction target revised to $125 million to $150 million, compared to the level at the end of last year, indicating a slower pace of unwinding strategic inventory investment.
- Incremental non-rental fleet capital investments were made, which could impact short-term cash flow.
Revenue & Expenses
Visualization of income flow from segment revenue to net income