Loading...
•
Dec 31, 2025
Custom Truck Q4 2025 Earnings Report
Custom Truck Q4 2025 Earnings Report
Key Takeaways
Custom Truck One Source achieved record fourth-quarter revenue of $528.2 million and significant Adjusted EBITDA growth of 18.4%. The company saw its highest fleet utilization in nearly three years at 83.6%, driven by strong demand in the electric utility and infrastructure markets, while successfully reducing inventory by over $100 million during the quarter.
Record Q4 revenue of $528.2 million, up 1.4% year-over-year.
Fleet utilization reached 83.6%, the highest level in nearly three years.
Adjusted EBITDA increased 18.4% to $120.7 million compared to Q4 2024.
Inventory was reduced by more than $100 million in Q4 to improve working capital.
Sales order backlog ended the year at $335.3 million, up $55.5 million sequentially from Q3.
Revenue by Segment
Forward Guidance
For fiscal year 2026, CTOS expects total revenue between $2.005 billion and $2.120 billion, representing 3% to 9% growth, with a focus on free cash flow and deleveraging.
Positive Outlook
- Expected Adjusted EBITDA growth of 7% to 13% ($410M - $435M).
- Levered free cash flow expected to exceed $50 million.
- Net leverage ratio targeted to be meaningfully below 4.0x by year-end.
- Strong demand in transmission and distribution utility markets.
- Reduction in net rental fleet investment to $150M - $170M.
Challenges Ahead
- Anticipated pricing pressures on truck sales (TES segment).
- Atypical year-end buying patterns causing some delivery deferrals into 2026.
- Inventory levels still trending toward (but not yet at) target of below 6 months.
- Potential impact from changes in U.S. trade policy and tariffs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...