Custom Truck One Source, Inc. (CTOS) reported third‑quarter 2025 results, showing revenue of $482.1 million, a 7.8% year‑over‑year increase, and adjusted EBITDA of $96.0 million, up 19.6% from the same period last year. The company posted a net loss of $5.8 million and a diluted earnings per share of –$0.03 for the quarter.
For the nine‑month period ended September 30, 2025, consolidated revenue reached $1.415 billion, a 10.5% increase from $1.281 billion in 2024. Operating cash flow for the nine months was $262.8 million; the adjusted EBITDA for the period was not disclosed in the filing.
Segment performance highlighted continued strength in the Equipment Rental Solutions (ERS) business, with rental revenue of $127.1 million, a 17.7% year‑over‑year rise, a fleet utilization rate of 79.3%, and an average operating‑expense cost on rent $180 million higher than the prior year. Truck and Equipment Sales (TES) revenue grew 6% to $320.6 million, while Aftermarket Parts and Services (APS) revenue increased 3% to $34.3 million.
CTOS reaffirmed its full‑year 2025 guidance, projecting consolidated revenue of $1.97 billion to $2.06 billion and adjusted EBITDA of $370 million to $390 million. The company reported a net leverage ratio of 4.53x, cash and cash equivalents of $13.058 million, and long‑term debt of $1.629 billion. Management plans net rental capital expenditures of approximately $250 million for 2025, inventory reduction of $125 million to $150 million compared to year‑end 2024, and a target to bring net leverage below 3x by the end of fiscal 2026.
The order backlog decreased by $55 million in the third quarter but remains above $350 million. Analysts had projected revenue of $492.38 million and diluted EPS of $0.07 for the quarter; the actual results fell short of those estimates, reflecting a revenue miss despite strong demand in core markets.
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