Custom Truck One Source Reports $461.6M Revenue with 9.3% Growth and Improved Net Loss

Custom Truck One Source, Inc. reported a total revenue of $461.6 million for the three months ended March 31, 2026, marking a 9.3% increase from $422.2 million in the same period of 2025. The growth was primarily driven by a significant rise in rental revenue, which increased by 18% to $137.2 million, and equipment sales, which rose by 6.9% to $292.6 million. Despite these gains, the company recorded a net loss of $4.1 million, an improvement from the $17.8 million loss reported in the prior year, reflecting a 76.9% reduction in losses.

The company's cost of revenue also increased, totaling $358.6 million, up from $336.7 million in the previous year. This rise was attributed to higher equipment sales volumes and increased depreciation of rental equipment, which rose to $56.2 million from $50.1 million. Operating expenses decreased slightly to $71.6 million from $73.1 million, primarily due to lower stock compensation expenses. The operating income for the quarter was $31.5 million, a substantial increase from $12.4 million in the same period last year.

In terms of strategic developments, Custom Truck One Source has restructured its reporting segments, effective January 1, 2026, into two main categories: Specialty Equipment Rentals (SER) and Specialty Truck Equipment & Manufacturing (STEM). This change aims to better reflect the financial profile and economics of the company's rental and sales operations. The SER segment reported a 16% increase in revenue to $193.8 million, while the STEM segment saw a 5% increase to $267.9 million.

Operationally, the company reported an ending original equipment cost (OEC) of $1.7 billion, a 6.9% increase from the previous year. The average OEC on rent also rose by 11.8%, indicating improved utilization of the rental fleet, which achieved a fleet utilization rate of 81.4%, up from 77.7% in the prior year. However, the sales order backlog decreased slightly to $411.3 million, down 2.1% from the previous year, suggesting a potential softening in future demand.

Looking ahead, Custom Truck One Source expressed optimism about its operational performance, citing strong demand for rental and equipment sales. The company believes its liquidity sources and operating cash flows are sufficient to meet its operational and capital requirements over the next 12 months. As of March 31, 2026, the company had $9.6 million in cash and cash equivalents, an increase from $6.3 million at the end of 2025, and maintained a net leverage ratio of 4.02, down from 4.31, indicating improved financial stability.