Custom Truck One Source Reports 20.9% Revenue Growth in Q2 2025 Despite Net Loss

Custom Truck One Source, Inc. reported significant financial results for the second quarter and first half of 2025, with total revenue reaching $511.5 million for the three months ended June 30, 2025, a 20.9% increase from $423.0 million in the same period of 2024. For the six months ended June 30, 2025, total revenue was $933.7 million, up 11.9% from $834.3 million year-over-year. The growth was primarily driven by a 17.3% increase in rental revenue, which totaled $120.8 million, and a 24.7% rise in equipment sales, amounting to $356.1 million. Despite the revenue growth, the company reported a net loss of $28.4 million for the second quarter, compared to a loss of $24.5 million in the prior year, largely due to increased income tax expenses.

The company experienced notable changes in its operational metrics, with rental revenue benefiting from higher average original equipment cost (OEC) on rent and improved fleet utilization, which rose to 77.6% from 71.7% year-over-year. The average OEC on rent also increased by 15.6% to $1.2 billion. However, the sales order backlog decreased by 30% to $334.8 million, indicating potential challenges in future revenue generation. The company’s total assets increased to $3.58 billion as of June 30, 2025, compared to $3.50 billion at the end of 2024, reflecting a strategic focus on expanding its rental fleet and inventory.

Custom Truck One Source has made strategic moves to enhance its market position, including a focus on increasing its rental fleet and expanding its equipment sales. The company reported a 39.9% increase in equipment sales within its Equipment Rental Solutions segment, driven by strong demand for vocational vehicles. Additionally, the company has been actively managing its inventory, with total inventory rising to $1.09 billion, up from $1.05 billion at the end of 2024. The company’s employee headcount remained stable, supporting its operational needs as it navigates market conditions.

The filing also highlighted the company’s liquidity position, with cash and cash equivalents increasing to $5.3 million from $3.8 million at the end of 2024. Custom Truck One Source generated $181.4 million in net cash from operating activities for the first half of 2025, a significant increase from $23.4 million in the same period of 2024. However, net cash used in investing activities rose to $139.8 million, primarily due to increased purchases of rental equipment. The company’s net cash used for financing activities was $39.9 million, reflecting higher repayments on floorplan liabilities and long-term debt.

Looking ahead, Custom Truck One Source anticipates continued revenue growth driven by strong demand in its core markets, although it remains cautious about the impact of rising interest rates and potential supply chain disruptions. The company is focused on optimizing its rental fleet and enhancing operational efficiencies to improve profitability. Management expects to maintain a strong liquidity position to support its strategic initiatives and navigate the evolving market landscape.