Custom Truck One Source Reports 10.2% Revenue Growth and Positive Net Income in Latest Quarter

Custom Truck One Source, Inc. reported significant financial improvements in its latest quarterly results, with total revenue reaching $563.4 million for the three months ended June 30, 2026, a 10.2% increase from $511.5 million in the same period last year. The company’s net income also turned positive, amounting to $10.4 million, compared to a net loss of $28.4 million in the prior year. For the first half of 2026, total revenue was $1.025 billion, up 9.8% from $933.7 million in the first half of 2025, with net income of $6.3 million compared to a loss of $46.2 million in the previous year.

The growth in revenue was primarily driven by a 20.1% increase in rental revenue, which totaled $145.1 million, and a 7.7% rise in equipment sales, which reached $383.6 million. The company attributed these results to strong demand for new equipment, particularly in the utility and forestry sectors, as well as improved rental fleet utilization. The average original equipment cost (OEC) on rent increased by 13.1% year-over-year, contributing to a higher yield from rental operations.

Operationally, Custom Truck One Source has made strategic changes by restructuring its reporting segments into Specialty Equipment Rentals (SER) and Specialty Truck Equipment & Manufacturing (STEM) as of January 1, 2026. This new structure aims to better reflect the financial profile and economics of its rental and sales businesses. The SER segment reported a 19.7% increase in revenue to $221.0 million for the second quarter, while the STEM segment saw a 2.7% increase to $437.8 million. The company also reported a fleet utilization rate of 81.6%, up from 77.6% in the previous year, indicating improved efficiency in its rental operations.

In terms of financial health, Custom Truck One Source's total assets increased to $3.6 billion as of June 30, 2026, compared to $3.4 billion at the end of 2025. The company’s cash and cash equivalents rose to $10.3 million, up from $6.3 million at the end of the previous year. However, net cash flow from operating activities decreased to $68.2 million for the first half of 2026, down from $181.4 million in the same period of 2025, primarily due to increased inventory levels.

Looking ahead, Custom Truck One Source expressed optimism about its growth trajectory, citing strong demand in its core markets and the potential for further operational efficiencies. The company plans to continue leveraging its rental fleet and expanding its equipment offerings to meet customer needs. However, it remains cautious about potential market fluctuations and operational challenges, including supply chain disruptions and rising labor costs, which could impact future performance.