Custom Truck One Source, Inc. (NYSE:CTOS) reported fourth-quarter results on Tuesday that surpassed earnings expectations but came in below revenue forecasts.
The company’s shares slipped 0.08% in after-hours trading following the release.
The specialty equipment provider posted adjusted earnings per share of $0.09 for the quarter, beating the analyst consensus estimate of $0.07 by $0.02.
Revenue totaled $528.2 million, missing the $584.68 million estimate, though it still marked a 1.4% increase from $520.8 million in the same quarter last year. The figure also represented the highest fourth-quarter revenue in the company’s history.
Looking ahead to fiscal 2026, Custom Truck One Source expects revenue between $2.01 billion and $2.12 billion. The midpoint of $2.065 billion is slightly below the analyst consensus forecast of $2.1 billion.
The company also projects adjusted EBITDA in the range of $410 million to $435 million, with the midpoint of $422.5 million implying year-over-year growth of roughly 7% to 13%.
“In the fourth quarter, we achieved record quarterly revenue, as well as sequential and year-over-year improvement in both revenue and Adjusted EBITDA, delivering 18% Adjusted EBITDA growth in the quarter and 13% for the full year,” said Ryan McMonagle, Chief Executive Officer. “The significant improvements in our core T&D markets that we experienced in the third quarter continued into the fourth quarter, positioning our ERS segment to finish the year with 20% revenue growth in the fourth quarter and 17% for the full year.”
The company’s Equipment Rental Solutions segment led performance, with rental revenue rising 13.5% to $137.2 million. Fleet utilization reached 83.6%, the highest level in nearly three years.
Average original equipment cost (OEC) on rent increased 13.7% year over year. Meanwhile, revenue in the Truck and Equipment Sales segment declined 7.7% to $284.0 million, primarily due to the timing of customer purchases.
For the full year 2025, the company reported record revenue of $1.94 billion, representing a 7.9% increase from $1.80 billion in 2024. Adjusted EBITDA for the year rose 12.9% to $383.6 million, up from $339.7 million in the previous year.