Custom Truck One 2025 Q2 Earnings Revenue Surges 20.9% as Net Loss Widens

Custom Truck One (CTOS) reported its fiscal 2025 Q2 earnings on July 30th, 2025. The company achieved strong revenue growth of 20.9% to $511.48 million compared to Q2 2024, driven by increased demand across all segments. Despite the revenue surge, CTOS reported a net loss of $28.38 million, influenced by higher income tax expenses. The company reaffirmed its full-year 2025 guidance, projecting revenue between $1.97 billion and $2.06 billion. The stock price saw a mixed performance, with a 13.10% month-to-date increase but a 2.40% decline in the latest trading day.

Revenue

Custom Truck One reported a substantial increase in total revenue, rising 20.9% to $511.48 million in Q2 2025 from $423.01 million in Q2 2024. This growth was driven by heightened demand across all segments. The Equipment Rental Solutions segment saw rental revenue rise to $120.814 million, while equipment sales reached $356.112 million. Parts sales and services contributed $34.557 million, showcasing balanced growth across the company's diverse offerings.

Earnings/Net Income

Custom Truck One's earnings report revealed that losses deepened, with a net loss of $28.38 million for Q2 2025, up 15.9% from the $24.48 million loss in Q2 2024. The EPS loss widened to $0.13 per share, reflecting a 30% increase in loss from the previous year. The EPS performance suggests ongoing financial challenges.

Price Action

The stock price of Custom Truck One has edged down 2.40% during the latest trading day and has dropped 3.23% during the most recent full trading week, although it has jumped 13.10% month-to-date.

Post-Earnings Price Action Review

The strategy of buying CTOS stock when earnings beat expectations and selling after 30 days resulted in a disappointing return of -34.75%, significantly underperforming the benchmark return of 49.02%. This approach experienced zero maximum drawdown, indicating stability during the holding period, but the Sharpe ratio of -0.55 highlights the unfavorable risk-adjusted performance. The strategy exhibited a volatility of 17.55%, underscoring the stock's price fluctuations. Overall, the strategy did not yield favorable results, suggesting a need for reevaluation to better align with market conditions.

CEO Commentary

"In the second quarter, we achieved strong year-over-year revenue growth of 21% and adjusted EBITDA growth of 17%, driven by growth in every segment," said Ryan McMonagle, Chief Executive Officer of CTOS. He highlighted significant increases in rental revenue and rental asset sales, with average utilization of the rental fleet improving to just under 78%. McMonagle noted that TES sales were up over 22% year-over-year, driven by robust demand for vocational vehicles, and emphasized that the current strong pace of customer orders positions Custom Truck well for growth, particularly benefiting from ongoing market trends.

Guidance

"We continue to believe Custom Truck is well-positioned to benefit from secular tailwinds driven by data center investments, electrification, and utility grid upgrades," stated McMonagle. "As a result, we are reaffirming our 2025 guidance." He expressed confidence in the company's performance for the remainder of 2025 and into 2026, citing ongoing customer conversations regarding demand and the anticipated support from the current market conditions.

Additional News

Custom Truck One Source has recently expanded its footprint in the United States, announcing the opening of a new location in Portland, Oregon, to meet growing demand. On March 10, 2025, the company showcased its Load King Turbo Loader at the WWETT 2025 event, highlighting its innovative solutions. Additionally, the company made strategic moves to enhance its presence in the Gulf States through the acquisition of SOS Fleet Services, LLC, expanding service capabilities in March 2024. These initiatives underscore Custom Truck’s commitment to growth and meeting customer needs in key markets across North America.