Custom Truck One Source Swings to Q2 Profit on Record Revenue, Fleet Utilization Hits 81.6%
CTOS has more than doubled off its 52-week low of $5.18.
Summary
Custom Truck One Source reported record Q2 revenue of $563.4M and swung to a $10.4M profit, with operating income nearly doubling and leverage improving to 3.85x.
Key Events · Earnings and Guidance · CTOS
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Record Revenue and Profit Swing
Revenue reached $563.4M in Q2, up 10.2% year-over-year, while net income swung to $10.4M from a $28.4M loss in Q2 2025. Operating income nearly doubled to $46.6M.
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Rental and Equipment Sales Strength
Rental revenue grew 20% to $145.1M, supported by higher fleet utilization at 81.6% and an OEC on rent yield of 39.4%. Equipment sales rose 7.7% to $383.6M, led by demand in utility and forestry.
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Segment Profitability Surge
SER Adjusted EBITDA increased 26% to $117.2M, while STEM Adjusted EBITDA jumped 55% to $37.2M, driven by higher gross profit and lower floor plan interest expense.
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Balance Sheet and Leverage Improvement
The net leverage ratio improved to 3.85x from 4.02x at Q1 2026. ABL availability stood at $229.4M, and the company expects to renew its $475M PNC floor plan facility by August 25, 2026.
Analysis · CTOS · Trade & Services
A sharp turnaround defined Custom Truck One Source's second quarter of 2026, as net income reached $10.4 million compared with a $28.4 million loss a year ago. Revenue climbed to a record $563.4 million, fueled by a 20% surge in rental activity and robust equipment sales to utility and forestry customers. Operating income nearly doubled, while Adjusted EBITDA jumped 26% in the SER segment and 55% in STEM. Fleet utilization rose to 81.6%, and OEC on rent yield improved. The balance sheet strengthened further, with net leverage falling to 3.85x. The forfeiture of 0.3 million earnout shares removes a small overhang. For the specialty equipment provider, this quarter marks a clear inflection in profitability and cash generation.
At the time of this filing, CTOS was trading at $11.40 on NYSE in the Trade & Services sector, with a market capitalization of approximately $2.4B. The 52-week trading range was $5.18 to $12.23. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.