Custom Truck One Source(US:CTOS) Businesswire·2025-10-27 20:10Core Insights - Custom Truck One Source, Inc. reported a strong year-over-year revenue growth of 8% and adjusted EBITDA growth of 20% in Q3 2025, driven by robust performance in core T&D markets [2][3] - The company reaffirmed its 2025 consolidated revenue and adjusted EBITDA guidance, indicating confidence in ongoing demand and market conditions [3][18] Financial Performance - Total revenue for Q3 2025 was $482.1 million, an increase of $34.8 million, or 7.8%, compared to Q3 2024 [5] - Gross profit for Q3 2025 was $100.8 million, up $8.9 million, or 9.7%, from Q3 2024 [5] - Adjusted EBITDA for Q3 2025 reached $96.0 million, a 19.6% increase compared to Q3 2024 [5][16] - The net loss for Q3 2025 was $5.8 million, a decrease of $11.7 million, or 66.9%, compared to Q3 2024 [5] Segment Performance - Equipment Rental Solutions (ERS) segment rental revenue increased by 17.7% in Q3 2025 compared to Q3 2024, attributed to improved fleet utilization [13] - Truck and Equipment Sales (TES) segment revenue rose by 6.0% in Q3 2025, driven by strong demand for vocational vehicles [14] - Aftermarket Parts and Services (APS) segment revenue increased by 3.0% in Q3 2025, supported by higher rental revenue [15] Operational Metrics - Average OEC on rent increased by $180 million, or 17%, in Q3 2025 compared to the same period last year [18] - Fleet utilization improved to 79.3% in Q3 2025 from 73.2% in Q3 2024 [10][13] - The company reported a sales order backlog of $279.8 million as of the end of Q3 2025, down from $395.6 million in Q3 2024 [10] Outlook - The company expects to invest an additional net $50 million in its rental fleet in 2025, anticipating high-single digit fleet growth [18] - Despite a strong order flow, the company expects to come in at the lower end of its TES revenue guidance due to macroeconomic uncertainties [19] - The reinstatement of accelerated depreciation provisions may boost year-end equipment sales [19]