Custom Truck One Source reports double digit growth

Photo: KHL staff

Custom Truck One Source has reported a 20.9% year-on-year increase in second-quarter revenue to $511.5 million, driven by strong sales in both its Equipment Rental Solutions (ERS) and Truck & Equipment Sales (TES) segments.

Rental revenue rose 17%, supported by a 15.6% increase in average original equipment cost (OEC) on rent to a record $1.56 billion and improved fleet utilisation, which averaged 77.9% for the quarter.

Used rental equipment sales also surged 40% year-on-year, including $64 million invested in its rental fleet.

TES revenue climbed 22.4%, with quarterly sales reaching the second-highest level in company history.

The company said it is retaining its forecast for 2025 revenue of $1.97 billion to $2.06 billion, with adjusted EBITDA between $370 million and $390 million.

It expects mid‑single‑digit growth in net OEC for the rental fleet and levered free cash flow of at least $50 million.

CEO Ryan McMonagle said demand remains strong across core markets; “Signed orders in the quarter were up 30% on a year-over-year basis and we continue to believe that this current strong pace of customer orders and our existing TES backlog position us well to achieve the growth we expect in the segment this year.

“Given current market conditions and ongoing customer conversations regarding demand for the second half of 2025, we continue to believe Custom Truck is well-positioned to benefit from secular tailwinds driven by data center investments, electrification, and utility grid upgrades.”