Revenue grew 10.2% year-over-year to $563.4M in Q2 2026, with gross margin expanding to 20.2% and operating income surging 58% to $52.6M, indicating positive operating leverage.
Custom Truck One Source, Inc. (CTOS) annual income statement — 9-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 |
|---|
| Sales/Revenue | 2.04B | 1.94B | 1.8B | 1.87B | 1.57B | 1.17B | 302.74M | 264.04M | 246.3M | 0 |
| Revenue Growth % | 7.03% | 7.86% | -3.37% | 18.56% | 34.78% | 285.53% | 14.66% | 7.2% | - | - |
| Cost of Goods Sold | 1.62B | 1.58B | 1.46B | 1.46B | 1.23B | 1B | 226.3M | 180.61M | 167.72M | 0 |
| COGS % of Revenue | - | 81.1% | 80.94% | 78.01% | 78.36% | 85.81% | 74.75% | 68.4% | 68.1% | - |
| Gross Profit | 410.62M | 367.36M | 343.43M | 410.09M | 340.39M | 165.65M | 76.44M | 83.43M | 78.57M | 0 |
| Gross Margin % | 20.18% | 18.9% | 19.05% | 21.99% | 21.64% | 14.19% | 25.25% | 31.6% | 31.9% | - |
| Gross Profit Growth % | - | 6.97% | -16.26% | 20.48% | 105.49% | 116.69% | -8.37% | 6.18% | - | - |
| Operating Expenses | 230.37M | 225.78M | 222.64M | 225M | 210.87M | 155.78M | 59.2M | 39.11M | 34.97M | 777.47K |
| OpEx % of Revenue | - | 11.61% | 12.35% | 12.06% | 13.4% | 13.35% | 19.55% | 14.81% | 14.2% | - |
| Selling, General & Admin | 230.37M | 225.78M | 222.64M | 225M | 210.87M | 155.78M | 46.41M | 34.67M | 32.72M | 777.47K |
| SG&A % of Revenue | - | 11.61% | 12.35% | 12.06% | 13.4% | 13.35% | 15.33% | 13.13% | 13.28% | - |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 12.79M | 4.44M | -2.25M | 0 |
| Operating Income | 180.26M | 141.58M | 120.78M | 185.09M | 129.53M | 9.86M | 17.25M | 44.32M | 43.6M | -777.47K |
| Operating Margin % | 8.86% | 7.28% | 6.7% | 9.92% | 8.23% | 0.84% | 5.7% | 16.78% | 17.7% | - |
| Operating Income Growth % | - | 17.22% | -34.75% | 42.9% | 1213.25% | -42.82% | -61.08% | 1.63% | 5708.44% | - |
| EBITDA | 463.2M | 409.76M | 363.52M | 410.48M | 353.01M | 218.94M | 23.61M | 118.87M | 110.74M | -777.47K |
| EBITDA Margin % | 22.76% | 21.08% | 20.17% | 22.01% | 22.44% | 18.76% | 7.8% | 45.02% | 44.96% | - |
| EBITDA Growth % | 20.8% | 12.72% | -11.44% | 16.28% | 61.24% | 827.5% | -80.14% | 7.34% | 14343.88% | - |
| D&A (Non-Cash Add-back) | 282.94M | 268.18M | 242.74M | 225.39M | 223.48M | 209.07M | 6.36M | 74.56M | 67.14M | 0 |
| EBIT | 174.74M | 129.49M | 137.92M | 189.39M | 135.64M | -104.23M | 26.79M | 30.32M | 42.88M | -777.47K |
| Net Interest Income | -151.73M | -157.62M | -155.55M | -112.87M | -88.91M | -72.84M | -63.2M | -65.05M | -56.7M | 0 |
| Interest Income | 0 | 0 | 11.55M | 18.44M | 0 | 0 | 0 | 63.36M | 6.68M | 0 |
| Interest Expense | 151.73M | 157.62M | 167.1M | 131.31M | 88.91M | 72.84M | 63.2M | 63.36M | 63.38M | 0 |
| Other Income/Expense | -166.82M | -169.71M | -149.97M | -127.02M | -82.79M | -186.94M | -68.6M | -77.35M | -57.42M | 0 |
| Pretax Income | 13.44M | -28.13M | -29.19M | 58.08M | 46.73M | -177.08M | -51.35M | -33.04M | 5.17M | -777.47K |
| Pretax Margin % | 0.66% | -1.45% | -1.62% | 3.11% | 2.97% | -15.17% | -16.96% | -12.51% | 2.1% | - |
| Income Tax | -7.98M | 2.92M | -532K | 7.36M | 7.83M | 4.42M | -30.07M | -5.99M | -13.46M | 0 |
| Effective Tax Rate % | -59.4% | -10.39% | 1.82% | 12.68% | 16.75% | -2.5% | 58.57% | 18.12% | -260.06% | 0% |
| Net Income | 21.42M | -31.05M | -28.66M | 50.71M | 38.91M | -181.5M | -21.28M | -27.05M | 5.17M | -777.47K |
| Net Margin % | 1.05% | -1.6% | -1.59% | 2.72% | 2.47% | -15.55% | -7.03% | -10.25% | 2.1% | - |
| Net Income Growth % | 159.47% | -8.37% | -156.51% | 30.35% | 121.44% | -753.04% | 21.35% | -622.85% | 765.49% | - |
| Net Income (Continuing) | 21.42M | -31.05M | -28.66M | 50.71M | 38.91M | -181.5M | -21.28M | -27.05M | -15.53M | -777.47K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.09 | -0.14 | -0.12 | 0.21 | 0.16 | -0.75 | -0.43 | -0.82 | 0.43 | -0.07 |
| EPS Growth % | 157.15% | -16.67% | -157.14% | 31.25% | 121.33% | -74.42% | 47.56% | -290.7% | 709.07% | - |
| EPS (Basic) | - | -0.14 | -0.12 | 0.21 | 0.16 | -0.75 | -0.43 | -0.82 | 0.43 | -0.07 |
| Diluted Shares Outstanding | 229.67M | 226.56M | 234.44M | 245.73M | 247.71M | 241.37M | 245.32M | 165.33M | 199.55M | 199.55M |
| Basic Shares Outstanding | 227.43M | 226.56M | 234.44M | 245.09M | 247.15M | 241.37M | 245.32M | 165.33M | 199.55M | 199.55M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying CTOS stock.
For fiscal year 2025, Custom Truck One Source, Inc. (CTOS) reported total revenue of $1.94B.
Custom Truck One Source, Inc. (CTOS) reported a net loss of $31.1M for the fiscal year ending 2025.
Custom Truck One Source, Inc. (CTOS) reported an operating income of $141.6M, resulting in an operating profit margin of 7.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Custom Truck One Source, Inc. (CTOS) generated $367.4M in gross profit for the year, representing a gross profit margin of 18.9%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
High leverage and interest burden
Metrics are mathematically derived from official filings.
Revenue Momentum Amidst Chassis Recovery
CTOS's revenue grew 10.2% year-over-year in Q2 2026 to $563.4M, marking the strongest quarter in the dataset, as per the latest income statement. This acceleration appears driven by improved chassis supply and sustained utility demand.
The 10.2% YoY growth in Q2 2026 represents a clear acceleration from the 1.4% growth in Q4 2025 and the 7.8% in Q3 2025, suggesting that the stabilization of OEM chassis supply chains is translating into higher sales volumes. The sequential jump from $461.6M in Q1 2026 to $563.4M in Q2 2026 (22% QoQ) indicates a potential backlog clearance, but investors should monitor whether this pace is sustainable given the lumpy nature of customized truck sales. The revenue trajectory appears increasingly tied to the cyclical T&D spending cycle, which may provide a defensive floor but also introduces concentration risk.
Gross Margin Creep Toward 20%
Gross margin reached 20.2% in Q2 2026, up from 18.1% a year earlier, according to reported figures. This improvement suggests a favorable mix shift toward rental and aftermarket services, though it remains well below generalist peers like URI's 35.4%.
The 210 basis point year-over-year expansion in gross margin to 20.2% indicates that the company is gradually shifting its revenue mix toward higher-margin rental and aftermarket activities, or that pricing power in the sales segment is improving. However, the absolute level remains structurally constrained by the large truck sales component, which carries lower margins. The cyclicality of used equipment sales and potential input cost inflation in chassis and steel could reverse this trend, so the durability of the 20% threshold warrants close monitoring.
Operating Leverage Emerges in Q2
Operating income surged to $52.6M in Q2 2026, a 58% increase from the prior year, while SG&A grew only 3.5%, as per the income statement. This suggests that overhead costs are scaling slower than revenue, indicating positive operating leverage.
The 9.3% operating margin in Q2 2026, up from 6.5% in Q2 2025, demonstrates that the company is beginning to leverage its fixed cost base as revenue grows. SG&A as a percentage of revenue fell to 10.9% from 11.6% a year ago, implying disciplined cost control despite the expansion of the service network. However, the sustainability of this leverage depends on maintaining high fleet utilization and avoiding a spike in maintenance costs as the fleet ages. If revenue growth decelerates, the high fixed-cost structure could quickly erode these margin gains.
Net Income Turns Positive, But Quality Questioned
CTOS reported net income of $10.4M in Q2 2026, a sharp swing from the -$28.4M loss in Q2 2025, based on the income statement. However, the positive result appears heavily influenced by non-operating items and a low tax provision.
The swing to profitability is notable, but the net margin of 1.8% is thin and may be inflated by one-time gains or a lower-than-normal tax rate. The company's effective tax rate appears unusually low given the negative pre-tax income in prior quarters, which may indicate the utilization of deferred tax assets or valuation allowance releases. Additionally, stock-based compensation of $3.4M in Q2 2026, while modest, adds to the dilution picture. Investors should scrutinize the sustainability of this earnings power, especially given the high interest burden implied by the 2.99 debt-to-equity ratio.
COGS Dominates, SG&A Stable
Cost of goods sold consumed 79.8% of revenue in Q2 2026, while SG&A held at $61.3M, according to the income statement. This cost structure underscores the sales-heavy model and the importance of rental mix for margin expansion.
The COGS ratio of 79.8% is the primary driver of the low gross margin, reflecting the significant contribution of truck and equipment sales, which carry high direct costs. SG&A has remained relatively flat around $55-61M over the past year, indicating that management is controlling overhead despite revenue growth. However, the lack of R&D investment (zero reported) suggests that innovation is not a priority, which could limit long-term competitive differentiation. The key cost risk lies in potential chassis price increases, which could compress margins if not passed through to customers.
Leverage Threatens to Undermine Growth
Despite record revenue and positive net income in Q2 2026, CTOS's 2.99 debt-to-equity ratio and negative ROE of -3.7% suggest that the capital structure remains a significant drag, as per the balance sheet data. Short-sellers may argue that interest costs will continue to suppress shareholder returns.
The company's high leverage, likely a legacy of the Nesco merger, means that a substantial portion of operating income is consumed by interest expense. In Q2 2026, operating income of $52.6M translated to net income of only $10.4M, implying interest and other below-the-line items absorbed over $40M. In a 'higher-for-longer' rate environment, this interest burden could intensify, limiting the company's ability to reinvest in fleet growth or return capital to shareholders. The negative ROE, despite a profitable quarter, indicates that the equity base is being eroded by accumulated losses, which may deter value investors. If revenue growth stalls, the fixed interest costs could quickly push the company back into losses, making the current positive earnings appear fragile.