Custom Truck One Source (CTOS) has wrapped up FY 2025 with fourth quarter revenue of US$528.2 million and basic EPS of US$0.09, alongside trailing twelve month revenue of about US$1.94 billion and a trailing EPS loss of US$0.14. The company has seen quarterly revenue move from US$447.2 million in Q3 2024 to US$482.1 million in Q3 2025 and then to US$528.2 million in Q4 2025. EPS shifted from a loss of US$0.07 in Q3 2024 and US$0.13 in Q2 2025 to a profit of US$0.09 in Q4 2025. This puts the latest print against a backdrop of ongoing losses on a trailing basis, with an earnings profile that investors will be watching closely for margin traction.

See our full analysis for Custom Truck One Source.

With the headline numbers on the table, the next step is to see how this earnings profile lines up with the dominant narratives around growth, profitability, and risk that have built up around the stock over the past year.

See what the community is saying about Custom Truck One Source

Losses Narrow On Trailing Basis

• On a trailing twelve month view, CTOS generated about US$1.94b of revenue and reported a net loss of US$31.1 million, which is smaller than the US$40.1 million loss reported on the same trailing basis a year earlier.
• Consensus narrative points to earnings forecasts that turn this loss into profit within three years, and the shrinking trailing loss helps that argument, although:
  • Analysts are assuming earnings growth that is very large each year, from a loss of US$36.0 million to expected earnings of US$28.6 million by around 2028, while the latest twelve month period still shows CTOS in the red.
  • Revenue is forecast to grow around 6.1% a year compared to a 10.3% growth forecast for the wider US market, so the path to profitability that analysts expect depends more on margins improving than on fast top line growth.

Quarterly Profit Masks Full Year Loss

• CTOS moved from a net loss of US$28.4 million in Q2 2025 and US$5.8 million in Q3 2025 to a net profit of US$20.9 million in Q4 2025, even though on a full trailing twelve month basis the company still recorded a loss of US$31.1 million.
• Bulls argue that stronger demand from grid upgrades and rental activity can support higher margins over time, and this Q4 profit gives some support to that, but also raises questions:
  • The bullish view leans on recurring rental revenue and equipment demand from infrastructure and electrification themes, yet the trailing twelve month loss of US$31.1 million shows profitability is not yet consistent across the year.
  • Bullish expectations of earnings reaching US$21.1 million by around 2028, with margins moving from about negative 1.9% to 0.9%, assume that quarters like Q4 2025 become the norm rather than the exception.

Have a look at how optimistic investors frame this path to profitability and what they think CTOS could earn over time. 🐂 Custom Truck One Source Bull Case

Valuation Appeal Versus Slower Growth

• At a share price of US$5.66, CTOS is described as trading on a P/S of 0.7x, below both the cited industry average of 1.1x and peer average of 0.8x, and also below a DCF fair value of about US$6.58.
• Bears focus on the risk that slower revenue growth could limit how much this valuation gap closes, and the current numbers give them some backing:
  • Revenue is forecast to grow about 6.1% a year, which is below the 10.3% forecast for the US market, so the discount to DCF fair value of US$6.58 and to an analyst target of US$7.75 needs to be weighed against that slower top line profile.
  • Even with forecasts that point to profitability within three years, CTOS remains loss making on a trailing twelve month basis today, which means the lower P/S multiple is paired with ongoing execution risk around turning forecast margins into actual profits.

Skeptical investors are asking whether slower revenue growth justifies CTOS trading below both peers and DCF fair value. 🐻 Custom Truck One Source Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Custom Truck One Source on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If this mix of optimism and caution has you on the fence, take a moment to weigh the numbers for yourself and move quickly while the story is fresh, then check the 4 key rewards to see what others view as the key positives.

See What Else Is Out There

CTOS is still loss making on a trailing basis, with slower forecast revenue growth than the wider US market and profitability that is not yet consistent.

If that patchy earnings record has you looking for steadier options, check out 68 resilient stocks with low risk scores to quickly focus on companies with more resilient risk profiles.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.