Custom Truck One Source, Inc. (CTOS) - Stock Analysis
Last updated: Jan 19, 2026
Research Idea
Research content for general circulation. Not individualized advice. Methodology & Disclosures
Custom Truck One Source (CTOS) reported 20.9% revenue growth, expanding EBITDA, and new product launches (Outback Series) with ongoing geographic expansion. The stock shows strong technical momentum (+10% gain in 3 weeks) and upcoming Q3 earnings on Oct 27 provide further catalysts.
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AI Analyst Overview
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Valuation Metrics
Fundamental Analysis
Key Financial Insights: ⢠High leverage ⢠Tight liquidity ⢠Positive EBITDA CTOS delivers stable margins and positive EBITDA from strong revenues but faces acute solvency and liquidity strain due to heavy debt, high interest and nonâcash charges, negative free cash flow, and shrinking cash balances.
Price Behavior
Key Price Behavior Insights: ⢠Firm support ⢠Resistance cap ⢠Gradual recovery Support Level: $5.80 Resistance Level: $6.40 CTOS has consolidated over the last month between a firm support near $5.80 and resistance around $6.40, showing gradual upside momentum but failing to break above $6.40 decisively.
Sentiment & News
Key News Insights: ⢠Institutional stake ⢠Mixed sentiment ⢠Valuation debate Institutional buying, mixed analyst ratings with a $7.13 consensus "Hold," and debate over possible undervaluation point to cautious optimism for CTOS.
AI Summary
CTOS has shifted from a steady deleveraging story to a capitalâintensive push to grow rental fleet and capture T&D tailwinds, so the investment decision hinges on whether incremental rental CapEx reliably converts into higher quarterly EBITDA and faster deleveraging without triggering liquidity stress. Monitor ROI on incremental fleet spend (EBITDA vs. CapEx), net leverage trajectory and ABL/cash runway as immediate go/noâgo indicators.
Description
Custom Truck One Source, Inc. supplies specialty equipment and related services to electric utility transmission and distribution, telecommunications, rail and other infrastructure industries across North America. The company operates three businessesâa rental fleet of specialty vehicles and heavy machinery, a new equipment sales unit that can configure units to customer specifications, and an aftermarket division that provides maintenance, repair and parts. Founded in 1988, the company changed its name from Nesco Holdings to Custom Truck One Source in April 2021 and is based in Kansas City, Missouri.
Idea History
| Date | Close | Ticker | Company | Summary | Status | P/L |
|---|---|---|---|---|---|---|
| Oct 20 | Oct 27 | CTOS | Custom Truck One Source, Inc. | Custom Truck One Source (CTOS) reported 20.9% revenue growth, expanding EBITDA, and new product launches (Outback Series) with ongoing geographic expansion. The stock shows strong technical momentum (+10% gain in 3 weeks) and upcoming Q3 earnings on Oct 27 provide further catalysts. | Closed | +2.4% |