| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 34 | 91.1x | 17.8x | Bottom tier | |
Growth | 61 | 7.0% | 7.1% | Around median | |
Quality | 24 | 6.7% | 4.5% | Bottom tier | |
Safety | 28 | 4.0x | 2.6x | Bottom tier | |
Capital Return | 14 | — | 2.12% | Bottom tier | |
Momentum | 77 | 86.2% | 2.9% | Top tier | |
Sentiment | 68 | 4 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Custom Truck One Source provides specialized trucks and equipment serving critical infrastructure projects in the United States and Canada. Its operations are divided into two segments: Specialty Equipment Rentals, which generates revenue from equipment rentals and fleet equipment sales, and Specialty Truck Equipment and Manufacturing, which sells and upfits specialized trucks for external customers and the company's internal rental segment. A significant portion of demand is tied to electricity transmission and distribution markets, with additional contributions from infrastructure and vocational equipment.
In Q2 fiscal 2026, the company reported record revenue of $563.4 million and gross profit of $124.0 million, representing a gross margin of approximately 22.0%. Net income was $10.4 million and earnings per share were $0.05, compared with a net loss of $28 million a year earlier, while adjusted earnings before interest, taxes, depreciation, and amortization rose 25% year over year to $117 million. Management explained that approximately $19 million of the year-over-year improvement in net income came from a favorable tax shift, while the remainder resulted from higher operating income.
External customer revenue in Specialty Equipment Rentals reached approximately $219 million, up 20% year over year, while its adjusted earnings before interest, taxes, depreciation, and amortization increased 26% to $117 million at a 53% margin. Specialty Truck Equipment and Manufacturing reported record external revenue of $345 million, up 5%, and adjusted earnings of $37 million at an 8.5% margin. For the trailing twelve months ended during fiscal 2026, revenue was $2.4 billion, gross profit was $450.9 million, and net income was $21.4 million, after fiscal 2025 recorded a net loss of $31.1 million.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $13, within a range of $12 to $14, with a consensus Buy rating; the average is approximately 6% above the upper end of the 52-week range of $12.23, while the lower end of the range is $5.18. No reported price-to-earnings ratio is available, limiting the precision of traditional comparisons, despite trailing twelve-month net income during fiscal 2026 turning positive at $21.4 million and earnings per share reaching approximately $0.09. The wide 52-week range reflects a combination of improving earnings and strong electricity transmission demand on the one hand, and the loss recorded in fiscal 2025, leverage of 3.85 times, and order timing risks on the other.
Figures in the text are as of 2026-09-01; the live price is shown at the top of the page.
The primary driver is demand for electricity transmission and distribution equipment, which raised average Specialty Equipment Rentals fleet utilization to 81.6% in Q2 fiscal 2026. The average original cost of rental equipment increased 13% year over year to $1.37 billion, while the fleet's original cost at quarter-end was approximately $1.68 billion. Based on these conditions, management raised its fiscal 2026 revenue outlook to $2.1–2.2 billion and its adjusted earnings before interest, taxes, depreciation, and amortization outlook to $437.5–455 million.
The segment generated external revenue of $219 million in Q2 fiscal 2026, up 20% year over year. Its adjusted earnings before interest, taxes, depreciation, and amortization reached $117 million, up 26%, with a margin of 53%. Rental equipment yield was also 39.4%, and the rental business maintained a gross margin in the mid-70% range.
The Specialty Truck Equipment and Manufacturing backlog declined from the end of Q1 to $322 million at the end of Q2 fiscal 2026, a decrease of $89 million resulting from record deliveries. This represented approximately 3.5 months of sales, below management's target of 4–6 months. However, quoting activity in June 2026 increased 26% year over year, and the backlog subsequently exceeded $340 million during Q3 fiscal 2026, providing countervailing evidence that order flow remains strong.
Net debt was $1.66 billion at the end of Q2 fiscal 2026, and net leverage was 3.85 times, after improving by more than 0.8 times year over year. Management is targeting more than $50 million of free cash flow after debt service in fiscal 2026, with leverage declining to a level clearly below four times by the end of fiscal 2026 and then progressing toward three times in 2027. Free cash flow after debt service also improved by approximately $40 million year over year during the first half, and the company plans to reduce inventory and related financing balances during the second half.
The changes proposed in July 2026 retained the 2027 nitrogen oxide standards and added noncompliance penalties, which management estimated at between $4,500 and $7,000 depending on engine specifications. The company responded by purchasing vehicle chassis in advance and holding more inventory in preparation for 2027, benefiting from its relationships with chassis suppliers. The operational risk is also tied to the transition from the L9 engine to the X10 from Cummins, which was expected to reach full production later in Q3 2027.
Revenue increased 10% year over year to $563.4 million, while adjusted earnings before interest, taxes, depreciation, and amortization rose 25% to $117 million. The company turned to a net profit of $10.4 million and earnings per share of $0.05, compared with a net loss of $28 million a year earlier. Management explained that approximately $19 million of the year-over-year improvement came from a favorable tax shift, while the remainder came from higher operating income supported by strong rental activity and equipment sales.
