Custom Truck One Source, Inc. (CTOS): History, Ownership, Mission, How It Works & Makes Money

When you look at the North American infrastructure market, do you defintely know which players are driving the real-world maintenance and upgrade cycle, especially with a projected full-year 2025 revenue guidance of up to $2.06 billion? Custom Truck One Source, Inc. (CTOS) is not just selling trucks; it's a critical, one-stop-shop provider for specialized equipment that keeps the electric utility, telecom, and rail sectors running, a business model that drove a 7.8% revenue increase to $482.1 million in the third quarter of 2025 alone. With its rental fleet utilization hitting 79.3%, the highest level in over two years, and a recent push into electrification with new products like the all-electric bucket truck, you need to understand the mechanics behind this company's formidable market position. So, how did this company, with a current market capitalization of roughly $1.5 billion, establish its history, who are the key owners, and exactly how does its integrated strategy convert critical infrastructure demand into profit?

Custom Truck One Source, Inc. (CTOS) History

You're looking for the foundation of Custom Truck One Source, Inc. (CTOS), and the truth is, the company you see today is a product of two major financial transformations. It started as a classic family business, but its current form is a result of strategic private equity and a public market merger, creating a one-stop-shop for specialty equipment.

Given Company's Founding Timeline

Year established

The foundational business, Custom Truck & Equipment (CTE), was established in 1996.

Original location

The company's roots are in Kansas City, Missouri, which remains the central headquarters today.

Founding team members

The original company, CTE, was founded by the Ross family siblings, inspired by a family-owned gas station and tow service. Fred Ross is cited as the Founder.

Initial capital/funding

Specific initial funding details from the 1996 founding are private. The first major capitalization event occurred in 2015 when Blackstone acquired a majority stake, which was the catalyst for consolidating multiple businesses into the Custom Truck One Source platform.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The biggest shift for CTOS was moving from a regional, family-run equipment dealer to a national, public, 'one-stop-shop' infrastructure solutions provider. This transition was defintely driven by two major financial partners: Blackstone and Platinum Equity. The focus is now on the full lifecycle of specialty equipment, from custom manufacturing to rental, sales, and aftermarket service (APS).

The 2021 SPAC merger was the true game-changer. It took the platform national and public, allowing for massive scale. Platinum Equity's commitment of over $850 million was a huge vote of confidence, and it was structured to significantly reduce the net leverage of the combined entity.

In 2025, the company's performance highlights the success of this model, particularly in the rental segment. For the third quarter of 2025, the Equipment Rental Solutions (ERS) segment saw an 18% growth in rental revenue year-over-year. This was supported by fleet utilization hitting over 79%, the highest in more than two years.

• Q3 2025 Financial Milestone: Adjusted EBITDA increased 19.6% year-over-year to $96.0 million, demonstrating improved operational efficiency.
• Fleet Growth: The total Operational Equipment Count (OEC) reached its highest quarter-end level ever, just over $1.62 billion at the end of Q3 2025.
• Innovation Focus: At Utility Expo 2025, the company unveiled new products, including an all-electric bucket truck, signaling a strategic push into zero-emission and specialized off-road solutions to meet evolving environmental requirements.

This strong rental demand and the resulting increase in average OEC on rent-over $1.26 billion in Q3 2025-is what drove the decision to accelerate capital expenditure for the rental fleet. It's a clear action to capitalize on the sustained demand from utility and infrastructure customers. If you want to dive into the ownership structure behind these decisions, check out Exploring Custom Truck One Source, Inc. (CTOS) Investor Profile: Who's Buying and Why?

Custom Truck One Source, Inc. (CTOS) Ownership Structure

Custom Truck One Source, Inc. (CTOS) is controlled by a single majority shareholder, Platinum Equity LLC, which dictates the strategic direction of the company. This structure means that while it is a public company, the decision-making power is highly concentrated, a critical factor for any investor to understand.

Given Company's Current Status

Custom Truck One Source is a publicly traded company, listed on the New York Stock Exchange (NYSE) under the ticker symbol CTOS. It is not a private enterprise, but its ownership profile is far from a widely dispersed public float (the number of shares available for trading by the general public). The stock was trading at approximately $5.65 per share as of November 17, 2025. The company is a key provider of specialty equipment, parts, and services to the electric utility, telecommunications, and rail markets in North America.

Given Company's Ownership Breakdown

The ownership structure is dominated by its largest shareholder, Platinum Equity LLC, a private equity firm. This firm holds a controlling interest, which is why the stock trades like a public company but is governed like a private equity-backed one. Other institutional investors, including major fund managers like BlackRock, Inc. and The Vanguard Group, Inc., hold the remaining significant portions of the float. You can dig deeper into the major holders at Exploring Custom Truck One Source, Inc. (CTOS) Investor Profile: Who's Buying and Why?

Given Company's Leadership

The executive team steering Custom Truck One Source is a blend of long-tenured operational leaders and financial experts, with an average management team tenure of 4.8 years. This stability is defintely a plus for operational consistency. The leadership is overseen by a Board of Directors, with the Founder still serving as a key member.

• Chief Executive Officer (CEO): Ryan McMonagle. He took the top job in March 2023, having previously served as President and Chief Operating Officer.
• Chairman of the Board: Marshall Heinberg. He provides oversight and strategic direction to the executive team.
• Founder and Director: Fred Ross. He stepped down as CEO in March 2023 but remains on the Board and serves as Founder.
• Chief Financial Officer (CFO): Christopher J. Eperjesy. He is responsible for the company's financial strategy and reporting.
• President - Sales: Joe P. Ross. He leads the company's sales efforts and is the brother of Founder Fred Ross.

Custom Truck One Source, Inc. (CTOS) Mission and Values

Custom Truck One Source, Inc. (CTOS) anchors its operations in a dual commitment: being the single, comprehensive provider of specialty equipment while simultaneously powering the critical infrastructure that keeps North America running. This cultural DNA, built on five core values, drives the company beyond its expected 2025 revenue of up to $2.06 billion.

Given Company's Core Purpose

The company's core purpose is fundamentally tied to the nation's foundational systems-power, communication, and transport-making its work essential, not just transactional. This focus explains why their rental fleet, which surpassed 10,350+ units in 2025, is primarily deployed for maintaining and upgrading critical assets like electric lines and rail systems.

Here's the quick math on their reach: serving 8,000+ customers from 41 locations means they need a culture that can execute complex, high-stakes logistics across a massive geographic footprint.

Official mission statement

While often articulated through its business model-a differentiated one-stop-shop for specialty equipment, parts, and services-the underlying mission is to enable customer success in the most vital sectors. The company's mission is to help customers be as profitable as possible, getting their jobs done faster, safer, and more efficiently by partnering with them to solve their most challenging problems and increase uptime. This mission is supported by a clear set of core values:

• Care & Respect: Prioritizing people and relationships.
• Solve Problems Like A Mechanic: Encouraging practical, hands-on, and efficient solutions.
• Driven to Deliver: Focusing on execution and customer commitment.
• Engage Collaboratively: Working together across all segments (Equipment Rental Solutions, Truck and Equipment Sales, and Aftermarket Parts and Services).
• Spark Innovation: Investing in new solutions, like the all-electric bucket truck unveiled in 2025.

Vision statement

The vision for Custom Truck One Source is ambitious and clear: to become the definitive leader in their space. They defintely want to move beyond being just a supplier to being an industrial icon.

• Be the North American industrial icon in specialty trucks.
• Act as a leading supplier of trucks and custom equipment to utility, rail, telecom, infrastructure, and forestry services operators.
• Create stable jobs while providing high-quality products and services to customers.

This vision is backed by financial confidence, with the company reaffirming a 2025 Adjusted EBITDA guidance of $370 million to $390 million, demonstrating a clear path to realizing their long-term growth aspirations. You can read more about their ethos here: Mission Statement, Vision, & Core Values of Custom Truck One Source, Inc. (CTOS).

Given Company slogan/tagline

The most powerful statement of what Custom Truck One Source stands for is their concise, purpose-driven tagline. It maps their equipment and service offering directly to a societal benefit.

• We Power The People Who Strengthen Our Nation's Infrastructure.

This tagline captures the essence of their 'one-stop-shop' business model (or 'Your One Source, Total Solution'), emphasizing their role in supporting the critical maintenance and expansion of the US power grid and telecommunications networks. It's a simple, powerful message. The strong demand for their services led to an 18% year-over-year increase in rental revenue in the third quarter of 2025, which proves the market values this core purpose.

Custom Truck One Source, Inc. (CTOS) How It Works

Custom Truck One Source, Inc. (CTOS) operates as a full-service, single-source provider of specialized truck and heavy equipment, offering a complete 'cradle-to-grave' solution for critical infrastructure industries across North America. This model drives value by capturing the entire equipment lifecycle, which is why the company is projecting a consolidated revenue between $1,970 million and $2,060 million for the 2025 fiscal year.

Custom Truck One Source, Inc.'s Product/Service Portfolio

Custom Truck One Source, Inc.'s Operational Framework

The company's operational framework is built on a three-segment model that maximizes asset utilization and captures revenue across the equipment's entire lifespan. You're getting a fully integrated solution, not just a transaction.

• Fleet Management and Utilization: The Equipment Rental Solutions (ERS) segment focuses on high fleet utilization, which hit a strong 79.3% in Q3 2025, the highest level in over two years. This efficiency means their capital is working harder.
• Customization and Sales: The Truck and Equipment Sales (TES) segment works with chassis and attachment suppliers to custom-build vocational trucks. This is a crucial step because it ensures the equipment meets the specific, often complex, regulatory and operational needs of utility and rail customers.
• Service Network: The Aftermarket Parts and Services (APS) segment provides essential maintenance and repair from a nationwide network of locations. This not only supports their own rental fleet but also generates stable, higher-margin revenue from customer-owned equipment. Here's the quick math: APS provides a vital, recurring revenue anchor for the rest of the business.

The company's third-quarter 2025 results showed the model working, with Adjusted EBITDA rising by 19.6% year-over-year to $96.0 million. You can dive deeper into who's backing this strategy at Exploring Custom Truck One Source, Inc. (CTOS) Investor Profile: Who's Buying and Why?

Custom Truck One Source, Inc.'s Strategic Advantages

The real edge for Custom Truck One Source, Inc. isn't just the equipment, but the cohesive 'one-stop-shop' business model (often called a 'competitive moat' in our world) that simplifies complex logistics for large infrastructure clients.

• Full-Service Integration: By offering rental, new/used sales, customization, parts, and service, CTOS eliminates the need for customers to manage multiple vendors for a single asset's lifecycle. This is a major time and cost saver for large utilities.
• Infrastructure Tailwinds: The company is strategically positioned to benefit from massive secular trends, specifically the increasing power demand from data center investments, utility grid upgrades, and electrification initiatives across the US. This demand provides a long-term, stable order flow.
• Market Specialization: Their focus on highly specialized equipment, like hi-rail gear for the rail industry and digger derricks for T&D, creates a barrier to entry for general equipment rental companies. The fleet is purpose-built, not just generalist.

Still, what this estimate hides is the company's net leverage ratio, which stood at 4.53x as of September 30, 2025, a number that you'll want to watch closely as they continue to invest in fleet expansion. That's a lot of debt, but it's the cost of fueling growth in this capital-intensive sector.

Custom Truck One Source, Inc. (CTOS) How It Makes Money

Custom Truck One Source, Inc. (CTOS) generates the majority of its revenue by selling and renting highly specialized, mission-critical vocational trucks and equipment to the utility, telecom, and rail sectors. It operates an integrated model where equipment sales drive the largest share of revenue, while the rental fleet provides a high-margin, recurring income stream, plus a channel for used equipment sales.

Custom Truck One Source's Revenue Breakdown

The company operates through three core segments. The Truck and Equipment Sales (TES) segment is the largest, but the Equipment Rental Solutions (ERS) segment is the critical driver of recurring, high-margin revenue. Based on the reaffirmed midpoint of the company's 2025 full-year guidance of $2.02 billion, here is the revenue breakdown.

Here's the quick math: The $1.185 billion midpoint for TES revenue represents over half of the total, but the ERS segment, with a midpoint of $675 million, is experiencing the fastest growth in rental revenue, up 17.7% in the third quarter of 2025 compared to the prior year..

Business Economics

The core economic engine of Custom Truck One Source relies on high utilization of its rental fleet and its ability to act as a one-stop-shop, which captures both the initial sale and the long-term service revenue. This integrated model is defintely a key competitive advantage.

• Pricing Power in Rental: The company expects to see a 3% to 5% increase in rental prices during 2025, a clear sign of pricing power driven by strong demand in end markets like electric utility infrastructure.
• Fleet Utilization: Maximizing the time equipment is on rent is crucial. Fleet utilization reached 79.3% in the third quarter of 2025, which is the highest level in over two years and drives higher revenue per asset.
• Cross-Selling Advantage: The TES segment's sales of new and used trucks feed directly into the Aftermarket Parts and Services (APS) segment, creating a sticky, high-margin revenue stream from maintenance, repair, and parts sales.
• Capital Expenditure Cycle: The business requires significant capital expenditure (CapEx) to maintain and grow its fleet. For 2025, the company planned a balanced approach with $300 million for maintenance CapEx and $400 million for growth CapEx.

The strategic inventory investment to support new equipment sales also serves as a catalyst for further investment in the ERS rental fleet, ensuring a fresh supply of high-demand assets. For more on the capital behind this strategy, you should check out Exploring Custom Truck One Source, Inc. (CTOS) Investor Profile: Who's Buying and Why?

Custom Truck One Source's Financial Performance

The company's financial health is best assessed by looking beyond the GAAP net loss and focusing on operational metrics like Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which smooths out non-cash and one-time items.

• Adjusted EBITDA Strength: The company reaffirmed its 2025 Adjusted EBITDA guidance at a midpoint of $380 million, reflecting a strong operating performance. In Q3 2025, Adjusted EBITDA was $96.0 million, a 19.6% increase year-over-year.
• Net Loss Improvement: While the company reported a net loss of $5.8 million for Q3 2025, this was a significant improvement, narrowing by 66.9% compared to the same quarter in the previous year. This suggests that operational efficiencies and revenue growth are starting to overcome fixed costs.
• Debt and Leverage: A key financial consideration is the debt load. As of September 30, 2025, total debt outstanding was approximately $1.67 billion, resulting in a net leverage ratio of 4.53x. High interest expenses, which were $40.247 million in Q3 2025, remain a significant burden, but the company is actively working to reduce its leverage.
• Rental Fleet Value: The value of the rental fleet, measured by Average Original Equipment Cost (OEC) on rent, grew by $180 million, or 17%, in Q3 2025 compared to the prior year, a clear indicator of asset base expansion and demand.

The goal is to get the net leverage ratio below 4x by year-end, which would signal a healthier balance sheet and more financial flexibility. The strong Adjusted EBITDA growth is the primary lever for achieving that target.

Custom Truck One Source, Inc. (CTOS) Market Position & Future Outlook

Custom Truck One Source, Inc. (CTOS) is positioned as a critical, growing specialty equipment provider, especially in the utility and infrastructure sectors, but its future hinges on converting its strong revenue growth into consistent net profitability. The company has reaffirmed its full-year 2025 revenue guidance to a range of $1,970 million to $2,060 million, signaling confidence in core market demand despite persistent high debt and margin pressures.

Honestly, your investment thesis here has to be about the long-term infrastructure tailwinds outweighing the near-term financial leverage risks. The focus is on the 'one-stop-shop' model driving high-margin rental revenue. Mission Statement, Vision, & Core Values of Custom Truck One Source, Inc. (CTOS).

Competitive Landscape

In the expansive North American equipment rental and sales market, CTOS competes against general rental giants and smaller, regional specialty players. While United Rentals, Inc. and Herc Holdings Inc. are much larger in overall scale, CTOS maintains a specialized focus on vocational and infrastructure-related equipment that provides a competitive moat.

Opportunities & Challenges

The company's strategy is defintely aligned with major US government spending and secular trends, which is a significant tailwind. But, we can't ignore the capital structure. The high debt load requires flawless execution to manage interest expenses, which were $40.2 million in Q3 2025 alone.

Industry Position

CTOS holds a distinct, mid-tier position in the North American equipment market, operating with a specialized focus that differentiates it from the general rental giants. The core of its competitive standing rests on its unique business model, which integrates three segments: Equipment Rental Solutions (ERS), Truck and Equipment Sales (TES), and Aftermarket Parts and Services (APS).

• Specialty Focus: The company is a leader in specialty equipment for critical end-markets like electric utility transmission and distribution (T&D), telecom, and rail.
• Revenue Mix: The Truck and Equipment Sales (TES) segment remains the primary revenue driver, but the higher-margin ERS segment is a key growth area, with average Original Equipment Cost (OEC) on rent increasing 17% year-over-year in Q3 2025.
• Operational Efficiency: Fleet utilization rates are strong, exceeding 79% in Q3 2025, which is a key indicator of efficient capital deployment and demand strength in the rental business.
• Valuation: As of November 2025, the company's market capitalization is approximately $1.31 billion, making it a smaller, more focused player compared to multi-billion dollar peers like United Rentals, Inc.

The challenge is maintaining the higher gross margins in the ERS segment while managing the volatility of the TES segment's sales and the impact of its large debt load. You need to see continued double-digit growth in Adjusted EBITDA, which is projected to be between $370 million and $390 million for 2025, to justify the current leverage.