# Custom Truck One Source (CTOS.US)

Canonical: https://gigainvestors.com/s/CTOS

Analysis as of: 2026-10-16T07:27:48.738Z. Financial observations: FY2018–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $9.20 per share; close as of 2026-10-15.

## Checklist

### understandable: fail

- 1 revenue decline in the last 10 years (informational)

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 9 years

- Years with declining revenue: 1

- Years with a net loss: 5

- Operating margin variation: 0.55×

Chart: Operating margin; fiscal year observations.

- FY2018: 0.18×

- FY2019: 0.17×

- FY2020: 0.06×

- FY2021: 0.01×

- FY2022: 0.08×

- FY2023: 0.10×

- FY2024: 0.07×

- FY2025: 0.07×

- LTM to Jun 2026: 0.09×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 4.6%

- ROIC, second-lowest year: 3.0%

- Typical minus recent gross margin: 2.6 pp

- Typical gross margin (annual median): 21.6%

- Recent gross margin (lower of latest and 3-year median): 19.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 22.1%

- ROIC including acquisitions, ten-year median: -2.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2018: 4.6%

- FY2019: 7.2%

- FY2020: 3.0%

- FY2021: 0.5%

- FY2022: 5.4%

- FY2023: 6.7%

- FY2024: 3.7%

- FY2025: 4.4%

- LTM to Jun 2026: 7.1%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: -$377M

- Net income, five-year total: -$152M

- Return on incremental invested capital: 4.3%

- Working capital / revenue, annual change: 7.0 pp

Chart: Owner earnings · five years; fiscal year observations.

- FY2021: -$161M

- FY2022: $39M

- FY2023: $51M

- FY2024: -$184M

- FY2025: -$122M

### management: fail

- Historical market-dollar context (not the management verdict): 2018 to 2025 (7 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 4.6% vs 4.4%

- Per-share earnings: -0.09 to -0.12 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: -1.5%

- Market cap gain: -$689M

- Cumulative retained earnings: -$622M

- Diluted shares, 5-year annual growth: -1.5%

- $1 test, starting fiscal year: FY2018

- $1 test, ending fiscal year: FY2025

- Per-share value change: -$0.03

- Per-share value, starting three-year median: -$0.09

- Per-share value, ending three-year median: -$0.12

- Buybacks concentrated in cheaper years (correlation): 0.20

- Average buyback yield: 2.1%

- Buyback history: 4 years

- Debt-funded buybacks: Yes

- ROIC, first three-year median: 4.6%

- ROIC, last three-year median: 4.4%

Chart: Earnings per share; fiscal year observations.

- FY2018: $0.03

- FY2019: -$0.11

- FY2020: -$0.09

- FY2021: -$0.75

- FY2022: $0.16

- FY2023: $0.21

- FY2024: -$0.12

- FY2025: -$0.14

### accounting: pass

- Sloan accruals: -10.2%

- Receivables to sales index (DSRI): 0.84×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.15×

Chart: Sloan accruals; fiscal year observations.

- FY2018: -8.4%

- FY2019: -3.7%

- FY2020: -8.3%

- FY2021: -12.6%

- FY2022: 1.9%

- FY2023: 5.9%

- FY2024: -2.1%

- FY2025: -10.2%

## Holders

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 22% since Jun 2026 · sales +4.7%

Story as of 2026-10-16T09:58:35.378Z; price observation 2026-10-15.

### Sales · FY2025–2026

sales +4.7%; source https://www.sec.gov/Archives/edgar/data/1709682/000170968226000008/ctos-20251231.htm; observed 2026-03-10.

- FY2018: $246M 

- FY2019: $264M 

- FY2020: $303M 

- FY2021: $1.2B 

- FY2022: $1.6B 

- FY2023: $1.9B 

- FY2024: $1.8B 

- FY2025: $1.9B 

- FY2026: $2.0B 

### Gross margin · FY2026

gross margin 20.2%; source https://www.sec.gov/Archives/edgar/data/1709682/000170968226000008/ctos-20251231.htm; observed 2026-03-10.

- FY2018: 31.9% 

- FY2019: 31.6% 

- FY2020: 25.3% 

- FY2021: 14.2% 

- FY2022: 21.6% 

- FY2023: 22.0% 

- FY2024: 19.1% 

- FY2025: 18.9% 

- FY2026: 20.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in rental & leasing services; annual sales are USD 1.9 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1709682/000170968226000008/ctos-20251231.htm (filed 2026-03-10); FY2025: revenue 1943957000; grossProfit 367364000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); CTOS.US: Custom Truck One Source, Inc. provides specialty equipment rental and sale services to electric utility transmission and distribution, telecommunications, rail, forestry, waste management, and other infrastructure-related industries in the United States and Canada. It operates through two segments: Specialty Equipment Rentals (SER); and Specialty Truck Equipment and Manufacturing (STEM). The company owns new and used specialty equipment, including truck-mounted aerial lifts, cranes, service trucks, dump trucks, trailers, digger derricks, and other machinery and equipment. It offers new equipment for sale to be used for end-markets, which can be modified to meet customers specific needs. In addition, the company provides truck and equipment maintenance and repair services; and rents and sells specialized tools, including stringing blocks, insulated hot stick, and rigging equipment, as well as sale of specialized aftermarket parts. The company was formerly known as Nesco Holdings, Inc. and changed its name to Custom Truck One Source, Inc. in April 2021. The company was founded in 1988 and is headquartered in Kansas City, Missouri.

### Why customers stay

Margins ranged from 18.9% to 22% during 2023–25; it earns 4.6% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-10); FY2023: grossProfit / revenue = 22%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-10); FY2024: grossProfit / revenue = 19.1%.

- Source: https://www.sec.gov/Archives/edgar/data/1709682/000170968226000008/ctos-20251231.htm (filed 2026-03-10); FY2025: grossProfit / revenue = 18.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-10); 9-year return on capital observations [[2018,0.04553830384706576],[2019,0.07207218409166705],[2020,0.029938325720174103],[2021,0.004517065003713123],[2022,0.0539912526764008],[2023,0.06734614064937289],[2024,0.03701390179252708],[2025,0.04447024443772961],[2026,0.07133695498605175]]; median 0.04553830384706576. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid no dividends in 8 years; bought back USD 32.6 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-10); FY2018: growth capex 0; upkeep 59235000; owner earnings 13076967. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-10); FY2022: growth capex 117308000; upkeep 223483000; owner earnings 38905000. Growth capex / owner earnings = 3.0152422567793344.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-10); FY2023: growth capex 138797000; upkeep 225393000; owner earnings 50712000. Growth capex / owner earnings = 2.736965609717621.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-10); Dividend observations: [[2018,0],[2019,0],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1709682/000170968226000008/ctos-20251231.htm (filed 2026-03-10); FY2025: cash repurchases 32575000 USD.

### Are managers owners

Insiders own 4.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-15); CTOS.US SharesStats.PercentInsiders = 4.699 percentage points; cache date 2026-10-15.

### What the price says

The price is 1.1 times annual sales; cash earnings are negative.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-10); Closing price 9.2 USD; reporting-to-trading FX 1; FY2025 annual sales per share 8.56512103347697; price multiple 1.074123758910305. FY2025 cash earnings/share -0.5372999587275724. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2017-10: $9.79 per share

- 2017-11: $9.67 per share

- 2017-12: $9.68 per share

- 2018-01: $9.69 per share

- 2018-02: $9.67 per share

- 2018-03: $9.67 per share

- 2018-04: $9.79 per share

- 2018-05: $9.80 per share

- 2018-06: $9.87 per share

- 2018-07: $9.85 per share

- 2018-08: $9.86 per share

- 2018-09: $9.91 per share

- 2018-10: $9.97 per share

- 2018-11: $10.00 per share

- 2018-12: $10.00 per share

- 2019-01: $10.08 per share

- 2019-02: $10.10 per share

- 2019-03: $10.18 per share

- 2019-04: $10.31 per share

- 2019-05: $10.24 per share

- 2019-06: $10.23 per share

- 2019-07: $9.05 per share

- 2019-08: $6.28 per share

- 2019-09: $5.98 per share

- 2019-10: $4.64 per share

- 2019-11: $3.00 per share

- 2019-12: $4.11 per share

- 2020-01: $4.30 per share

- 2020-02: $3.05 per share

- 2020-03: $3.28 per share

- 2020-04: $2.37 per share

- 2020-05: $2.48 per share

- 2020-06: $4.02 per share

- 2020-07: $3.36 per share

- 2020-08: $4.00 per share

- 2020-09: $4.15 per share

- 2020-10: $4.15 per share

- 2020-11: $4.59 per share

- 2020-12: $7.37 per share

- 2021-01: $7.62 per share

- 2021-02: $8.10 per share

- 2021-03: $9.35 per share

- 2021-04: $10.26 per share

- 2021-05: $10.61 per share

- 2021-06: $9.52 per share

- 2021-07: $7.79 per share

- 2021-08: $8.57 per share

- 2021-09: $9.33 per share

- 2021-10: $9.05 per share

- 2021-11: $7.52 per share

- 2021-12: $8.00 per share

- 2022-01: $8.22 per share

- 2022-02: $7.86 per share

- 2022-03: $8.39 per share

- 2022-04: $6.57 per share

- 2022-05: $5.96 per share

- 2022-06: $5.60 per share

- 2022-07: $6.19 per share

- 2022-08: $6.58 per share

- 2022-09: $5.83 per share

- 2022-10: $6.93 per share

- 2022-11: $6.84 per share

- 2022-12: $6.32 per share

- 2023-01: $7.08 per share

- 2023-02: $7.24 per share

- 2023-03: $6.79 per share

- 2023-04: $6.28 per share

- 2023-05: $6.44 per share

- 2023-06: $6.74 per share

- 2023-07: $6.92 per share

- 2023-08: $6.71 per share

- 2023-09: $6.20 per share

- 2023-10: $5.77 per share

- 2023-11: $5.81 per share

- 2023-12: $6.18 per share

- 2024-01: $6.54 per share

- 2024-02: $6.42 per share

- 2024-03: $5.82 per share

- 2024-04: $4.99 per share

- 2024-05: $4.77 per share

- 2024-06: $4.35 per share

- 2024-07: $5.01 per share

- 2024-08: $4.10 per share

- 2024-09: $3.45 per share

- 2024-10: $4.09 per share

- 2024-11: $5.98 per share

- 2024-12: $4.81 per share

- 2025-01: $5.09 per share

- 2025-02: $4.43 per share

- 2025-03: $4.22 per share

- 2025-04: $4.03 per share

- 2025-05: $4.30 per share

- 2025-06: $4.94 per share

- 2025-07: $6.19 per share

- 2025-08: $6.14 per share

- 2025-09: $6.42 per share

- 2025-10: $5.89 per share

- 2025-11: $6.39 per share

- 2025-12: $5.76 per share

- 2026-01: $6.32 per share

- 2026-02: $7.16 per share

- 2026-03: $6.57 per share

- 2026-04: $9.85 per share

- 2026-05: $9.58 per share

- 2026-06: $11.81 per share

- 2026-07: $10.15 per share

- 2026-08: $9.21 per share

- 2026-09: $9.11 per share

- 2026-10: $9.20 per share

## Annual estimated value (USD per share)

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1709682/000170968226000008/ctos-20251231.htm); period 2025-12-31, filed 2026-03-10.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations

- [Matthew McLennan](https://gigainvestors.com/FE): 861,753 CTOS shares; USD 10,178,000 reported position value; 0.02% of portfolio; add; quarter 2026 Q2.

# CTOS — Custom Truck One Source Inc.

Held by 1 investor · USD 10,178,000 total · 2026 Q2 · reported price USD 11.81 (split-adjusted).
Page: https://gigainvestors.com/s/CTOS

## Holders (2026 Q2)

| Investor | Value | % of their portfolio | This quarter |
|---|---:|---:|---|
| Matthew McLennan (https://gigainvestors.com/FE) | USD 10,178,000 | <0.1% | add +12.53% |

## Total held by quarter

- 2024 Q2: USD 1,328,220 · 1 holder · USD 4.35
- 2024 Q3: USD 0 · 0 holders
- 2024 Q4: USD 0 · 0 holders
- 2025 Q1: USD 614,107 · 1 holder · USD 4.22
- 2025 Q2: USD 2,758,264 · 1 holder · USD 4.94
- 2025 Q3: USD 4,971,879 · 1 holder · USD 6.42
- 2025 Q4: USD 4,480,911 · 1 holder · USD 5.76
- 2026 Q1: USD 5,031,451 · 1 holder · USD 6.57
- 2026 Q2: USD 10,178,000 · 1 holder · USD 11.81