Why Custom Truck One Source Stock Tanked on Tuesday

Custom Truck One Source (NYSE: CTOS), a utility vehicle and equipment rental specialist, wasn't a stock market favorite on Tuesday. Investors traded out of the company's shares aggressively, leaving them with an almost 11% loss in value on the day. And that was during a session when the benchmark S&P 500 index rose, inching 1.2% higher.

Double trouble

Custom Truck's third-quarter figures, published just after market close Monday, reveal that total revenue for the company was $482 million for the period. That represented growth of 8% year over year. Net loss according to generally accepted accounting principles (GAAP) narrowed over that time to $5.8 million ($0.03 per share) from 2024 Q3's $17.4 million.

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Despite the improvements, Custom Truck missed the consensus analyst estimates on both the top and bottom lines. Pundits tracking the stock were forecasting more than $492 million for revenue and $0.02 per share for adjusted net loss.

Management is clearly looking forward to the future, seeing prosperity in hot areas of growth for the U.S. economy. It quoted CEO Ryan McMonagle as saying that the company "is well-positioned to benefit from the spending required to address the unprecedented power demand required for data center and electrification investments, as well as for continued utility grid upgrades."

Keep on trucking

For the entirety of 2025, Custom Truck is guiding for revenue of $1.97 billion to $2.06 billion. If achieved, this would be notably above the $1.8 billion the company posted in 2024. Earnings before interest, taxes, depreciation, and amortization (EBITDA) should land at $370 million to $390 million. The company did not provide estimates for net income.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.