CUSTOM TRUCK ONE SOURCE, INC. (CTOS)
NYSEIndustrialsRental & Leasing ServicesSnapshot 2026-11-05
$9.30-8.19%
Close 2026-11-05 · 1-day change
NYSEIndustrialsRental & Leasing ServicesSnapshot 2026-11-05
QuarterlyIQ Insights · CTOS
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within industrials on a research-validated quality screen. As of 2026-11-05.
The screen ranks CTOS against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 4 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 1 of the last 3 quarter-over-quarter moves. Historically, Industrials names rated neutral grew net income 51% of the time over the next year (vs 61% for the rest of the cohort, n=9285).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
We remain disciplined in executing our strategy, with a focus on profitable growth, strategic capital deployment, free cash flow generation, and continued deleveraging.
Stated in 3 of 3 supplied quarters. Management reported: “Net leverage ratio 3, 4 was 3.70x at September 30, 2026, and is expected to be meaningfully below four times at the end of fiscal 2026; the longer-term target remains achieving a net leverage ratio 3, 4 below three times in 2027.” “2-Impact of sales-type lease accounting for certain leases containing RPOs: this impact is excluded from the measure of Adjusted EBITDA utilized by our CODM to allocate resources and to assess the performance of our segments as we believe continuing to reflect the transactions as an operating lease better reflects the economics of the transactions given our large portfolio of rental contracts.”
“We remain disciplined in executing our strategy, with a focus on profitable growth, strategic capital deployment, free cash flow generation, and continued deleveraging.”
“We remain focused on Adjusted EBITDA growth, working capital management, free cash flow generation and continued deleveraging,” McMonagle added.”
“For 2026, we remain focused on Adjusted EBITDA growth, working capital management, free cash flow generation and continued deleveraging.””
Increasing our investment in the rental fleet reflects that discipline as we put capital behind visible, long-duration transmission demand at attractive returns, with the larger earnings benefit arri…
Stated in 3 of 3 supplied quarters. Management reported: “• Net rental fleet investment (purchases less proceeds) for 2026 is expected to be approximately $210 million to $230 million, up from prior guidance of $170 million to $200 million to capture visible, high-return rental demand, while still reflecting a reduction from over $250 million in 2025.” “• Net rental fleet investment (purchases less proceeds) for 2026 is expected to be approximately $170 million to $200 million, an increase from prior guidance to support strong rental demand, with mid-single digit net OEC growth, while still reflecting a meaningful reduction from over $250 million in 2025.”
We remain disciplined in executing our strategy, with a focus on profitable growth, strategic capital deployment, free cash flow generation, and continued deleveraging.
Stated in 3 of 3 supplied quarters. Management reported: “• Levered free cash flow 2, 4 for 2026 is now expected to be slightly positive, compared to prior guidance of more than $50 million, reflecting the increase in net rental fleet investment and the working capital associated with growth.” “• Levered free cash flow 2, 4 is expected to exceed $50 million for 2026 and net leverage ratio 3, 4 is expected to be meaningfully below four times by the end of fiscal 2026; the longer-term target remains achieving a net leverage ratio 3, 4 below three times in 2027.”
As we look to the remainder of 2026 and beyond, CTOS is well positioned to participate in powerful secular trends, including utility grid upgrades and transmission expansion, electrification, data ce…
Stated in 3 of 3 supplied quarters. Management reported: “As we look to the remainder of 2026 and beyond, CTOS is well positioned to participate in powerful secular trends, including utility grid upgrades and transmission expansion, electrification, data center-driven load growth, and infrastructure spending.” ““Our focus for the remainder of 2026 is on disciplined execution – converting strong end-market demand into profitable growth, cash generation and further balance sheet improvement.”
Support third-party equipment sales through customer demand, stable supply conditions, and relationships with key customers, chassis suppliers, and attachment suppliers.
Over the trailing year it converted -1.83x of net income into operating cash flow.
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, real (inflation-adjusted) rates, long-term interest rates, Fed net liquidity (low R² over the window).
1 material management or governance event in the past 24 months, led by executive changes. Historically, Industrials names rated stable grew net income 60% of the time over the next year (vs 56% for the rest of the cohort, n=6637).
Not investment advice. As of 2026-11-05.
“Increasing our investment in the rental fleet reflects that discipline as we put capital behind visible, long-duration transmission demand at attractive returns, with the larger earnings benefit arri…”
“• Net rental fleet investment (purchases less proceeds) for 2026 is expected to be approximately $170 million to $200 million, an increase from prior guidance to support strong rental demand, with mi…”
“Consolidated CTOS: • Revenue is expected to increase 3% to 9% year-over-year, with Adjusted EBITDA 1, 4 expected to increase 8% to 15% • Net rental fleet investment (purchases less proceeds) for 2026…”
“We remain disciplined in executing our strategy, with a focus on profitable growth, strategic capital deployment, free cash flow generation, and continued deleveraging.”
“We remain focused on Adjusted EBITDA growth, working capital management, free cash flow generation and continued deleveraging,” McMonagle added.”
“For 2026, we remain focused on Adjusted EBITDA growth, working capital management, free cash flow generation and continued deleveraging.””
“As we look to the remainder of 2026 and beyond, CTOS is well positioned to participate in powerful secular trends, including utility grid upgrades and transmission expansion, electrification, data ce…”
““Our focus for the remainder of 2026 is on disciplined execution – converting strong end-market demand into profitable growth, cash generation and further balance sheet improvement.”
“Specialty Truck Equipment & Manufacturing (STEM): • Third-party new sales revenue is expected to increase 3% to 10% in 2026 compared to 2025, supported by continued customer demand, stable supply cha…”