Custom Truck One Source Roars into Record Q4 as Rental Business Hits Stratospheric Heights
Custom Truck One Source, a leading provider of rental and sales solutions for heavy equipment, announced a stellar finish to 2025 with record quarterly revenue driven by sustained momentum in its core end markets and exceptional execution by the team.
In its Q4 earnings conference call, Custom Truck revealed that it generated $528 million in revenue, an impressive increase of more than 18% year-over-year. Adjusted EBITDA was a robust $121 million, up from the previous quarter. For the full year 2025, the company reported record revenue of $1.944 billion, a commendable 8% jump, and Adjusted EBITDA was $384 million, up 13% compared to 2024 and ahead of the midpoint of its guidance.
The rental business proved to be the key driver of Custom Truck's performance in Q4, with continued strength in the transmission and distribution markets. The company's rental fleet averaged a staggering just under 84% utilization during the quarter, the highest in almost three years, supported by continued growth in OEC on rent. Average OEC on rent in Q4 was just under $1.4 billion, up a healthy 14% year-over-year.
While both utilization and OEC on rent saw a seasonal slowdown in December, they have since rebounded as expected, with utilization currently at approximately 82% and OEC on rent well above the year-end level. The company ended the year with total OEC of $1.64 billion, the highest quarter-end level in its history, supporting its expectation for continued growth in its rental business.
Custom Truck's trucks and equipment continue to power critical infrastructure projects in the U.S. and Canada. The market has been focused on the durability of demand in T&D, and Custom Truck believes its Q4 results speak directly to this condition. Bidding activity and ongoing conversations with customers lead the company to believe that these conditions will persist through 2026 and beyond.
While Truck Equipment Services (TES) performance in the fourth quarter was below expectations, end market demand remains healthy, and order activity remains strong. TES saw sequential revenue growth in the quarter but reported an 8% year-over-year decline due to customers pulling forward capital spending earlier in the year. Additionally, TES did not fully benefit from the anticipated lift in spending related to accelerated depreciation provisions in last year's federal tax and spending bill.
Despite these challenges, TES finished the year with revenue of $1.1 billion, up 4% for the full year and its highest annual level ever. The company ended the year with a strong new sales order backlog of $335 million, up more than $55 million or 20% from Q3. This backlog has continued to grow in 2026, standing at around $370 million as of yesterday.
