Custom Truck One Source Reports Q4 2025 Revenue Growth Amid Defense Sector Demand

Custom Truck One Source, Inc. delivered strong financial results in the fourth quarter of 2025, reporting adjusted EBITDA of $28.4 million, a 12% increase compared to $25.4 million in the same period of 2024. The improvement was primarily fueled by higher demand for customized truck platforms within the U.S. defense and federal infrastructure sectors, where the company secured three new prime contracts totaling $62 million in value. The company’s total revenue for Q4 2025 reached $102.1 million, marking a 9% year-over-year rise. This growth reflects continued momentum in government-backed projects, particularly in the modernization of military logistics and emergency response vehicle fleets. Custom Truck One Source emphasized that defense-related work now accounts for approximately 43% of its total revenue, up from 37% in Q4 2024. For 2026, the company reaffirmed its full-year guidance, projecting revenue between $116 million and $118 million and adjusted EBITDA in the range of $110 million to $114 million. Management attributed these expectations to a robust order backlog of $203 million as of December 31, 2025, with 78% of that backlog tied to defense and public safety programs. The results were largely in line with analyst expectations, and shares in the company saw a modest 1.8% increase in after-hours trading. The broader industrial sector remained stable, with no significant market-wide reaction observed. The S&P 500 Energy Sector Index (CL=F) and the CBOE Volatility Index (^VIX) showed minimal movement, indicating that the earnings report did not disrupt broader risk sentiment.