Orlando Facility Expansion Could Be a Game Changer for Custom Truck One Source (CTOS)

• Custom Truck One Source, Inc. recently opened a new 20,000-square-foot facility with 11 service bays in the heart of Orlando, Florida, consolidating its regional rental services as of October 1, 2025.
• This expansion signals an increased commitment to serving Florida and the broader Southeast, enhancing the company’s operational efficiency and customer reach in a key regional market.
• Now, we’ll explore how expanding service capacity in Orlando could impact Custom Truck One Source’s long-term growth and investment outlook.

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Custom Truck One Source Investment Narrative Recap

To be a shareholder in Custom Truck One Source, you need to believe that investing in regional facility and service expansion will drive recurring rental revenue and higher market share, particularly as sustained demand from utility and infrastructure customers remains the most important short-term catalyst. The recent Orlando facility opening supports faster service delivery in the Southeast, although the impact on leverage and gross margins, currently under pressure from capital investment and segment mix, bears close watching, as meaningful shifts could make both catalysts and risks more material.

Among recent company announcements, the new Portland, Oregon facility opened in June 2025 aligns with this move in Orlando and highlights the company’s ongoing commitment to expanding national service capacity. With both Pacific Northwest and Southeast footprints growing, Custom Truck is clearly focusing on regional reach to support utilization, underpinning the same catalysts and risks tied to capital outlays, interest expense, and margin stability.

Yet, what may surprise investors is how increased capital investment, if not matched by revenue growth, could amplify…

Read the full narrative on Custom Truck One Source (it's free!)

Custom Truck One Source's narrative projects $2.3 billion revenue and $28.6 million earnings by 2028. This requires 6.6% annual revenue growth and a $64.6 million increase in earnings from the current -$36.0 million.

Uncover how Custom Truck One Source's forecasts yield a $7.10 fair value, a 24% upside to its current price.

Exploring Other Perspectives

All 1 fair value estimate from the Simply Wall St Community sits at US$7.10 per share, reflecting consensus rather than a range of views. Community estimates precede this Orlando expansion, and with gross margins already under pressure, future facility investments could create further debate around earnings quality.

Explore another fair value estimate on Custom Truck One Source - why the stock might be worth as much as 24% more than the current price!

Build Your Own Custom Truck One Source Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Custom Truck One Source research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free Custom Truck One Source research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Custom Truck One Source's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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