Will Custom Truck (CTOS) Deepen Its Southeast Advantage With the Orlando Service Expansion?

• Custom Truck One Source, Inc. opened a new 20,000-square-foot facility with 11 service bays in Orlando, Florida, on October 1, 2025, relocating its rental service operations from Tampa while maintaining truck builds and service at its Tampa branch.
• This move marks a focused expansion of Custom Truck's service capabilities in the Southeast, aiming to deepen engagement with regional infrastructure and utility markets.
• We'll examine how the boost to service capacity and presence in Florida could strengthen Custom Truck's investment narrative and growth positioning.

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Custom Truck One Source Investment Narrative Recap

To be a shareholder in Custom Truck One Source, you would need to believe in the company’s ability to capture recurring revenue from infrastructure and utility demand while controlling risks tied to high leverage and margin pressures. The new Orlando facility expands service capacity, but given the company’s already elevated net leverage, the impact on short-term catalysts or the largest risk, sustained backlog decline, does not appear material right now.

Among the most relevant recent announcements, the May 2025 opening of the Portland, Oregon facility mirrors the Orlando expansion by increasing service reach and addressing regional rental needs, which can support broadening of order growth, a key catalyst for ongoing revenue resilience and margin improvement.

By contrast, investors should also be aware that a persistent drop in the TES segment backlog could eventually challenge revenue visibility if…

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

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

Uncover how Custom Truck One Source's forecasts yield a $7.10 fair value, a 15% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members put Custom Truck’s fair value between US$5.50 and US$7.10, based on two individual estimates. With ongoing expansion efforts, the risk of backlog declines remains an important consideration that could affect future results in ways these opinions may not fully reflect.

Explore 2 other fair value estimates on Custom Truck One Source - why the stock might be worth 11% less than the current price!

Build Your Own Custom Truck One Source Narrative

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• A great starting point for your Custom Truck One Source research is our analysis highlighting 2 key rewards that could impact your investment decision.
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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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