Custom Truck One Source: Recent Share Price Weakness Presents An Opportunity To Buy

Custom Truck One Source (CTOS) remains a BUY, supported by strong fundamentals and robust power grid buildout driven by AI and infrastructure demand. CTOS delivered a beat-and-raise 2Q26, with revenue up 10.2% and adjusted EBITDA up 25% year-over-year, prompting raised full-year EBITDA guidance. The rental equipment segment drives 76% of EBITDA, benefiting from high operating leverage, pricing power, and a defensible competitive moat. Despite high leverage at 3.9x, improving cash flow and sector-discounted valuation (10.3x EV/EBITDA) support continued accumulation on recent profit-taking.

I last wrote on Custom Truck One Source, Inc. (CTOS) on July 3 with a BUY rating. Since then, the stock has seen some profit taking which I view as a good opportunity to accumulate.