Custom Truck One Source Inc's stock plummeted 7.05% during Tuesday's intraday session, following the release of its fourth-quarter 2025 financial results that showed revenue significantly missing analyst expectations.
The specialty equipment provider reported quarterly sales of $528.184 million, which missed the analyst consensus estimate of $584.770 million by 9.68%. While the company's earnings per share of $0.09 beat estimates of $0.07, it represented a 25% decrease compared to the same period last year.
The revenue shortfall was primarily driven by deferred deliveries in the company's Truck and Equipment Sales (TES) segment, where revenue fell 7.7% due to higher mid-year customer spending that pulled equipment purchases forward and an atypical year-end buying pattern with certain customers deferring deliveries into 2026. Additionally, the Aftermarket Parts and Services (APS) segment revenue decreased 8.5% due to softer demand for parts and services.