Segments (Tables)

12 Months Ended

Dec. 31, 2025

The Company’s segment results are presented in the tables below:


	Year Ended December 31,
	2025
(in $000s)	ERS		TES		APS		Total
Revenue:
Rental	$	491,790	$	—	$	14,408	$	506,198
Equipment sales	209,255		1,095,228		—		1,304,483
Parts and services	—		—		133,276		133,276
Total revenue from external customers	701,045		1,095,228		147,684		1,943,957
Cost of revenue:
Rentals/parts and services	121,357		—		109,775		231,132
Equipment sales	157,846		927,452		—		1,085,298
Depreciation of rental equipment	212,725		—		2,910		215,635
Total cost of revenue from external customers	491,928		927,452		112,685		1,532,065
Gross profit	$	209,117	$	167,776	$	34,999	$	411,892


	Year Ended December 31,
	2024
(in $000s)	ERS		TES		APS		Total
Revenue:
Rental	$	430,167	$	—	$	12,786	$	442,953
Equipment sales	167,638		1,055,398		—		1,223,036
Parts and services	—		—		136,291		136,291
Total revenue from external customers	597,805		1,055,398		149,077		1,802,280
Cost of revenue:
Rentals/parts and services	116,790		—		111,560		228,350
Equipment sales	123,229		876,978		—		1,000,207
Depreciation of rental equipment	179,508		—		3,945		183,453
Total cost of revenue from external customers	419,527		876,978		115,505		1,412,010
Gross profit	$	178,278	$	178,420	$	33,572	$	390,270


	Year Ended December 31,
	2023
(in $000s)	ERS		TES		APS		Total
Revenue:
Rental	$	463,139	$	—	$	15,771	$	478,910
Equipment sales	263,028		990,425		—		1,253,453
Parts and services	—		—		132,737		132,737
Total revenue from external customers	726,167		990,425		148,508		1,865,100
Cost of revenue:
Rentals/parts and services	118,236		—		105,791		224,027
Equipment sales	198,510		817,639		—		1,016,149
Depreciation of rental equipment	167,199		—		3,465		170,664
Total cost of revenue from external customers	483,945		817,639		109,256		1,410,840
Gross profit	$	242,222	$	172,786	$	39,252	$	454,260

Schedule of Reconciliation of Consolidated Gross Profit to Consolidated Income (Loss) Before Income Taxes

The following table presents a reconciliation of consolidated gross profit to consolidated income (loss) before income taxes:


	Year Ended December 31,
(in $000s)	2025		2024		2023
Gross Profit	$	411,892	$	390,270	$	454,260
Selling, general and administrative expenses	230,082		229,544		231,403
Amortization	26,956		26,653		27,110
Non-rental depreciation	13,272		13,292		10,656
Transaction expenses and other	16,639		17,915		14,143
Gain on sale leaseback transaction	—		(23,497)		—

Interest expense, net	157,619		167,105		131,315
Financing and other (income) expense	(4,546)		(11,555)		(18,443)
Income (Loss) Before Income Taxes	$	(28,130)	$	(29,187)	$	58,076

Schedule of Total Assets by Country

The following table presents total assets by country:


(in $000s)	December 31, 2025		December 31, 2024
Assets:
United States	$	3,344,032	$	3,385,786
Canada	97,422		116,181
	$	3,441,454	$	3,501,967

Recently, our Chief Executive Officer reevaluated how he assesses performance and allocates resources across our business. This review resulted in a change in the reporting of management’s internal financial information. As a result, beginning in the three months ending March 31, 2026, we will report our results under two reportable segments: (1) Specialty Equipment Rentals (“SER”) and (2) Specialty Truck Equipment and Manufacturing (“STEM”). Upon implementation, the new SER segment will consist of our historical ERS segment and a portion of our historical APS segment, and the new STEM segment will consist of our historical TES segment and a portion of our historical APS segment. We will also begin reflecting intercompany activity between the two segments, which will ultimately be eliminated in consolidation. This new segment reporting reflects how CTOS’s business is managed and how resources are allocated in 2026, and management believes this new presentation better reflects the positioning of CTOS’s strategies and operations portfolio. We believe our new segment realignment will better reflect key economic drivers, capital intensity, and margin profiles of the respective new segments, as well as align our external reporting with how management allocates capital and evaluates performance.

Custom Truck One Source, Inc. 10-K