Custom Truck One Source, Inc.CTOS
Custom Truck One Source, Inc. Segments Disclosure
Note 19: Segments
Our operations are primarily organized and managed by operating segment. Operating segment performance and resource allocations are primarily based on gross profit. Depending on gross profit levels, the measure aids the Chief Operating Decision Maker (“CODM”) in managing the inventory levels and rental fleet, entering into significant revenue contracts, expanding into new markets or launching new products, making capital expenditures, designing and implementing key marketing strategies, making personnel changes, and approving operating budgets. Significant expense categories that are regularly reviewed by the operating segments’ CODM are disclosed below. The CODM for all segments is the Company’s Chief Executive Officer. The accounting policies of the reportable segments are consistent with those described in Note 2: Summary of Significant Accounting Policies to the financial statements. Through December 31, 2025, we managed the business in three reporting segments: Equipment Rental Solutions (“ERS”),
Truck and Equipment Sales (“TES”) and Aftermarket Parts and Services (“APS”). Transactions between our segments consist of equipment produced by TES that is sold to ERS for inclusion in its fleet of rental equipment. Additionally, TES and APS provide repair and maintenance services to ERS for maintenance of its rental fleet. Transactions between segments are at book value and intersegment sales and purchases are eliminated in consolidation. The segment operations are described in Note 1: Business and Organization to these financial statements. The revenue by geography is disclosed in Note 3: Revenue. Segment information is presented below.
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 | |||||||||||||||
Total assets by operating segment are not disclosed herein because asset by operating segment data is not reviewed by the CODM to assess performance and allocate resources.
Gross profit is the primary operating result whereby our segments are evaluated for performance and resource allocation. 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 | |||||||||||
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 | ||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 10, 2026 | Showing above |
| 2024 | Mar 4, 2025 | |
| 2023 | Mar 7, 2024 | |
| 2022 | Mar 14, 2023 | |
| 2021 | Mar 16, 2022 | |
| 2020 | Mar 9, 2021 | |
| 2019 | Mar 16, 2020 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.