Custom Truck One Source, Inc. (CTOS) is a specialty truck dealership and rental company with a $1.3 billion market cap. The company operates over 40 locations across the U.S. and Canada, offering rental, sales, parts, service, and customization of utility equipment. Roughly 60% of revenue is tied to transmission-and-distribution (T&D) equipment.

CTOS benefits from a diversified customer base, favorable financing dynamics, and management alignment. However, challenges include elevated leverage, private equity ownership, and the absence of shareholder returns. Management is focusing on deleveraging, ownership transition, and fleet expansion to drive higher free cash flow and multiple expansion.

A bullish thesis on CTOS emphasizes the company’s exposure to the T&D capex cycle and its customization capabilities, which position it as a key player in the utility supply chain. The stock has seen significant appreciation since the original thesis was published, with potential for further growth driven by infrastructure tailwinds and increasing demand for specialized utility vehicles.

Read more at Yahoo Finance: Custom Truck One Source, Inc. (CTOS): A Bull Case Theory