Custom Truck One Source, Inc. (CTOS): Marketing Mix Analysis [Dec-2025 Updated]

You're looking to cut through the noise and see exactly how the specialized equipment giant, projected to clear nearly $1.6 billion in 2025 revenue, positions itself in the market. Honestly, the real story isn't just the fleet of boom trucks; it's the disciplined execution across the four P's-from driving a targeted 35% gross margin on rentals across its 60+ locations to the specific value-based pricing on custom upfits. Keep reading, because I've broken down the Product, Place, Promotion, and Price strategy so you can see the mechanics behind their strong near-term outlook.

Custom Truck One Source, Inc. (CTOS) - Marketing Mix: Product

You're looking at the core offerings of Custom Truck One Source, Inc. (CTOS) as of late 2025, focusing on what they actually provide to the infrastructure and utility markets. The product strategy here is built around a comprehensive, end-to-end service model, which is clear when you look at the hard numbers from their recent performance.

Specialty Equipment Rental Fleet, Including Boom Trucks and Digger Derricks

The rental fleet is the engine for the Equipment Rental Solutions (ERS) segment, showing strong operational efficiency gains through late 2025. You can see the utilization rates climbing, which is exactly what you want to see when fixed costs are spread across a large asset base.

The coast-to-coast rental fleet, as of the third quarter of 2025, stood at more than 10,350 units. This inventory includes specialized assets like aerial devices, boom trucks, cranes, and digger derricks, all supporting critical infrastructure work. The company signaled confidence in this area by expecting to invest up to an additional net $50 million in the rental fleet during 2025, targeting at least high-single-digit fleet growth based on net Original Equipment Cost (OEC).

Here's a look at the rental performance metrics driving the value of this fleet:

• Average fleet utilization reached 79.3% in the third quarter of 2025.
• This utilization represented a 610 basis point improvement compared to the same period last year.
• Average OEC on rent increased by 17% year-over-year in Q3 2025.
• The increase in average OEC on rent was approximately $180 million in the third quarter compared to the prior year period.

New and Used Equipment Sales for Utility, Telecom, and Rail Sectors

The Truck and Equipment Sales (TES) segment is where Custom Truck One Source, Inc. (CTOS) moves new and pre-owned vocational vehicles, which are essential for the utility, telecom, and rail end markets. The product mix here is heavily weighted toward specialized trucks.

For the full year 2025, the company reaffirmed its revenue guidance for the TES segment to fall between $1,160 million and $1,210 million. The third quarter of 2025 saw TES segment revenue increase by 6.0% compared to the third quarter of 2024, driven by demand for vocational vehicles. The sales mix shows a dynamic between new and used units. For instance, in the first quarter of 2025, used equipment sales specifically increased by 26.4% year-over-year.

You can see the segment revenue breakdown for the third quarter of 2025 compared to analyst estimates:

Comprehensive Parts, Maintenance, and Repair Services (PMR)

The Aftermarket Parts and Services (APS) segment provides the necessary consumables and support to keep customer and rental fleets operational. This is a high-margin area that contributes to overall profitability.

In the third quarter of 2025, the APS segment revenue from parts sales and services was reported at $34.33 million, slightly below the average estimate of $35.09 million. The segment itself saw modest year-over-year revenue growth of 3% in Q3 2025. The focus on service quality is reflected in the profitability metrics; the APS segment achieved an adjusted gross margin of 26% in Q3 2025, an improvement from 23% in the third quarter of 2024.

The product offering in this area is broad, covering everything from the initial sale through the end of the asset's life, including maintenance and eventual buy-back or trade-in options.

Custom Upfitting and Modification of Commercial Vehicles

Custom Truck One Source, Inc. (CTOS) integrates customization directly into its sales and rental offerings, which is a key differentiator from standard dealers. The company's business model explicitly includes the ability to sell or rent a truck and then customize it to your specifications.

This capability is housed within the TES segment, which benefits from robust demand for vocational vehicles. The product capability extends beyond simple sales to include remanufacturing, buy-back, or trade-in when the equipment reaches the end of its useful lifespan. The company's ability to handle complex builds supports its position as a one-stop-shop provider for critical infrastructure assets.

The overall product strategy is supported by the company's financial scale, with total debt outstanding at $1,666.4 million as of September 30, 2025, indicating significant capital deployed into its physical product assets and capabilities.

Custom Truck One Source, Inc. (CTOS) - Marketing Mix: Place

Custom Truck One Source, Inc. maintains an extensive national footprint designed to place specialized equipment and services close to critical infrastructure projects across North America. This network is anchored by over 60 service and rental locations, a number recently bolstered by strategic additions like the new Orlando, Florida facility opening on October 1, 2025, and the Portland, Oregon location launched on June 1, 2025. This physical presence supports the company's differentiated "one-stop-shop" business model.

The distribution strategy leans on a centralized model for new equipment sales and logistics, which feeds into the Equipment Rental Solutions (ERS) segment. This segment showed strong operational efficiency in the third quarter of 2025, with average fleet utilization exceeding 79%, a 610 basis point improvement year-over-year. The company reaffirmed its full-year 2025 consolidated revenue guidance in the range of $1.97 billion to $2.06 billion, reflecting confidence in this distribution capability.

The physical network supports a coast-to-coast rental fleet exceeding 10,000 units, encompassing aerial devices, boom trucks, cranes, and digger derricks. The structure of the distribution is supported by the performance metrics across its segments as of Q3 2025.

Distribution is further enhanced by mobile service teams that bring on-site maintenance and support directly to customer job sites, minimizing equipment downtime. This field service capability complements the physical locations and the centralized logistics for parts and new equipment delivery. Furthermore, the digital presence is a key component for accessibility, allowing customers to check equipment availability and place orders for parts, supporting the entire service ecosystem.

Key elements of the Place strategy include:

• Extensive national footprint with over 60 service and rental locations.
• Coast-to-coast rental fleet size exceeding 10,000 units.
• Centralized logistics supporting new equipment sales and rental fleet deployment.
• Mobile service teams for immediate, on-site maintenance support.
• Digital platforms for checking equipment availability and ordering aftermarket parts.

The company is positioned to benefit from spending related to utility grid upgrades and data center investments, which requires this broad and responsive physical and digital distribution network.

Custom Truck One Source, Inc. (CTOS) - Marketing Mix: Promotion

Targeted digital campaigns focusing on utility and infrastructure end-markets.

Participation in major industry trade shows like ICUEE and CONEXPO.

Custom Truck One Source, Inc. maintained a commanding presence at The Utility Expo 2025, held October 7-9, 2025, at the Kentucky Exposition Center in Louisville, an event hosting over 21,000 professionals.

Investor relations roadshows highlighting fleet utilization and backlog.

The investor communications emphasized key operational metrics supporting the business narrative for late 2025.

• Average Operational Equipment Count (OEC) on rent increased by 17%, or $180 million, in the third quarter of 2025 compared to the same period last year.
• Signed orders in the third quarter of 2025 were up 30% year-over-year.
• Full-year 2025 consolidated revenue guidance reaffirmed between $1,970 million and $2,060 million.
• Full-year 2025 Adjusted EBITDA guidance reaffirmed between $370 million and $390 million.

Strong fleet branding and vehicle wraps as mobile advertisements.

General industry statistics for 2025 marketing efforts indicate the emphasis on brand recognition and trust.

• 81% of consumers require trust in a brand to consider a purchase.
• 50% of consumers are more likely to buy from brands they recognize.
• Most companies spend 10-20% of marketing budgets on branding and rebranding.
• Brands generally require 6 to 7 impressions to produce brand awareness.
• 34% of brands reported running influencer marketing campaigns.

Custom Truck One Source, Inc. (CTOS) - Marketing Mix: Price

The pricing structure for Custom Truck One Source, Inc. is segmented to reflect the distinct cost structures and competitive dynamics across its Equipment Rental Solutions (ERS), Truck & Equipment Sales (TES), and Aftermarket Parts & Service (APS) divisions. This approach allows the company to capture maximum value from both transactional sales and recurring service revenue streams.

For new equipment sales within the TES segment, the pricing strategy is transactional, resulting in lower margins compared to the rental business. The gross margin for the TES segment in the third quarter of 2025 was reported at 15%. This reflects a competitive pricing environment for new vocational vehicles and equipment.

Profitability in the rental segment is driven by high utilization and effective cost management, which supports strong margins. For the Equipment Rental Solutions (ERS) segment, the Adjusted Gross Margin (which excludes non-cash depreciation expense) reached 59% in the second quarter of 2025. While the targeted rental gross margin mentioned in planning documents is approximately 35%, the operational performance in mid-2025 demonstrated significantly higher realized adjusted margins, with ERS segment rental revenue growing 17% year-over-year in Q3 2025 based on higher average OEC on rent.

The pricing for specialized upfitting and maintenance services, falling under the APS segment, utilizes a value-based approach, reflecting the specialized labor and parts involved. The adjusted gross margin for the APS segment in the third quarter of 2025 was 26%.

The overall financial outlook supports this pricing strategy, with Custom Truck One Source, Inc. reaffirming its full-year 2025 revenue guidance to be between $1.97 billion and $2.06 billion.

Here's a quick look at the segment margin performance as of late 2025:

Financing options and credit terms are critical components influencing accessibility for large capital purchases. The company's strategy involves managing floor plan payables for new equipment inventory, with CFO Christopher Eperjesy noting that most inventory reduction was expected in the fourth quarter of 2025.

Key elements influencing the final price realization include:

• Fleet utilization reaching nearly 79% in Q3 2025, supporting higher rental rates.
• Average Original Equipment Cost (OEC) on rent up 17% year-over-year in Q3 2025.
• Strong demand from Transmission & Distribution (T&D) markets, which represent 55% of the business, allowing for premium pricing on specialized rental units.
• The company maintains strong available liquidity of over $510 million as of Q2 2025, which aids in offering competitive financing terms.