Custom Truck One Source Inc (NYSE: CTOS), a leading provider of specialty equipment and services, saw its stock soar 9.95% in after-hours trading on Tuesday, following the company's release of its fourth-quarter 2024 and full-year results.

The company reported a robust fourth quarter, with revenue of $520.7 million, up 16.4% from the previous quarter, driven by strong fundamentals across its primary end markets, including utility, infrastructure, rail, and telecom. Notably, Custom Truck One Source swung to a net income of $27.6 million in the fourth quarter, compared to a net loss of $17.4 million in the third quarter of 2024.

For the full year 2024, the company reported revenue of $1.802 billion, a 3.4% decrease from 2023, but achieved significant improvements in sequential quarterly performance, particularly in its Equipment Rental Solutions (ERS) segment. The company's ERS segment saw average utilization of nearly 79% in the fourth quarter, the highest of the year.

The strong fourth-quarter performance and positive outlook for 2025 appear to have fueled the stock's after-hours surge. Custom Truck One Source provided an optimistic forecast for fiscal 2025, expecting revenue between $1.97 billion and $2.06 billion, and adjusted EBITDA between $370 million and $390 million.

The company's CEO, Ryan McMonagle, expressed confidence in the company's ability to capitalize on secular tailwinds driven by data center investments, manufacturing onshoring, electrification, and utility grid upgrades. Additionally, the company aims to generate significant free cash flow in 2025, targeting $50 million to $100 million in levered free cash flow and deliver a meaningful reduction in its net leverage ratio.