Custom Truck One Source, Inc. (NYSE: CTOS) witnessed a significant surge of 11.57% in its stock price on October 30, 2024, following the release of its third-quarter 2024 financial results and an updated outlook for the full year. The company's strong performance and upbeat guidance fueled investor confidence, driving the stock higher.

During the third quarter, CTOS reported total revenue of $447.2 million, a 5.7% sequential increase and a 3.0% year-over-year increase. The company's Equipment Rental Solutions (ERS) segment experienced a rebound, with rental revenue and used equipment sales improving by 4.6% and 20.8%, respectively, compared to the previous quarter. The Truck and Equipment Sales (TES) segment also witnessed robust demand, with revenue increasing by 12.6% year-over-year.

Adjusted EBITDA for the quarter stood at $80.2 million, a slight increase of 0.2% sequentially. However, compared to the third quarter of 2023, Adjusted EBITDA declined by 19.9% to $100.2 million, primarily due to lower rental revenue and used equipment sales in the ERS segment.

Looking ahead, CTOS updated its full-year 2024 guidance, projecting revenue between $1.8 billion and $1.89 billion and Adjusted EBITDA between $340 million and $350 million. The company expressed optimism about fiscal 2025, anticipating a return to double-digit Adjusted EBITDA growth and meaningful positive levered free cash flow generation.