Shares of Custom Truck One Source Inc (CTOS) plummeted 13.12% in after-hours trading on Monday following the release of its third-quarter earnings report. The company, which specializes in truck and heavy equipment solutions, faced headwinds as it missed revenue expectations and lowered its outlook for the year.

Custom Truck reported Q3 revenue of $482.1 million, falling short of the analyst consensus estimate of $492.12 million. Despite the 7.79% year-over-year increase in sales, the revenue miss, coupled with a net loss of $5.8 million for the quarter, seemed to disappoint investors. The company's earnings per share of $(0.03) were in line with analyst expectations but still represented a loss.

Adding to investor concerns, Custom Truck lowered its expectations for 2025 revenue guidance, citing the impact of macroeconomic uncertainty and high interest rates. CEO Ryan McMonagle stated that the company now expects to come in at the lower end of its previously announced 2025 revenue guidance range of $1.97 billion to $2.06 billion. However, the company reaffirmed its overall 2025 guidance for revenue and adjusted EBITDA, projecting double-digit growth in both metrics.

Despite the challenges, Custom Truck announced plans to invest an additional $50 million in its rental fleet this year, aiming for high single-digit fleet growth. The company also expects to reduce inventory by $125 million to $150 million compared to the end of last year, potentially signaling efforts to optimize operations in the face of economic headwinds.