• In February 2026, Hiab announced a dealer agreement with Custom Truck One Source to expand sales and service coverage for HIAB loader cranes across 12 U.S. states and MOFFETT truck mounted forklifts across eight Northeastern states.
• This arrangement meaningfully broadens Custom Truck’s access to crane and forklift customers in key Western and Northeastern regions, potentially deepening its role as a one-stop specialty equipment partner for infrastructure clients.
• Next, we’ll examine how this expanded Hiab distribution footprint could influence Custom Truck One Source’s existing investment narrative around rental-led growth.

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Custom Truck One Source Investment Narrative Recap

To own Custom Truck One Source, you need to believe its rental led model can convert infrastructure demand into improving profitability while gradually bringing leverage down from 4.66x. The Hiab dealer agreement supports the core “one stop” equipment thesis, but it does not directly change the near term pressure points around high debt, margin compression, or visibility on TES backlog, which still look like the key swing factors for the stock in the short term.

Among recent developments, the Chief Accounting Officer’s resignation in December 2025 stands out next to this new Hiab agreement. While the company has said the departure was not related to disagreements, any leadership change in a key financial role lands against a backdrop of high leverage, ongoing net losses, and capital intensive growth. For investors, that combination can sharpen attention on reporting quality, capital discipline, and how quickly rental led growth translates into durable free cash flow.

Yet behind the expanded distribution story, there is a less obvious risk around high leverage and interest costs that investors should be aware of...

Custom Truck One Source's narrative projects $2.3 billion revenue and $28.6 million earnings by 2028. This requires 6.6% yearly revenue growth and a $64.6 million earnings increase from -$36.0 million today.

Uncover how Custom Truck One Source's forecasts yield a $7.67 fair value, a 6% upside to its current price.

Exploring Other Perspectives

The most optimistic analysts already projected revenue of about US$2.3 billion and a swing to roughly US$21.1 million in earnings before this Hiab deal, which contrasts sharply with concerns about high leverage and supplier concentration and could look either bold or conservative once the impact of the new partnership is clearer.

Explore 2 other fair value estimates on Custom Truck One Source - why the stock might be worth as much as 6% more than the current price!

Build Your Own Custom Truck One Source Narrative

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• A great starting point for your Custom Truck One Source research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Custom Truck One Source research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Custom Truck One Source's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.