Custom Truck One Source, Inc. Reports First Quarter 2025 Results and Reaffirms 2025 Guidance
KANSAS CITY, Mo.--(BUSINESS WIRE)--April 30, 2025--
Custom Truck One Source, Inc. $(CTOS)$, a leading provider of specialty equipment to the electric utility, telecom, rail, forestry, waste management and other infrastructure-related end markets, today reported financial results for the three months ended March 31, 2025.
CTOS First-Quarter Highlights
-- Total revenue of $422.2 million, an increase of $10.9 million, or 2.7%,
compared to the first quarter of 2024
-- Gross profit of $85.5 million, a decrease of $5.2 million, or 5.7%,
compared to the first quarter of 2024
-- Adjusted Gross Profit of $135.6 million, an increase of $1.2 million, or
0.9%, compared to the first quarter of 2024
-- Net loss of $17.8 million, an increase of $3.5 million compared to the
first quarter of 2024
-- Adjusted EBITDA of $73.4 million, a $4.0 million decrease compared to the
first quarter of 2024
-- Increased Average OEC on rent by $136.6 million, or 13%, compared to the
first quarter of 2024
"In the first quarter, we achieved year-over-year revenue growth, driven by continued strong fundamentals across our primary end markets: utility, infrastructure, rail, and telecom. The significant improvements in our core T&D markets that we experienced in the second half of last year continued into the first quarter, resulting in marked year-over-year increases in rental revenue and rental asset sales within our ERS segment. For the quarter, our rental fleet saw average utilization of just under 78%, a strong improvement versus the same period last year and in line with our expectations. We ended the quarter with total OEC of $1.55 billion, up from the end of last year and the highest in our history, which we anticipate will support our expected growth within ERS in 2025," said Ryan McMonagle, Chief Executive Officer of CTOS. "TES saw another strong quarter of sales, as well as significant year-over-year net order growth, which is reflected in our increased backlog at the end of the quarter. We have continued to experience further backlog growth in April. Sustained, robust demand for vocational vehicles across our end markets continues to drive the performance within the TES segment. We believe that the current pace of customer orders and our existing TES backlog are sufficient to achieve the growth we expect in the segment this year. Despite ongoing challenges to economic activity being posed by the implementation of the new tariff policy, we remain cautiously optimistic about fiscal 2025 and continue to believe Custom Truck is well-positioned to benefit from secular tailwinds driven by data center investments, manufacturing onshoring, electrification, and utility grid upgrades. As a result, we are reaffirming our 2025 guidance that we initiated when we reported last quarter," McMonagle added.
Summary Actual Consolidated Financial Results
Three Months Ended March 31,
------------------------------------ ---
Three Months Ended
(in $000s) 2025 2024 December 31, 2024
----------- ---------- ------------------
Rental
revenue $ 116,261 $ 106,171 $ 125,461
Equipment
sales 273,863 272,602 359,325
Parts sales
and
services 32,108 32,534 35,954
----------- ---------- --- -------------
Total
revenue 422,232 411,307 520,740
----------- ---------- --- -------------
Gross Profit $ 85,536 $ 90,709 $ 118,465
Adjusted
Gross
Profit(1) $ 135,627 $ 134,453 $ 167,633
Net Income
(Loss) $ (17,791) $ (14,335) $ 27,574
Adjusted
EBITDA(1) $ 73,426 $ 77,376 $ 102,020
1 Each of Adjusted Gross Profit and Adjusted EBITDA is a non-GAAP measure.
Further information and reconciliations for our non-GAAP measures to the
most directly comparable financial measure under United States generally
accepted accounting principles ("GAAP") are included at the end of this
press release.
Summary Actual Financial Results by Segment
Our results are reported for our three segments: Equipment Rental Solutions ("ERS"), Truck and Equipment Sales ("TES") and Aftermarket Parts and Services ("APS"). ERS encompasses our core rental business, inclusive of sales of used rental equipment to our customers. TES encompasses our specialized truck and equipment production and new equipment sales activities. APS encompasses sales and rentals of parts, tools, and other supplies to our customers, as well as our aftermarket repair service operations.
Equipment Rental Solutions
Three Months Ended March 31,
-------------------------------- ---
Three Months Ended
(in $000s) 2025 2024 December 31, 2024
----------------- ------------- --------------------
Rental revenue $ 112,965 $ 103,288 $ 120,863
Equipment sales 41,383 32,740 51,612
------------- ------------ --- ---------------
Total revenue 154,348 136,028 172,475
------------- ------------ --- ---------------
Cost of rental
revenue 30,388 29,800 28,294
Cost of
equipment
sales 31,007 24,098 39,364
Depreciation of
rental
equipment 49,324 42,697 48,266
------------- ------------ --- ---------------
Total cost of
revenue 110,719 96,595 115,924
------------- ------------ --- ---------------
Gross profit $ 43,629 $ 39,433 $ 56,551
============= ============ === ===============
Adjusted Gross
Profit(1) $ 92,953 $ 82,130 $ 104,817
1 ERS Adjusted Gross Profit is a non-GAAP measure. Further information and
reconciliations for our non-GAAP measures to the most directly comparable
financial measure under United States generally accepted accounting
principles ("GAAP") are included at the end of this press release.
Truck and Equipment Sales
Three Months Ended March 31,
-------------------------------- ---
Three Months Ended
(in $000s) 2025 2024 December 31, 2024
----------------- ------------- --------------------
Equipment sales $ 232,480 $ 239,862 $ 307,713
Cost of
equipment
sales 197,470 196,702 256,738
------------- ------------ --- ---------------
Gross profit $ 35,010 $ 43,160 $ 50,975
============= ============ === ===============
Aftermarket Parts and Services
Three Months Ended March 31,
---------------------------------- ---
Three Months Ended
(in $000s) 2025 2024 December 31, 2024
---------------- ---------------- --------------------
Rental revenue $ 3,296 $ 2,883 $ 4,598
Parts and
services
revenue 32,108 32,534 35,954
------------ ------------ --- ---------------
Total revenue 35,404 35,417 40,552
------------ ------------ --- ---------------
Cost of revenue 27,740 26,254 28,711
Depreciation of
rental
equipment 767 1,047 902
------------ ------------ --- ---------------
Total cost of
revenue 28,507 27,301 29,613
------------ ------------ --- ---------------
Gross profit $ 6,897 $ 8,116 $ 10,939
============ ============ === ===============
Summary Combined Operating Metrics
Three Months Ended March 31,
-----------------------------------
Three Months Ended
(in $000s) 2025 2024 December 31, 2024
---------- ---------- ------------------
Ending OEC(a)
(as of period
end) $ 1,548,210 $ 1,452,856 $ 1,515,461
Average OEC on
rent(b) $ 1,202,285 $ 1,065,695 $ 1,211,082
Fleet
utilization(c) 77.7% 73.3% 78.9%
OEC on rent
yield(d) 38.5% 40.5% 38.6%
Sales order
backlog(e) (as
of period
end) $ 420,149 $ 537,292 $ 368,779
(a) Ending OEC -- Ending original equipment cost ("OEC") is the original
equipment cost of units at the end of the measurement period.
(b) Average OEC on rent -- Average OEC on rent is calculated as the
weighted-average OEC on rent during the stated period.
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