NYSE$CTOS

Custom Truck One Source Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Reported a decrease in revenue due to fewer rental asset sales and lower rental demand, and a net loss compared to net income in the same quarter last year.

Custom Truck One Source reported a decrease in total revenue to $411.3 million, a net loss of $14.3 million, and an adjusted EBITDA of $77.4 million for the first quarter of 2024. The company is updating its full-year revenue and Adjusted EBITDA guidance for 2024, expecting near-term pressure in demand in the utility market.

  • Total revenue decreased by 9.0% compared to the first quarter of 2023, totaling $411.3 million.
  • Net loss was $14.3 million, compared to a net income of $13.8 million in the first quarter of 2023.
  • Adjusted EBITDA decreased by 26.4% to $77.4 million compared to $105.2 million in the first quarter of 2023.
  • TES segment posted double-digit growth for the sixth consecutive quarter.

Headline financials

Total Revenue

$411M

Previous: $452M-9.0%
EPS

-$0.06

Previous: $0.06-200.0%
Adjusted EBITDA

$77.4M

Previous: $105M-26.4%
Fleet Utilization

73.3%

Previous: 83.6%-12.3%
Average OEC on Rent

$1.07B

No prior period
Ending OEC

$1.45B

No prior period
OEC on Rent Yield

40.5%

No prior period
Capital Expenditures

-$92.1M

No prior period
Free Cash Flow

-$14.3M

Previous: $13.8M-203.9%
Net Income

-$14.3M

Previous: $13.8M-203.9%
Operating Income

$18.4M

Previous: $39.9M-53.9%
Gross Profit

$90.7M

Previous: $110M-17.3%
Cash & Equivalents

$7.99M

Previous: $32.2M-75.2%
Total Assets

$3.45B

Previous: $3.07B+12.4%
Stock-Based Comp

$2.73M

Previous: $3.15M-13.3%

Revenue & EPS history

Custom Truck · Revenue · Quarterly

$411M

Q1 2024-9%vs Q1 2023
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Revenue by segment

Custom Truck · $457M total across 3 segments · Q2 2023

  • Truck and Equipment Sales
    $251M
  • Equipment Rental Solutions
    $169M
  • Aftermarket Parts & Services
    $36.9M

Forward guidance

Custom Truck One Source is updating its full-year revenue and Adjusted EBITDA guidance for 2024, expecting near-term pressure in demand in the utility market and reaffirming its target to generate more than $100 million of levered free cash flow.

Tailwinds

  • Supply chain improvements
  • Healthy inventory levels
  • Historically high backlog levels continue to improve our ability to produce and deliver more units in 2024
  • Focus on generating meaningful free cash flow in 2024
  • Target to generate more than $100 million of levered free cash flow

Headwinds

  • ERS segment will continue to experience near-term pressure in demand in the utility market as a result of financing, supply chain, and regulatory factors affecting the timing of job starts.
  • Headwinds in our utility end markets are driving lower OEC on rent in our core ERS segment.
  • Lowering consolidated revenue and Adjusted EBITDA guidance for the year.
  • Expect could persist through the balance of the fiscal year.
  • Net leverage that decreases from current levels to less than 3.5 times by the end of the fiscal year.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

-3.3%

Avg return

Earnings day

-1.8%

Avg return

5 days after

+1.9%

Avg return

30 days after

36%

12 / 33 earnings

Positive

+20.1%

Q4 2024

Best reaction

-19.8%

Q3 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.5%+15.6%+11.9%
Q4 2025-11.2%-8.3%+14.1%
Q3 2025-11.0%-12.6%-4.0%
Q1 2025-3.0%+2.7%+6.7%
Q4 2024+20.1%+18.2%-12.4%
Q3 2024+12.7%+13.2%+64.7%
Q2 2024-18.8%-22.0%-18.2%
Q1 2024-13.8%-16.3%-1.4%
Q4 2023-16.1%-14.1%-4.9%
Q3 2023-17.5%-18.0%-2.0%
Q2 2023+0.0%-1.2%-0.6%
Q1 2023+3.8%+2.2%+13.4%
Q4 2022+10.1%+5.3%+6.1%
Q3 2022-15.1%-10.6%+0.0%
Q2 2022+2.0%+11.8%+2.9%
Q1 2022-7.4%+1.2%-1.5%
Q4 2021+2.1%+4.5%-3.8%
Q3 2021+3.9%+5.5%-22.7%
Q2 2021-10.1%-14.9%+15.2%
Q1 2021-5.9%-8.6%-10.2%
Q4 2020+2.8%+9.0%+19.2%
Q3 2020+9.0%+13.3%+57.6%
Q2 2020-0.3%+7.1%+18.8%
Q1 2020-15.4%-17.1%-32.3%
Q4 2019-12.3%+11.8%-3.0%
Q3 2019-19.8%-31.5%-21.8%
Q2 2019+1.0%-4.5%-27.5%
Q1 2019+0.0%+0.1%-0.6%
Q4 2018+0.7%+0.7%+0.4%
Q3 2018+0.0%+0.0%+0.0%
Q2 2018+0.0%+0.0%+0.1%
Q1 2018+0.0%+0.0%-0.4%
Q3 2017-0.3%-0.3%-0.6%
Q2 2017

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