NYSE$CTOS
Custom Truck One Source Inc · Q2 2024 earnings
Q2 2024 earnings · · Investor relations
Briefing
Second quarter results were reported with a decrease in total revenue and net loss compared to the same quarter last year, but sequential Adjusted EBITDA growth was achieved compared to the first quarter of 2024.
Custom Truck One Source reported a decrease in total revenue by 7.4% to $423.0 million and a net loss of $24.5 million compared to a net income of $11.6 million in the second quarter of 2023. Adjusted EBITDA decreased by 22.4% to $80.1 million. The company is updating its full-year revenue guidance to $1,800 million—$1,980 million and Adjusted EBITDA guidance to $340 million—$375 million.
- Total revenue decreased by 7.4% compared to the second quarter of 2023, primarily due to fewer rental asset sales and lower rental demand from the utility end market.
- Net loss was $24.5 million, compared to net income of $11.6 million in the second quarter of 2023.
- Adjusted EBITDA decreased by 22.4% compared to the second quarter of 2023.
- The company is updating its full-year revenue and Adjusted EBITDA guidance for 2024 due to near-term pressure in demand in the utility market.
Headline financials
Revenue & EPS history
Custom Truck · Revenue · Quarterly
$423M
Revenue by segment
Custom Truck · $457M total across 3 segments · Q2 2023
- Truck and Equipment Sales$251M—55.0%
- Equipment Rental Solutions$169M—36.9%
- Aftermarket Parts & Services$36.9M—8.1%
Forward guidance
The company is updating its full-year revenue and Adjusted EBITDA guidance for 2024. Revenue is expected to be $1,800 million—$1,980 million and Adjusted EBITDA is expected to be $340 million—$375 million.
Tailwinds
- Supply chain improvements.
- Healthy inventory levels.
- More normalized backlog levels continue to improve ability to produce and deliver more units in 2024.
- Focusing on generating positive free cash flow in 2024.
- Expect to deliver a net leverage ratio that will modestly decrease from current levels by the end of the fiscal year.
Headwinds
- The ERS segment has continued to experience near-term pressure in demand in the utility market as a result of financing, supply chain, and regulatory factors.
- Headwinds in utility end markets are driving lower than anticipated OEC on rent in the core ERS segment and will likely continue for the remainder of this year.
- Customers are choosing to delay purchase decisions influenced by both their expectation of lower interest rates to come and the uncertainty surrounding the upcoming election.
- Lowering consolidated revenue and Adjusted EBITDA guidance for the year.
- Expect free cash flow to be lower than the previous target of generating more than $100 million.
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 Q2 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
| Quarter | Report date | Reaction (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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