On March 4, 2025, Custom Truck One Source Inc (CTOS, Financial) released its 8-K filing detailing the financial results for the fourth quarter and full year ending December 31, 2024. As a leading provider of specialty equipment in North America, CTOS serves various sectors including electric utility, telecom, and rail. The company operates through three segments: Equipment Rental Solutions (ERS), Truck and Equipment Sales (TES), and Aftermarket Parts and Services (APS), with the TES segment generating the most revenue.
Performance Overview
Custom Truck One Source Inc reported a total quarterly revenue of $520.7 million, which represents a 16.4% increase compared to the third quarter of 2024. However, this figure fell short of the analyst estimate of $543.34 million. The full-year revenue was $1,802.3 million, marking a 3.4% decrease from 2023. The quarterly net income was $27.6 million, a significant improvement from the net loss of $17.4 million in the previous quarter. Despite this, the full-year net loss stood at $28.7 million, contrasting with a net income of $50.7 million in 2023.
Financial Achievements and Challenges
The company achieved a quarterly Adjusted EBITDA of $102.0 million, up 27.2% from the third quarter of 2024, although it decreased by 13.8% compared to the fourth quarter of 2023. The full-year Adjusted EBITDA was $339.7 million, down 20.4% from the previous year's record of $426.9 million. These figures highlight the company's ability to improve sequentially but also underscore the challenges faced throughout the year.
“In the fourth quarter, we achieved sequential improvement in revenue, net income and Adjusted EBITDA, driven by continued strong fundamentals across our primary end markets: utility, infrastructure, rail, and telecom,” said Ryan McMonagle, Chief Executive Officer of CTOS.
Segment Performance and Key Metrics
The TES segment reported record quarterly and annual revenue, exceeding $300 million and $1 billion, respectively, for the first time. This growth was driven by robust demand for vocational vehicles across end markets. The ERS segment saw rental revenue increase by 14.8% sequentially, with average fleet utilization reaching just under 79%, the highest since Q3 2023. The APS segment also experienced a revenue increase of 11.3% sequentially.
| Metric | Q4 2024 | Q4 2023 | Full-Year 2024 | Full-Year 2023 |
|---|---|---|---|---|
| Total Revenue | $520.7M | $521.8M | $1,802.3M | $1,865.1M |
| Net Income | $27.6M | $16.1M | ($28.7M) | $50.7M |
| Adjusted EBITDA | $102.0M | $118.4M | $339.7M | $426.9M |
Analysis and Outlook
Custom Truck One Source Inc's performance in Q4 2024 shows a positive sequential trend, yet the full-year results reflect the challenges faced in the broader market. The company's strategic focus on reducing inventory and managing working capital is expected to support growth in 2025. The outlook for 2025 is optimistic, with anticipated growth driven by secular tailwinds such as data center investments and utility grid upgrades.
Despite the challenges, the company's strong positioning in its core markets and strategic initiatives are expected to drive future growth. Investors and stakeholders will be keenly watching how CTOS navigates the evolving market dynamics and capitalizes on emerging opportunities in the coming year.
Explore the complete 8-K earnings release (here) from Custom Truck One Source Inc for further details.
