Q2 2024 Custom Truck One Source Inc Earnings Call Transcript
Key Points
- Custom Truck One Source Inc (CTOS) achieved sequential revenue and adjusted EBITDA growth in the second quarter.
- The TES segment delivered sequential revenue growth of more than 3% in the quarter, with revenue up 6% year-to-date compared to the same period in 2023.
- High levels of demand for specialty products like dump trucks and hydro excavators are positively impacted by federal infrastructure investments.
- The company is well-positioned for anticipated demand increases due to upcoming chassis emission regulations.
- Custom Truck One Source Inc (CTOS) has strong relationships with vendors, aiding in record TES production levels.
- The company lowered its revenue guidance for the ERS, TES, and APS segments due to near-term challenges in the utility sector.
- Average utilization of the rental fleet declined to just under 72% from almost 82% in Q2 of the previous year.
- Persistently high interest rates and election uncertainty are impacting smaller customers' purchase decisions.
- Adjusted gross profit and adjusted EBITDA were significantly impacted by a slowdown in utility utilization.
- The APS segment experienced a decrease in rentals and higher material costs, impacting its performance.
Ladies and gentlemen, thank you for standing by and welcome to Custom Truck One Source's second-quarter 2024 earnings conference call. Please note, this conference call is being recorded.
I'd like to hand the conference call over to your host today, Brian Perman, Vice President of Investor Relations for Custom Truck. Please go ahead.
Thank you. Before we begin, we would like to remind you that management's commentary and responses to questions on today's call, may include forward-looking statements, which by their nature are uncertain and outside of the company's control.
Although these forward-looking statements are based on management's current expectations and beliefs, actual results may differ materially. For discussion of some of the factors that could cause actual results to differ, please refer to the risk factor section of the company's filings with the SEC.
Additionally, please note that you can find reconciliations of the historical non-GAAP
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