Q1 2025 Custom Truck One Source Inc Earnings Call Transcript

May 1, 2025 / 01:00 PM GMT

Release Date Price: $3.91 (-2.98%)

Transcript 10-Q8-K

Key Points

Positve

Custom Truck One Source Inc (CTOS) reported strong financial performance with a 13% year-over-year increase in revenue for the ERS segment.
Average utilization of the rental fleet improved to just under 78%, up 440 basis points from the previous year.
The company experienced significant growth in its backlog, increasing by over $51 million or 14% in the quarter.
Custom Truck One Source Inc (CTOS) reaffirmed its full-year 2025 guidance, indicating confidence in achieving expected growth targets.
The company has strong relationships with strategic suppliers and a diversified customer base, which are key to its success.

Negative

Segment gross margin continues to be under pressure due to mixed and improved inventory levels across the broader industry.
There is hesitancy from smaller customers to purchase vehicles, opting to rent instead, influenced by high interest rates and economic caution.
The company faces economic uncertainty due to evolving US tariff policies, which could impact operations.
TES segment gross margin was down compared to the previous year, impacted by product mix and inventory levels.
Borrowings under the ABL increased by $73 million, contributing to a net leverage of 4.8 times, with a target to reduce it below 3 times by the end of fiscal 2026.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

CTOS.N - Custom Truck One Source Inc
Q1 2025 Custom Truck One Source Inc Earnings Call
May 01, 2025 / 01:00PM GMT

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Presentation
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Unidentified_1 [1]
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Thank you for standing by. My name is Tina, and I will be your conference operator today. At this time, I would like to welcome everyone to the custom truck One Source Incorporated. First quarter 2025 earnings conference call. All lines have been placed on mute to prevent any background noise.

After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, followed by the number one on your telephone keypad. If you would like to withdraw your question, press one again. I will now hand the call over to your host today, Brian Perman, Vice President of investor relations for Custom Trucks. Please go ahead.

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