Q2 2025 Custom Truck One Source Inc Earnings Call Transcript

Jul 31, 2025 / 01:00 PM GMT

Release Date Price: $6.19 (+8.60%)

Transcript 10-Q8-K

Key Points

Positve

Custom Truck One Source Inc (CTOS) reported a 21% increase in revenue and a 17% growth in adjusted EBITDA compared to Q2 2024.
The company experienced strong demand in its core T&D markets, leading to significant growth in both ERS and TES segments.
Average utilization of the rental fleet improved to just under 78%, up almost 600 basis points from the previous year.
The TES segment achieved its second-highest quarterly sales ever, with two consecutive months of sales over $100 million.
CTOS reaffirmed its full-year 2025 guidance, indicating confidence in continued growth and strong market demand.

Negative

The TES segment's backlog decreased by $85 million in the quarter, although this was attributed to strong sales activity.
Gross margin in the TES segment was down from Q2 2024, despite a slight improvement from the previous quarter.
Borrowings under the ABL increased by $15 million to fund rental equipment capex and other working capital needs.
Net leverage remains high at 4.66 times, although there is a plan to reduce it below 3 times by the end of fiscal 2026.
There is ongoing uncertainty related to tariffs and emission standards, which could impact future costs and operations.

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

CTOS.N - Custom Truck One Source Inc
Q2 2025 Custom Truck One Source Inc Earnings Call
Jul 31, 2025 / 01:00PM GMT

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Presentation
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Unidentified_1 [1]
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Hello and welcome to the custom truck OneSource Inc. 2nd 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 to press star, followed by the number one on your telephone keypad. And if you would like to withdraw your question, press star 1 again.

Now I would like to turn the call over to Brian Berman. Brian, the floor is yours.

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Unidentified_2 [2]
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