Q3 2025 Custom Truck One Source Inc Earnings Call Transcript
Key Points
- Custom Truck One Source Inc (CTOS) reported a 20% growth in adjusted EBITDA and an 8% increase in revenue compared to Q3 2024.
- The company experienced a 17% year-over-year increase in average Original Equipment Cost (OEC) on rent, ending the quarter with over $1.3 billion of OEC on rent.
- Utilization rates improved significantly, with average utilization over 79%, marking the highest level in more than two years.
- The ERS segment saw a 12% increase in revenue, driven by an 18% growth in rental revenue.
- Custom Truck One Source Inc (CTOS) reaffirmed its fiscal 2025 revenue and adjusted EBITDA guidance, indicating confidence in achieving its growth targets.
- The TES segment experienced a slight decline in gross margin due to elevated supply levels of vocational vehicles in the market.
- Backlog in the TES segment decreased during the quarter, reflecting the current availability of equipment in the market.
- The company noted hesitancy among some customers regarding new equipment purchases due to economic uncertainty and high interest rates.
- Despite strong demand, the company expects its levered free cash flow to be less than the previous $50 million target due to higher-than-expected CapEx.
- Net rental CapEx increased to $79 million in Q3, reflecting strategic investments but also contributing to higher capital expenditures.
Ladies and gentlemen, thank you for standing by. My name is Colby, and I will be your conference operator today. At this time, I would like to welcome you to the Custom Truck One Source Inc third quarter 2025 earnings conference call (Operator Instructions)
I'd like to turn the call over to your host today to Brian Perman. Sir, you may begin.
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 a discussion of some of the factors that could cause actual results to differ, please refer to the risk factors section of the company's filings with the SEC. Additionally, please note that you can find reconciliations of the historical non
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
