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Mar 31, 2024
Custom Truck Q1 2024 Earnings Report
Reported a decrease in revenue due to fewer rental asset sales and lower rental demand, and a net loss compared to net income in the same quarter last year.
Key Takeaways
Custom Truck One Source reported a decrease in total revenue to $411.3 million, a net loss of $14.3 million, and an adjusted EBITDA of $77.4 million for the first quarter of 2024. The company is updating its full-year revenue and Adjusted EBITDA guidance for 2024, expecting near-term pressure in demand in the utility market.
Total revenue decreased by 9.0% compared to the first quarter of 2023, totaling $411.3 million.
Net loss was $14.3 million, compared to a net income of $13.8 million in the first quarter of 2023.
Adjusted EBITDA decreased by 26.4% to $77.4 million compared to $105.2 million in the first quarter of 2023.
TES segment posted double-digit growth for the sixth consecutive quarter.
Revenue by Segment
Forward Guidance
Custom Truck One Source is updating its full-year revenue and Adjusted EBITDA guidance for 2024, expecting near-term pressure in demand in the utility market and reaffirming its target to generate more than $100 million of levered free cash flow.
Positive Outlook
- Supply chain improvements
- Healthy inventory levels
- Historically high backlog levels continue to improve our ability to produce and deliver more units in 2024
- Focus on generating meaningful free cash flow in 2024
- Target to generate more than $100 million of levered free cash flow
Challenges Ahead
- ERS segment will continue to experience near-term pressure in demand in the utility market as a result of financing, supply chain, and regulatory factors affecting the timing of job starts.
- Headwinds in our utility end markets are driving lower OEC on rent in our core ERS segment.
- Lowering consolidated revenue and Adjusted EBITDA guidance for the year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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