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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.
Custom Truck
Custom Truck
Custom Truck Revenue by Segment
Revenue by Segment
Equipment Rental Solutions Revenue
CapyFin.comTruck and Equipment Sales Revenue
CapyFin.comAftermarket Parts and Services Revenue
CapyFin.com 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.
- Expect could persist through the balance of the fiscal year.
- Net leverage that decreases from current levels to less than 3.5 times by the end of the fiscal year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income