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Custom Truck Q1 2025 Earnings Report
Custom Truck One Source, Inc. reported its first quarter 2025 financial results, showing revenue growth driven by strong fundamentals in key end markets, improved rental fleet utilization, and increased backlog.
Key Takeaways
Custom Truck One Source, Inc. achieved year-over-year revenue growth in the first quarter of 2025, primarily driven by strong performance in the utility, infrastructure, rail, and telecom end markets. The company reported an increase in rental revenue and rental asset sales, with improved fleet utilization. Despite a net loss, the company reaffirmed its full-year 2025 guidance, anticipating continued growth and a reduction in net leverage ratio.
Total revenue increased by 2.7% to $422.2 million compared to the first quarter of 2024.
Adjusted EBITDA decreased by 5.1% to $73.4 million compared to the first quarter of 2024.
Net loss increased to $17.8 million compared to the first quarter of 2024.
Average OEC on rent increased by 13% to $1,202.285 million compared to the first quarter of 2024.
Revenue by Segment
Forward Guidance
Custom Truck One Source, Inc. reaffirmed its full-year 2025 revenue and Adjusted EBITDA guidance, expecting continued growth driven by strong macro demand, improved supply chain, and strategic investments.
Positive Outlook
- Continued strong fundamentals across primary end markets: utility, infrastructure, rail, and telecom.
- Significant improvements in core T&D markets leading to increased rental revenue and rental asset sales.
- Anticipated growth within ERS in 2025, supported by total OEC of $1.55 billion.
- Sustained, robust demand for vocational vehicles driving performance in the TES segment.
- Expectation to generate meaningful free cash flow ($50 million to $100 million) and deliver a meaningful reduction in net leverage ratio by year-end 2025.
Challenges Ahead
- Ongoing challenges to economic activity posed by the implementation of the new tariff policy.
- Pricing pressures in the TES segment due to the ongoing high-interest rate environment.
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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