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Jun 30, 2024
Custom Truck Q2 2024 Earnings Report
Second quarter results were reported with a decrease in total revenue and net loss compared to the same quarter last year, but sequential Adjusted EBITDA growth was achieved compared to the first quarter of 2024.
Key Takeaways
Custom Truck One Source reported a decrease in total revenue by 7.4% to $423.0 million and a net loss of $24.5 million compared to a net income of $11.6 million in the second quarter of 2023. Adjusted EBITDA decreased by 22.4% to $80.1 million. The company is updating its full-year revenue guidance to $1,800 million—$1,980 million and Adjusted EBITDA guidance to $340 million—$375 million.
Total revenue decreased by 7.4% compared to the second quarter of 2023, primarily due to fewer rental asset sales and lower rental demand from the utility end market.
Net loss was $24.5 million, compared to net income of $11.6 million in the second quarter of 2023.
Adjusted EBITDA decreased by 22.4% compared to the second quarter of 2023.
The company is updating its full-year revenue and Adjusted EBITDA guidance for 2024 due to near-term pressure in demand in the utility market.
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
The company is updating its full-year revenue and Adjusted EBITDA guidance for 2024. Revenue is expected to be $1,800 million—$1,980 million and Adjusted EBITDA is expected to be $340 million—$375 million.
Positive Outlook
- Supply chain improvements.
- Healthy inventory levels.
- More normalized backlog levels continue to improve ability to produce and deliver more units in 2024.
- Focusing on generating positive free cash flow in 2024.
- Expect to deliver a net leverage ratio that will modestly decrease from current levels by the end of the fiscal year.
Challenges Ahead
- The ERS segment has continued to experience near-term pressure in demand in the utility market as a result of financing, supply chain, and regulatory factors.
- Headwinds in utility end markets are driving lower than anticipated OEC on rent in the core ERS segment and will likely continue for the remainder of this year.
- Customers are choosing to delay purchase decisions influenced by both their expectation of lower interest rates to come and the uncertainty surrounding the upcoming election.
- Lowering consolidated revenue and Adjusted EBITDA guidance for the year.
- Expect free cash flow to be lower than the previous target of generating more than $100 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income