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Custom Truck
🇺🇸 NYSE:CTOS
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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.

Total Revenue
$423M
Previous year: $457M
-7.4%
EPS
-$0.1
Previous year: $0.05
-300.0%
Adjusted EBITDA
$80.1M
Previous year: $103M
-22.4%
Fleet utilization
71.7%
Previous year: 81.7%
-12.2%
Sales order backlog
$478M
Previous year: $864M
-44.6%
Gross Profit
$89.3M
Previous year: $111M
-19.3%
Cash and Equivalents
$8.06M
Previous year: $42.2M
-80.9%
Free Cash Flow
-$130M
Total Assets
$3.52B
Previous year: $3.14B
+12.3%

Custom Truck

Custom Truck

Custom Truck Revenue by Segment

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

Company Overview

Full financial data and analysis

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