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Dec 31, 2024
Custom Truck Q4 2024 Earnings Report
Custom Truck One Source reported sequential revenue growth and improved net income in Q4 2024.
Key Takeaways
Custom Truck One Source achieved Q4 2024 revenue of $520.7 million, reflecting sequential growth of 16.4%. The company reported net income of $27.6 million, reversing a net loss in Q3. Rental revenue increased 4.3% year-over-year, while equipment sales declined slightly. The TES segment recorded record revenue exceeding $300 million for the quarter, and backlog remained strong despite a 46.4% reduction from the previous year.
Total revenue of $520.7 million, flat year-over-year but up 16.4% sequentially.
Net income of $27.6 million, improving from a net loss in Q3.
Adjusted EBITDA of $102.0 million, down 13.8% from Q4 2023.
Rental fleet utilization reached 78.9%, the highest level since Q3 2023.
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 expects a return to revenue growth in 2025, driven by strong demand in TES and a recovery in ERS. The company plans to grow its rental fleet and generate meaningful free cash flow.
Positive Outlook
- 2025 revenue guidance set at $1.97 billion to $2.06 billion.
- TES segment expected to benefit from strong demand and improved supply chain conditions.
- ERS rental fleet expected to grow by mid-single digits.
- Company targeting $50 million to $100 million in free cash flow generation.
- Net leverage ratio projected to decline below 4x by year-end 2025.
Challenges Ahead
- Adjusted EBITDA decreased 13.8% year-over-year.
- Backlog declined 46.4% from Q4 2023 due to improved supply chain and order fulfillment.
- Higher interest expenses impacted profitability.
- Decline in used equipment sales in the ERS segment weighed on margins.
- Market volatility and macroeconomic conditions remain key risks.
Revenue & Expenses
Visualization of income flow from segment revenue to net income