Custom Truck One Source, Inc. ( (CTOS) ) has released its Q4 earnings. Here is a breakdown of the information Custom Truck One Source, Inc. presented to its investors.
Custom Truck One Source, Inc., a major provider of specialty equipment for electric utility, telecom, rail, and other infrastructure sectors, has released its financial results for the fourth quarter and full year of 2024. The company, known for its comprehensive ‘one-stop-shop’ business model, serves a diverse customer base across North America.
The company reported a notable increase in fourth-quarter revenue, reaching $520.7 million, a 16.4% rise from the previous quarter, although full-year revenue fell by 3.4% compared to 2023. The fourth quarter saw a net income of $27.6 million, a significant turnaround from the previous quarter’s net loss. However, the full-year results showed a net loss of $28.7 million, contrasting with a net income of $50.7 million in 2023.
Key financial metrics highlighted include a fourth-quarter adjusted EBITDA of $102.0 million, marking a 27.2% increase from the third quarter, though the full-year adjusted EBITDA decreased by 20.4% compared to 2023. The Equipment Rental Solutions segment saw improved rental revenue and asset sales, while the Truck and Equipment Sales segment achieved record revenue for the quarter and year. The company also successfully reduced its inventory by over $150 million, positioning itself for growth in 2025.
Looking ahead, Custom Truck One Source is optimistic about 2025, expecting to benefit from trends such as electrification and utility grid upgrades. The company anticipates revenue growth across its segments and aims to generate significant free cash flow, targeting a reduction in its net leverage ratio. Management remains focused on capitalizing on strong market demand and improving operational efficiencies.
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