Custom Truck One Source reports Q3 EPS (7c), consensus (3c)

Reports Q3 revenue $447.2M, consensus $448.36M. “In the third fiscal quarter, we achieved sequential improvement in net income and a slight increase in Adjusted EBITDA. As discussed in our recent earnings calls, our core T&D markets experienced a slowdown over recent quarters, which particularly impacted our ERS segment. However, this decline has proven to be temporary, and we observed significant improvements in the third quarter, which have continued into the fourth quarter. Through late October, OEC on rent has increased by over $200 million, or 20%, since the end of the second quarter. While a portion of this growth can be attributed to our customers’ recovery and restoration work associated with recent weather events, the majority stems from non-storm-related work in our core T&D and vocational end-markets. We are optimistic about fiscal 2025 and believe we are well-positioned to benefit from secular tailwinds driven by AI and data center investments, electrification, and utility grid upgrades,” said Ryan McMonagle, Chief Executive Officer of CTOS. “We continue to see strong demand in our infrastructure, rail, and telecom end-markets, all of which contributed to our TES segment performance. Segment sales increased by 12.6% this quarter and over 8% year-to-date, building on nearly 30% growth in fiscal 2023. Our sales backlog has returned to a more normalized level of just under five months, which is within our desired range of four to six months, as OEM production and overall supply chains improve,” McMonagle added.