Custom Truck One Source (CTOS), which focuses on vehicle rentals and sales as well as construction machinery and cranes, recorded stable total revenue for the fourth quarter, accompanied by a notable rise in equipment rental earnings. The total revenue for Q4 2024 reached $520.7 million, marginally down from $521.8 million in Q4 2023. Rental income for this quarter was $125.5 million, an increase from $120.2 million in the same quarter last year, reflecting a 4.4% growth.
Meanwhile, equipment sales in Q4 totaled $359.3 million, slightly lower than the $367 million reported in the fourth quarter of 2023, marking a decline of 2.1%.
For the entire year, total revenue was $1,802.3 million, down from $1,865.1 million in 2023, resulting in a 3.4% decrease. Rental revenue fell from $478.9 million in 2023 to $443 million in 2024, a decline of 7.5%. Equipment sales for 2024 were $1,223 million, compared to $1,253.4 million in the previous year, reflecting a 2.4% drop.
TES Growth Momentum
CTOS anticipates a return to growth in 2025, particularly in its Truck & Equipment Sales (TES) division.
“TES achieved its highest quarterly and annual revenues, surpassing $300 million and $1 billion, respectively, for the first time, with increases of over 16% sequentially and 6% for the entire year. Seasonal trends and continued strong demand for vocational vehicles across our markets have driven this record performance in TES during the quarter. We believe the current rate of customer orders and our existing TES backlog are adequate to facilitate the growth we expect in this segment this year.”
“Looking ahead to fiscal 2025, we are optimistic about CTOS’s position to leverage structural advantages brought by investments in data centers, reshoring of manufacturing, electrification, and upgrades to the utility grid. We made strides in reducing inventory, with a decrease of over $150 million in Q4, which positions us well for 2025 as we focus on managing working capital, generating free cash flow, and reducing debt.”
CTOS stands as one of the largest suppliers of specialized equipment, parts, tools, accessories, and services to the electric utility transmission and distribution, telecommunications, and rail sectors in North America, featuring a unique “one-stop-shop” business model. The company provides specialized equipment to a diverse array of customers for the maintenance, repair, upgrading, and installation of critical infrastructure, including electric lines, telecom networks, and rail systems. Its rental fleet, spanning more than 10,000 units, encompasses aerial devices, boom trucks, cranes, digger derricks, pressure drills, stringing gear, hi-rail equipment, as well as repair parts, tools, and accessories. For further details, please visit customtruck.com.
Based in Kansas City, Missouri, CTOS ranks 14th on the RER 100 list.
