Custom Truck One Source, Inc. · NYSE:CTOS
Custom Truck One Source — Q4 2024 Earnings Presentation
28 slides from Custom Truck One Source's earnings presentation, Mar 5, 2025
Slide 1: 4th Quarter 2024 Investor Presentation
Custom Truck One Source 4th Quarter 2024 Investor Presentation March 4, 2025 CONFIDENTIAL DRAFT1
Slide 2: Safe Harbor
Safe Harbor This presentation includes certain financial measures that have not been prepared in a manner that complies with generally accepted accounting principles in the United States (“GAAP”), including, without limitation, Adjusted Gross Profit, Adjusted Gross Margin, EBITDA, Adjusted EBITDA an
Slide 3: CTOS at a Glance
CTOS at a Glance New Location $1.8B+ $340M Coming June 2025 Leading Integrated Provider of Specialty Equipment LTM Revenue LTM Adj. EBITDA1 • True “One-Stop-Shop” platform, 2,600+ 10,000+ 40 Locations4 focused on rental and sales Employees2 Fleet Units2 • Deep product knowledge and $1.52B truck expe
Slide 4: Q4 2024 – Ended the Year with Strong Performance
Q4 2024 – Ended the Year with Strong Performance • Continued improved Utility utilization and strong demand from Infrastructure, Rail and Telecom end markets, resulted in excellent sequential growth in Q4: o Revenue of $521M, +16% vs. Q3 ‘24 o Adjusted Gross Profit(1) of $168M , +22% vs. Q3 ‘24 o Ad
Slide 5: 2024 – Setting up a Year of Growth in 2025
2024 – Setting up a Year of Growth in 2025 • Strong Q4 performance allowed us to finish the year on a strong note o 2024 Revenue of $1.8B+ ERS: $598M TES: $1.055B APS: $149M o Adjusted Gross Profit(1) of $574M o Adjusted EBITDA(1) of $340M • All three business segments had significant mileston
Slide 6: Unique Business Model = Strong Value Creation
Unique Business Model = Strong Value Creation Attractive end markets with long-term Infrastructure Bill and Inflation Reduction Act will secular growth drivers further supercharge end-market tailwinds Differentiated one-stop shop business model with strong Best-in-class asset level returns: Rental A
Slide 7: Favorable End-Market Dynamics
Favorable End-Market Dynamics Strong, Multi-Year End Market Tailwinds With Upside From 2021 Infrastructure Investment and Jobs Act T&D T&D Capex INFRASTRUCTURE Infrastructure Capex Rapidly increasing major projects driven by AI-driven data center ~$95B 10.0% Large and growing pent-up demand in North
Slide 8: Diverse, Highly Loyal Customer Base
Diverse, Highly Loyal Customer Base Highlights T&D Infrastructure / Telecom Rail • Serve more than 8,000 customers, with the top 15 customers representing ~17% of revenue • No customer represents more than 3% of company revenue • Strong brand recognition and awareness among industry-leading customer
Slide 9: Differentiated “One-Stop-Shop” Business Model
Differentiated “One-Stop-Shop” Business Model Integrated Production Capabilities and Rental + Sales Model Provides Unique Value Proposition Integrated Production Capabilities One-Stop-Shop Value Proposition Unit Economic Advantages Multiple Revenue Streams Strong, Consistent Returns Customer Benefit
Slide 10: National Branch Network
National Branch Network National footprint provides flexibility in managing the rental fleet and superior customer service for rental and sales customers • 40 locations in the U.S. and Canada, including a new location in Portland, OR opening in June 2025 o Highlights our confidence in the strength o
Slide 11: Our ESG Strategy
Our ESG Strategy • Our ESG plan is driven by our shared Purpose, Vision and Values • We are committed to staying at the forefront of technological innovations in our industry as the energy transition continues and adapting our products and services to align with our ESG objectives o Developed and de
Slide 12: Consolidated Operating Performance – Q4 2024
Consolidated Operating Performance – Q4 2024 ($ millions, except where indicated) Q4 2024 operating results reflect strength across all three segments – 3rd quarter of sequential revenue growth Revenue Adjusted Gross Profit(1) $171 $168 $522 $521 $35 $36 $367 $359 $120 $125 Q4 23 Q4 24 Q4 23 Q4 24 P
Slide 13: Consistent Revenue and Adjusted EBITDA Growth
Consistent Revenue and Adjusted EBITDA Growth (1) ($ millions, except where indicated) Produced consistent Revenue and Adjusted EBITDA(1) growth since the closing of the combination with Nesco despite softness in Utility demand in 2024, resulting in Revenue and Adjusted EBITDA(1) CAGRs through the Y
Slide 14: CTOS Reporting Segments
CTOS Reporting Segments Reporting segments align with our go-to market strategies and capital allocation decisions Equipment Rental Solutions Truck & Equipment Sales Aftermarket Parts & Service (ERS) (TES) (APS) Includes results from core rental Includes results from new and Includes results f
Slide 15: Equipment Rental Solutions (ERS)
Equipment Rental Solutions (ERS) ($ millions, except where indicated; sum of individual items may not equal total amounts due to rounding) Q4 2024 showed sequential revenue growth resulting from improved T&D utilization and continued strong utilization in Infrastructure, Telecom and Rail end markets
Slide 16: Equipment Rental Solutions (ERS)
Equipment Rental Solutions (ERS) ($ millions, except where indicated) Q4 2024 saw continuation of Q3 recovery in average Utilization & OEC on Rent driven by improvements in T&D end markets Utilization & Average OEC on Rent $1,400 86.3% • 90.0% Average utilization at just under 79% for Q4 ’24 83.7% 8
Slide 17: Truck & Equipment Sales (TES)
Truck & Equipment Sales (TES) ($ millions, except where indicated; sum of individual items may not equal total amounts due to rounding) Exceeded quarterly revenue of $300M and annual revenue of $1B for the first time Revenue New Sales Backlog $1,000 12.6 14.0 $308 12.2 11.7 11.8 $299 $900 11.1 12.0
Slide 18: Aftermarket Parts & Service (APS)
Aftermarket Parts & Service (APS) ($ millions, except where indicated) Revenue +6% in Q4 2024 vs. Q4 2023, helped by improved conditions in Utility end market Revenue Revenue • Total Revenue +6% in Q4 ‘24 vs. Q4 ‘23 $41 $38 o Parts & Services and Rental revenue each +$1M in Q3 ’24 $5 $4 vs. Q3 ‘23 •
Slide 19: Balance Sheet & Capex
Balance Sheet & Capex ($ millions, except where indicated; sum of individual items may not equal total amounts due to rounding) Continue to focus on de-levering through cash flow generation and Adjusted EBITDA growth Strong available liquidity with significant suppressed Remain Committed to 3.0x Net
Slide 20: 2025 Outlook
2025 Outlook 2024 Actual 2025 Outlook Growth Consolidated Revenue $1.802 billion $1.97 - $2.06 billion 9% - 14% ERS $598 million $660 - $690 million 10% - 15% TES $1.055 billion $1.16 - $1.21 billion 10% - 15% APS $149 million $150 - $160 million 1% - 7% Adjusted EBITDA(1) $340 million $370 - $390 m
Slide 21: Investment Highlights
Investment Highlights 11 Favorable End-Market Dynamics with Outstanding Secular Growth Drivers 22 Differentiated “One-Stop-Shop” Business Model 34 CTOS Well-Positioned for Continued Growth & Free Cash Flow Generation 45 Integration Drives Cost Efficiencies and Creates Scale Benefits Our Purpose: 56
Slide 22: Appendix
: Appendix (Oh ae
Slide 23: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Quarter Year to Date Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q4 23 Q4 24 (in $ millions) Net income (loss) $ 16 $ (14) $ (24) $ (17) $ 28 $ 51 $ (29) Interest expense 25 25 27 27 27 95 106 Income tax expense (benefit) 5 (2) 3 (1) (1) 7 (1) Depreciation and amortization 57 56 58
Slide 24: Adjusted Gross Profit Reconciliation
Adjusted Gross Profit Reconciliation Quarter Year to Date Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q4 23 Q4 24 (in $ millions) Revenue: Rental $ 120 $ 106 $ 103 $ 108 $ 125 $ 479 $ 443 Equipment sales 367 273 286 305 359 1,253 1,223 Parts sales and services 35 33 34 33 36 133 136 Total revenue 522 411 423 447
Slide 25: Supplementary Segment Data — ERS
Supplementary Segment Data — ERS Quarter Year to Date Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q4 23 Q4 24 (in $ millions) Revenue: Rental revenue $ 117 $ 103 $ 101 $ 105 $ 121 $ 463 $ 430 Equipment sales 68 33 38 46 52 263 168 Total revenue 185 136 138 151 172 726 598 Cost of revenue: Cost of rental revenue 2
Slide 26: Supplementary Segment Data — TES
Supplementary Segment Data — TES Quarter Year to Date Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q4 23 Q4 24 (in $ millions) Equipment sales $ 299 $ 240 $ 248 $ 260 $ 308 $ 990 $ 1,055 Cost of equipment sales 246 197 206 218 257 818 877 Gross profit $ 53 $ 43 $ 42 $ 42 $ 51 $ 173 $ 178 Sum of individual line ite
Slide 27: Supplementary Segment Data — APS
Supplementary Segment Data — APS Quarter Year to Date Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q4 23 Q4 24 (in $ millions) Revenue: Rental revenue $ 4 $ 3 $ 2 $ 3 $ 5 $ 16 $ 13 Parts sales and services 35 33 34 33 36 133 136 Total revenue 38 35 37 36 41 149 149 Cost of revenue: Cost of parts sales and services
Slide 28: Leverage Ratio Calculation
Leverage Ratio Calculation Q4 23 Q4 24 (in $ millions) Net Debt and Finance Leases (As of Period End): Current Maturities of Long-Term Debt $ 8 $ 8 Long-Term Debt, Net 1,487 1,520 Add: Deferred Financing Costs 22 20 Total Debt and Finance Leases 1,518 1,548 Less: Cash and Cash Equivalents (10) (4) N
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