Custom Truck One Source, Inc. · NYSE:CTOS
Custom Truck One Source — Q1 2025 Earnings Presentation
26 slides from Custom Truck One Source's earnings presentation, May 1, 2025
Slide 1: Custom Truck One Source 1st Quarter 2025 Investor Presentation
Custom Truck One Source 1st Quarter 2025 Investor Presentation April 30, 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 and Adjusted EBITDA
Slide 3: CTOS at a Glance
CTOS at a Glance New Location $1.81B+ $336M Coming June 2025 Leading Integrated Provider of Specialty Equipment LTM Revenue1 LTM Adj. EBITDA1,2 • True “One-Stop-Shop” platform, 2,600+ 10,000+ 40 Locations4 focused on rental and sales Employees1 Fleet Units1 • Deep product knowledge and $1.55B truck
Slide 4: Q1 2025 – Off to a Solid Start
Q1 2025 – Off to a Solid Start • Strong fundamentals continue across all end market and product categories • Revenue of $422M o ERS: $154M — Rental KPIs continue strong recovery from H2 ‘24 o TES: $232M — Strong order flow and backlog growth o APS: $35M — Benefitting from improved utility end-market
Slide 5: Unique Business Model = Strong Value Creation
Unique Business Model = Strong Value Creation Attractive end markets with long-term Infrastructure Bill and Inflation Reduction Act further secular growth drivers supercharge end-market tailwinds Differentiated one-stop shop business model with strong Best-in-class asset level returns: High-teens Re
Slide 6: 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 ~$95B 10.0% Large and growing pent-up demand in North
Slide 7: Diverse, Highly Loyal Customer Base
Diverse, Highly Loyal Customer Base Highlights T&D Infrastructure / Telecom Rail • Serve more than 8,000 customers, with the top 15 customers representing ~18% of revenue • No customer represents more than 3% of company revenue • Strong brand recognition and awareness among industry-leading customer
Slide 8: Differentiated “One-Stop-Shop” Business Model
Differentiated “One-Stop-Shop” Business Model Integrated Production Capabilities and Rental + Sales Model Provides Unique Value Proposition Integrated Production Capabilities One-Stop-Shop Value Proposition Unit Economic Advantages Multiple Revenue Streams Strong, Consistent Returns Customer Benefit
Slide 9: National Branch Network
National Branch Network National footprint provides flexibility in managing the rental fleet and superior customer service for rental and sales customers • 40 locations in the U.S. and Canada, including a new location in Portland, OR opening in June 2025 o Highlights our confidence in the strength o
Slide 10: Our ESG Strategy
Our ESG Strategy • Our ESG plan is driven by our shared Purpose, Vision and Values • We are committed to staying at the forefront of technological innovations in our industry as the energy transition continues and adapting our products and services to align with our ESG objectives o Developed and de
Slide 11: Consolidated Operating Performance
Consolidated Operating Performance ($ millions, except where indicated) Q1 2025 operating results reflect positive trends across all the consolidated business Revenue Adjusted Gross Profit(1) $411 $422 $32 $134 $136 $33 $273 $274 $106 $116 Q1 24 Q1 25 Q1 24 Q1 25 Rental Equipment Sales Parts & Servi
Slide 12: CTOS Reporting Segments
CTOS Reporting Segments Reporting segments align with our go-to market strategies and capital allocation decisions Equipment Rental Solutions Truck & Equipment Sales Aftermarket Parts & Service (ERS) (TES) (APS) Includes results from core rental Includes results from new and Includes results f
Slide 13: Equipment Rental Solutions (ERS)
Equipment Rental Solutions (ERS) ($ millions, except where indicated; sum of individual items may not equal total amounts due to rounding) Q1 2025 showed year-over-year revenue growth resulting from sustained gains in T&D utilization and continued strong utilization in Infrastructure, Telecom and Ra
Slide 14: Equipment Rental Solutions (ERS)
Equipment Rental Solutions (ERS) ($ millions, except where indicated) Q1 2025 saw continuation of recovery in average Utilization & OEC on Rent driven by improvements in T&D end markets Utilization & Average OEC on Rent $1,400 86.3% 90.0% • Average utilization at just under 78% for Q1 ’25 82.5% 82.8
Slide 15: Truck & Equipment Sales (TES)
Truck & Equipment Sales (TES) ($ millions, except where indicated; sum of individual items may not equal total amounts due to rounding) Solid Q1 2025 revenue, supported by robust end-market demand, with strong order flow and growing backlog Revenue New Sales Backlog $1,000 12.6 14.0 12.2 11.7 11.8 $
Slide 16: Aftermarket Parts & Service (APS)
Aftermarket Parts & Service (APS) ($ millions, except where indicated) Revenue flat in Q1 2025 vs. Q1 2025, with performance helped by stabilized conditions in Utility end market Revenue Revenue • Total Revenue flat in Q1 ‘25 vs. Q1 ‘25 $35 $35 o Rental revenue up and Parts & Services revenue down s
Slide 17: Balance Sheet & Capital Investment
Balance Sheet & Capital Investment ($ thousands, except where indicated; sum of individual items may not equal total amounts due to rounding) $100,000 No Significant Maturities Until 2029 • Total Available Liquidity: $455M+ 1800000 Fixed 59% / Floating 41% $90,000 $1,575,475 o ABL availability + cas
Slide 18: Reaffirming 2025 Outlook
Reaffirming 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 $
Slide 19: Investment Highlights
Investment Highlights 11 Favorable End-Market Dynamics with Outstanding Secular Growth Drivers 22 Differentiated “One-Stop-Shop” Business Model 3 Attractive End Market Exposure to Diverse and Mission Critical Industries 4 CTOS Well-Positioned for Continued Growth & Free Cash Flow Generation 5 Integr
Slide 20: Appendix
: Appendix (Oh eee
Slide 21: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 (in $ millions) Net income (loss) $ (14) $ (24) $ (17) $ 28 $ (18) Interest expense 25 27 27 27 26 Income tax expense (benefit) (2) 3 (1) (1) (8) Depreciation and amortization 56 58 59 63 63 EBITDA 65 63 68 116 63 Adjustments: Non-cash pur
Slide 22: Adjusted Gross Profit Reconciliation
Adjusted Gross Profit Reconciliation Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 (in $ millions) Revenue: Rental $ 106 $ 103 $ 108 $ 125 $ 116 Equipment sales 273 286 305 359 274 Parts sales and services 33 34 33 36 32 Total revenue 411 423 447 521 422 Cost of Revenue: Cost of revenue 277 289 309 353 287 Deprecia
Slide 23: Supplementary Segment Data — ERS
Supplementary Segment Data — ERS Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 (in $ millions) Revenue: Rental revenue $ 103 $ 101 $ 105 $ 121 $ 113 Equipment sales 33 38 46 52 41 Total revenue 136 138 151 172 154 Cost of revenue: Cost of rental revenue 30 29 29 28 30 Cost of equipment sales 24 26 34 39 31 Deprecia
Slide 24: Supplementary Segment Data — TES
Supplementary Segment Data — TES Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 (in $ millions) Equipment sales $ 240 $ 248 $ 260 $ 308 $ 232 Cost of equipment sales 197 206 218 257 197 Gross profit $ 43 $ 42 $ 42 $ 51 $ 35 Sum of individual line items may not equal subtotal and total amounts due to rounding. 24
Slide 25: Supplementary Segment Data — APS
Supplementary Segment Data — APS Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 (in $ millions) Revenue: Rental revenue $ 3 $ 2 $ 3 $ 5 $ 3 Parts sales and services 33 34 33 36 32 Total revenue 35 37 36 41 35 Cost of revenue: Cost of parts sales and services 26 29 28 29 28 Depreciation of rental equipment 1 1 1 1 1
Slide 26: Leverage Ratio Calculation
Leverage Ratio Calculation Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 (in $ millions) Net Debt and Finance Leases (As of Period End): Current Maturities of Long-Term Debt $ 6 $ 4 $ 1 $ 8 $ 6 Long-Term Debt, Net 1,492 1,528 1,567 1,520 1,593 Add: Deferred Financing Costs 21 20 21 20 19 Total Debt and Finance Leas
Custom Truck One Source — Q1 2025 Earnings Presentation on 6ix