Custom Truck One Source experienced a decline in total revenue during the full-year 2024 following a fourth quarter decline in equipment sales.
The Kansas City, Mo.-based commercial truck dealer also reported a year-over-year decline in rental revenue and equipment sales for full-year 2024, and Q4 declines in total revenue, according to the company’s March 4 earnings release.
BIGGER PICTURE: Despite the declines, CTOS expects the improved trends that ended the year to result in a better 2025, Chief Executive Ryan McMonagle said during today’s earnings call.
“Last year’s performance highlights the resilience of our end markets and our ability to adapt to meet customers’ needs in a rapidly changing business environment,” he said. “We feel that our performance in Q4 sets us up well for the return to growth that we anticipate in 2025.”
CTOS expects optimism around the utility end market, which represents 55% of the company’s total revenue, to improve due to increased AI-driven data center development, grid upgrades and investments, and electrification trends, McMonagle said.
“Our recent trends and customer interactions confirm that the conditions in the utility end market are continuing to normalize,” he said. “We continue to see attractive rental demand across our utility and other primary end markets as well.”
BY THE NUMBERS
As CTOS navigates the strained utility market, the company reported the following for Q4 and full-year 2024:
- Q4 total revenue of $520.7 million, down 0.2% YoY;
- Full-year 2024 total revenue of $1.8 billion, down 3.4% YoY;
- Q4 aftermarket parts and services revenue of $36 million, up 4.1% YoY;
- Full-year aftermarket parts and services revenue of $136.3 million, up 2.7% YoY;
- Q4 rental revenue of $125.5 million, up 4.3% YoY;
- Full-year rental revenue of $443 million, down 7.5% YoY;
- Q4 equipment sales of $359.3 million, down 2.1% YoY;
- Full-year equipment sales of $1.2 billion, down 2.4% YoY;
- Q4 rent yield down 250 basis points YoY to 38.6%;
- Full-year rent yield down 140 basis points YoY to 39%;
- Yearend sales order backlog of $368.8 million, down 46.4% YoY; and
- Yearend fleet utilization of 78.9%, down 1.3 percentage points YoY.
FUTURE LOOK: The company continues to monitor the tariff situation, McMonagle said.
“We are confident that we have sufficient inventory to meet strong customer demand for new equipment, as well as to grow our fleet to meet rental demand in our core end markets,” he said. “In 2024, approximately 30% of our total purchases came from Mexico and Canada, primarily from our chassis and key attachment providers.”
Shares of Custom Truck One Source (NYSE:CTOS) were up 20.15% or $0.81 from market open to $4.83 as of market close today. Custom Truck One Source has a market capitalization of $905.66 million.
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