Latest news with #RyanMcMonagle
Yahoo
14-05-2025
- Business
- Yahoo
CTOS Q1 Earnings Call: Revenue Miss Offset by Optimism for Full Year Growth
Heavy equipment distributor Custom Truck One Source (NYSE:CTOS) fell short of the market's revenue expectations in Q1 CY2025 as sales rose 2.7% year on year to $422.2 million. On the other hand, the company's full-year revenue guidance of $2.02 billion at the midpoint came in 2.1% above analysts' estimates. Its non-GAAP loss of $0.08 per share was 67% below analysts' consensus estimates. Is now the time to buy CTOS? Find out in our full research report (it's free). Revenue: $422.2 million vs analyst estimates of $435.5 million (2.7% year-on-year growth, 3% miss) Adjusted EPS: -$0.08 vs analyst expectations of -$0.05 (67% miss) Adjusted EBITDA: $73.43 million vs analyst estimates of $78.2 million (17.4% margin, 6.1% miss) The company reconfirmed its revenue guidance for the full year of $2.02 billion at the midpoint EBITDA guidance for the full year is $380 million at the midpoint, above analyst estimates of $375.9 million Operating Margin: 2.9%, down from 4.5% in the same quarter last year Free Cash Flow was -$56.3 million compared to -$89.93 million in the same quarter last year Backlog: $420.1 million at quarter end Market Capitalization: $1.03 billion Custom Truck One Source's first quarter results reflected mixed trends across its core end markets. Management emphasized that demand remained resilient in its rental segment, with CEO Ryan McMonagle highlighting a 13% year-over-year revenue increase in Equipment Rental Solutions (ERS) and record-high equipment on rent. However, the Truck and Equipment Sales (TES) segment experienced a slower start, only showing momentum late in the quarter. Management cited strong order flow and backlog growth as key supports for its outlook, while also acknowledging ongoing margin pressure due to product mix and industry-wide inventory improvements. Looking ahead, management reaffirmed its full-year revenue and EBITDA guidance, citing secular growth in electricity demand, ongoing federal infrastructure spending, and robust customer activity in core utility markets as drivers. CFO Christopher Eperjesy and CEO McMonagle stated that proactive inventory management and supplier strategies are expected to mitigate the impact of tariffs and regulatory shifts. However, management expressed caution regarding macroeconomic uncertainty and noted that inventory reduction will be weighted toward the second half of the year. Custom Truck One Source's management attributed the quarter's performance to continued rental demand, increased backlog, and proactive inventory moves in response to tariffs and regulatory shifts. Rental Demand Resilience: The ERS segment posted strong year-over-year revenue growth and utilization rates, driven by sustained activity among utility contractors and robust demand for fleet rentals. Backlog and Order Growth: TES segment backlog increased by 14% and net orders grew over 220% year-over-year, with record sales in March and positive order trends continuing into Q2, signaling improving sales momentum. Tariff Mitigation Strategies: Management detailed steps to manage exposure to changing U.S. tariffs, including pulling forward inventory purchases and working with suppliers to secure favorable pricing or shift production to the U.S. where practical. Segment Margin Pressures: TES and Aftermarket Parts and Service (ATS) segments saw gross margin compression due to product mix and higher material costs; management anticipates margin normalization later in the year as inventory and sales mix stabilize. Inventory and Cash Flow Focus: Inventory levels rose as part of a tactical response to external risks, but management plans for reductions in the second half of the year to support free cash flow and leverage targets. Management's outlook for 2025 is centered around sustained demand in core utility markets, proactive risk mitigation, and ongoing investment in fleet and inventory management. Utility Market Strength: Secular trends in electricity demand and infrastructure spending are expected to drive continued activity in the ERS segment, supporting both rental and sales growth. Tariff and Regulation Response: Strategies to manage tariff impacts and regulatory changes, including inventory pulls and supplier engagement, are designed to limit cost inflation and operational disruption. Cash Flow and Leverage Discipline: The company expects to reduce inventory in the second half of the year, which management believes will support positive free cash flow generation and progress toward its leverage reduction goals. Nicole Sheree (Deutsche Bank): Asked about the drivers of anticipated revenue acceleration. CEO McMonagle cited strong ERS demand and a growing TES backlog as supportive factors for improved performance in later quarters. Nicole Sheree (Deutsche Bank): Inquired about the impact of potential infrastructure project pauses. Management stated they have not seen delays reflected in customer orders or backlog, and highlighted customers' ability to pivot between rental and purchase. Tami Zakaria (JPMorgan): Sought clarification on tariff-related inventory moves. CEO McMonagle explained that forward inventory purchases were focused on mitigating expected chassis price increases and that supplier relationships are key to managing cost impacts. Tami Zakaria (JPMorgan): Asked about the timing of inventory reduction. Management replied that most reductions are expected in the second half of the year, following current elevated inventory levels. Brian Brophy (Stifel): Questioned rental rate trends and TES margin outlook. CFO Eperjesy indicated rental rates remain stable and that TES margins are expected to remain within the 15–18% range, with improvement projected as the year progresses. In the coming quarters, the StockStory team will monitor (1) whether Custom Truck One Source can maintain high utilization and order flow in ERS and TES, (2) signs of margin stabilization as inventory and product mix normalize, and (3) the company's progress in reducing inventory and net leverage as planned. The impact of evolving U.S. tariff and regulatory policies will also be a key area of focus. Custom Truck One Source currently trades at a forward P/E ratio of 63.8×. At this valuation, is it a buy or sell post earnings? Find out in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
08-05-2025
- Business
- Business Wire
Custom Truck One Source Announces Opening of New Portland, Oregon Location to Serve Growing Demand
KANSAS CITY, Mo.--(BUSINESS WIRE)--Custom Truck One Source, Inc. (NYSE: CTOS), a leading provider of specialty equipment to the electric utility, telecom, rail, forestry, waste management and other infrastructure-related end markets, announced today the opening of a new location in Portland, Oregon on June 1, 2025. The new facility will enhance Custom Truck's ability to better serve its customers in the greater Portland market and broader Pacific Northwest region. This location is situated on the Northwest side of Portland, adding 12,000 square feet of space and six service bays to the Company's national footprint. "We are thrilled to announce the opening of our latest location in Portland, Oregon. This location will enable us to better serve customers and grow our business in the region," said Ryan McMonagle, CEO of Custom Truck. "Portland and the entire Pacific Northwest region have been on our expansion roadmap for several years and we are excited to execute on this step in our growth plan," McMonagle added. ABOUT CUSTOM TRUCK ONE SOURCE Custom Truck One Source is one of the largest providers of specialty equipment, parts, tools, accessories and services to the electric utility transmission and distribution, telecommunications and rail markets in North America, with a differentiated 'one-stop-shop' business model. The Company offers its specialized equipment to a diverse customer base for the maintenance, repair, upgrade and installation of critical infrastructure assets, including electric lines, telecommunications networks and rail systems. The Company's coast-to-coast rental fleet of more than 10,000 units includes aerial devices, boom trucks, cranes, digger derricks, pressure drills, stringing gear, hi-rail equipment, repair parts, tools and accessories. For more information, please visit
Yahoo
02-05-2025
- Business
- Yahoo
Custom Truck One Source to Participate in the Oppenheimer 20th Annual Industrial Growth Conference
KANSAS CITY, Mo., May 02, 2025--(BUSINESS WIRE)--Custom Truck One Source, Inc. (NYSE: CTOS) today announced that Chief Executive Officer, Ryan McMonagle, and Chief Financial Officer, Chris Eperjesy, will participate in a fireside chat and meet with institutional investors at the Oppenheimer 20th Annual Industrial Growth Conference on Tuesday, May 6, 2025. The conference is taking place virtually. The fireside chat is scheduled to begin at 11:15 a.m. ET. A live audio-only webcast of the fireside chat will be available through the Company's Investor Relations website at A replay will be archived and available for 30 days following the conference on the same website. ABOUT CUSTOM TRUCK ONE SOURCECustom Truck One Source is one of the largest providers of specialty equipment, parts, tools, accessories and services to the electric utility transmission and distribution, telecommunications and rail markets in North America, with a differentiated "one-stop-shop" business model. The Company offers its specialized equipment to a diverse customer base for the maintenance, repair, upgrade and installation of critical infrastructure assets, including electric lines, telecommunications networks and rail systems. The Company's coast-to-coast rental fleet of more than 10,000 units includes aerial devices, boom trucks, cranes, digger derricks, pressure drills, stringing gear, hi-rail equipment, repair parts, tools and accessories. For more information, please visit View source version on Contacts INVESTOR CONTACT Brian Perman, Vice President, Investor Relations816-723-7906investors@
Yahoo
06-03-2025
- Business
- Yahoo
Custom Truck One Source Inc (CTOS) Q4 2024 Earnings Call Highlights: Record Revenue and ...
Revenue: $521 million for Q4 2024. Adjusted Gross Profit: $168 million for Q4 2024. Adjusted EBITDA: $102 million for Q4 2024. Average Utilization: Just under 79% for Q4 2024, up from 73% in Q3 2024. Average OEC on Rent: Over $1.2 billion for Q4 2024, a 12% sequential increase. ERS Segment Revenue: $172 million for Q4 2024. TES Segment Revenue: Over $300 million for Q4 2024, up 18% sequentially. TES Full Year Revenue: Exceeded $1 billion for the first time, up almost 7% versus 2023. Adjusted Gross Margin for ERS: 61% for Q4 2024. Net Rental CapEx: $71 million for Q4 2024. APS Segment Revenue: $41 million for Q4 2024, up more than 6% year-over-year. Borrowings under ABL: $583 million at the end of 2024, a decrease of $45 million from Q3 2024. 2025 Revenue Guidance: Between $1.97 billion and $2.06 billion. 2025 Adjusted EBITDA Guidance: Between $370 million and $390 million. Warning! GuruFocus has detected 9 Warning Signs with CTOS. Release Date: March 05, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Custom Truck One Source Inc (NYSE:CTOS) achieved over $1 billion in annual sales for the first time, highlighting the resilience of its markets and adaptability to customer needs. The company experienced a strong improvement in utility-related demands, with significant growth in electricity demand driven by AI-driven data center development, grid upgrades, and electrification trends. Rental revenue increased by 15% sequentially in Q4, marking the second consecutive quarter of growth, and rental asset sales also improved by 13% from Q3. The TES segment saw a record quarterly revenue of over $300 million, up 18% sequentially, and full-year TES revenue exceeded $1 billion for the first time. Custom Truck One Source Inc (NYSE:CTOS) successfully reduced its inventory by more than $150 million in Q4, contributing to improved inventory management and financial flexibility. Despite strong Q4 performance, there was some customer hesitation to buy, influenced by high interest rates and economic caution. The TES segment's gross margin was down year-over-year, impacted by mix and improved inventory levels across the broader industry. The company is closely monitoring developments involving tariffs and upcoming chassis emission regulations, which could impact operations. Custom Truck One Source Inc (NYSE:CTOS) faces a headwind of approximately $4.5 million to $5 million annually due to incremental lease expenses from a sale-leaseback transaction. The ERS segment experienced a decline in revenue from $185 million in Q4 2023 to $172 million in Q4 2024, despite improvements in utilization and average OEC on rent. Q: Can you explain the confidence in TES revenue growth despite a significant year-over-year backlog decrease? A: Ryan McMonagle, CEO: The backlog is normalizing to our historical range of four to six months. Despite the decrease, net orders are up, and we see continued growth opportunities in our markets. Our revenue growth forecast is based on a bottoms-up build from customer interactions and historical growth trends. Q: How should we think about the seasonality of revenue and EBITDA for 2025? A: Christopher Eperjesy, CFO: We expect a similar 45%/55% split between the first and second halves of the year, consistent with historical patterns. The first half might be slightly less than 45%, and the second half slightly more than 55%. Q: What impact will the sale-leaseback transaction have on your financials? A: Christopher Eperjesy, CFO: The transaction will result in an incremental lease expense of approximately $4.5 million to $5 million annually, primarily affecting cost of goods sold, with a small portion impacting SG&A. Q: Can you discuss the margin outlook for 2025 and the impact of tariffs? A: Christopher Eperjesy, CFO: Our margin targets remain consistent, with rental margins in the low to mid-70% range and TES margins in the mid-teens. Ryan McMonagle, CEO: We have a natural hedge with our rental fleet and inventory, and we're working with suppliers to mitigate tariff impacts. Q: What is the outlook for rental yield and pricing environment in 2025? A: Ryan McMonagle, CEO: We expect rental yield to hold or slightly improve as the business environment strengthens. We have already taken selective pricing actions for 2025. Q: How is the infrastructure bill impacting your business? A: Brian Perman, VP of Investor Relations: We are seeing some benefits from the Infrastructure Investment and Jobs Act (IJA), and we believe it will continue to be a tailwind for us into 2025. Q: What is the expected utilization rate for 2025? A: Ryan McMonagle, CEO: We anticipate utilization to remain in the high 70s to low 80s range, with potential increases in the spring and fall driven by strong demand from utility customers. Q: Are there plans for additional real estate property sales? A: Ryan McMonagle, CEO: No further sales are planned. The recent transaction was a strategic move to unlock value, and we have long-term leases in place for continued use of the properties. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
03-03-2025
- Business
- Yahoo
Custom Truck One Source to Participate in the 2025 J.P. Morgan Industrials Conference
KANSAS CITY, Mo., March 03, 2025--(BUSINESS WIRE)--Custom Truck One Source, Inc. (NYSE: CTOS) today announced that Chief Executive Officer, Ryan McMonagle, and Chief Financial Officer, Chris Eperjesy, will present and meet with institutional investors at the 2025 J.P. Morgan Industrials Conference in New York City on Tuesday, March 11, 2025. The presentation is scheduled to begin at 2:40 p.m. ET and will include a fireside chat question-and-answer session. A live audio-only webcast of the presentation will be available through the Company's Investor Relations website at A replay will be archived and available for 30 days following the conference on the same website. ABOUT CUSTOM TRUCK ONE SOURCECustom Truck One Source one of the largest providers of specialty equipment, parts, tools, accessories and services to the electric utility transmission and distribution, telecommunications and rail markets in North America, with a differentiated "one-stop-shop" business model. The Company offers its specialized equipment to a diverse customer base for the maintenance, repair, upgrade and installation of critical infrastructure assets, including electric lines, telecommunications networks and rail systems. The Company's coast-to-coast rental fleet of more than 10,000 units includes aerial devices, boom trucks, cranes, digger derricks, pressure drills, stringing gear, hi-rail equipment, repair parts, tools and accessories. For more information, please visit View source version on Contacts INVESTOR CONTACT Brian Perman, Vice President, Investor Sign in to access your portfolio
