Wed, Oct 30, 8:40 PM (63 days ago)
Custom Truck One Source, Inc. (CTOS) reported its Q3 2024 financial results, revealing a total revenue of $447.2 million, a 3% increase from $434.4 million in Q3 2023. The growth was driven by a 7.9% rise in equipment sales, totaling $305.5 million, despite an 8.4% decline in rental revenue to $108.3 million due to lower utilization rates. For the nine months ended September 30, 2024, total revenue decreased by 4.6% to $1.28 billion, attributed to reduced rental income and equipment sales. The company experienced a net loss of $17.4 million for Q3 2024, compared to a profit of $9.2 million in Q3 2023. This loss was primarily due to increased interest expenses and lower gross profit margins, which fell to 20.5% from 24.7%. Cash flow from operations improved significantly to $39.9 million, reversing a negative trend from the previous year. The company maintained liquidity with $8.4 million in cash and $627.9 million in outstanding borrowings under its ABL Facility, which was recently amended to increase borrowing capacity. Looking ahead, Custom Truck is navigating challenges related to supply chain constraints and fluctuating demand in key markets, particularly impacting rental revenue and asset sales.