Custom Truck One Source's Q4 2024: Navigating Contradictions in Revenue Growth, Utilization Rates, and Backlog Visibility
Wednesday, Mar 5, 2025 12:20 pm ET
3min read These are the key contradictions discussed in Custom Truck One Source's latest 2024Q4 earnings call, specifically including: TES Revenue Growth Expectations, Utilization Rate Expectations, Backlog Visibility and Growth Expectations, and Fleet Utilization Expectations:
Utility End Market Recovery and Growth:
- Custom Truck's average utilization improved to just under 79% for Q4, a 570 basis point increase from Q3.
- The growth was driven by continued recovery in T&D end markets and strong utility-related demand.
Strong TES Performance and Future Growth:
- The TES segment achieved record quarterly revenue of over $300 million, up 18% sequentially and 3% year-over-year.
- This was due to strong demand from forestry and vegetation management customers and optimism about future utility-related demand.
Improved Order Intake and Inventory Management:
- Net orders for the TES segment improved to $280 million, up more than 90% sequentially and 35% year-over-year.
- Inventory levels were reduced by over $150 million, contributing to improved order intake and better utilization of resources.
Financial Leverage and Debt Reduction:
- Custom Truck reduced its borrowings under the ABL by $45 million in Q4 and ended the year with a net leverage ratio of 4.5x.
- This reduction was achieved through a sales leaseback transaction and improved inventory management strategies.
net profit margin(6517)debt-to-equity ratio(6517)
Net Profit Margin%2024.12.31  | Debt-to-Equity Ratio2024.12.31  |
|---|---|
| 18.81K | 0.41 |
| 5.39K | -- |
| 4.19K | -- |
| 3.41K | -- |
| 3.39K | 0.07 |
| 3.21K | -- |
| 2.69K | 2.04 |
| 2.63K | -- |
| 2.38K | -- |
| 2.14K | -- |
Ticker |
|---|
| CCDCalamos Dynamic |
| ASAAsa Gold |
| EOSEaton Vance Enhanced Equity Income Fund II |
| ETYEaton Vance |
| ROIVRoivant Sciences |
| EOIEaton Vance Enhanced Equity Income Fund |
| BENFBeneficient |
| NBXGNeuberger Berman |
| ETJEaton Vance Risk-Managed Diversified Equity Income Fund |
| HQLAbrdn Life Sciences Investors |
View 6517 results
Utility End Market Recovery and Growth:
- Custom Truck's average utilization improved to just under 79% for Q4, a 570 basis point increase from Q3.
- The growth was driven by continued recovery in T&D end markets and strong utility-related demand.
Strong TES Performance and Future Growth:
- The TES segment achieved record quarterly revenue of over $300 million, up 18% sequentially and 3% year-over-year.
- This was due to strong demand from forestry and vegetation management customers and optimism about future utility-related demand.
Improved Order Intake and Inventory Management:
- Net orders for the TES segment improved to $280 million, up more than 90% sequentially and 35% year-over-year.
- Inventory levels were reduced by over $150 million, contributing to improved order intake and better utilization of resources.
Financial Leverage and Debt Reduction:
- Custom Truck reduced its borrowings under the ABL by $45 million in Q4 and ended the year with a net leverage ratio of 4.5x.
- This reduction was achieved through a sales leaseback transaction and improved inventory management strategies.
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