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    Custom Truck One Source Posts 21.4 Percent Total Revenue Growth in Third Quarter

    Nov. 30, 2023
    Custom Truck One Source posted $434.3 million in third quarter 2023 total revenue, compared to $357.8 million in third quarter 2022 revenue, a 21.4-percent increase.
    6568bff5687008001e952142 Custom Truck One Source Logo

    Custom Truck One Source posted $434.3 million in third quarter 2023 total revenue, compared to $357.8 million in third quarter 2022 revenue, a 21.4-percent increase. Third quarter rental revenue was relatively flat by comparison, $118.2 million compared to $115 million a year ago, a 2.8-percent uptick. The big jump for CTOS in the third quarter came in equipment sales, $283.1 million compared to $210.9 a year ago, a 34.2-percent leap.

    For the first nine months of the year, CTOS realized $1,343.3 million in revenue, compared to $1,086.4 million in the year-ago quarter, a 23.7-percent hike. Rental revenue fared a bit better over the nine-month period, $358.7 million compared to $336.2 million last year, a 6.7-percent uptick. Equipment sales also fared well for the nine-month period, $886.5 million in Q323 compared to $656.6 a year ago, for a 35-percent incline.

    Adjusted EBITDA hiked to $100.2 from $91.6 million in the third quarter, a 9.3 increase. For the nine-month period, EBITDA increased from $268.5 in the year-ago frame to $308.6 million for the first nine months of 2023, a 14.9-percent increase.

    “As we expected, demand remained strong across our primary end markets, which allowed us to deliver another quarter of excellent financial results and strong year-over-year growth in all three of our business segments,” said Ryan McMonagle, CEO. “Our TES segment realized 34 percent revenue growth compared to the third quarter of last year. Our ERS segment realized 12 percent revenue growth, and while we experienced some short-term slowdown in the utility end market, our team effectively managed through it. Our rental fleet ended the quarter with utilization of approximately 80 percent. A third consecutive quarter of record setting vehicle production by our team allowed us to both add to our fleet and post strong year-over-year growth in new vehicle sales. This level of production, together with the demand environment and continued improvement in the supply chain give us the confidence to improve our revenue outlook for 2023. In addition, our purchase of $15.8 million of our stock in the quarter reflects our confidence in the improved outlook, as well as the value that we feel we will create for shareholders from continuing to execute on our growth strategy,” 

    ERS stands for Equipment Rental Solutions, TES is for Truck and Equipment Sales, APS for Aftermarket Parts and Services, which includes sales and rentals of parts, tools and other supplies as well as aftermarket repair services.

    Custom Truck One Source is headquartered in Kansas City, Mo.

    About the Author

    Michael Roth | Editor

    Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.