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Custom Truck One Source Jumps Rental Revenue 13.7 Percent in Second Quarter

Aug. 10, 2022
Custom Truck One Source posted $112.1 million in 2022 second quarter rental revenue compared to $98.5 million in the second quarter of 2021, a 13.7-percent increase.
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Custom Truck One Source posted $112.1 million in 2022 second quarter rental revenue compared to $98.5 million in the second quarter of 2021, a 13.7-percent increase. Equipment sales, however, declined year over year from $247.7 million in the second quarter of 2021 to $218.5 million in the recently concluded quarter, an 11.8-percent decline. Total revenue dropped from $375.1 to $362.1 million this year, a 3.5-percent drop. The company attributed the decline in equipment sales to supply chain challenges.

Parts and service revenues increased in the quarter from $28.9 million a year ago to $31.5 million this year, a 9.2-percent increase.

"Our entire team delivered strong second quarter results despite the continued headwinds stemming from supply chain constraints and inflation,” said Fred Ross, CEO of CTOS. “I am proud that we achieved record production levels, completing more vehicles in the second quarter of 2022 than any other quarter in our history. While we are disappointed by the limitations caused by certain constrained production inputs, our second quarter results and the improving production momentum position us well for the second half of the year. We continue to focus on operational optimization so we can fully realize the benefits of our scale and our one-stop-shop business model. Custom Truck's commitment to our customers remains unmatched and we are steadfastly focused on meeting continued very strong customer demand across all three of our business segments."

For the first six months of the year, CTOS’ rental revenue was $221.2 million, compared to $146.8 million in the first six months of 2021, a 50.7-percent increase. Total revenue for the first six months was $728.5 million compared to $453.4 million in the first six months of 2021, a 60.7-percent leap. Equipment sales in the first half was $445.7 million, compared to $265.7 a year ago, a 67.8-percent jump. The increase reflects the combined total of CTOS and the former Nesco Specialty Rentals.

Adjusted EBITDA for the second quarter of 2022 was $85.4 million, compared to $70.2 million for the second quarter of 2021. The increase in adjusted EBITDA was largely driven by growth in rental and pricing gains that contributed to margin expansion in all three of the company segments.

During the quarter, CTOS appointed Christopher Eperjesy as chief financial officer.

Custom Truck One Source, headquartered in Kansas City, Mo., is No. 11 on the RER 100.

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.