Custom Truck One Source Revenue Jumps 36.6 Percent in Fourth Quarter of 2022
Custom Truck One Source posted $486.7 million in total fourth quarter revenue compared to $356.4 million in the fourth quarter of 2021, a 36.6-percent increase. CTOS is a leading provider of specialty equipment to the electric utility, telecom, rail and other infrastructure-related end markets. Fourth quarter rental revenue was $127.8 million compared to $114.1 million in the fourth quarter a year ago, a 12-percent jump. CTOS’ biggest jump in the quarter was in equipment sales, where it totaled $325.7 million compared to $212.5 million a year ago, a 53.3-percent hike.
“Our fourth quarter results concluded an incredibly strong year despite supply chain constraints and inflationary pressures that we experienced throughout 2022,” said CEO Fred Ross. “Our entire team was instrumental in delivering these results and achieving record levels of vehicle production, completing more vehicles in 2022 than in any other year in our history. We continue to see very strong demand from customers across all our primary end markets and in all three of our business segments. The demand environment combined with our expectation of continued improvement in the supply chain, as well as a sustained level of vehicle production are reflected in our positive outlook for 2023. We continue to believe that our significant scale and one-stop-shop business model provide us with a competitive advantage that allows us to deliver unparalleled service to our customers.”
CTOS announced the appointment of Ryan McMonagle as CEO, effective March 20. Fred Ross is retiring as CEO and has agreed to remain with the company as founder and will continue to serve as a member of the board.
For the full year, CTOS reported total revenue of $1,573.1 million in 2022 compared to $1,167.2 in 2021, a 34.8-percent hike. Rental revenue was $464 million for 2022 compared to $370.1 million in 2021, a 25.4-percent jump.
On a pro-forma basis, which would present CTOS’ 2021 results as if its acquisition of Nesco Specialty Rental had occurred on Jan. 1, 2021, total revenue for the full year would be $1,483.6 million, and the year-over-year increase would be 6 percent. On a pro-forma basis, rental revenue for the full year of 2021 would be $422 million, a 10-percent year-over-year increase.
CTOS’ rental fleet includes cranes, compact track loaders, dozers, excavators, forklifts, graders, street sweepers, telehandlers, wheel loaders, cranes, crane trucks and more. The company, No. 11 on the RER 100, 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.