Custom Truck One Source (CTOS) Oppenheimer 21st Annual Industrial Growth Virtual Conference summary

Business overview and market positioning

• Operates a fleet of over 10,400 specialty rental units, with 75% focused on utility equipment and 25% on specialty vehicles like vacuum and dump trucks.

• Fleet utilization was 81.4% in Q1, with average rental durations of 12–13 months and an average fleet age under three years.

• Integrated production capabilities include both partnerships with OEMs and in-house manufacturing, supporting a one-stop shop model across 41 locations in the US and Canada.

• Customer base is highly diversified, with no single customer accounting for more than 4% of revenue.

End markets and demand drivers

• Transmission and distribution (T&D) is the largest end market, representing about 60% of revenue, with infrastructure (waste, rail, telecom, roads, bridges) making up the remaining 40%.

• Strong demand is driven by grid modernization, data center development, and electrification, with major project starts extending into 2027.

• Backlog has normalized to 4–6 months, with Q1 backlog at 4.5 months and over $70 million, indicating healthy demand.

Pricing, competition, and capital allocation

• Recent price increases (~5% in December) are expected to flow through by early next year, with disciplined, market-based pricing strategies.

• Competitive environment remains intense, but high utilization and strong customer relationships support pricing power.

• Capital allocation prioritizes rental fleet investment ($150–$170 million net CapEx for rentals), with additional investment in manufacturing and a focus on free cash flow and deleveraging.