Overview

* Custom Truck Q2 revenue grows 20.9% yr/yr, beating analyst expectations, per LSEG data

* Adjusted EBITDA for Q2 beats consensus, driven by increased gross profit

* Co reaffirms 2025 guidance, citing strong demand across segments

Outlook

* Custom Truck reaffirms 2025 revenue guidance of $1.97 bln to $2.06 bln

* Company expects 2025 adjusted EBITDA between $370 mln and $390 mln

* TES segment to see double-digit revenue growth in 2025

* ERS rental fleet expected to grow by mid-single digits in 2025

Result Drivers

* RENTAL REVENUE - Increased rental revenue driven by higher fleet utilization and average OEC on rent, per CEO Ryan McMonagle

* VOCATIONAL VEHICLES DEMAND - "Robust" demand for vocational vehicles in TES segment, contributing to revenue growth

* SECULAR TAILWINDS - Co expects to benefit from data center investments, electrification, and utility grid upgrades

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $511.50 $461.10

Revenue mln mln (5

Analysts

)

Q2 Net -$28.40

Income mln

Q2 Beat $93.40 $85.10

Adjusted mln mln (5

EBITDA Analysts

)

Q2 $156.50

Adjusted mln

Gross

Profit

Q2 Gross $102.50

Profit mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the auto vehicles, parts & service retailers peer group is "buy"

* Wall Street's median 12-month price target for Custom Truck One Source Inc ( CTOS ) is $6.00, about 3.7% above its July 29 closing price of $5.78

* The stock recently traded at 271 times the next 12-month earnings vs. a P/E of 247 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)