Custom Truck One Source, Inc. reported a total revenue of $1.802 billion for the fiscal year ending December 31, 2024, a decrease of 3.4% from $1.865 billion in 2023. The decline was primarily attributed to a 7.5% drop in rental revenue, which totaled $443 million, and a 2.4% decrease in equipment sales, which amounted to $1.223 billion. The company also experienced a net loss of $28.7 million, compared to a net income of $50.7 million in the previous year, reflecting a significant year-over-year decline of $79.4 million.
In terms of operational metrics, Custom Truck's fleet utilization rate fell to 74.3% from 80.4% in 2023, indicating reduced demand for rental equipment. The company's sales order backlog also saw a substantial decrease, dropping 46.4% to $368.8 million from $688.6 million in the prior year. This decline in backlog is indicative of ongoing challenges faced by customers, including supply chain constraints and regulatory factors that have delayed project starts in the utility sector.
Strategically, Custom Truck engaged in a sale-leaseback transaction in 2024, generating gross proceeds of $53.8 million, which were partially used to reduce outstanding borrowings under its asset-based lending facility. The company also reported an increase in depreciation expenses for rental equipment, which rose to $183.5 million, reflecting higher rental equipment levels. Additionally, the company has continued to invest in its rental fleet, with a focus on enhancing its offerings in the electric utility and telecommunications sectors.
Looking ahead, Custom Truck anticipates that ongoing infrastructure investments, particularly in electric utility transmission and distribution, will drive demand for its services. The company is positioned to capitalize on favorable market dynamics, including the continued rollout of 5G technology and the need for modernization of aging infrastructure. However, it remains cautious about potential economic uncertainties and their impact on customer spending. The company’s management expressed optimism about future growth opportunities, contingent on improving market conditions and effective execution of its strategic initiatives.