The following is a summary of the Custom Truck One Source, Inc. (CTOS) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Custom Truck One Source reported Q1 2024 revenue of $411 million, driven by strong demand in its infrastructure, rail, and telecom sectors.

• Despite supply chain complications and regulatory issues slowing down the utility sector, the TES segment achieved a 15% revenue growth.

• The company's gross margins saw a 170 basis point improvement compared to Q1 2023 due to increased demand and refined production capabilities.

• Adjusted EBITDA guidance was lowered to $400-$440 million.

• Lower-than-expected sales were observed in used units in the ERS for Q1 2024; nonetheless, compelling residual values maintained a satisfactory gross profit.

Business Progress:

• The company announced the acquisitions of SOS Fleet Services and the business of AMD Maintenance and Repair, expanding its geographical footprint and service capacity.

• Despite current challenges, the company anticipates a recovery in 2024 due to increased demand for new equipment and rental asset sales.

• The company plans to fast-track its fleet investment in high-performing sectors and expects to see an increase in OEC on rent by the end of the year.

• Custom Truck is proactively preparing for the upcoming chassis emission regulations, expecting an increase in demand due to these changes.

• The company expects regulatory procedures and improvements in its clients' supply chain challenges to unlock further progress moving into 2025 and 2026.

More details: Custom Truck One Source IR

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