Custom Truck One Source (CTOS) 24th Annual Diversified Industrials & Services Conference summary

Business overview and market positioning

• Operates as a one-stop shop for vocational trucks, combining truck outfitting and specialty rental fleet services across utility, infrastructure, rail, and telecom markets, with utility and infrastructure making up 85% of revenue.

• Assembles 90-95% of trucks in-house, sourcing chassis from major OEMs and attachments from key partners, leveraging significant scale and a national service network with 40 locations in the U.S. and Canada.

• Maintains the largest rental fleet in the sector, with over 10,000 trucks valued at $1.6 billion, about 1.5x the size of the next largest competitor, and offers unmatched product breadth.

Growth drivers and end market outlook

• Utility (T&D) is the primary growth driver, benefiting from regulatory improvements, grid modernization, and increased demand from data center and infrastructure projects.

• Trucks are essential for new transmission line construction and ongoing distribution upgrades, with strong tailwinds from energy and data infrastructure expansion.

• Non-utility segments like vocational and specialty rentals are also experiencing disproportionate growth.

Fleet utilization and investment strategy

• Rental fleet utilization has ranged from a trough of 70% to highs near 89% over the past eight quarters, with current levels in the high 70s to low 80s considered optimal for returns.

• Improved supply chain conditions and inventory flexibility allow for rapid response to demand surges and better fleet management.

• Significant net investment in the rental fleet continues, with $260 million invested over the past 12 months and a gross investment target of $400 million for the year.