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.

• Utility and infrastructure sectors account for 85% of revenue, with utility alone at 55%.

• Assembles 90-95% of trucks in-house, sourcing chassis from major OEMs and attachments from key partners.

• Maintains a rental fleet of over 10,000 trucks valued at $1.6 billion, supported by seven production sites and 40 service locations in the U.S. and Canada.

• Holds a significant competitive advantage in fleet size, product breadth, and national service network compared to regional and national peers.

Growth drivers and end-market outlook

• Experiencing strong tailwinds in transmission and distribution due to increased data center construction and grid modernization.

• Regulatory improvements and project backlogs are driving higher demand for trucks in utility and infrastructure projects.

• Positioned as essential for large-scale infrastructure and data center builds, with foundational equipment used throughout project lifecycles.

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

• Market share gains expected through new locations and execution, with addressable market estimated at $15–$30 billion.

Fleet utilization, investment, and pricing

• Utilization rates have fluctuated from highs of 89% to troughs of 70%, now stabilizing in the high 70s to low 80s, considered the optimal range.

• Supply chain improvements have reduced lead times, increasing flexibility to meet demand and manage fleet size.

• Net investment in the rental fleet reached $260 million over the past year, with gross investment projected above $400 million.

• Rental rates are managed dynamically based on market conditions and customer relationships, with the ability to adjust rates or fleet size as needed.