Custom Truck One Source (CTOS) BofA Securities Leveraged Finance Conference 2025 summary

Business overview and end markets

• Operates as a one-stop shop with two main businesses: specialty rental fleet (~10,000 trucks) and truck outfitting/manufacturing.

• Four primary end markets: utility (55% of revenue), infrastructure (just under 30%), telecom, and rail (each just under 5%).

• Strong demand in transmission and distribution (T&D), especially for rental fleet.

Market trends and growth drivers

• Industry analysts forecast high single-digit CapEx growth for IOUs over the next 4–5 years.

• Distribution growth is around 8%, transmission in low to mid-teens; grid upgrades, electrification, and data centers are key tailwinds.

• Distribution bottomed in Q2 last year and has grown since; transmission activity picked up in the fall.

Rental fleet dynamics

• 70% of rental fleet serves T&D/utility; rental penetration is 25–30%, with room for growth.

• Utility contractors rent about 50% of their fleet, while IOUs/power producers mostly purchase.

• Rental demand is higher for transmission gear; strong tailwinds expected into 2026.