Custom Truck One Source (CTOS) Oppenheimer 20th Annual Industrial Growth Conference summary

Business overview and fleet characteristics

• Operates a 10,000-unit rental fleet, with 70% focused on utility markets and 10% on rail and telecom.

• Fleet assets have a useful life of 10–20 years, with an average fleet age just over three years.

• Rental contracts average just over one year in duration.

• Integrated production capabilities allow for cost advantages and economies of scale.

• Offers a one-stop shop model, providing rental, sales, and aftermarket services.

End markets and demand trends

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

• Strong demand in utility and infrastructure, supported by grid upgrades, electrification, and federal stimulus.

• Rail remains steady, while telecom is currently the softest but expected to improve with future funding.

Growth drivers and financial performance

• Secular tailwinds include utility grid upgrades, electrification, onshoring, and data center investments.

• Q1 saw 13% growth in the ERS segment and a 440 basis point improvement in rental fleet utilization to 78%.

• Positive outlook for Q2, with continued strong demand and backlog growth.