Custom Truck Q2 revenue beats estimates, reaffirms 2025 revenue guidance
Overview
Custom Truck Q2 revenue grows 20.9% yr/yr, beating analyst expectations, per LSEG data
Adjusted EBITDA for Q2 beats consensus, driven by increased gross profit
Co reaffirms 2025 guidance, citing strong demand across segments
Outlook
Custom Truck reaffirms 2025 revenue guidance of $1.97 bln to $2.06 bln
Company expects 2025 adjusted EBITDA between $370 mln and $390 mln
TES segment to see double-digit revenue growth in 2025
ERS rental fleet expected to grow by mid-single digits in 2025
Result Drivers
RENTAL REVENUE - Increased rental revenue driven by higher fleet utilization and average OEC on rent, per CEO Ryan McMonagle
VOCATIONAL VEHICLES DEMAND - "Robust" demand for vocational vehicles in TES segment, contributing to revenue growth
SECULAR TAILWINDS - Co expects to benefit from data center investments, electrification, and utility grid upgrades
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $511.50 mln | $461.10 mln (5 Analysts) |
Q2 Net Income |
| -$28.40 mln |
|
Q2 Adjusted EBITDA | Beat | $93.40 mln | $85.10 mln (5 Analysts) |
Q2 Adjusted Gross Profit |
| $156.50 mln |
|
Q2 Gross Profit |
| $102.50 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the auto vehicles, parts & service retailers peer group is "buy"
Wall Street's median 12-month price target for Custom Truck One Source Inc is $6.00, about 3.7% above its July 29 closing price of $5.78
The stock recently traded at 271 times the next 12-month earnings vs. a P/E of 247 three months ago
Press Release: ID:nBw7jmFVza
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