Custom Truck One Source, Inc. (NYSE:CTOS) Q1 2024 Earnings Conference Call May 2, 2024 5:00 PM ET

Company Participants

Brian Perman - Vice President of Investor Relations
Ryan McMonagle - Chief Executive Officer
Chris Eperjesy - Chief Financial Officer

Conference Call Participants

Justin Hauke - Baird
Tami Zakaria - JPMorgan
Michael Shlisky - DA Davidson and Company

Operator

Ladies and gentlemen, thank you for standing by and welcome to Custom Truck One Source's First Quarter 2024 Earnings Conference Call. Please note, this conference call is being recorded.

I'd like to hand the conference call over to your host for today, Brian Perman, Vice President of Investor Relations for Custom Truck One Source. Please go ahead.

Brian Perman

Thank you. Before we begin, we would like to remind you that management's commentary and responses to questions on today's call may include forward-looking statements, which by their nature are uncertain and outside of the company's control. Although, these forward-looking statements are based on management's current expectations and beliefs, actual results may differ materially.

For a discussion of some of the factors that could cause actual results to differ, please refer to the Risk Factors section of the company's filings with the SEC. Additionally, please note that you can find reconciliations of the historical non-GAAP financial measures discussed during the call in the press release we issued today. That press release and our quarterly investor presentation are posted on the Investor Relations section of our website. We filed our first quarter 2024 10-Q with the SEC this afternoon.

Today's discussion of our results of operations for Custom Truck One Source Inc., or Custom Truck is presented on a historical basis as of or for the three months ended March 31, 2024 and prior periods. Joining me today are Ryan McMonagle, CEO and Chris Eperjesy, CFO.

I will now turn the call over to Ryan.

Ryan McMonagle

Thanks Brian and welcome everyone to today's call. Custom Truck continues to see robust demand in our infrastructure, rail and telecom end markets, which all contributed to strong performance in our TES segment in Q1, and helped the segment delivered double digit revenue growth for the sixth consecutive quarter. As we discussed on last quarter's call, our core T&D markets continue to have favorable macro demand drivers, namely data center investment, electrification and required grid upgrades.

However, these markets have been meaningfully impacted in the short term and specifically in Q1, as supply chain issues, regulatory approval and ownership and funding details contributed to project delays, resulting in lower rental revenue and rental asset sales in the quarter. Overall, we delivered revenue of $411 million in Q1. We continue to believe that the slowdown in the utility end market is temporary and anticipate a return to growth later this year and heading into 2025.