Custom Truck One Source, Inc. (NYSE: CTOS)

Custom Truck One Source, Inc. provides a range of services and products through the rental and sale of specialty equipment, the rental and sale of aftermarket parts, and repair, maintenance, and customization of that equipment. The company serves customers in the electric utility transmission and distribution, telecommunications, rail, forestry, waste management and other infrastructure related industries across North America. Its core business centers on a large rental fleet of specialty equipment that supports installation, maintenance, repair and upgrade of critical assets such as power lines, telecom networks and rail systems.

Revenue is generated from three primary activities: equipment rentals, sales of new and used equipment, and aftermarket parts and services. Customers include utilities, contractors, telecom providers, rail operators and waste management firms that require specialized gear for projects ranging from line construction to routine maintenance.

The company operates through the following segments.

• Equipment Rental Solutions: This segment owns and manages a rental fleet of more than 10,400 units including bucket trucks, digger derricks, crane trucks, service trucks and heavy haul trailers that are rented to customers for short term or long term use.

• Truck and Equipment Sales: This segment sells new and used specialty equipment, often customized to meet specific customer needs, and generates revenue through outright sales of items such as bucket trucks, dump trucks and trailers.

• Aftermarket Parts and Services: This segment provides a broad range of parts, tools and accessories, offers test and repair services, and performs upfit and repair work on customer owned equipment.

Custom Truck One Source, Inc. holds a strong position as one of the largest specialty equipment rental providers in North America, competing with firms such as Herc Holdings, United Rentals and niche players focused on specific equipment types. Its competitive advantages include a young and well maintained fleet with an average age of approximately 2.9 years, a true one stop shop model that combines rentals, sales, parts and service, integrated production and customization capabilities that reduce lead times, a nationwide network of more than 40 locations supported by over 2,600 third party service partners, and long term relationships with a diversified customer base.

The company serves approximately 8,000 customers across its end markets, with the top 15 accounting for about 23.6 percent of total revenue and no single customer exceeding 4 percent of revenue. Its customer base includes electric utilities, telecom carriers, railroads, contractors and waste management companies that rely on its equipment and support services for infrastructure projects.