Custom Truck expands with acquisition of SOS Fleet Services
CTOS
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KANSAS CITY, Mo. – Custom Truck One Source, Inc. (NYSE: CTOS) has expanded its operational footprint with the acquisition of SOS Fleet Services, LLC, a repair facility based in Alexandria, Louisiana. This strategic move adds over 30,000 square feet of service space to Custom Truck’s portfolio and introduces a seasoned team into its network, enhancing the company’s service capabilities in the region.
The new Alexandria branch is set to provide the full range of Custom Truck’s rental offerings, along with repair services to local customers. This development is part of a broader expansion plan which includes the opening of new branches in Casa Grande, AZ, Sacramento, CA, and Salt Lake City, UT, slated for later in 2024. These additions will bring Custom Truck’s total number of locations to 39, up from 35, improving its national presence and customer service reach.
Ryan McMonagle, CEO of Custom Truck One Source, emphasized the importance of the acquisition for the company’s growth strategy. “The acquisition of the business of SOS Fleet Services marks an important step in our continued efforts to expand our footprint to better serve our rental fleet and our customers,” said McMonagle.
He expressed enthusiasm about joining forces with the Alexandria community, which has a strong connection to the powerline industry and integrating the SOS Fleet Services team into the Custom Truck family.
Custom Truck One Source is a prominent provider of specialty equipment, parts, tools, accessories, and services across North America, catering to sectors such as electric utility transmission and distribution, telecommunications, and rail markets. The company operates with a distinctive one-stop-shop business model, offering its extensive rental fleet of over 10,300 units to a customer base for the maintenance, repair, upgrade, and installation of critical infrastructure assets.
The information presented in this article is based on a press release statement from Custom Truck One Source, Inc.
InvestingPro Insights
As Custom Truck One Source, Inc. (NYSE: CTOS) takes significant strides in expanding its operational footprint, investors and industry observers are closely monitoring the company’s financial health and market performance. According to InvestingPro data, Custom Truck One Source has a market capitalization of approximately $1.28 billion, reflecting the scale of its operations in the specialty equipment market. The company’s Price-to-Earnings (P/E) ratio stands at 20.34 when adjusted for the last twelve months as of Q4 2023, suggesting a valuation that may be considered reasonable relative to its near-term earnings growth. This aligns with one of the InvestingPro Tips, which notes that the stock is trading at a low P/E ratio in comparison to its near-term earnings growth potential.
Despite the challenges of operating with a significant debt burden, as highlighted by an InvestingPro Tip, Custom Truck One Source has demonstrated resilience with an 18.56% revenue growth over the last twelve months as of Q4 2023. This growth is a testament to the company’s ability to expand and scale its operations effectively. Moreover, the company is expected to be profitable this year, which is a positive signal for investors considering the company’s recent expansionary moves.
However, it’s important to note that the stock has experienced a downturn over the past month, with a 22.32% drop in the one-month price total return. Investors may want to consider this recent market performance in the context of the company’s long-term growth prospects and the broader economic environment. For those interested in a deeper analysis, there are additional InvestingPro Tips available, providing more nuanced insights into Custom Truck One Source’s financial outlook. To access these insights and more, visit InvestingPro and consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
