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    Brian Brophy

    Managing Director and Senior Equity Analyst at Stifel Financial Corp

    Brian Brophy is a Managing Director and Senior Equity Analyst at Stifel Financial Corp, specializing in the industrials and materials sectors with a particular focus on companies like Quanta Services, MYR Group, MasTec, Martin Marietta Materials, Limbach Holdings, Custom Truck One Source, and Titan America. His stock recommendations have achieved a success rate of 91.5% with an average return of 33.2%, ranking him among the top 100 Wall Street analysts and earning a 4.88-star rating for research performance. Brophy began his analyst career over a decade ago and joined Stifel after prior roles at other leading investment firms, building deep sector expertise since 2013. He holds multiple securities licenses and is registered with FINRA, ensuring high professional standards in his investment research.

    Brian Brophy's questions to Everus Construction Group (ECG) leadership

    Brian Brophy's questions to Everus Construction Group (ECG) leadership • Q2 2025

    Question

    Brian Brophy from Stifel Financial Corp. asked about the book-to-bill ratio being below one, the nature of large project activity in the T&D segment, and the expected growth rates for the E&M and T&D segments in the second half of the year.

    Answer

    CEO Jeffrey Thiede explained the book-to-bill ratio reflects the lumpiness of backlog and record Q2 revenue, noting the year-to-date ratio is a strong 1.1. He also highlighted the company's disciplined project selection for large T&D opportunities. CFO Maximillian Marcy projected that in the second half, T&D growth would continue at its current rate, while E&M growth, though tempered from H1, would likely outpace T&D.

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    Brian Brophy's questions to Everus Construction Group (ECG) leadership • Q2 2025

    Question

    Brian Brophy from Stifel Financial Corp. questioned if the sub-1.0 book-to-bill ratio reflected changing demand or award lumpiness. He also requested more detail on large project activity in the T&D segment and guidance on relative growth rates for the E&M and T&D segments in the second half.

    Answer

    President, CEO & Director Jeffrey Thiede clarified that the quarterly book-to-bill ratio was a result of backlog lumpiness and record revenue pull-forwards, highlighting a strong year-to-date book-to-bill of 1.1. On T&D large projects, he emphasized a disciplined bidding process and the segment's strong reputation and backlog growth. CFO Maximillian Marcy added that second-half growth rates would likely be tempered due to tougher comps, projecting the T&D segment to maintain its pace while the E&M segment would likely see outsized growth.

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    Brian Brophy's questions to Everus Construction Group (ECG) leadership • Q2 2025

    Question

    Brian Brophy from Stifel Financial Corp. asked about the book-to-bill ratio being below one, the nature of large project activity in the T&D segment, and the expected growth rate differences between the E&M and T&D segments for the second half of the year.

    Answer

    CEO Jeffrey Thiede attributed the book-to-bill ratio to the lumpiness of backlog and record Q2 revenues, highlighting a strong year-to-date ratio of 1.1. He also confirmed they are selectively pursuing large T&D projects where they have a strong fit. CFO Maximillian Marcy projected that second-half growth rates would be tempered due to tougher comps, with the T&D segment continuing at its current rate and the E&M segment likely growing at a faster pace.

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    Brian Brophy's questions to Everus Construction Group (ECG) leadership • Q2 2025

    Question

    Brian Brophy from Stifel Financial Corp. asked about the sub-1.0 book-to-bill ratio, the nature of large project activity in the T&D segment, and the expected growth rates for the E&M and T&D segments in the second half of the year.

    Answer

    CEO Jeffrey Thiede attributed the book-to-bill ratio to the 'lumpiness' of backlog and record Q2 revenue, noting the year-to-date ratio is a strong 1.1. On T&D, he confirmed they are selectively bidding on large projects that fit their expertise. CFO Maximillian Marcy added that H2 growth rates will likely be tempered due to tougher comps, with T&D continuing at its current rate and E&M expected to grow at a faster pace.

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    Brian Brophy's questions to Everus Construction Group (ECG) leadership • Q4 2024

    Question

    Brian Brophy inquired about the project pipeline, the sequential slowdown in backlog, higher-than-expected corporate expenses, and the drivers behind the forecasted year-over-year decline in 2025 EBITDA margin, excluding dis-synergies.

    Answer

    Executive Jeff Thiede attributed the sequential backlog change to timing, emphasizing the 38% year-over-year growth and strong demand in data centers and industrial markets. Executive Maximillian Marcy explained that Q4 corporate expenses were elevated due to the timing of audit fees and building out the new corporate team, but the full-year dis-synergy forecast of $28 million remains firm. Both executives stated the 2025 margin guidance reflects a return to 'more normal' project execution levels, compared to the exceptionally strong project efficiencies achieved in 2024.

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    Brian Brophy's questions to MARTIN MARIETTA MATERIALS (MLM) leadership

    Brian Brophy's questions to MARTIN MARIETTA MATERIALS (MLM) leadership • Q2 2025

    Question

    Brian Brophy requested more information on the land purchases that increased CapEx guidance, asking if they were for greenfield sites or adjacent to existing operations.

    Answer

    CEO C. Howard Nye clarified that the purchases are primarily adjacent to existing quarries, a strategy he views as more constructive than greenfielding. He explained this approach not only adds land but also unlocks existing reserves from setbacks, creating multiple benefits. He expects CapEx to return to more normalized levels next year.

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    Brian Brophy's questions to Limbach Holdings (LMB) leadership

    Brian Brophy's questions to Limbach Holdings (LMB) leadership • Q2 2025

    Question

    Brian Brophy of Stifel Financial Corp questioned if the revised guidance was solely due to the Pioneer acquisition or if organic projections were also lowered. He also asked about the drivers behind the sequential decline in ODR backlog and the performance of recently hired on-site account managers.

    Answer

    President and CEO Michael McCann attributed the guidance revision primarily to a conservative and measured approach for the Pioneer Power acquisition, their largest to date. He explained the ODR backlog decline was a matter of timing, as some work burns through quickly. McCann also highlighted the recent hiring of SVP of Sales Amy Dorsett as pivotal for improving the conversion of technical sales to financial sales. Regarding new sales hires, he noted that they are performing as expected, with a typical ramp-up period meaning their full contributions will be more visible in the following year.

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    Brian Brophy's questions to Limbach Holdings (LMB) leadership • Q1 2025

    Question

    Brian Brophy asked about the significance of the business acceleration seen in March, any impact from the ongoing HVAC refrigerant change-out, and the company's M&A cadence in light of increased competition from private equity.

    Answer

    Michael McCann (executive) attributed the March acceleration to normal seasonality combined with a growing ODR mix and the productivity of new sales hires. He noted that refrigerant changes act as a helpful decision point for customers. On M&A, he stated that heavy private equity activity helps differentiate Limbach's patient, strategic approach, making the company a unique option for sellers, while reaffirming the goal of acquiring $8 million to $10 million in adjusted EBITDA annually.

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    Brian Brophy's questions to Limbach Holdings (LMB) leadership • Q4 2024

    Question

    Brian Brophy sought clarification on the Q1 2025 outlook, the reasons for strong GCR gross margins in Q4, and plans for hiring account managers. He also asked about the potential to grow the MSA count and the company's exposure to the data center market.

    Answer

    Executive Jayme Brooks confirmed the Q1 2025 outlook is for total revenue to be similar to Q1 2024 and noted that Q4 GCR margins benefited from a $2.9 million write-up. Executive Michael McCann added that confidence in full-year growth stems from seasonality, the maturing ODR mix, and recent acquisitions. He stated they are still in 'investment mode' for account managers and that MSA growth will primarily come from M&A. Regarding data centers, McCann clarified their focus is on servicing existing infrastructure, not new construction, which they exited years ago.

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    Brian Brophy's questions to MSA Safety (MSA) leadership

    Brian Brophy's questions to MSA Safety (MSA) leadership • Q2 2025

    Question

    Brian Brophy from Stifel noted the book-to-bill ratio was slightly below one and asked for details on areas of relative strength versus softness in the order book. He also followed up on the strength in fall protection, asking about the key drivers and the growth outlook for the second half.

    Answer

    President & CEO Steven Blanco clarified that order pace was up in Industrial and Detection but down in Fire Service, consistent with expectations. He highlighted that fall protection and detection are performing as planned under the Accelerate strategy, driven by share gains. Blanco attributed the double-digit growth in fall protection to recent product innovation, improved inventory positions, and strong commercial execution, stating he expects this momentum to continue.

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    Brian Brophy's questions to MASTEC (MTZ) leadership

    Brian Brophy's questions to MASTEC (MTZ) leadership • Q2 2025

    Question

    Brian Brophy of Stifel Financial Corp asked for more color on the project inefficiencies mentioned for the Power Delivery segment, questioning if they were related to a specific project like Greenlink and how they might impact the second half.

    Answer

    CEO José R. Mas clarified that there was nothing significant to highlight regarding the inefficiencies, attributing some impact to weather and geographic mix. He reiterated that despite leaving some margin on the table, the segment still grew revenue and EBITDA year-over-year in the first half. He expressed confidence that the business would achieve double-digit margins in the third and fourth quarters as guided.

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    Brian Brophy's questions to MASTEC (MTZ) leadership • Q1 2025

    Question

    Brian Brophy asked about the reasons for the downward revision in depreciation guidance and how MasTec is thinking about structural changes to the capital requirements of the business.

    Answer

    CFO Paul DiMarco explained that the company continues to evaluate the useful lives of its assets and that a focus on fleet utilization is driving efficiency. He expects a downward trend in depreciation relative to revenue. CEO Jose Mas added that improving fleet utilization is a key part of their hyper-focus on enhancing overall company margins.

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    Brian Brophy's questions to MASTEC (MTZ) leadership • Q4 2024

    Question

    Brian Brophy of Stifel asked about MasTec's capacity to take on additional large transmission projects beyond Greenlink. He also questioned the drivers behind the Q4 pipeline margins and the rationale for the guided margin decline in 2025.

    Answer

    CEO Jose Mas stated that the company is ready to take on a second major transmission project and hopes to be awarded one in 2025 for simultaneous execution in 2026. He explained the 2025 pipeline margin guidance reflects fixed cost absorption on lower revenue, while Q4 2024 margins were impacted by weather and some project completion costs. He also noted MasTec's history of outperforming its pipeline guidance.

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    Brian Brophy's questions to MASTEC (MTZ) leadership • Q3 2024

    Question

    Brian Brophy of Stifel inquired about the timeline for the recently announced Lumen fiber project and asked for the expected financial contribution from emergency storm restoration in the Power Delivery segment.

    Answer

    CEO Jose Mas indicated that the Lumen project is expected to begin some minor work before year-end, with the majority ramping up in 2025 as part of a multi-year build. Regarding storm work, he noted the Q3 impact was minimal (under $15 million), but a more significant contribution is expected in Q4 and is reflected in the segment's updated revenue guidance.

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    Brian Brophy's questions to EMCOR Group (EME) leadership

    Brian Brophy's questions to EMCOR Group (EME) leadership • Q2 2025

    Question

    Brian Brophy of Stifel Financial Corp. inquired about the project pipeline in pharmaceutical manufacturing, particularly given tariff discussions, and asked for more detail on the recently awarded Phase II semiconductor project.

    Answer

    CEO Tony Guzzi confirmed significant activity in pharma manufacturing, driven by both new drug production (e.g., GLP-1s) and a broader onshoring trend that he expects to accelerate. Regarding the semiconductor project, Guzzi clarified that the Phase II award is a substantial project, valued at over $100 million, for a second fab on an existing site where EMCOR is repeating its successful work from the first phase.

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    Brian Brophy's questions to EMCOR Group (EME) leadership • Q2 2025

    Question

    Brian Brophy from Stifel Financial Corp. questioned the project pipeline for pharma manufacturing and sought details on the recently announced Phase II semiconductor project award.

    Answer

    Chairman, President & CEO Tony Guzzi confirmed seeing significant activity in pharma manufacturing, driven by both new drug production (like GLP-1s) and the onshoring of manufacturing, which he expects to accelerate. Regarding the semiconductor project, Guzzi clarified that the Phase II award is a substantial project worth over $100 million, representing the next fab on a site where EMCOR is repeating its successful work from the first phase.

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    Brian Brophy's questions to EMCOR Group (EME) leadership • Q1 2025

    Question

    Brian Brophy of Stifel inquired about the data center market, asking if EMCOR is seeing any impact from reports of hyperscalers adjusting commitments. He also sought clarification on the key drivers behind the updated EPS guidance, specifically the role of share buybacks and the treatment of Miller transaction costs.

    Answer

    CEO Tony Guzzi responded that EMCOR is seeing an acceleration in data center activity, with more searches for power and larger project scopes, and that customer requests for EMCOR's involvement have increased. Regarding guidance, Guzzi explained the original range already contemplated all impacts from the Miller acquisition, including transaction costs. He stated the update was based on a strong Q1 performance and confidence in their operating margin targets for the year, rather than specific adjustments for buybacks.

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    Brian Brophy's questions to MYR GROUP (MYRG) leadership

    Brian Brophy's questions to MYR GROUP (MYRG) leadership • Q2 2025

    Question

    Brian Brophy from Stifel Financial Corp asked for an update on the full-year growth outlook for the T&D segment. He noted that strong recent performance and order activity might suggest potential upside to the previously communicated high single-digit growth target, excluding clean energy headwinds.

    Answer

    SVP & CFO Kelly Huntington reaffirmed the full-year expectation for high single-digit growth in the T&D segment (excluding solar) and the C&I segment. She noted that while the market outlook is strong, the timing of project ramp-ups and material expenses can cause some quarterly revenue variability, but the annual guidance remains intact.

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    Brian Brophy's questions to MYR GROUP (MYRG) leadership • Q1 2025

    Question

    Brian Brophy requested more details on the sizable transmission project award in Virginia mentioned in the prepared remarks, asking about its name, size, and timing. He also inquired about the potential impact of tariffs on the company's cost profile and margins, particularly for fixed-price contracts in the C&I segment.

    Answer

    President and CEO Richard Swartz explained the Virginia project is a mid-sized award (under $100 million) that will contribute to revenue this year, but the client requested confidentiality. He noted any new large project wins would primarily impact 2026 revenue. Regarding tariffs, Swartz stated the impact is currently unknown but is being monitored closely, with newer contracts containing stronger protective language. He affirmed the company still expects to achieve its mid-range margin targets for the year.

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    Brian Brophy's questions to MYR GROUP (MYRG) leadership • Q4 2024

    Question

    Brian Brophy asked if conversations with customers regarding claims or change orders on the previously challenged projects have concluded, and if there is potential for any related financial impact, positive or negative, in 2025.

    Answer

    President and CEO Richard Swartz stated that while some issues have been settled, other discussions are ongoing. He noted that while there is always a possibility of impacts as projects are closed out, the company currently believes it has adequately accounted for these projects in its financial reporting. He indicated that any potential positive or negative outcome is not expected to be material enough to 'move the needle' based on current information. CFO Kelly Huntington reiterated that financial estimates are updated quarterly to reflect the most current information available.

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    Brian Brophy's questions to MYR GROUP (MYRG) leadership • Q3 2024

    Question

    Brian Brophy asked about the key drivers behind the strong growth in the C&I backlog and inquired about the company's capital deployment priorities after exhausting its share repurchase authorization.

    Answer

    Executive Richard Swartz attributed the C&I backlog growth to broad-based activity across multiple markets, including a notable ~$100 million project at the Hollywood Burbank Airport, rather than any single large project. On capital deployment, CFO Kelly Huntington stated that the primary focus is on funding growth, both organically and through potential tuck-in acquisitions. She added that share repurchases remain an opportunistic option given the company's strong balance sheet.

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    Brian Brophy's questions to QUANTA SERVICES (PWR) leadership

    Brian Brophy's questions to QUANTA SERVICES (PWR) leadership • Q2 2025

    Question

    Brian Brophy of Stifel asked about recent acquisitions in the fragmented civil space and Quanta's strategy for continued M&A, including the potential for larger platform-like deals.

    Answer

    President & CEO Duke Austin characterized the Dynamic Systems deal as a platform acquisition with exponential growth potential, similar to past acquisitions of Cupertino and Blattner. He emphasized that Quanta is not actively seeking deals but responds to inbound opportunities from great family companies that fit strategically. He noted these acquisitions provide self-perform capabilities that support the overall solution for customers across Quanta's key end markets.

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    Brian Brophy's questions to QUANTA SERVICES (PWR) leadership • Q1 2025

    Question

    Brian Brophy asked for clarification on what is included in the new 'technology and load center' market bucket and what is driving its strong growth rate.

    Answer

    CFO Jayshree Desai explained the bucket includes work from Cupertino as well as legacy Quanta's inside electrical work for data centers and semiconductor plants. President and CEO Duke Austin added that this category represents the massive and rapidly growing technology infrastructure addressable market.

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    Brian Brophy's questions to QUANTA SERVICES (PWR) leadership • Q4 2024

    Question

    Brian Brophy requested an outlook for the communications business and asked for more detail on the significance of the recently announced Lumin contract.

    Answer

    President & CEO Earl Austin used the Lumin award to highlight that the communications business continues to grow nicely, driven by significant fiber demand from data centers and long-haul projects. He noted that while this business sometimes goes unnoticed, it is a key part of Quanta's expanding total addressable market and a contributor to overall growth.

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    Brian Brophy's questions to QUANTA SERVICES (PWR) leadership • Q3 2024

    Question

    Brian Brophy from Stifel asked about the strong free cash flow performance, noting that the conversion rate from EBITDA is tracking above long-term targets. He questioned whether this higher conversion level is sustainable.

    Answer

    CFO Jayshree Desai attributed the strong performance to a favorable mix of work, particularly working capital-accretive renewables contracts, and improved collections. While the long-term target remains 45-55% conversion, she noted that with Cupertino, they have opportunities to perform at the high end of that range. CEO Earl "Duke" Austin added that the delayed collection of a Canadian project payment is currently weighing on the results but is expected in the next year.

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    Brian Brophy's questions to Titan America (TTAM) leadership

    Brian Brophy's questions to Titan America (TTAM) leadership • Q2 2025

    Question

    Brian Brophy asked for an update on the company's Type 1T low-carbon cement investments, focusing on customer adoption and the outlook for the product line over the next few years.

    Answer

    CFO Larry Wilt noted good demand for current 1T products from customers in the data center and warehouse sectors. CEO Bill Zarkalis added that the company continues to invest in its long-term calcined clay project and is producing commercial quantities of 1T cement, which are channeled through its own ready mix operations and select customers. He highlighted that a new high-performance grade was recently approved by the Florida DOT.

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    Brian Brophy's questions to Titan America (TTAM) leadership • Q4 2024

    Question

    Brian Brophy requested more color on the 2025 outlook by material, particularly any differences in price versus volume expectations for cement compared to ready-mix. He also asked about the strategic rationale for the D.M. Conner acquisition and its expected contribution.

    Answer

    CEO Vassilios Zarkalis stated that positive pricing momentum is expected across all product lines, noting that in 2024 this momentum extended from upstream products to downstream ones like concrete and block. Regarding the D.M. Conner acquisition, Zarkalis explained its key strategic value was securing decades of mineral reserves, which will serve as both a raw material for the Roanoke kiln and a critical component for developing novel cementitious materials like calcined clay.

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    Brian Brophy's questions to EAGLE MATERIALS (EXP) leadership

    Brian Brophy's questions to EAGLE MATERIALS (EXP) leadership • Q1 2026

    Question

    Brian Brophy from Stifel Financial Corp. inquired about the factors behind lower-than-expected JV operating earnings and asked if the strong profitability in concrete and aggregates represents a new sustainable run rate.

    Answer

    EVP & CFO Craig Kesler explained that JV earnings were negatively impacted by the commissioning of the slide facility and weather-related volume declines in Texas. Regarding concrete and aggregates, he confirmed the margin recovery was not due to one-time benefits and reflected strong performance, though it will be subject to normal seasonality.

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    Brian Brophy's questions to EAGLE MATERIALS (EXP) leadership • Q4 2025

    Question

    Brian Brophy asked about Eagle Materials' philosophical approach to deploying capital for large modernization projects, including return hurdles and payback periods, and also inquired about the use of alternative fuels in the cement business.

    Answer

    CEO Michael Haack stated that the company invests in assets and markets it knows well, viewing the current projects as high-return opportunities. CFO D. Kesler added that Eagle targets a 15% cash-on-cash after-tax return and that the current projects do not preclude further M&A or capital returns. Regarding fuels, Haack explained that projects at the Kosmos and Illinois cement facilities use tires and other products to gain a CO2 benefit and fuel source flexibility.

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    Brian Brophy's questions to COMFORT SYSTEMS USA (FIX) leadership

    Brian Brophy's questions to COMFORT SYSTEMS USA (FIX) leadership • Q2 2025

    Question

    Brian Brophy of Stifel Financial Corp. inquired about the competitive landscape for modular construction and asked for an update on the performance and drivers of the healthcare end market.

    Answer

    EVP & CFO William George stated that while customers encourage competition in modular, Comfort Systems' goal is to be the undisputed best provider. CEO Brian Lane confirmed that the healthcare market is showing consistent strength, driven by new hospital construction, facility expansions, and the development of smaller outpatient surgical centers, particularly in the southern U.S.

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    Brian Brophy's questions to COMFORT SYSTEMS USA (FIX) leadership • Q2 2025

    Question

    Brian Brophy from Stifel Financial Corp. asked for an update on the competitive landscape for modular construction and for color on the growth drivers within the healthcare end market.

    Answer

    EVP & CFO William George stated that while customers encourage competition in modular, Comfort Systems aims to be the best provider, making them the preferred choice. CEO Brian Lane noted that healthcare strength is driven by new hospital builds, expansions, and outpatient surgical centers, particularly in the South, a trend observed for over a year.

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    Brian Brophy's questions to COMFORT SYSTEMS USA (FIX) leadership • Q2 2025

    Question

    Brian Brophy of Stifel asked about the competitive landscape for modular construction, including any new entrants, and requested an update on the performance and outlook for the healthcare end market.

    Answer

    EVP & CFO William George stated that while customers encourage competition in modular, Comfort Systems' goal is to be so proficient that they are the clear best choice. CEO Brian Lane confirmed continued strength in the healthcare market, citing new hospital builds, expansions, and outpatient surgical centers, particularly in the southern U.S.

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    Brian Brophy's questions to COMFORT SYSTEMS USA (FIX) leadership • Q2 2025

    Question

    Brian Brophy from Stifel Financial inquired about the competitive landscape for the modular business, including new entrants, and its influence on capacity expansion. He also asked for an update on the growing healthcare end market.

    Answer

    EVP & CFO William George stated that while customers encourage competition in modular, Comfort Systems' goal is to be the undisputed best provider. CEO Brian Lane confirmed continued strength in the healthcare market, noting new hospital builds, expansions, and outpatient surgical centers, particularly in the South, which has been a consistent trend for over a year.

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    Brian Brophy's questions to COMFORT SYSTEMS USA (FIX) leadership • Q2 2025

    Question

    Brian Brophy from Stifel asked for an update on the competitive landscape for modular construction and whether it's influencing capacity expansion. He also inquired about trends in the healthcare end market, which showed meaningful growth.

    Answer

    EVP & CFO William George acknowledged that customers encourage competition in modular, but Comfort Systems' goal is to be so proficient that they remain the best choice. CEO Brian Lane confirmed strength in the healthcare market, noting new hospital builds, expansions, and smaller outpatient surgical centers, particularly in the South, as a consistent trend for over a year.

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    Brian Brophy's questions to COMFORT SYSTEMS USA (FIX) leadership • Q1 2025

    Question

    Brian Brophy of Stifel asked about the outlook for SG&A leverage, which appeared to slow in the quarter. He also sought clarification on the working capital unwind from advanced customer payments, asking if the full amount had been realized and if other major cash flow items were anticipated for the year.

    Answer

    CFO William George responded that significant SG&A leverage has likely 'run its course' and should not be considered a primary driver of future margin expansion, as the company is actively investing in growth. Regarding working capital, he confirmed that the majority of the advance payment unwind occurred in Q1. He noted that while a smaller amount may still unwind, it is expected to be offset by a large tax refund received in Q2, effectively making the issue a 'thing of the past.'

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    Brian Brophy's questions to COMFORT SYSTEMS USA (FIX) leadership • Q4 2024

    Question

    Brian Brophy of Stifel Financial Corp. questioned the updated same-store sales growth guidance for 2025, the drivers behind lower mechanical orders year-over-year, the technical differences in building AI data centers, and any changes in contract terms.

    Answer

    CFO William George clarified that the high single-digit growth guidance for 2025 is a function of math against a much higher-than-expected Q4 revenue base, not a reflection of less available work. He noted that while Q4 didn't have the same gigantic modular orders as the prior year, the plants are full. On AI data centers, George stated the true build-out is in its infancy but will involve unbelievable power density. He also confirmed that favorable market conditions allow them to be selective on contract terms.

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    Brian Brophy's questions to Custom Truck One Source (CTOS) leadership

    Brian Brophy's questions to Custom Truck One Source (CTOS) leadership • Q1 2025

    Question

    Brian Brophy's associate asked about rental rate trends in the ERS business during Q1 and the outlook for 2025, and also inquired about the expected trajectory for TES gross margins for the rest of the year.

    Answer

    CFO Chris Eperjesy addressed rental rates, noting that on-rent yield was flat sequentially and serves as a good guide for the year, with a potential 100 basis point improvement as rate increases flow through. CEO Ryan McMonagle handled the TES margin question, reaffirming the target range of 15% to 18% on a quarterly basis while acknowledging that mix and customer factors can cause fluctuations.

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    Brian Brophy's questions to Custom Truck One Source (CTOS) leadership • Q4 2024

    Question

    Andrew, on behalf of Brian Brophy from Stifel, asked for an estimate of the benefit from emergency restoration work in the quarter. He also inquired about the company's future strategy regarding real estate property sales.

    Answer

    CEO Ryan McMonagle stated that while there was some ongoing benefit from emergency restoration work, it was less than in previous quarters and not significant enough to quantify. He also clarified that the recent sale-leaseback transaction covered the majority of their owned properties and the company does not plan similar sales in the future, viewing it as a one-time event.

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    Brian Brophy's questions to Evercore (EVR) leadership

    Brian Brophy's questions to Evercore (EVR) leadership • Q4 2024

    Question

    Brian Brophy from Stifel asked about the project pipeline, backlog trends following a sequential slowdown, the drivers for higher-than-expected corporate expenses, and the rationale behind the lower 2025 EBITDA margin guidance, excluding dis-synergies.

    Answer

    Executive Jeff Thiede attributed the sequential backlog change to project timing, emphasizing the 38% year-over-year growth and strong demand in data centers, industrial, and T&D markets. Executive Maximillian Marcy clarified that higher corporate costs were due to building out the corporate team and the timing of audit fees, reaffirming the $28 million full-year dis-synergy forecast. Both executives noted the 2025 margin guidance assumes a more 'normal' level of project execution compared to the exceptionally strong performance in 2024.

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