Question · Q3 2025
Mike Schlitzky asked for an overview of performance in the infrastructure, telecom, and rail sectors, the role of Custom Truck One Source in data center-related T&D projects, and details on the CapEx plan, including potential pull-forwards and strategies for debt reduction through fleet aging.
Answer
CEO Ryan McMonagle stated overall growth across sectors, with the strongest growth in T&D. He noted some activity pickup in telecom and rail (which are less than 5% of revenue) but less growth in categories with higher inventory like dump trucks and refuse. For data center T&D, Mr. McMonagle sees it as sustained demand, with temporary generation often preceding utility transmission lines. CFO Christopher Eperjesy confirmed the ability to pull back on net CapEx investment, noting the fleet age has reduced from over four years to 2.9 years, and expects improved free cash flow by allowing the fleet to age within a competitive range.