Custom Truck One Source (CTOS) 10-Q 9 May 23 2023 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2023	May 04, 2023
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-38186
Entity Registrant Name	CUSTOM TRUCK ONE SOURCE, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	84-2531628
Entity Address, Address Line One	7701 Independence Ave
Entity Address, City or Town	Kansas City
Entity Address, State or Province	MO
Entity Address, Postal Zip Code	64125
City Area Code	816
Local Phone Number	241-4888
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		246,086,014
Entity Central Index Key	0001709682
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q1
Amendment Flag	false
Common Stock, $0.0001 par value per share
Document Information [Line Items]
Title of 12(b) Security	Common Stock, $0.0001 par value per share
Trading Symbol	CTOS
Security Exchange Name	NYSE
Redeemable warrants, exercisable for Common Stock, $0.0001 par value per share
Document Information [Line Items]
Title of 12(b) Security	Redeemable warrants, exercisable for Common Stock, $0.0001 par value per share
Trading Symbol	CTOS.WS
Security Exchange Name	NYSE

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current Assets
Cash and cash equivalents	$ 32,218	$ 14,360
Accounts receivable, net	167,640	193,106
Financing receivables, net	46,122	38,271
Inventory	714,354	596,724
Prepaid expenses and other	29,462	25,784
Total current assets	989,796	868,245
Property and equipment, net	128,839	121,956
Rental equipment, net	894,557	883,674
Goodwill	703,848	703,827
Intangible assets, net	297,486	304,132
Operating lease assets	28,509	29,434
Other assets	26,348	26,944
Total Assets	3,069,383	2,938,212
Current Liabilities
Accounts payable	126,041	87,255
Accrued expenses	70,113	68,784
Deferred revenue and customer deposits	32,360	34,671
Floor plan payables - trade	159,029	136,634
Floor plan payables - non-trade	312,470	293,536
Operating lease liabilities - current	5,220	5,262
Current maturities of long-term debt	5,243	6,940
Current portion of finance lease obligations	852	1,796
Total current liabilities	711,328	634,878
Long-term debt, net	1,394,039	1,354,766
Finance leases	3,142	3,206
Operating lease liabilities - noncurrent	23,932	24,818
Deferred income taxes	29,615	29,086
Derivative, warrants and other liabilities	2,490	3,015
Total long-term liabilities	1,453,218	1,414,891
Commitments and contingencies (see Note 15)
Stockholders' Equity
Common stock — $0.0001 par value, 500,000,000 shares authorized, 248,441,588 and 248,311,104 shares issued and outstanding, at March 31, 2023 and December 31, 2022, respectively	25	25
Treasury stock, at cost — 2,427,395 and 2,241,069 shares at March 31, 2023 and December 31, 2022, respectively	(16,736)	(15,537)
Additional paid-in capital	1,524,938	1,521,487
Accumulated other comprehensive loss	(8,605)	(8,947)
Accumulated deficit	(594,785)	(608,585)
Total stockholders' equity	904,837	888,443
Total Liabilities and Stockholders' Equity	$ 3,069,383	$ 2,938,212

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (unaudited) (Parentheticals) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, authorized (in shares)	500,000,000	500,000,000
Common stock, issued (in shares)	248,441,588	248,311,104
Common stock, outstanding (in shares)	248,441,588	248,311,104
Treasury stock (in shares)	2,427,395	2,241,069

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenue
Total revenue	$ 452,163	$ 366,476
Cost of Revenue
Depreciation of rental equipment	40,330	44,964
Total cost of revenue	342,502	281,983
Gross Profit	109,661	84,493
Operating Expenses
Selling, general and administrative expenses	56,991	53,655
Amortization	6,672	13,335
Non-rental depreciation	2,650	3,047
Transaction expenses and other	3,460	4,648
Total operating expenses	69,773	74,685
Operating Income (Loss)	39,888	9,808
Other Expense
Interest expense, net	29,176	19,156
Financing and other expense (income)	(3,951)	(9,080)
Total other expense	25,225	10,076
Income (Loss) Before Income Taxes	14,663	(268)
Income Tax Expense (Benefit)	863	3,005
Net Income (Loss)	13,800	(3,273)
Other Comprehensive Income (Loss):
Unrealized foreign currency translation adjustments	342	0
Other Comprehensive Income (Loss)	342	0
Comprehensive Income (Loss)	$ 14,142	$ (3,273)
Net Income (Loss) Per Share:
Basic (in dollars per share)	$ 0.06	$ (0.01)
Diluted (in dollars per share)	$ 0.06	$ (0.01)
Weighted-Average Common Shares Outstanding:
Basic (in shares)	246,049	247,058
Diluted (in shares)	247,053	247,058
Rental revenue
Revenue
Total revenue	$ 118,288	$ 109,145
Cost of Revenue
Cost of rental revenue	29,899	25,793
Equipment sales
Revenue
Total revenue	301,290	227,186
Cost of Revenue
Cost of rental revenue	246,125	187,278
Parts sales and services
Revenue
Total revenue	32,585	30,145
Cost of Revenue
Cost of rental revenue	$ 26,148	$ 23,948

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Operating Activities
Net income (loss)	$ 13,800	$ (3,273)
Adjustments to reconcile net income (loss) to net cash flow from operating activities:
Depreciation and amortization	52,091	62,500
Amortization of debt issuance costs	2,407	1,326
Provision for losses on accounts receivable	1,872	2,811
Share-based compensation	3,147	3,364
Gain on sales and disposals of rental equipment	(21,320)	(5,420)
Change in fair value of derivative and warrants	(525)	(5,767)
Deferred tax expense	514	2,849
Changes in assets and liabilities:
Accounts and financing receivables	17,161	(33,520)
Inventories	(117,580)	(51,384)
Prepaids, operating leases and other	(4,987)	(4,637)
Accounts payable	35,916	29,869
Accrued expenses and other liabilities	1,328	(5,343)
Floor plan payables - trade, net	22,395	(13,031)
Customer deposits and deferred revenue	(2,313)	(10,115)
Net cash flow from operating activities	3,906	(29,771)
Investing Activities
Acquisition of business, net of cash acquired	0	(50,513)
Purchases of rental equipment	(109,145)	(45,945)
Proceeds from sales and disposals of rental equipment	78,626	49,961
Purchase of non-rental property and cloud computing arrangements	(9,429)	(1,961)
Net cash flow from investing activities	(39,948)	(48,458)
Financing Activities
Proceeds from debt	13,537	75
Share-based payments	228	(6)
Borrowings under revolving credit facilities	35,000	50,000
Repayments under revolving credit facilities	(10,331)	(34,844)
Repayments of notes payable	(2,020)	(1,872)
Finance lease payments	(377)	(2,275)
Repurchase of common stock	(1,122)	0
Acquisition of inventory through floor plan payables - non-trade	187,381	140,126
Repayment of floor plan payables - non-trade	(168,447)	(85,066)
Net cash flow from financing activities	53,849	66,138
Effect of exchange rate changes on cash and cash equivalents	51	0
Net Change in Cash and Cash Equivalents	17,858	(12,091)
Cash and Cash Equivalents at Beginning of Period	14,360	35,902
Cash and Cash Equivalents at End of Period	32,218	23,811
Supplemental Cash Flow Information
Interest paid	13,130	4,865
Income taxes paid	10	0
Non-Cash Investing and Financing Activities
Rental equipment and property and equipment purchases in accounts payable	2,938	0
Rental equipment sales in accounts receivable	$ 621	$ 23,551

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity (Deficit) (unaudited) - USD ($) $ in Thousands	Total	Common Stock	Treasury Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2021		247,358,412
Beginning balance (in shares) at Dec. 31, 2021			(318,086)
Beginning balance at Dec. 31, 2021	$ 858,510	$ 25	$ (3,020)	$ 1,508,995	$ 0	$ (647,490)
Increase (Decrease) in Stockholders' Deficit [Roll Forward]
Net income (loss)	(3,273)					(3,273)
Other Comprehensive Income	0
Share-based payments (in shares)		102,630	21,505
Share-based payments	3,272		$ (287)	3,559
Ending balance (in shares) at Mar. 31, 2022		247,461,042
Ending balance (in shares) at Mar. 31, 2022			(339,591)
Ending balance at Mar. 31, 2022	$ 858,509	$ 25	$ (3,307)	1,512,554	0	(650,763)
Beginning balance (in shares) at Dec. 31, 2022	248,311,104	248,311,104
Beginning balance (in shares) at Dec. 31, 2022	(2,241,069)		(2,241,069)
Beginning balance at Dec. 31, 2022	$ 888,443	$ 25	$ (15,537)	1,521,487	(8,947)	(608,585)
Increase (Decrease) in Stockholders' Deficit [Roll Forward]
Net income (loss)	13,800					13,800
Other Comprehensive Income	342				342
Common stock repurchases (in shares)			(174,744)
Common stock repurchase	(1,122)		$ (1,122)
Share-based payments (in shares)		130,484	11,582
Share-based payments	$ 3,374		$ (77)	3,451
Ending balance (in shares) at Mar. 31, 2023	248,441,588	248,441,588
Ending balance (in shares) at Mar. 31, 2023	(2,427,395)		(2,427,395)
Ending balance at Mar. 31, 2023	$ 904,837	$ 25	$ (16,736)	$ 1,524,938	$ (8,605)	$ (594,785)

Business and Organization

Business and Organization	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business and Organization	Note 1: Business and Organization Organization Custom Truck One Source, Inc., a Delaware corporation, and its wholly owned subsidiaries (“we,” “our,” “us,” or “the Company”) are engaged in the business of providing a range of products and services to customers through rentals and sales of specialty equipment, rentals and sales of aftermarket parts and services related to the specialty equipment, and repair, maintenance and customization services related to that equipment. We are a specialty equipment provider to the electric utility transmission and distribution, telecommunications, rail and other infrastructure-related industries in North America. Our core business relates to our new equipment inventory and rental fleet of specialty equipment that is utilized by service providers in infrastructure development and improvement work. We offer our specialized equipment to a diverse customer base, including utilities and contractors, for the maintenance, repair, upgrade, and installation of critical infrastructure assets, including distribution and transmission electric lines, telecommunications networks and rail systems, as well as for lighting and signage. We rent, produce, sell and service a broad range of new and used equipment, including bucket trucks, digger derricks, dump trucks, cranes, service trucks, and heavy-haul trailers. We manage the business in three reporting segments: Equipment Rental Solutions (“ERS”), Truck and Equipment Sales (“TES”) and Aftermarket Parts and Services (“APS”). Equipment Rental Solutions (“ERS”) Segment We own a broad range of new and used specialty equipment, including truck-mounted aerial lifts, cranes, service trucks, dump trucks, trailers, digger derricks and other machinery and equipment. The majority of our rental fleet can be used across a variety of end-markets, which coincides with the needs of many of our customers who operate in multiple end-markets. As is customary for equipment rental companies, we sell used equipment out of our rental fleet to end-user customers. These sales are often made in response to specific customer requests. These sales offer customers an opportunity to buy well-maintained equipment with long remaining useful lives and enable us to effectively manage the age and mix of our rental fleet to match current market demand. We also employ rental purchase options on a select basis, which provide a buyout option with an established purchase price that decreases over time as rental revenue is collected. Customers are given credit against such purchase price for a portion of the amounts paid over the life of the rental, allowing customers the flexibility of a rental with the option to purchase at any time at a known price. Activities in our ERS segment consist of the rental and sale from the rental fleet of the foregoing products. Truck and Equipment Sales (“TES”) Segment We offer a broad variety of new equipment for sale to be used across our end-markets, which can be modified to meet our customers’ specific needs. We believe that our integrated production capabilities and extensive knowledge gained over a long history of selling equipment have established us as a trusted partner for customers seeking tailored solutions with short lead times. In support of these activities, we primarily employ a direct-to-customer sales model, leveraging our dedicated sales force of industry and product managers, who are focused on driving national and local sales. We also opportunistically engage in the sale of used equipment purchased from third parties or received via trade-ins from new equipment sales customers. In all of these cases, we will sell used equipment directly to customers, rather than relying on auctions. Activities in our TES segment consist of the production and sale of new and used specialty equipment and vocational trucks, which includes equipment from leading original equipment manufacturers (“OEMs”) across our end-markets, as well as our Load King TM brand. Aftermarket Parts and Services (“APS”) Segment The APS segment includes the sale of specialized aftermarket parts, including captive parts related to our Load King TM brand, used in the maintenance and repair of the equipment we sell and rent. Specialized tools, including stringing blocks, insulated hot stick, and rigging equipment, are sold or rented to our customers on an individual basis or in packaged specialty kits. We also provide truck and equipment maintenance and repair services, which are executed throughout our nationwide branch network and fleet of mobile technicians supported by our 24/7 call center based in Kansas City, Missouri. Supply Chain The Company purchases raw materials, component parts and finished goods to be used in the manufacturing, sale and rental of its products. Uncertainty remains regarding supply chain disruptions, inflationary pressures, public health crises, and geopolitical risks that have led to issues, broadly, in the supply chain. Changes in the Company’s relationships with suppliers, shortages in availability of materials, production delays, regulatory restrictions, public health crises, or other supply chain disruptions, whether due to suppliers or customers, could have a material adverse effect on the Company’s ability to timely manufacture and market products. Increases in the costs of shipping and transportation, purchased raw materials, component parts or finished goods could result in manufacturing interruptions, delays, inefficiencies or the Company’s inability to market products. The unprecedented nature of the supply chain disruptions continues to make it difficult to predict the Company’s future business and financial performance. The Company continues to monitor the impact on its supply chain, including, but not limited to, the commercial vehicle manufacturers that provide the chassis used in the Company’s production and manufacturing processes and the ongoing semiconductor shortage, which could potentially limit the ability of these manufacturers to meet demand in future periods.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2: Summary of Significant Accounting Policies Basis of Presentation Our accompanying condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) and the accounting policies described below. Our condensed consolidated financial statements include the accounts of all wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The preparation of financial statements in accordance with GAAP requires that these Unaudited Condensed Consolidated Financial Statements and most of the disclosures in these Notes be presented on a historical basis, as of or for the current interim period ended or comparable prior period. The accompanying interim statements of the Company have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X, and the Condensed Consolidated Balance Sheet at December 31, 2022, has been derived from the audited consolidated financial statements of Custom Truck One Source, Inc. at that date. Accordingly, these interim financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring adjustments and disclosures necessary for a fair statement of these interim statements, have been included. The results reported in these interim statements are not necessarily indicative of the results that may be reported for the entire year or for any other periods. These interim statements should be read in conjunction with the Custom Truck One Source, Inc. audited consolidated financial statements included in the Custom Truck One Source, Inc. Annual Report on Form 10-K for the year ended December 31, 2022. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Accounting Pronouncements Recently Adopted Contract Assets and Contract Liabilities from Contracts with Customers. In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2021-08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU 2021-08”). This ASU improves the comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination and requires that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. The amended guidance specifies for all acquired revenue contracts regardless of their timing of payment (1) the circumstances in which the acquirer should recognize contract assets and contract liabilities that are acquired in a business combination and (2) how to measure those contract assets and contract liabilities, thereby providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. The ASU was effective as of January 1, 2023. The Company will apply the guidance in ASU 2021-08 prospectively to any future business combinations occurring on or after the effective date. Financing receivables . In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments—Credit Losses (Topic 326) (“ASU 2022-02”), which requires an entity to disclose current period gross write-offs by year of origination for financing receivables and net investment in leases. Gross write-off information must be included in the vintage disclosures, which requires that an entity disclose the amortized cost basis of financing receivables by credit-quality indicator and class of financing receivable by year of origination. The adoption on January 1, 2023 of the ASU had no impact to the Company’s disclosures related to its financing receivables as the Company does not have net investment in leases assets. Trade Receivables and Allowance for Credit Losses We are exposed to credit losses from trade receivables generated through our leasing, sales and service businesses. We assess each customer’s ability to pay for the products and services by conducting a credit review. The credit review considers expected billing exposure and timing for payment and the customer’s established credit rating. We perform a credit review of new customers at inception of the customer relationship and, for existing customers, when the customer transacts new leases or product orders after a period of dormancy. We also consider contract terms and conditions, country risk and business strategy in the evaluation. We monitor ongoing credit exposure through an active review of customer balances against contract terms and due dates. We may employ collection agencies and legal counsel to pursue recovery of defaulted receivables. The allowances for credit losses reflect the estimate of the amount of receivables that management assesses will be unable to be collected based on historical write-off experience and, as applicable, current conditions and reasonable and supportable forecasts that affect collectability. This estimate could require change based on changing circumstances, including changes in the economy or in the particular circumstances of individual customers. Accordingly, we may be required to increase or decrease the allowances. We review the adequacy of the allowance on a quarterly basis. The allowance for doubtful accounts is included in accounts receivable, net on our Condensed Consolidated Balance Sheets. Accounts receivable, net consisted of the following: (in $000s) March 31, 2023 December 31, 2022 Accounts receivables $ 188,040 $ 212,347 Less: allowance for doubtful accounts (20,400) (19,241) Accounts receivable, net $ 167,640 $ 193,106 Fair Value Measurements Fair value is defined as an exit price representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or most advantageous market. Fair value is a market-based measurement that is determined based on inputs, which refer broadly to assumptions that market participants use in pricing assets and liabilities. These inputs can be readily observable, market corroborated, or generally unobservable. Fair Value Hierarchy - In measuring fair value, we use observable market data when available and minimize the use of unobservable inputs. Unobservable inputs may be required to value certain financial instruments due to complexities in contract terms. Inputs used in fair value measurements are categorized into three fair value hierarchy levels for disclosure purposes. The entire fair value measurement is categorized based on the lowest level of input that is significant to the fair value measurement. The three levels of the fair value hierarchy are: Level 1 - Inputs that reflect unadjusted quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur with both sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 - Inputs that reflect quoted prices for similar assets and liabilities are available in active markets, and inputs other than quoted prices that are observable for the assets or liabilities, either directly or indirectly, for substantially the full term of the financial instruments. Level 3 - Inputs that are generally less observable or from unobservable sources in which there is little or no market data. These inputs may be used with internally developed methodologies that result in our best estimate of fair value. Valuation Techniques - Assets and liabilities measured at fair value are based on one or more of the following three valuation techniques: Market approach - Technique that uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. Income approach - Technique that converts future amounts to a single present amount based upon market expectations (including present value techniques, option-pricing, and excess earnings models). Cost approach - Technique that estimates the amount that would be required to replace the service capacity of an asset (i.e., replacement cost). Assets and Liabilities with Recurring Fair Value Measurements - Certain assets and liabilities may be measured at fair value on an ongoing basis. We did not elect to apply the fair value option for recording financial assets and financial liabilities. Other than the warrants liability and an interest rate collar (which was settled in February 2022), we do not have any assets or liabilities which we measure at fair value on a recurring basis. Assets and Liabilities with Nonrecurring Fair Value Measurements - Certain assets and liabilities are not measured at fair value on an ongoing basis. These assets and liabilities, which include long-lived assets, goodwill, and intangible assets, are subject to fair value adjustment in certain circumstances. From time to time, the fair value is determined on these assets as part of related impairment tests. For certain assets and liabilities acquired in business combinations, we record the fair value as of the acquisition date. Refer to Note 3: Acquisition, for the fair values of assets acquired and liabilities assumed in connection with our business combinations. Other than acquisition adjustments, no adjustments to fair value or fair value measurements were required for non-financial assets and liabilities for all periods presented. See Note 13: Fair Value Measurements for additional information.

Acquisition

Acquisition	3 Months Ended
	Mar. 31, 2023
Business Combination and Asset Acquisition [Abstract]
Acquisition	Note 3: Acquisition Acquisition of HiRail On January 14, 2022, a subsidiary of the Company, CTOS Canada, Ltd., closed a Share Purchase Agreement with certain affiliates of Ontario Limited (d/b/a HiRail Leasing), Ontario Inc. (d/b/a Heavy Equipment Repairs), and Ontario Limited (d/b/a Northshore Rail Contracting) (collectively “HiRail”) to acquire 100% of the equity interests of HiRail. The acquisition of HiRail expands our presence in our strategic markets and deepens our relationships with key customers. HiRail, including the assignment of purchase accounting goodwill (see below), is included in the Company’s ERS segment. Purchase Price The Company paid $51.0 million, net of working capital adjustments, to HiRail equity interest holders and to repay debt obligations as consideration for the HiRail acquisition. Opening Balance Sheet The acquisition of HiRail has been accounted for using the acquisition method of accounting. Under the acquisition method of accounting, the Company was required to assign the purchase price to tangible and identifiable intangible assets acquired and liabilities assumed based on their fair values as of January 14, 2022. The excess of the purchase price over those fair values was recorded as goodwill and was attributable to expanded access to markets for the Company’s product and service offering, synergies, and broader product offerings to existing customers of HiRail. The total purchase price has been assigned to the underlying assets acquired and liabilities assumed based upon their fair values as of January 14, 2022, and the estimated fair values have been recorded based on independent valuations, discounted cash flow analysis, quoted market prices, contributory asset charges, and estimates made by management, which estimates fall under “Level 3” of the fair value hierarchy (as defined in Note 2: Summary of Significant Accounting Policies). The following table summarizes the January 14, 2022 fair values of the assets acquired and liabilities assumed. The final assessment of the fair value of the HiRail assets acquired and liabilities assumed was complete as of December 31, 2022. (in $000s) January 14, 2022 Changes December 31, 2022 Current assets $ 2,891 $ 956 $ 3,847 Property, equipment and other assets 819 — 819 Rental equipment 34,224 — 34,224 Total identifiable assets acquired 37,934 956 38,890 Total identifiable liabilities assumed (6,011) (1,596) (7,607) Total net assets 31,923 (640) 31,283 Goodwill 8,685 (41) 8,644 Intangible assets 11,027 — 11,027 Net assets acquired (purchase price) 51,635 (681) 50,954 Less: cash acquired (1,122) — (1,122) Net cash paid $ 50,513 $ (681) $ 49,832 HiRail generated $3.8 million of revenue and $1.3 million of pre-tax loss from January 14, 2022 through March 31, 2022, which were included in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the three months ended March 31, 2022. Costs and expenses related to the acquisition were expensed as incurred and were not material. Additionally, pro forma information as if the acquisition of HiRail had occurred on January 1, 2021 is not being presented as the information is not considered material to the Company’s financial statements.

Revenue

Revenue	3 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Revenue	Note 4: Revenue Revenue Disaggregation Geographic Areas The Company had total revenue in the following geographic areas: Three Months Ended March 31, (in $000s) 2023 2022 United States $ 438,278 $ 356,897 Canada 13,885 9,579 Total revenue $ 452,163 $ 366,476 Major Product Lines and Services Equipment leasing and equipment sales are the core businesses of the Company, with leasing complemented by the sale of rental units from the rental fleet. The Company’s revenue by major product and service line for the three months ended March 31, 2023 and 2022 are presented in the table below. Three Months Ended March 31, Three Months Ended March 31, 2023 2022 (in $000s) Topic 842 Topic 606 Total Topic 842 Topic 606 Total Rental: Rental $ 112,903 $ — $ 112,903 $ 105,135 $ — $ 105,135 Shipping and handling — 5,385 5,385 — 4,010 4,010 Total rental revenue 112,903 5,385 118,288 105,135 4,010 109,145 Sales and services: Equipment sales 17,708 283,582 301,290 12,237 214,949 227,186 Parts and services 4,815 27,770 32,585 2,220 27,925 30,145 Total sales and services 22,523 311,352 333,875 14,457 242,874 257,331 Total revenue $ 135,426 $ 316,737 $ 452,163 $ 119,592 $ 246,884 $ 366,476 Rental revenue is primarily comprised of revenues from rental agreements and freight charges billed to customers. Equipment sales recognized pursuant to sales-type leases are recorded within equipment sales revenue. Charges to customers for damaged rental equipment are recorded within parts and services revenue. Receivables, Contract Assets and Liabilities As of March 31, 2023 and December 31, 2022, the Company had receivables related to contracts with customers of $75.8 million and $98.0 million, respectively. As of March 31, 2023 and December 31, 2022, the Company had receivables related to rental contracts and other of $91.9 million and $95.1 million, respectively. The Company manages credit risk associated with its accounts receivable at the customer level. Because the same customers generate the revenues that are accounted for under both Topic 606 and Topic 842, the discussions below on credit risk and the Company's allowance for credit losses address the Company's total revenues. The Company’s allowance for credit losses reflects its estimate of the amount of receivables that it will be unable to collect. The estimated losses are based upon a review of outstanding receivables, the related aging, including specific accounts if deemed necessary, and on the Company’s historical collection experience. The estimated losses are calculated using the loss rate method based upon a review of outstanding receivables, related aging, and historical collection experience. The Company's estimates reflect changing circumstances, including changes in the economy or in the particular circumstances of individual customers, and, as a result, the Company may be required to increase or decrease its allowance. See Note 2: Summary of Significant Accounting Policies for further information regarding allowance for credit losses. When customers are billed for rentals in advance of the rental period, the Company defers recognition of revenue. As of March 31, 2023 and December 31, 2022, the Company had approximately $2.5 million and $3.0 million, respectively, of deferred rental revenue. Additionally, the Company collects deposits from customers for orders placed for equipment and rentals. The Company had approximately $28.8 million and $29.6 million in deposits as of March 31, 2023 and December 31, 2022, respectively. Of the $29.6 million deposit liability balance as of December 31, 2022, $23.0 million was recorded as revenue during the three months ended March 31, 2023 due to performance obligations being satisfied. The Company’s remaining performance obligations on its equipment deposit liabilities have original expected durations of one year or less. The Company does not have material contract assets, and as such did not recognize any material impairments of any contract assets. The primary costs to obtain contracts for new and rental unit sales with the Company's customers are commissions. The Company pays its sales force commissions related to the sale and rental of new and used units. For new unit and rental unit sales, the period benefited by each commission is less than one year. As a result, the Company has applied the practical expedient for incremental costs of obtaining a sales contract and expenses commissions as incurred.

Sales-Type Leases

Sales-Type Leases	3 Months Ended
	Mar. 31, 2023
Leases [Abstract]
Sales-Type Leases	Note 5: Sales-Type Leases Revenue from sales-type leases was as follows: Three Months Ended March 31, (in $000s) 2023 2022 Equipment sales $ 24,172 $ 12,237 Cost of equipment sales 23,225 10,370 Gross profit (loss) $ 947 $ 1,867 As these transactions remained under rental contracts, $7.2 million and $5.3 million for the three months ended March 31, 2023 and 2022, respectively, were billed under the contracts as rentals. Interest income from financing receivables was $3.4 million and $2.9 million for the three months ended March 31, 2023 and 2022, respectively.

Inventory

Inventory	3 Months Ended
	Mar. 31, 2023
Inventory Disclosure [Abstract]
Inventory	Note 6: Inventory Whole goods inventory is comprised of chassis, attachments (i.e., boom cranes, serial lifts, digger derricks, dump bodies, etc.) and the in-process costs incurred in the final assembly of those units. As part of the business model, the Company sells unassembled individual whole goods and whole goods with varying levels of customization direct to consumers or dealers. Whole goods inventory also includes new equipment purchased specifically for resale to customers. Inventory consisted of the following: (in $000s) March 31, 2023 December 31, 2022 Whole goods $ 585,218 $ 468,557 Aftermarket parts and services inventory 129,136 128,167 Inventory $ 714,354 $ 596,724

Floor Plan Financing

Floor Plan Financing	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Floor Plan Financing	Note 7: Floor Plan Financing Floor plan payables represent financing arrangements to facilitate the Company’s purchase of new and used trucks, cranes, and construction equipment inventory. All floor plan payables are collateralized by the inventory financed. These payables become due and payable upon the sale, transfer, or reclassification of each unit of inventory. Certain floor plan arrangements require the Company to satisfy various financial ratios consistent with those under the ABL Facility. As of March 31, 2023, the Company was in compliance with these covenants. The amounts owed under floor plan payables are summarized as follows (in thousands): (in $000s) March 31, 2023 December 31, 2022 Trade: Daimler Truck Financial $ 113,916 $ 105,447 PACCAR Financial Services 45,113 31,187 Trade floor plan payables $ 159,029 $ 136,634 Non-trade: PNC Equipment Finance, LLC $ 312,470 $ 293,536 Non-trade floor plan payables $ 312,470 $ 293,536 Interest on outstanding floor plan payable balances is due and payable monthly. Floor plan interest expense was $6.8 million and $1.7 million for the three months ended March 31, 2023 and March 31, 2022. Trade Floor Plan Financing: Daimler Truck Financial The Wholesale Financing Agreement with Daimler Truck Financial (the “Daimler Facility”) bears interest at a rate of U.S. Prime plus 0.80% after an initial interest free period of up to 150 days. The total borrowing capacity under the Daimler Facility is $175.0 million. The Daimler agreement is evergreen and is subject to termination by either party through written notice. PACCAR The Company has an Inventory Financing Agreement with PACCAR Financial Corp that provides the Company with a line of credit of $75.0 million to finance inventory purchases of new Peterbilt and/or Kenworth trucks, tractors, and chassis. Effective during the first quarter of 2023, amounts borrowed against this line of credit incur interest at a rate of U.S. Prime Rate minus 0.6%. Previously, amounts borrowed against this line of credit incur interest at a rate of LIBOR plus 2.4%. The PACCAR agreement extends automatically each April and is subject to termination by either party through written notice. References to the prime rate in the foregoing agreements represent the rate as published in The Wall Street Journal. Non-Trade Floor Plan Financing: PNC Equipment Finance, LLC The Company has an Inventory Loan, Guaranty and Security Agreement (the “Loan Agreement”) with PNC Equipment Finance, LLC. The Loan Agreement as of March 31, 2023, provides the Company with a $315.0 million revolving credit facility, which matures on August 25, 2023 and bears interest at a three-month term secured overnight financing rate (“SOFR”) plus 3.25%. The facility was increased from $315.0 million to $370.0 million on April 17, 2023. Note 9: Long-Term Debt Debt obligations and associated interest rates consisted of the following: (in $000s) March 31, 2023 December 31, 2022 March 31, 2023 December 31, 2022 ABL Facility $ 462,400 $ 437,731 6.5% 6.1% 2029 Secured Notes 920,000 920,000 5.5% 5.5% 2023 Credit Facility 13,725 — 5.8% — Notes payable 29,716 31,661 3.1%-5.0% 3.1%-5.0% Total debt outstanding 1,425,841 1,389,392 Deferred financing fees (26,559) (27,686) Total debt excluding deferred financing fees 1,399,282 1,361,706 Less: current maturities (5,243) (6,940) Long-term debt $ 1,394,039 $ 1,354,766 As of March 31, 2023, borrowing availability under the ABL Facility was $284.5 million, and outstanding standby letters of credit were $3.1 million. 2023 Credit Facility On January 13, 2023, the Company entered into a new credit agreement allowing for borrowings of up to $18.0 million (the “2023 Credit Facility”). Proceeds from the credit agreement were used to finance a portion of the Company’s acquisition of real property from a related party in December 2022. A portion of the loan proceeds will be used to finance improvements to the property. In connection with entering into the agreement, the Company received net proceeds of $13.7 million with the ability to draw an additional $4.2 million upon completion of certain construction milestones. Borrowings bear interest at a fixed rate of 5.75% per

Rental Equipment

Rental Equipment	3 Months Ended
	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
Rental Equipment	Note 8: Rental Equipment Rental equipment, net consisted of the following: (in $000s) March 31, 2023 December 31, 2022 Rental equipment $ 1,367,852 $ 1,360,205 Less: accumulated depreciation (473,295) (476,531) Rental equipment, net $ 894,557 $ 883,674

Long-Term Debt

Long-Term Debt	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Long-Term Debt	Note 7: Floor Plan Financing Floor plan payables represent financing arrangements to facilitate the Company’s purchase of new and used trucks, cranes, and construction equipment inventory. All floor plan payables are collateralized by the inventory financed. These payables become due and payable upon the sale, transfer, or reclassification of each unit of inventory. Certain floor plan arrangements require the Company to satisfy various financial ratios consistent with those under the ABL Facility. As of March 31, 2023, the Company was in compliance with these covenants. The amounts owed under floor plan payables are summarized as follows (in thousands): (in $000s) March 31, 2023 December 31, 2022 Trade: Daimler Truck Financial $ 113,916 $ 105,447 PACCAR Financial Services 45,113 31,187 Trade floor plan payables $ 159,029 $ 136,634 Non-trade: PNC Equipment Finance, LLC $ 312,470 $ 293,536 Non-trade floor plan payables $ 312,470 $ 293,536 Interest on outstanding floor plan payable balances is due and payable monthly. Floor plan interest expense was $6.8 million and $1.7 million for the three months ended March 31, 2023 and March 31, 2022. Trade Floor Plan Financing: Daimler Truck Financial The Wholesale Financing Agreement with Daimler Truck Financial (the “Daimler Facility”) bears interest at a rate of U.S. Prime plus 0.80% after an initial interest free period of up to 150 days. The total borrowing capacity under the Daimler Facility is $175.0 million. The Daimler agreement is evergreen and is subject to termination by either party through written notice. PACCAR The Company has an Inventory Financing Agreement with PACCAR Financial Corp that provides the Company with a line of credit of $75.0 million to finance inventory purchases of new Peterbilt and/or Kenworth trucks, tractors, and chassis. Effective during the first quarter of 2023, amounts borrowed against this line of credit incur interest at a rate of U.S. Prime Rate minus 0.6%. Previously, amounts borrowed against this line of credit incur interest at a rate of LIBOR plus 2.4%. The PACCAR agreement extends automatically each April and is subject to termination by either party through written notice. References to the prime rate in the foregoing agreements represent the rate as published in The Wall Street Journal. Non-Trade Floor Plan Financing: PNC Equipment Finance, LLC The Company has an Inventory Loan, Guaranty and Security Agreement (the “Loan Agreement”) with PNC Equipment Finance, LLC. The Loan Agreement as of March 31, 2023, provides the Company with a $315.0 million revolving credit facility, which matures on August 25, 2023 and bears interest at a three-month term secured overnight financing rate (“SOFR”) plus 3.25%. The facility was increased from $315.0 million to $370.0 million on April 17, 2023. Note 9: Long-Term Debt Debt obligations and associated interest rates consisted of the following: (in $000s) March 31, 2023 December 31, 2022 March 31, 2023 December 31, 2022 ABL Facility $ 462,400 $ 437,731 6.5% 6.1% 2029 Secured Notes 920,000 920,000 5.5% 5.5% 2023 Credit Facility 13,725 — 5.8% — Notes payable 29,716 31,661 3.1%-5.0% 3.1%-5.0% Total debt outstanding 1,425,841 1,389,392 Deferred financing fees (26,559) (27,686) Total debt excluding deferred financing fees 1,399,282 1,361,706 Less: current maturities (5,243) (6,940) Long-term debt $ 1,394,039 $ 1,354,766 As of March 31, 2023, borrowing availability under the ABL Facility was $284.5 million, and outstanding standby letters of credit were $3.1 million. 2023 Credit Facility On January 13, 2023, the Company entered into a new credit agreement allowing for borrowings of up to $18.0 million (the “2023 Credit Facility”). Proceeds from the credit agreement were used to finance a portion of the Company’s acquisition of real property from a related party in December 2022. A portion of the loan proceeds will be used to finance improvements to the property. In connection with entering into the agreement, the Company received net proceeds of $13.7 million with the ability to draw an additional $4.2 million upon completion of certain construction milestones. Borrowings bear interest at a fixed rate of 5.75% per

Earnings (Loss) Per Share

Earnings (Loss) Per Share	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Earnings (Loss) Per Share	Note 10: Earnings (Loss) Per Share Basic earnings (loss) per share is computed by dividing net earnings (loss) by the weighted-average number of shares of Common Stock outstanding. Diluted earnings (loss) per share includes the effects of potentially dilutive shares of Common Stock, if dilutive. Our potentially dilutive shares aggregated 30.0 million and 24.9 million for the three months ended March 31, 2023 and March 31, 2022, respectively, and included warrants, contingently issuable shares, and share-based compensation, and were not included in the computation of diluted earnings (loss) per share because they would be anti-dilutive. The following tables set forth the computation of basic and dilutive earnings (loss) per share: Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 (in $000s, except per share data) Net Income (Loss) Weighted Average Shares Per Share Amount Net Income (Loss) Weighted Average Shares Per Share Amount Basic earnings (loss) per share $ 13,800 246,049 $ 0.06 $ (3,273) 247,058 $ (0.01) Dilutive common share equivalents 1,004 — Diluted earnings (loss) per share $ 13,800 247,053 $ 0.06 $ (3,273) 247,058 $ (0.01)

Equity

Equity	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Equity	Note 11: Equity Preferred Stock As of March 31, 2023 and December 31, 2022, we were authorized to issue 10,000,000 shares of preferred stock with a par value of $0.0001 per share, with such designation, rights and preferences as may be determined from time to time by our board of directors. As of March 31, 2023 and December 31, 2022, there were no shares of preferred stock issued or outstanding. Common Stock As of March 31, 2023 and December 31, 2022, the Company was authorized to issue 500,000,000 shares of common stock with a par value of $0.0001 per share. On August 2, 2022, the Company’s Board of Directors authorized a stock repurchase program, allowing for the repurchase of up to $30 million of the Company’s ordinary common shares. During the three months ended March 31, 2023, the Company repurchased approximately 0.2 million shares of its common stock, which are held in treasury, for a total of $1.1 million, including commission fees for the repurchase of its common stock. At March 31, 2023, $18.4 million was available under the stock repurchase program. Contingently Issuable Shares NESCO Holdings, LP is a Delaware limited partnership holding shares of our common stock. NESCO Holdings, LP is owned and controlled by Energy Capital Partners, and has the right to receive: (1) up to an additional 1,800,000 shares of common stock through July 31, 2024, in increments of 900,000 shares, if the trading price of the common stock exceeds $13.00 per share or $16.00 per share for any 20 trading days during a 30 consecutive trading day period or if a sale transaction of the Company occurs in which the consideration paid per share to holders of common stock of the Company exceeds $13.00 per share or $16.00 per share, and (2) an additional 1,651,798 shares of common stock if during the seven-year period ending July 31, 2026, the trading price of common stock exceeds $19.00 per share for any 20 trading days during a 30 consecutive trading day period or if a sale transaction of the Company occurs in which the consideration paid per share to holders of common stock exceeds $19.00 per share.

Share-Based Compensation

Share-Based Compensation	3 Months Ended
	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Share-Based Compensation	Note 12: Share-Based Compensation The Company records share-based compensation awards using a fair value method and recognizes compensation expense for an amount equal to the fair value of the share-based payment issued in its financial statements. The Company’s share-based compensation plans include programs for stock options, restricted stock units, performance share units and deferred compensation.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 13: Fair Value Measurements The FASB accounting standards provide a comprehensive framework for measuring fair value and sets forth a definition of fair value and establishes a hierarchy prioritizing the inputs to valuation techniques, giving the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable value inputs. The following table sets forth the carrying values (exclusive of deferred financing fees) and fair values of our financial liabilities: Carrying Value Fair Value (in $000s) Level 1 Level 2 Level 3 March 31, 2023 ABL Facility $ 462,400 $ — $ 462,400 $ — 2029 Secured Notes 920,000 — 805,000 — 2023 Credit Facility 13,725 — 13,725 — Other notes payable 29,716 — 29,716 — Warrant liabilities 2,487 — — 2,487 December 31, 2022 ABL Facility $ 437,731 $ — $ 437,731 $ — 2029 Secured Notes 920,000 — 814,200 — Other notes payable 31,661 — 31,661 — Warrant liabilities 3,012 — — 3,012 The carrying amounts of the ABL Facility and other notes payable approximated fair value as of March 31, 2023 and December 31, 2022 based upon terms and conditions available to the Company at those dates in comparison to the terms and conditions of its outstanding debt. The estimated fair value of the 2029 Secured Notes is calculated using Level 2 inputs, based on bid prices obtained from brokers. The Level 3 fair value presented above consists of the fair value of the Non-Public Warrants. The Company estimated the fair value using the Black-Scholes option-pricing model based on the market value of the underlying Common Stock, the remaining contractual term of the warrant, risk-free interest rates and expected dividends, and expected volatility of the price of the underlying Common Stock. The changes in the fair value of the warrant liabilities are recorded in Financing and other expense (income) in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) and cash flow from operating activities in the Condensed Consolidated Statements of Cash Flows.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Note 14: Income Taxes We are subject to income taxes primarily in the U.S. and Canada. Our overall effective tax rate is affected by a number of factors, such as the relative amounts of income we earn in differing tax jurisdictions, tax law changes, certain non-deductible expenses (non-taxable income), such as compensation disallowance and mark-to-market adjustments on derivative financial instruments, and changes in the valuation allowance we establish against deferred tax assets. The rate is also affected by discrete items that may occur in any given year, such as legislative enactments and changes in our corporate structure that may occur. These discrete items may not be consistent from year to year. As a result of acquisitions and other transactions that have resulted in changes in control, certain of our federal and state net operating loss and interest expense carryforwards (collectively, “Carryforward Assets”) are subject to limitations prescribed by U.S. Internal Revenue Code Section 382 (“Section 382”) and similar rules in state and local taxing jurisdictions. We record a valuation allowance against deferred tax assets, including Carryforward Assets, when we determine that it is more likely than not that all or a portion of a deferred tax asset will not be realized. For interim periods, we estimate our annual effective tax rate, exclusive of discrete items, which is derived primarily by our estimate of our valuation allowance as of the end of our fiscal year. The Company’s effective tax rate for the three months ended March 31, 2023 and 2022 differs from the U.S. federal statutory tax rate due to the recording of valuation allowances. We recorded an income tax expense of $0.9 million for the three months ended March 31, 2023 resulting in an effective tax rate of 5.9% compared to an income tax expense of $3.0 million for the comparable prior year period, at a negative effect tax rate of (1121.3)%. The change in the effective tax rate was primarily due to state tax expense recorded during the three month period ended March 31, 2023 as compared to the three month period ended March 31, 2022 and the near break-even pre-tax loss in the three month period ended March 31, 2022 that resulted in an exaggerated effective tax rate. On August 16, 2022, the U.S. enacted the Inflation Reduction Act of 2022 (“IRA”), which, among other things, implements a 15% minimum tax for certain large corporations, a 1% excise tax on net stock repurchases, and several tax incentives to promote clean energy. The IRA is effective for tax years beginning after December 31, 2022. Based on our current analysis of the provisions, we do not believe this legislation will have a material effect on our consolidated financial statements. We will continue to monitor the additional guidance from the Internal Revenue Service (the “IRS”).

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 15: Commitments and Contingencies We record a liability when we believe that it is both probable that a liability has been incurred and the amount can be reasonably estimated. Significant judgment is required to determine both probability and the estimated amount. We review these provisions at least quarterly and adjust these provisions to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and updated information. Legal Matters In the normal course of business, there are various claims in process, matters in litigation, and other contingencies. At this time, no claims of these types, certain of which are covered by insurance policies, have had a material effect on the Company. Certain jurisdictions in which the Company operates do not allow insurance recoveries related to punitive damages. From time to time, the Company is audited by state and local taxing authorities. These audits typically focus on the Company’s withholding of state-specific sales tax and rental-related taxes. Custom Truck LP’s withholdings of federal excise taxes for each of the four quarterly periods during 2015 are currently under audit by the IRS. The IRS issued an assessment on October 28, 2020 in an aggregate amount of $2.4 million for the 2015 periods, alleging that certain types of sold equipment are not eligible for the Mobile Machinery Exemption set forth in the Internal Revenue Code (the “Code”). An appeal was filed on January 28, 2021. Based on management’s understanding of the facts and circumstances, including the relevant provisions of the Code, and historical precedent, including previous successful appeals of similar assessments in prior years, management does not believe the likelihood of a loss resulting from the IRS assessment to be probable at this time. While it is not possible to predict the outcome of the foregoing matters with certainty, it is the opinion of management that the final outcome of these matters will not have a material effect on the Company’s consolidated financial condition, results of operations and cash flows. Purchase Commitments

Related Parties

Related Parties	3 Months Ended
	Mar. 31, 2023
Related Party Transactions [Abstract]
Related Parties	Note 16: Related Parties The Company has transactions with related parties as summarized below. Rentals and Sales — The Company rents and sells equipment and provides services to R&M Equipment Rental, a business partially owned by members of the Company’s management. The Company also rents equipment and purchases inventory from R&M Equipment Rental. Prior to August 1, 2022, Energy Capital Partners (“ECP”), a stockholder of the Company, and their affiliates had ownership interests in PLH Group, Inc., which was a customer of the Company. Facilities Leases and Other — The Company has leased certain facilities, as well as purchased aircraft charter services, from entities owned by members of the Company’s management and their immediate families. Lease and charter services payments related to these transactions are immaterial. Rent and air travel expenses are recorded in selling, general, and administrative expenses. In December 2022, the Company terminated the lease agreements and purchased the facilities and land from these related parties for a purchase price of approximately $15.4 million. Management Fees — The Company entered into the Corporate Advisory Services Agreement with Platinum effective in April 2021, under which management fees are payable to Platinum quarterly. The management fees are recorded in transaction expenses and other in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss). A summary of the transactions with the foregoing related parties included in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) is as follows: Three Months Ended March 31, (in $000s) 2023 2022 Total revenues from transactions with related parties $ 8,455 $ 7,851 Expenses incurred from transactions with related parties included in cost of revenue $ 358 $ 1,297 Expenses incurred from transactions with related parties included in operating expenses $ 1,395 $ 1,631 Amounts receivable from/payable to related parties included in the Condensed Consolidated Balance Sheets are as follows: (in $000s) March 31, 2023 December 31, 2022 Accounts receivable from related parties $ 2,280 $ 7,813 Accounts payable to related parties $ 199 $ 1,475

Segments

Segments	3 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
Segments	Note 17: Segments Our operations are primarily organized and managed by operating segment. Operating segment performance and resource allocations are primarily based on gross profit. The accounting policies of the reportable segments are consistent with those described in Note 2: Summary of Significant Accounting Policies to the condensed consolidated financial statements. Intersegment sales and any related profits are eliminated in consolidation. We manage the business in three reporting segments: Equipment Rental Solutions (“ERS”), Truck and Equipment Sales (“TES”) and Aftermarket Parts and Services (“APS”). The segment operations are described in Note 1: Business and Organization to these financial statements. The Company’s segment results are presented in the tables below: Three Months Ended March 31, 2023 (in $000s) ERS TES APS Total Revenue: Rental $ 113,784 $ — $ 4,504 $ 118,288 Equipment sales 92,136 209,154 — 301,290 Parts and services — — 32,585 32,585 Total revenue 205,920 209,154 37,089 452,163 Cost of revenue: Rentals/parts and services 29,060 — 26,987 56,047 Equipment sales 71,081 175,044 — 246,125 Depreciation of rental equipment 39,512 — 818 40,330 Total cost of revenue 139,653 175,044 27,805 342,502 Gross profit $ 66,267 $ 34,110 $ 9,284 $ 109,661 Three Months Ended March 31, 2022 (in $000s) ERS TES APS Total Revenue: Rental $ 105,561 $ — $ 3,584 $ 109,145 Equipment sales 59,353 167,833 — 227,186 Parts and services — — 30,145 30,145 Total revenue 164,914 167,833 33,729 366,476 Cost of revenue: Rentals/parts and services 24,791 — 24,950 49,741 Equipment sales 43,230 144,048 — 187,278 Depreciation of rental equipment 43,966 — 998 44,964 Total cost of revenue 111,987 144,048 25,948 281,983 Gross profit $ 52,927 $ 23,785 $ 7,781 $ 84,493 Total assets by operating segment are not disclosed herein because asset by operating segment data is not reviewed by the chief operating decision-maker (“CODM”) to assess performance and allocate resources. Gross profit is the primary operating result whereby our segments are evaluated for performance and resource allocation. The following table presents a reconciliation of consolidated gross profit to consolidated income (loss) before income taxes: Three Months Ended March 31, (in $000s) 2023 2022 Gross Profit $ 109,661 $ 84,493 Selling, general and administrative expenses 56,991 53,655 Amortization 6,672 13,335 Non-rental depreciation 2,650 3,047 Transaction expenses and other 3,460 4,648 Interest expense, net 29,176 19,156 Financing and other expense (income) (3,951) (9,080) Income (Loss) Before Income Taxes $ 14,663 $ (268) The following table presents total assets by country: (in $000s) March 31, 2023 December 31, 2022 Assets: United States $ 2,950,122 $ 2,830,958 Canada 119,261 107,254 $ 3,069,383 $ 2,938,212

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation Our accompanying condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) and the accounting policies described below. Our condensed consolidated financial statements include the accounts of all wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The preparation of financial statements in accordance with GAAP requires that these Unaudited Condensed Consolidated Financial Statements and most of the disclosures in these Notes be presented on a historical basis, as of or for the current interim period ended or comparable prior period. The accompanying interim statements of the Company have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X, and the Condensed Consolidated Balance Sheet at December 31, 2022, has been derived from the audited consolidated financial statements of Custom Truck One Source, Inc. at that date. Accordingly, these interim financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring adjustments and disclosures necessary for a fair statement of these interim statements, have been included. The results reported in these interim statements are not necessarily indicative of the results that may be reported for the entire year or for any other periods. These interim statements should be read in conjunction with the Custom Truck One Source, Inc. audited consolidated financial statements included in the Custom Truck One Source, Inc. Annual Report on Form 10-K for the year ended December 31, 2022.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Accounting Pronouncements Recently Adopted	Accounting Pronouncements Recently Adopted Contract Assets and Contract Liabilities from Contracts with Customers. In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2021-08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU 2021-08”). This ASU improves the comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination and requires that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. The amended guidance specifies for all acquired revenue contracts regardless of their timing of payment (1) the circumstances in which the acquirer should recognize contract assets and contract liabilities that are acquired in a business combination and (2) how to measure those contract assets and contract liabilities, thereby providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. The ASU was effective as of January 1, 2023. The Company will apply the guidance in ASU 2021-08 prospectively to any future business combinations occurring on or after the effective date. Financing receivables . In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments—Credit Losses (Topic 326) (“ASU 2022-02”), which requires an entity to disclose current period gross write-offs by year of origination for financing receivables and net investment in leases. Gross write-off information must be included in the vintage disclosures, which requires that an entity disclose the amortized cost basis of financing receivables by credit-quality indicator and class of financing receivable by year of origination. The adoption on January 1, 2023 of the ASU had no impact to the Company’s disclosures related to its financing receivables as the Company does not have net investment in leases assets.
Trade Receivables and Allowance for Credit Losses	Trade Receivables and Allowance for Credit Losses We are exposed to credit losses from trade receivables generated through our leasing, sales and service businesses. We assess each customer’s ability to pay for the products and services by conducting a credit review. The credit review considers expected billing exposure and timing for payment and the customer’s established credit rating. We perform a credit review of new customers at inception of the customer relationship and, for existing customers, when the customer transacts new leases or product orders after a period of dormancy. We also consider contract terms and conditions, country risk and business strategy in the evaluation. We monitor ongoing credit exposure through an active review of customer balances against contract terms and due dates. We may employ collection agencies and legal counsel to pursue recovery of defaulted receivables. The allowances for credit losses reflect the estimate of the amount of receivables that management assesses will be unable to be collected based on historical write-off experience and, as applicable, current conditions and reasonable and supportable forecasts that affect collectability. This estimate could require change based on changing circumstances, including changes in the economy or in the particular circumstances of individual customers. Accordingly, we may be required to increase or decrease the allowances. We review the adequacy of the allowance on a quarterly basis. The allowance for doubtful accounts is included in accounts receivable, net on our Condensed Consolidated Balance Sheets.
Fair Value Measurements	Fair Value Measurements Fair value is defined as an exit price representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or most advantageous market. Fair value is a market-based measurement that is determined based on inputs, which refer broadly to assumptions that market participants use in pricing assets and liabilities. These inputs can be readily observable, market corroborated, or generally unobservable. Fair Value Hierarchy - In measuring fair value, we use observable market data when available and minimize the use of unobservable inputs. Unobservable inputs may be required to value certain financial instruments due to complexities in contract terms. Inputs used in fair value measurements are categorized into three fair value hierarchy levels for disclosure purposes. The entire fair value measurement is categorized based on the lowest level of input that is significant to the fair value measurement. The three levels of the fair value hierarchy are: Level 1 - Inputs that reflect unadjusted quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur with both sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 - Inputs that reflect quoted prices for similar assets and liabilities are available in active markets, and inputs other than quoted prices that are observable for the assets or liabilities, either directly or indirectly, for substantially the full term of the financial instruments. Level 3 - Inputs that are generally less observable or from unobservable sources in which there is little or no market data. These inputs may be used with internally developed methodologies that result in our best estimate of fair value. Valuation Techniques - Assets and liabilities measured at fair value are based on one or more of the following three valuation techniques: Market approach - Technique that uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. Income approach - Technique that converts future amounts to a single present amount based upon market expectations (including present value techniques, option-pricing, and excess earnings models). Cost approach - Technique that estimates the amount that would be required to replace the service capacity of an asset (i.e., replacement cost). Assets and Liabilities with Recurring Fair Value Measurements - Certain assets and liabilities may be measured at fair value on an ongoing basis. We did not elect to apply the fair value option for recording financial assets and financial liabilities. Other than the warrants liability and an interest rate collar (which was settled in February 2022), we do not have any assets or liabilities which we measure at fair value on a recurring basis.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Schedule of Accounts Receivable	Accounts receivable, net consisted of the following: (in $000s) March 31, 2023 December 31, 2022 Accounts receivables $ 188,040 $ 212,347 Less: allowance for doubtful accounts (20,400) (19,241) Accounts receivable, net $ 167,640 $ 193,106

Acquisition (Tables)

Acquisition (Tables)	3 Months Ended
	Mar. 31, 2023
Business Combination and Asset Acquisition [Abstract]
Summary of Assets Acquired and Liabilities Assumed	The following table summarizes the January 14, 2022 fair values of the assets acquired and liabilities assumed. The final assessment of the fair value of the HiRail assets acquired and liabilities assumed was complete as of December 31, 2022. (in $000s) January 14, 2022 Changes December 31, 2022 Current assets $ 2,891 $ 956 $ 3,847 Property, equipment and other assets 819 — 819 Rental equipment 34,224 — 34,224 Total identifiable assets acquired 37,934 956 38,890 Total identifiable liabilities assumed (6,011) (1,596) (7,607) Total net assets 31,923 (640) 31,283 Goodwill 8,685 (41) 8,644 Intangible assets 11,027 — 11,027 Net assets acquired (purchase price) 51,635 (681) 50,954 Less: cash acquired (1,122) — (1,122) Net cash paid $ 50,513 $ (681) $ 49,832

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Schedule of Revenue by Country	The Company had total revenue in the following geographic areas: Three Months Ended March 31, (in $000s) 2023 2022 United States $ 438,278 $ 356,897 Canada 13,885 9,579 Total revenue $ 452,163 $ 366,476
Schedule of Revenue by Major Product and Service Line	The Company’s revenue by major product and service line for the three months ended March 31, 2023 and 2022 are presented in the table below. Three Months Ended March 31, Three Months Ended March 31, 2023 2022 (in $000s) Topic 842 Topic 606 Total Topic 842 Topic 606 Total Rental: Rental $ 112,903 $ — $ 112,903 $ 105,135 $ — $ 105,135 Shipping and handling — 5,385 5,385 — 4,010 4,010 Total rental revenue 112,903 5,385 118,288 105,135 4,010 109,145 Sales and services: Equipment sales 17,708 283,582 301,290 12,237 214,949 227,186 Parts and services 4,815 27,770 32,585 2,220 27,925 30,145 Total sales and services 22,523 311,352 333,875 14,457 242,874 257,331 Total revenue $ 135,426 $ 316,737 $ 452,163 $ 119,592 $ 246,884 $ 366,476

Sales-Type Leases (Tables)

Sales-Type Leases (Tables)	3 Months Ended
	Mar. 31, 2023
Leases [Abstract]
Schedule of Revenue from Sales-type Leases	Revenue from sales-type leases was as follows: Three Months Ended March 31, (in $000s) 2023 2022 Equipment sales $ 24,172 $ 12,237 Cost of equipment sales 23,225 10,370 Gross profit (loss) $ 947 $ 1,867

Inventory (Tables)

Inventory (Tables)	3 Months Ended
	Mar. 31, 2023
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventory consisted of the following: (in $000s) March 31, 2023 December 31, 2022 Whole goods $ 585,218 $ 468,557 Aftermarket parts and services inventory 129,136 128,167 Inventory $ 714,354 $ 596,724

Floor Plan Financing (Tables)

Floor Plan Financing (Tables)	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Summary of Floor Plan Payables	The amounts owed under floor plan payables are summarized as follows (in thousands): (in $000s) March 31, 2023 December 31, 2022 Trade: Daimler Truck Financial $ 113,916 $ 105,447 PACCAR Financial Services 45,113 31,187 Trade floor plan payables $ 159,029 $ 136,634 Non-trade: PNC Equipment Finance, LLC $ 312,470 $ 293,536 Non-trade floor plan payables $ 312,470 $ 293,536

Rental Equipment (Tables)

Rental Equipment (Tables)	3 Months Ended
	Mar. 31, 2023
Property, Plant and Equipment [Abstract]
Schedule of Rental Equipment	Rental equipment, net consisted of the following: (in $000s) March 31, 2023 December 31, 2022 Rental equipment $ 1,367,852 $ 1,360,205 Less: accumulated depreciation (473,295) (476,531) Rental equipment, net $ 894,557 $ 883,674

Long-Term Debt (Tables)

Long-Term Debt (Tables)	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Schedule of Debt Obligations	Debt obligations and associated interest rates consisted of the following: (in $000s) March 31, 2023 December 31, 2022 March 31, 2023 December 31, 2022 ABL Facility $ 462,400 $ 437,731 6.5% 6.1% 2029 Secured Notes 920,000 920,000 5.5% 5.5% 2023 Credit Facility 13,725 — 5.8% — Notes payable 29,716 31,661 3.1%-5.0% 3.1%-5.0% Total debt outstanding 1,425,841 1,389,392 Deferred financing fees (26,559) (27,686) Total debt excluding deferred financing fees 1,399,282 1,361,706 Less: current maturities (5,243) (6,940) Long-term debt $ 1,394,039 $ 1,354,766

Earnings (Loss) Per Share (Tabl

Earnings (Loss) Per Share (Tables)	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Schedule of Computation of Basic and Dilutive Loss Per Share	The following tables set forth the computation of basic and dilutive earnings (loss) per share: Three Months Ended March 31, 2023 Three Months Ended March 31, 2022 (in $000s, except per share data) Net Income (Loss) Weighted Average Shares Per Share Amount Net Income (Loss) Weighted Average Shares Per Share Amount Basic earnings (loss) per share $ 13,800 246,049 $ 0.06 $ (3,273) 247,058 $ (0.01) Dilutive common share equivalents 1,004 — Diluted earnings (loss) per share $ 13,800 247,053 $ 0.06 $ (3,273) 247,058 $ (0.01)

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Schedule of Carrying Values and Fair Values of Financial Liabilities	The following table sets forth the carrying values (exclusive of deferred financing fees) and fair values of our financial liabilities: Carrying Value Fair Value (in $000s) Level 1 Level 2 Level 3 March 31, 2023 ABL Facility $ 462,400 $ — $ 462,400 $ — 2029 Secured Notes 920,000 — 805,000 — 2023 Credit Facility 13,725 — 13,725 — Other notes payable 29,716 — 29,716 — Warrant liabilities 2,487 — — 2,487 December 31, 2022 ABL Facility $ 437,731 $ — $ 437,731 $ — 2029 Secured Notes 920,000 — 814,200 — Other notes payable 31,661 — 31,661 — Warrant liabilities 3,012 — — 3,012

Related Parties (Tables)

Related Parties (Tables)	3 Months Ended
	Mar. 31, 2023
Related Party Transactions [Abstract]
Summary of Related Party Transactions	A summary of the transactions with the foregoing related parties included in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) is as follows: Three Months Ended March 31, (in $000s) 2023 2022 Total revenues from transactions with related parties $ 8,455 $ 7,851 Expenses incurred from transactions with related parties included in cost of revenue $ 358 $ 1,297 Expenses incurred from transactions with related parties included in operating expenses $ 1,395 $ 1,631 Amounts receivable from/payable to related parties included in the Condensed Consolidated Balance Sheets are as follows: (in $000s) March 31, 2023 December 31, 2022 Accounts receivable from related parties $ 2,280 $ 7,813 Accounts payable to related parties $ 199 $ 1,475

Segments (Tables)

Segments (Tables)	3 Months Ended
	Mar. 31, 2023
Segment Reporting [Abstract]
Schedule of Company’s Segment Results	The Company’s segment results are presented in the tables below: Three Months Ended March 31, 2023 (in $000s) ERS TES APS Total Revenue: Rental $ 113,784 $ — $ 4,504 $ 118,288 Equipment sales 92,136 209,154 — 301,290 Parts and services — — 32,585 32,585 Total revenue 205,920 209,154 37,089 452,163 Cost of revenue: Rentals/parts and services 29,060 — 26,987 56,047 Equipment sales 71,081 175,044 — 246,125 Depreciation of rental equipment 39,512 — 818 40,330 Total cost of revenue 139,653 175,044 27,805 342,502 Gross profit $ 66,267 $ 34,110 $ 9,284 $ 109,661 Three Months Ended March 31, 2022 (in $000s) ERS TES APS Total Revenue: Rental $ 105,561 $ — $ 3,584 $ 109,145 Equipment sales 59,353 167,833 — 227,186 Parts and services — — 30,145 30,145 Total revenue 164,914 167,833 33,729 366,476 Cost of revenue: Rentals/parts and services 24,791 — 24,950 49,741 Equipment sales 43,230 144,048 — 187,278 Depreciation of rental equipment 43,966 — 998 44,964 Total cost of revenue 111,987 144,048 25,948 281,983 Gross profit $ 52,927 $ 23,785 $ 7,781 $ 84,493
Schedule of Reconciliation of Segment Gross Profit to Consolidated Loss Before Income Taxes	The following table presents a reconciliation of consolidated gross profit to consolidated income (loss) before income taxes: Three Months Ended March 31, (in $000s) 2023 2022 Gross Profit $ 109,661 $ 84,493 Selling, general and administrative expenses 56,991 53,655 Amortization 6,672 13,335 Non-rental depreciation 2,650 3,047 Transaction expenses and other 3,460 4,648 Interest expense, net 29,176 19,156 Financing and other expense (income) (3,951) (9,080) Income (Loss) Before Income Taxes $ 14,663 $ (268)
Schedule of Total Assets by Country	The following table presents total assets by country: (in $000s) March 31, 2023 December 31, 2022 Assets: United States $ 2,950,122 $ 2,830,958 Canada 119,261 107,254 $ 3,069,383 $ 2,938,212

Business and Organization (Deta

Business and Organization (Details)	3 Months Ended
	Mar. 31, 2023 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments	3

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Allowance for accounts receivable	$ 20,400	$ 19,241

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Accounts Receivable, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Accounts receivables	$ 188,040	$ 212,347
Less: allowance for doubtful accounts	(20,400)	(19,241)
Accounts receivable, net	$ 167,640	$ 193,106

Acquisition - Acquisition of Hi

Acquisition - Acquisition of Hi-Rail (Details) - Hi-Rail - USD ($) $ in Millions		3 Months Ended
	Jan. 14, 2022	Mar. 31, 2022
Business Acquisition [Line Items]
Percentage of voting rights acquired	100%
Working capital adjustments	$ 51
Revenues		$ 3.8
Pretax income (loss)		$ (1.3)

Acquisition - Hi-Rail Assets (D

Acquisition - Hi-Rail Assets (Details) - USD ($) $ in Thousands			3 Months Ended		12 Months Ended
	Dec. 31, 2022	Jan. 14, 2022	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Business Acquisition [Line Items]
Goodwill	$ 703,827		$ 703,848		$ 703,827
Net cash paid			$ 0	$ 50,513
Hi-Rail
Business Acquisition [Line Items]
Current assets	3,847	$ 2,891			3,847
Changes in current assets					956
Property, equipment and other assets	819	819			819
Changes in property, equipment and other assets					0
Rental equipment	34,224	34,224			34,224
Changes in rental equipment					0
Total identifiable assets acquired	38,890	37,934			38,890
Changes in total identifiable assets acquired					956
Total identifiable liabilities assumed	(7,607)	(6,011)			(7,607)
Changes in total identifiable liabilities assumed					(1,596)
Total net assets	31,283	31,923			31,283
Changes in total net assets					(640)
Goodwill	8,644	8,685			8,644
Changes in goodwill					(41)
Intangible assets	11,027	11,027			11,027
Changes in intangible assets					0
Net assets acquired (purchase price)	50,954	51,635			50,954
Changes in net assets acquired (purchase price)					(681)
Less: cash acquired	(1,122)	(1,122)
Changes in less: cash acquired					0
Net cash paid	$ 49,832	$ 50,513
Changes in net cash paid					$ (681)

Revenue - Geographic Areas (Det

Revenue - Geographic Areas (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Total revenue	$ 452,163	$ 366,476
United States
Disaggregation of Revenue [Line Items]
Total revenue	438,278	356,897
Canada
Disaggregation of Revenue [Line Items]
Total revenue	$ 13,885	$ 9,579

Revenue - Major Product Lines a

Revenue - Major Product Lines and Services (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Topic 842	$ 135,426	$ 119,592
Topic 606	316,737	246,884
Total	452,163	366,476
Total rental revenue
Disaggregation of Revenue [Line Items]
Topic 842	112,903	105,135
Topic 606	5,385	4,010
Total	118,288	109,145
Rental
Disaggregation of Revenue [Line Items]
Topic 842	112,903	105,135
Topic 606	0	0
Total	112,903	105,135
Shipping and handling
Disaggregation of Revenue [Line Items]
Topic 842	0	0
Topic 606	5,385	4,010
Total	5,385	4,010
Total sales and services
Disaggregation of Revenue [Line Items]
Topic 842	22,523	14,457
Topic 606	311,352	242,874
Total	333,875	257,331
Equipment sales
Disaggregation of Revenue [Line Items]
Topic 842	17,708	12,237
Topic 606	283,582	214,949
Total	301,290	227,186
Parts and services
Disaggregation of Revenue [Line Items]
Topic 842	4,815	2,220
Topic 606	27,770	27,925
Total	$ 32,585	$ 30,145

Revenue - Narrative (Details)

Revenue - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Receivables related to contracts with customers	$ 75.8	$ 98
Receivables related to rental contracts and other	91.9	95.1
Deferred rent revenue	2.5	3
Customer deposits	28.8	$ 29.6
Performance obligation satisfied, revenue recognized	$ 23
Expected duration	1 year
Benefit period	1 year

Sales-Type Leases (Details)

Sales-Type Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Leases [Abstract]
Equipment sales	$ 24,172	$ 12,237
Cost of equipment sales	23,225	10,370
Gross profit (loss)	947	1,867
Sales-type lease, rental contracts	7,200	5,300
Interest income	$ 3,400	$ 2,900

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Inventory [Line Items]
Inventory	$ 714,354	$ 596,724
Whole goods
Inventory [Line Items]
Inventory	585,218	468,557
Aftermarket parts and services inventory
Inventory [Line Items]
Inventory	$ 129,136	$ 128,167

Floor Plan Financing - Summary

Floor Plan Financing - Summary of Floor Plan Payables (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument, Redemption [Line Items]
Trade floor plan payables	$ 159,029	$ 136,634
Non-trade floor plan payables	312,470	293,536
Daimler Truck Financial
Debt Instrument, Redemption [Line Items]
Trade floor plan payables	113,916	105,447
PACCAR Financial Services
Debt Instrument, Redemption [Line Items]
Trade floor plan payables	45,113	31,187
PNC Equipment Finance, LLC
Debt Instrument, Redemption [Line Items]
Non-trade floor plan payables	$ 312,470	$ 293,536

Floor Plan Financing - Narrativ

Floor Plan Financing - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Apr. 17, 2023
Debt Instrument [Line Items]
Interest expense	$ 6.8	$ 1.7
Daimler Facility | ABL Facility
Debt Instrument [Line Items]
Debt instrument, interest free period	150 days
Maximum borrowing capacity	$ 175
Daimler Facility | Prime Rate | ABL Facility
Debt Instrument [Line Items]
Debt instrument, basis spread plus (minus)	0.80%
PACCAR Financial Corp | ABL Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 75
PACCAR Financial Corp | Prime Rate | ABL Facility
Debt Instrument [Line Items]
Debt instrument, basis spread plus (minus)	(0.60%)
PACCAR Financial Corp | London Interbank Offered Rate (LIBOR) | ABL Facility
Debt Instrument [Line Items]
Debt instrument, basis spread plus (minus)			2.40%
Loan Agreement | ABL Facility | ABL Facility | PNC Equipment Finance, LLC
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 315
Loan Agreement | ABL Facility | ABL Facility | PNC Equipment Finance, LLC | Subsequent Event
Debt Instrument [Line Items]
Maximum borrowing capacity				$ 370
Loan Agreement | Secured Overnight Financing Rate (SOFR) | ABL Facility | ABL Facility | PNC Equipment Finance, LLC
Debt Instrument [Line Items]
Debt instrument, basis spread plus (minus)	3.25%

Rental Equipment (Details)

Rental Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Rental equipment	$ 1,367,852	$ 1,360,205
Less: accumulated depreciation	(473,295)	(476,531)
Rental equipment, net	$ 894,557	$ 883,674

Long-Term Debt - Debt Obligatio

Long-Term Debt - Debt Obligations (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Jan. 13, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Total debt outstanding	$ 1,425,841		$ 1,389,392
Deferred financing fees	(26,559)		(27,686)
Total debt excluding deferred financing fees	1,399,282		1,361,706
Less: current maturities	(5,243)		(6,940)
Long-term debt	1,394,039		1,354,766
Notes payable
Debt Instrument [Line Items]
Total debt outstanding	$ 29,716		$ 31,661
Notes payable | Minimum
Debt Instrument [Line Items]
Debt interest rate	3.10%		3.10%
Notes payable | Maximum
Debt Instrument [Line Items]
Debt interest rate	5%		5%
ABL Facility | ABL Facility | Line of Credit
Debt Instrument [Line Items]
Total debt outstanding	$ 462,400		$ 437,731
Debt interest rate	6.50%		6.10%
2029 Secured Notes | 2029 Secured Notes
Debt Instrument [Line Items]
Total debt outstanding	$ 920,000		$ 920,000
Debt interest rate	5.50%		5.50%
2023 Credit Facility | Line of Credit
Debt Instrument [Line Items]
Total debt outstanding	$ 13,725		$ 0
Debt interest rate	5.80%	5.75%	0%

Long-Term Debt - Narrative (Det

Long-Term Debt - Narrative (Details) - USD ($) $ in Millions	Jan. 13, 2023	Mar. 31, 2023	Dec. 31, 2022
2023 Credit Facility | Line of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 18
Proceeds from lines of credit	13.7
Line of credit facility	$ 4.2
Debt interest rate	5.75%	5.80%	0%
Balloon payment to be paid	$ 0.1
ABL Facility | ABL Facility
Debt Instrument [Line Items]
Remaining borrowing capacity		$ 284.5
ABL Facility | ABL Facility | Line of Credit
Debt Instrument [Line Items]
Debt interest rate		6.50%	6.10%
Letter of Credit | ABL Facility
Debt Instrument [Line Items]
Outstanding borrowings		$ 3.1

Earnings (Loss) Per Share - Com

Earnings (Loss) Per Share - Computation of Basic and Dilutive Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Earnings Per Share [Abstract]
Potentially dilutive shares excluded in aggregate (in shares)	30,000	24,900
Net Income (Loss)
Basic earnings (loss) per share	$ 13,800	$ (3,273)
Dilutive common share equivalents
Diluted earnings (loss) per share	$ 13,800	$ (3,273)
Weighted Average Shares
Weighted-average shares, basic (in shares)	246,049	247,058
Dilutive common share equivalents (in shares)	1,004	0
Weighted-average shares, diluted (in shares)	247,053	247,058
Per Share Amount
Basic earnings (loss) per share (in dollars per share)	$ 0.06	$ (0.01)
Diluted earnings (loss) per share (in dollars per share)	$ 0.06	$ (0.01)

Equity - Narrative (Details)

Equity - Narrative (Details) $ / shares in Units, $ in Millions		3 Months Ended
	Jul. 31, 2019 trading_day $ / shares shares	Mar. 31, 2023 USD ($) $ / shares shares	Dec. 31, 2022 $ / shares shares	Aug. 02, 2022 USD ($)
Business Acquisition [Line Items]
Preferred stock authorized (in shares) | shares		10,000,000	10,000,000
Preferred stock par value (in dollars per share) | $ / shares		$ 0.0001	$ 0.0001
Preferred stock outstanding (in shares) | shares		0	0
Preferred stock issued (in shares) | shares		0	0
Common stock, authorized (in shares) | shares		500,000,000	500,000,000
Common stock, par value (in dollars per share) | $ / shares		$ 0.0001	$ 0.0001
Stock repurchase program, amount authorized | $				$ 30
Common stock repurchases (in shares) | shares		200,000
Repurchase of common stock value | $		$ 1.1
Amount available under repurchase program | $		$ 18.4
Nesco Owner | Additional shares if common stock exceeds $13 per share or $16 per share | Common Stock | Capitol
Business Acquisition [Line Items]
Contingent consideration, additional shares (up to) (in shares) | shares	1,800,000
Contingent consideration, incremental shares transferred (in shares) | shares	900,000
Consecutive trading days threshold | trading_day	30
Nesco Owner | Additional shares if common stock exceeds $13 per share | Capitol
Business Acquisition [Line Items]
Contingent consideration stock price trigger (in dollars per share) | $ / shares	$ 13
Nesco Owner | Additional shares if common stock exceeds $13 per share | Common Stock | Capitol
Business Acquisition [Line Items]
Contingent consideration stock price trigger (in dollars per share) | $ / shares	13
Nesco Owner | Additional shares if common stock exceeds $16 per share | Capitol
Business Acquisition [Line Items]
Contingent consideration stock price trigger (in dollars per share) | $ / shares	16
Nesco Owner | Additional shares if common stock exceeds $16 per share | Common Stock | Capitol
Business Acquisition [Line Items]
Contingent consideration stock price trigger (in dollars per share) | $ / shares	$ 16
Trading days threshold | trading_day	20
Nesco Owner | Additional shares if common stock exceeds $19 per share | Capitol
Business Acquisition [Line Items]
Contingent consideration, additional shares (up to) (in shares) | shares	1,651,798
Contingent consideration stock price trigger (in dollars per share) | $ / shares	$ 19
Trading days threshold | trading_day	20
Consecutive trading days threshold | trading_day	30
Contingent consideration term (in years)	7 years
Share price consideration (in dollars per share) | $ / shares	$ 19

Share-Based Compensation - Narr

Share-Based Compensation - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Share-Based Payment Arrangement [Abstract]
Compensation expense	$ 3.1	$ 3.4
Unrecognized compensation cost	$ 29.7

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Fair Value, Recurring - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Carrying Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrant liabilities	$ 2,487	$ 3,012
Carrying Value | Other notes payable
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other notes payable	29,716	31,661
Fair Value | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrant liabilities	0	0
Fair Value | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrant liabilities	0	0
Fair Value | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrant liabilities	2,487	3,012
Fair Value | Other notes payable | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other notes payable	0	0
Fair Value | Other notes payable | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other notes payable	29,716	31,661
Fair Value | Other notes payable | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other notes payable	0	0
2029 Secured Notes | Carrying Value | 2029 Secured Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other notes payable	920,000	920,000
2029 Secured Notes | Fair Value | 2029 Secured Notes | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other notes payable	0	0
2029 Secured Notes | Fair Value | 2029 Secured Notes | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other notes payable	805,000	814,200
2029 Secured Notes | Fair Value | 2029 Secured Notes | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other notes payable	0	0
2023 Credit Facility | Carrying Value | Line of Credit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other notes payable	13,725
2023 Credit Facility | Fair Value | Line of Credit | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other notes payable	0
2023 Credit Facility | Fair Value | Line of Credit | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other notes payable	13,725
2023 Credit Facility | Fair Value | Line of Credit | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other notes payable	0
ABL Facility | ABL Facility | Carrying Value | Line of Credit
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other notes payable	462,400	437,731
ABL Facility | ABL Facility | Fair Value | Line of Credit | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other notes payable	0	0
ABL Facility | ABL Facility | Fair Value | Line of Credit | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other notes payable	462,400	437,731
ABL Facility | ABL Facility | Fair Value | Line of Credit | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other notes payable	$ 0	$ 0

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income Tax Expense (Benefit)	$ 863	$ 3,005
Effective tax rate	5.90%	(1121.30%)

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	Oct. 28, 2020 USD ($)
Tax Year 2015
Loss Contingencies [Line Items]
Tax assessment amount	$ 2.4

Related Parties - Narrative (De

Related Parties - Narrative (Details) $ in Millions	1 Months Ended
	Dec. 31, 2022 USD ($)
Affiliated Entity | Companies Management And Immediate Families | Facilities Leased And Other
Related Party Transaction [Line Items]
Purchases with related party	$ 15.4

Related Parties - Condensed Con

Related Parties - Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Related Party Transactions [Abstract]
Total revenues from transactions with related parties	$ 8,455	$ 7,851
Expenses incurred from transactions with related parties included in cost of revenue	358	1,297
Expenses incurred from transactions with related parties included in operating expenses	$ 1,395	$ 1,631

Related Parties - Condensed C_2

Related Parties - Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Related Party Transactions [Abstract]
Accounts receivable from related parties	$ 2,280	$ 7,813
Accounts payable to related parties	$ 199	$ 1,475

Segments - Narrative (Details)

Segments - Narrative (Details)	3 Months Ended
	Mar. 31, 2023 segment
Segment Reporting [Abstract]
Number of reportable segments	3

Segments - Financial Informatio

Segments - Financial Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Segment Reporting Information [Line Items]
Total revenue	$ 452,163	$ 366,476
Depreciation of rental equipment	40,330	44,964
Total cost of revenue	342,502	281,983
Gross Profit	109,661	84,493
ERS
Segment Reporting Information [Line Items]
Total revenue	205,920	164,914
Depreciation of rental equipment	39,512	43,966
Total cost of revenue	139,653	111,987
Gross Profit	66,267	52,927
TES
Segment Reporting Information [Line Items]
Total revenue	209,154	167,833
Depreciation of rental equipment	0	0
Total cost of revenue	175,044	144,048
Gross Profit	34,110	23,785
APS
Segment Reporting Information [Line Items]
Total revenue	37,089	33,729
Depreciation of rental equipment	818	998
Total cost of revenue	27,805	25,948
Gross Profit	9,284	7,781
Rental
Segment Reporting Information [Line Items]
Total revenue	118,288	109,145
Cost of revenue	29,899	25,793
Rental | ERS
Segment Reporting Information [Line Items]
Total revenue	113,784	105,561
Rental | TES
Segment Reporting Information [Line Items]
Total revenue	0	0
Rental | APS
Segment Reporting Information [Line Items]
Total revenue	4,504	3,584
Equipment sales
Segment Reporting Information [Line Items]
Total revenue	301,290	227,186
Cost of revenue	246,125	187,278
Equipment sales | ERS
Segment Reporting Information [Line Items]
Total revenue	92,136	59,353
Cost of revenue	71,081	43,230
Equipment sales | TES
Segment Reporting Information [Line Items]
Total revenue	209,154	167,833
Cost of revenue	175,044	144,048
Equipment sales | APS
Segment Reporting Information [Line Items]
Total revenue	0	0
Cost of revenue	0	0
Parts and services
Segment Reporting Information [Line Items]
Total revenue	32,585	30,145
Cost of revenue	26,148	23,948
Parts and services | ERS
Segment Reporting Information [Line Items]
Total revenue	0	0
Parts and services | TES
Segment Reporting Information [Line Items]
Total revenue	0	0
Parts and services | APS
Segment Reporting Information [Line Items]
Total revenue	32,585	30,145
Rentals/parts and services
Segment Reporting Information [Line Items]
Cost of revenue	56,047	49,741
Rentals/parts and services | ERS
Segment Reporting Information [Line Items]
Cost of revenue	29,060	24,791
Rentals/parts and services | TES
Segment Reporting Information [Line Items]
Cost of revenue	0	0
Rentals/parts and services | APS
Segment Reporting Information [Line Items]
Cost of revenue	$ 26,987	$ 24,950

Segments - Reconciliation of Se

Segments - Reconciliation of Segment Gross Profit (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Segment Reporting [Abstract]
Gross Profit	$ 109,661	$ 84,493
Selling, general and administrative expenses	56,991	53,655
Amortization	6,672	13,335
Non-rental depreciation	2,650	3,047
Transaction expenses and other	3,460	4,648
Interest expense, net	29,176	19,156
Financing and other expense (income)	(3,951)	(9,080)
Income (Loss) Before Income Taxes	$ 14,663	$ (268)

Segments - Assets by Country (D

Segments - Assets by Country (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Segment Reporting Information [Line Items]
Assets	$ 3,069,383	$ 2,938,212
United States
Segment Reporting Information [Line Items]
Assets	2,950,122	2,830,958
Canada
Segment Reporting Information [Line Items]
Assets	$ 119,261	$ 107,254