Light equipment helps Toromont’s Q3 rental revenues

Toromont Industries, one of Caterpillar’s dealers in Canada, saw its rental revenue increase by 3.5% to C$143 million (€96.5 million) in the third quarter of 2024 from the same period of last year due to solid performance in the light equipment fleet.

The company said rental revenue in most market sectors and regions were down during the third quarter and year-to-date due to persisting softer market conditions, principally in residential construction.

However, it said its light equipment fleet saw some improvement for the quarter.

The company’s rental revenue from its heavy equipment fleet was 12% down in the third quarter, light equipment was 9% higher, power rentals were down 14%, and material handling rentals were down 6%.

Revenue from the rent-with-a-purchase-option (RPO) fleet was relatively unchanged in the third quarter but has increased 24% year-on-year in the first nine months of this year.

The company’s total revenue rose 14% to C$1.34 billion for the third quarter from a year earlier, but its net income was down 10% to C$131 million due to a rise in the cost of goods sold.

“Results for the third quarter of 2024 reflect good activity levels across most markets as well as continued execution against a strong order backlog,” said Michael S. McMillan, president and chief executive officer of Toromont Industries.

“Bottom line results have been dampened as expected against a strong comparator reflective of market dynamics in play last year,” he added.

Of the company’s total revenue, 50% came from equipment sales, 38% from product support and power generation and 12% from rentals.