Alta Equipment (ALTG) - 2025 Q2 - Quarterly Results

Financial & Operational Highlights Q2 2025 revenues reached $481.2 million, with SG&A reduced by $12.2 million, Adjusted EBITDA at $48.5 million, and a net loss Q2 2025 Key Financial Metrics | Metric | Q2 2025 (in millions) | Change vs Q2 2024 | Change vs Q1 2025 | | :--- | :--- | :--- | :--- | | Total Revenues | $481.2 | -1.4% | +13.8% | | New and Used Equipment Revenues | $265.6 | +5.6% | N/A | | SG&A Expenses | $102.3 | -$12.2 | N/A | | Net Loss (to common stockholders) | $(6.8) | Improved from $(12.6) | N/A | | Basic and Diluted EPS | $(0.21) | Improved from $(0.38) | N/A | | Adjusted EBITDA* | $48.5 | -3.6% | +$14.9 | - Service gross profit percentage improved by 40 basis points year-over-year to 59.8%, indicating better profitability in the product support division[5] CEO Commentary & Business Overview CEO Ryan Greenawalt discussed segment performance, highlighting Construction Equipment strength, Material Handling softness, tariff impacts, and operational optimization - The Construction Equipment segment benefited from reliable demand from federal and state DOT infrastructure projects and the aggregate/mining industries[4] - The Material Handling segment experienced year-over-year declines in product support and rental due to tariff-related market hesitancy and regional softness in the Midwest and Canada[4] - The Master Distribution segment (Ecoverse) faced margin pressure due to tariffs imposed on European imports, despite increased demand for environmental processing equipment[4] - As part of a strategy to improve utilization and returns, the company reduced the original equipment cost of its rental fleet by nearly $50 million compared to the previous year[4] Capital Allocation Alta actively executed its capital allocation strategy in Q2 by repurchasing shares under its authorized buyback program Q2 2025 Share Repurchase Activity | Metric | Value (in millions, except shares) | | :--- | :--- | | Shares Repurchased | 1,145,604 | | Average Price per Share | $5.64 | | Total Cost | $6.5 | | Authorized Program | $30 | Full Year 2025 Financial Guidance The company updated its full fiscal year 2025 financial outlook, providing a revised range for Adjusted EBITDA Updated FY 2025 Guidance | Metric | Guidance Range (in millions) | | :--- | :--- | | Adjusted EBITDA | $171.5 - $181.5 | Consolidated Financial Results This section presents detailed unaudited financial statements for Q2 and H1 2025, including operations, balance sheets, and cash flows Statement of Operations Q2 2025 revenues decreased 1.4% to $481.2 million, with gross profit at $122.3 million, and a net loss of $6.8 million, an improvement year-over-year Q2 2025 vs Q2 2024 Statement of Operations (in millions) | Line Item | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenues | $481.2 | $488.1 | -1.4% | | Gross Profit | $122.3 | $132.0 | -7.3% | | SG&A Expenses | $102.3 | $114.5 | -10.7% | | Income from Operations | $12.4 | $10.3 | +20.4% | | Net Loss | $(6.1) | $(11.9) | +48.7% | | Net Loss to Common Stockholders | $(6.8) | $(12.6) | +46.0% | Balance Sheet As of June 30, 2025, total assets were $1,436.0 million, liabilities $1,392.1 million, and stockholders' equity $43.9 million, showing decreases from year-end 2024 Key Balance Sheet Items (in millions) | Account | June 30, 2025 (in millions) | Dec 31, 2024 (in millions) | | :--- | :--- | :--- | | Cash | $13.2 | $13.4 | | Inventories, net | $484.5 | $535.9 | | Total Assets | $1,436.0 | $1,480.4 | | Floor plan payable – new equipment | $260.9 | $293.4 | | Total Liabilities | $1,392.1 | $1,402.8 | | Total Stockholders' Equity | $43.9 | $77.6 | Cash Flow Statement H1 2025 operating cash flow improved to $(3.4) million, investing activities used $(8.4) million, and financing activities provided $11.4 million Six Months Ended June 30 Cash Flow Summary (in millions) | Cash Flow Activity | 2025 (in millions) | 2024 (in millions) | | :--- | :--- | :--- | | Net cash used in operating activities | $(3.4) | $(24.2) | | Net cash used in investing activities | $(8.4) | $(34.2) | | Net cash provided by financing activities | $11.4 | $32.1 | | Net Change in Cash | $(0.2) | $(26.5) | Non-GAAP Financial Measures & Reconciliations This section provides non-GAAP metrics, with Q2 2025 Adjusted EBITDA at $48.5 million, and a full reconciliation of GAAP net loss Reconciliation of Net Loss to Adjusted EBITDA (in millions) | Line Item | Q2 2025 (in millions) | Q2 2024 (in millions) | | :--- | :--- | :--- | | Net loss available to common stockholders | $(6.8) | $(12.6) | | Depreciation and amortization | $34.6 | $38.0 | | Interest expense | $22.3 | $19.2 | | Income tax provision (benefit) | $1.3 | $(2.7) | | EBITDA | $51.4 | $41.9 | | Adjustments (Gain on divestiture, etc.) | $(2.9) | $8.4 | | Adjusted EBITDA | $48.5 | $50.3 | - Adjusted basic pre-tax net loss per share was $(0.11) for Q2 2025, compared to $(0.07) in Q2 2024[5][25] Conference Call Information Alta management will host a conference call and webcast to discuss Q2 2025 financial results and address investor questions Event Details | Item | Detail | | :--- | :--- | | Date | Thursday, August 7, 2025 | | Time | 5:00 p.m. Eastern Time | | Live Call | (833) 470-1428 | | Access Code | 407288 |