Alta Equipment (US:ALTG) Globenewswireยท2025-05-07 20:15Core Viewpoint - Alta Equipment Group Inc. reported a decrease in total revenues for the first quarter of 2025, highlighting the resilience of its business model despite macroeconomic uncertainties. The company is focusing on infrastructure-related projects, which are expected to drive consistent demand for heavy equipment throughout the year [2][3]. Financial Performance - Total revenues for the quarter were $423.0 million, a decrease of 4.2% compared to the first quarter of the previous year [4][8]. - Construction Equipment revenue was $245.8 million, down 3.8%, primarily due to a strategic initiative to reduce the rent-to-sell fleet size [4][8]. - Material Handling revenues decreased by 9.4% to $157.9 million, while the Master Distribution business saw a significant rebound with a 35.9% increase in revenues to $17.4 million [4][8]. - Adjusted EBITDA for the quarter was $33.6 million, slightly down from $34.1 million a year ago [4][8]. Cost Management - Selling, general and administrative expenses were reduced by $7.9 million year over year, contributing to improved margins [4][8]. - The service gross profit percentage increased by 230 basis points year over year to 60.1% [4][8]. Strategic Initiatives - The company has entered into a definitive agreement to divest substantially all of its aerial fleet rental equipment business in the Chicagoland market for $18.0 million, with proceeds allocated to reducing outstanding debt [3][8]. - The Board of Directors has authorized the indefinite suspension of the quarterly common stock dividend, reallocating approximately $8 million in annual dividend payments to an expanded share repurchase program [5][8]. Market Outlook - The stability in the Construction Equipment segment is attributed to customers focusing on infrastructure-related projects, which are expected to drive consistent demand for heavy equipment [3][8]. - The company reaffirms its organic guidance range, expecting Adjusted EBITDA for the fiscal year 2025 to be between $171.5 million and $186.5 million [8].