Alta Equipment Group Inc. (NYSE:ALTG) is one of the best NYSE penny stocks to invest in right now. On November 12, DA Davidson cut the firm’s price target on Alta Equipment to $7 from $8 with a Neutral rating on the shares after the company posted its Q3 2025 earnings miss. The company saw a loss per share of $1.31 in the said quarter. Given these circumstances, DA Davidson is now lowering its adjusted EBITDA outlook for 2025 and 2026 due to the impact of tariffs, the presence of mixed end markets, and the ...

Financial Performance - Q2 2025 - Total revenue decreased by $6.9 million, a (1.4)% decrease, from $488.1 million to $481.2 million compared to Q2 2024[29] - New and used equipment sales increased by $14.2 million, or 5.6%, totaling $265.6 million[13, 28] - Adjusted EBITDA was $48.5 million, compared to $50.3 million in the same quarter last year, a (3.6)% decrease[14, 28] - Product support revenue decreased by $3.7 million, or (2.6)%, from $144.2 million to $140.5 million[29] Segment Performance - Q2 2025 - Material Handling segment revenue decreased by $14.9 million, or (8.5)%, from $175.6 million to $160.7 million[32] - Construction Equipment segment revenue increased by $5.8 million, or 2.0%, from $294.9 million to $300.7 million[36] - Master Distribution segment revenue increased by $4.2 million, or 25.1%, from $16.7 million to $20.9 million[39] Rental Fleet and Capital Allocation - Total rental fleet decreased from $617.2 million to $569.5 million, a decrease of $(47.7) million[42] - The company completed the sale of non-core aerial equipment business for $18 million in cash proceeds and a $4.3 million gain on sale[59] - The company repurchased approximately 1.13 million shares (~3.4% of shares outstanding) at an average price of $5.64 in Q2 2025[59] FY 2025 Guidance - Adjusted EBITDA guidance is $171.5 million - $181.5 million[60] - Free Cash Flow before RTS Decisioning guidance is $105.0 million - $115.0 million[60]

Core Insights - Alta Equipment Group Inc. reported total revenues of $481.2 million for Q2 2025, reflecting a sequential increase of 13.8% but a year-over-year decrease of $6.9 million [4][3] - The Construction Equipment segment saw revenues rise to $300.7 million, an increase of $5.8 million year-over-year, primarily driven by a $21.5 million increase in new and used equipment sales [3][4] - Material Handling revenues decreased to $160.7 million from $175.6 million year-over-year, attributed to regional market challenges and tariff-related hesitancy [3][4] Financial Performance - Adjusted EBITDA for the quarter increased by $14.9 million sequentially to $48.5 million [4][3] - The net loss available to common stockholders was $(6.8) million, with a basic and diluted net loss per share of $(0.21) [4][3] - Selling, general, and administrative expenses were reduced by $12.2 million year-over-year, contributing to improved operational efficiency [4][3] Market Conditions - The company noted that its Construction Equipment segment benefited from reliable demand due to federal and state infrastructure projects, despite broader economic uncertainties [3][4] - The Material Handling segment's performance was impacted by market hesitancy related to tariffs and regional softness, particularly in the Midwest and Canada [3][4] - Alta's Ecoverse business faced margin pressure due to tariffs on European imports, although demand for environmental processing equipment remains strong [3][4] Strategic Initiatives - The company repurchased 1,145,604 shares of common stock for an average price of $5.64 per share, totaling $6.5 million as part of its capital allocation strategy [3][5] - Alta continues to optimize its rental fleet levels, reducing the original equipment cost of its rental fleet by nearly $50 million from a year ago [3][4] - The company expects to report Adjusted EBITDA between $171.5 million and $181.5 million for the full fiscal year 2025 [6]

Core Insights - Finning International Inc. reported solid Q2 2025 results, with a revenue of $2.6 billion, consistent with the previous year, and a 5% increase in product support revenue [7][4][3] - The company achieved a record equipment backlog of $3 billion, reflecting a 6% increase from the previous quarter, driven by large mining equipment orders in Canada [7][4] - The sale of 4Refuel and ComTech was completed ahead of schedule, allowing the company to focus on core dealership operations and improve return on invested capital [4][32] Financial Performance - Q2 2025 revenue was $2,609 million, with product support revenue at $1,469 million, up 5% from Q2 2024 [8][6] - New equipment sales were nearly $1 billion, while used equipment sales decreased by 43% to $83 million [6][8] - Adjusted EBIT for Q2 2025 was $215 million, with an adjusted EBIT margin of 8.3%, down from 8.5% in Q2 2024 [7][8] Operational Highlights - The SG&A margin was 15.5%, reflecting strong cost and capital discipline, despite a $16 million increase in long-term incentive plan compensation expenses due to a 44% share price increase [7][8] - Free cash flow from continuing operations was a use of $164 million, primarily due to higher inventory levels [7][8] - The company is focused on maximizing product support and driving full-cycle resilience to improve return on invested capital [5][4] Regional Performance - In South America, revenue increased by 5%, driven by strong mining deliveries in Chile, while EBIT margin was 10.1%, down 30 basis points [16][23] - Canada operations showed mixed outlooks, with expectations for infrastructure development supporting construction sector activity [28][29] - UK & Ireland operations are expected to remain soft due to low GDP growth, but demand for power systems is strong [31][30] Strategic Developments - The company appointed Rob Atkinson to the Board of Directors, bringing over 30 years of leadership experience in the global mining industry [19][20] - Finning is focused on streamlining operations and achieving annual SG&A savings of over $20 million through organizational changes [35][34] - The company plans to invest strategically in core dealership operations to support future growth opportunities [36][34]

Group 1 - Finning International Inc. will report Q2 2025 results on August 5, 2025, after market close [1] - The investor call is scheduled for August 6, 2025, at 10:00 AM Eastern Time [1] - The investor call will be accessible via a toll-free number for Canada and the US, as well as an international toll number [1] Group 2 - Finning is the world's largest Caterpillar dealer, providing services for over 90 years [2] - The company is headquartered in Surrey, British Columbia, and operates in multiple regions including Western Canada, Chile, Argentina, Bolivia, the United Kingdom, and Ireland [2]

Company Overview - Finning International Inc. is the world's largest Caterpillar dealer, providing equipment, parts, services, and performance solutions for over 90 years [2] Upcoming Financial Results - Finning will report its Q2 2025 results on August 5, 2025, after market close [1] - An investor call is scheduled for August 6, 2025, at 10:00 AM Eastern Time [1] - The investor call will be accessible via a toll-free number for Canada and the US, as well as an international toll number, and will be webcast live with an archive available for three months [1]