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Jun 30, 2024
Alta Q2 2024 Earnings Report
Alta reported a mixed Q2 2024, with revenue increase offset by net loss.
Key Takeaways
Alta Equipment Group's Q2 2024 saw total revenues increase by $19.7 million year-over-year to $488.1 million. However, the company reported a net loss available to common stockholders of $(12.6) million, or $(0.38) per share. Adjusted EBITDA was $50.3 million, and adjusted EPS was $0.01. The company has updated its full year Adjusted EBITDA guidance to between $190.0 million and $200.0 million.
Total revenues increased by $19.7 million year-over-year to $488.1 million.
Product support revenues increased 10.1% year-over-year, with parts sales and service revenues increasing to $78.0 million and $66.2 million, respectively.
Net loss available to common stockholders was $(12.6) million, or $(0.38) per share.
Adjusted EBITDA was $50.3 million, with adjusted EPS of $0.01.
Alta
Alta
Forward Guidance
Alta Equipment Group updated its full year 2024 financial guidance and now expects to report Adjusted EBITDA between $190.0 million and $200.0 million.
Positive Outlook
- Infrastructure related project pipelines are significant.
- State DOT budgets are expected to remain elevated in 2025.
- Spending on federal infrastructure programs is still in the early innings.
- Hyster-Yale Materials Handling product portfolio and commitment to advanced technologies will allow Alta to gain market share in key regions.
- eMobility business has approximately $25 million of sales backlog expected to convert to revenues in the second half of 2024.
Challenges Ahead
- Market unit volumes in Construction Equipment segment remain under pressure due to uncertainty regarding interest rates and the election outcome.
- Construction equipment sales margins continued to be impacted by the oversupply of competitive new equipment on the market.
- Cost and fleet optimization and other initiatives to streamline business will be high priorities as Alta calibrates to the transitioning environment.
- Potential transitory headwinds for new equipment sales are expected.
- Uncertainty regarding interest rates and the election outcome, especially affecting small to mid-size contractors.