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Sep 30, 2025
Alta Q3 2025 Earnings Report
Alta Equipment Group announced its financial results for the third quarter ended September 30, 2025, with total revenues decreasing by $26.2 million year over year to $422.6 million.
Key Takeaways
Alta Equipment Group experienced a challenging third quarter in 2025, with total revenues declining by 5.8% year-over-year to $422.6 million, primarily due to reduced equipment sales in both Material Handling and Construction Equipment segments. Despite the downturn in equipment sales, product support revenues showed resilience, increasing by 1.1%. The company reported a net loss of $41.6 million and an adjusted EBITDA of $41.7 million. The quarter was significantly impacted by a non-recurring income tax expense of $24.4 million related to the One Big Beautiful Bill Act (OBBBA).
Total revenues decreased by $26.2 million (5.8%) year-over-year to $422.6 million, driven by declines in both Material Handling and Construction Equipment segments.
The company reported a net loss of $41.6 million and a basic and diluted net loss per share of $(1.31), largely due to a $24.4 million income tax expense from the OBBBA.
Product support revenues increased by 1.1% year-over-year to $141.7 million, with product support gross profit percentage rising by 160 basis points to 47.2%.
Adjusted EBITDA decreased by $1.5 million (3.5%) year-over-year to $41.7 million, reflecting the challenging market conditions.
Revenue by Segment
Forward Guidance
Alta Equipment Group anticipates a strong fourth quarter for 2025, driven by increased demand for heavy earthmoving equipment due to OBBBA tax incentives and an expected fleet replenishment cycle extending into next year. The company has updated its full-year 2025 Adjusted EBITDA guidance to be between $168.0 million and $172.0 million.
Positive Outlook
- October emerged as the strongest month of the year for equipment sales, particularly in the Construction Equipment segment.
- Anticipated continued customer activity for the remainder of the year due to positive buyer response to the OBBBA and recent interest rate cuts.
- DOT spending budgets in major U.S. markets are projected to rise another 6.0% in fiscal 2026, building on record levels.
- Michigan's newly passed $2 billion infrastructure funding bill targets critical road and bridge repairs, benefiting the Construction Equipment segment.
- Demand remains strong among energy, utility, and food and beverage customers across all territories for Material Handling.
Challenges Ahead
- Subdued capital investment on material handling and heavy equipment across select end markets and geographies.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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