Alta Equipment Group (ALTG) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue declined 4.2% year-over-year to $423.0 million, with stable operating trends and cost optimization supporting profitability despite macroeconomic headwinds and higher interest expense.

• Net loss available to common stockholders widened to $21.7 million, or $(0.65) per share, compared to a loss of $12.7 million in Q1 2024.

• Adjusted EBITDA was $33.6 million, nearly flat year-over-year, with margin improving to 7.9% due to cost controls and SG&A expense reductions.

• Product support and service gross profit margin improved, with service gross profit up 230 basis points to 60.1%.

• Board suspended the quarterly dividend, reallocating ~$8 million annually to a $30 million share repurchase program, including a $10 million Rule 10b5-1 plan.

Financial highlights

• New and used equipment sales fell 3.0% to $221.7 million; rental revenues declined 12.8% to $42.3 million; service revenues grew 3.3% to $66.1 million.

• Gross profit decreased 4.6% to $115.0 million; operating income improved to $0.8 million from a loss of $(0.9) million in Q1 2024.

• SG&A expenses decreased by $7.9 million year-over-year, supporting margin improvement.

• Free cash flow before rent-to-sell decisioning was $23 million for Q1; levered free cash flow after returns to shareholders was $3.7 million.

• Interest expense increased 38.2% to $21.0 million, mainly due to higher rates on refinanced debt.

Outlook and guidance

• Full-year 2025 adjusted EBITDA guidance reaffirmed at $171.5 million to $186.5 million, net of the aerial business divestiture.

• Guidance assumes stable product support demand, continued cost optimization, and no major economic downturn or significant tariff increases.

• Construction infrastructure end markets and Florida market expected to remain supportive; material handling bookings solid for the second half of 2025.