Alta Equipment Group (ALTG) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue declined 4.2% year-over-year to $423.0M, with stable operating trends, cost optimization, and margin improvements supporting profitability despite macroeconomic headwinds.

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

• Adjusted EBITDA was $33.6M, nearly flat year-over-year, with margin improving to 7.9%–8.0% of revenues.

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

• SG&A expenses decreased by $7.9M year-over-year, reflecting ongoing cost optimization.

Financial highlights

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

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

• Interest expense (excluding floor plan) rose 40.6% to $18.7M; total interest expense was $21.0M, up 38.2%.

• Free cash flow before rent-to-sell decisioning was $23M in Q1, with levered free cash flow after returns to shareholders at $3.7M.

• Cash at quarter-end was $11.1M, with available borrowings of $401.6M.

Outlook and guidance

• FY2025 Adjusted EBITDA guidance reaffirmed at $171.5M–$186.5M, adjusted for the aerial business divestiture.

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

• Construction segment expected to benefit from infrastructure-related demand, especially in Florida.

• Material Handling bookings in Q1 expected to support stronger sales in the second half of 2025.