Alta Equipment Group (ALTG) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was $481.2M, up $58.2M sequentially but down 1.4% year-over-year, with strong construction equipment sales and cost optimization offsetting macroeconomic and tariff headwinds.

• Adjusted EBITDA for Q2 was $48.5M, nearly flat year-over-year, with improved operational efficiency and reduced SG&A expenses by over $12M.

• Net loss for Q2 was $6.1M, improving from $11.9M loss in Q2 2024; basic and diluted loss per share was $0.21.

• Share repurchases totaled $6.5M in Q2 as part of a $30M buyback program, with $17.7M–$20M remaining.

• Divestiture of the Chicago aerial fleet rental business generated $18M in cash and a $4.3M gain.

Financial highlights

• Gross profit margin for Q2 2025 was 25.4%, down from 27.0% a year ago; gross profit was $122.3M.

• New and used equipment sales rose 5.6% year-over-year to $265.6M; rental revenues fell 13.8% to $46.3M.

• Adjusted EBITDA margin for Q2 was 10.1%; free cash flow before rent-to-sell decisioning was $32M for the quarter, $55M year to date.

• SG&A expenses reduced by 10.6% year-over-year, supporting improved cost structure.

• Cash at June 30, 2025, was $13.2M; available borrowings under credit facilities totaled $425.2M.

Outlook and guidance

• FY2025 Adjusted EBITDA guidance set at $171.5M–$181.5M, trimmed to reflect tariff impacts and material handling headwinds.

• Free cash flow before rent-to-sell decisioning expected between $105M and $115M for FY2025.

• Management expects stable demand in Construction Equipment, with backlog supporting H2 2025 sales.

• Anticipates Q4 demand boost from tax incentives in the One Big Beautiful Bill; OBBBA tax law impact under evaluation.

• Guidance assumes no significant further demand reduction from tariffs or trade policy changes.