Alta Equipment Group (ALTG) Q4 2024 earnings summary

Executive summary

• 2024 revenue was $1,876.6 million, essentially flat year-over-year, with Q4 revenue down 4.5% to $498.1 million.

• Adjusted EBITDA for 2024 was $168.3 million, down 12.1% from 2023; Q4 Adjusted EBITDA was $40.7 million, down 18.1%.

• Net loss available to common stockholders was $(65.1) million for 2024, compared to $5.9 million in 2023.

• Product support revenue grew 5.5% to $548.2 million, while new and used equipment gross margins declined to 15.1%.

• SG&A expenses increased 3.8% to $446.5 million, mainly due to the full-year impact of 2023 acquisitions.

Financial highlights

• Q4 2024 revenue was $498.1 million, a 4.5% year-over-year decline, with construction and material handling segments down 2.9% and 5.8%, respectively.

• Gross margin for 2024 was 26.3%, down from 27.0% in 2023; Q4 gross profit was $116.5 million, down 12.4%.

• Rental revenue in Q4 dropped 14.1% to $47.5 million; rental fleet value reduced by $29.6 million year-over-year.

• Free cash flow after rent-to-sell decisioning was $119.9 million in 2024, up from $78.1 million in 2023.

• Ended 2024 with $330 million in cash and credit availability; net debt at year-end was $796.6 million, with a leverage ratio of 4.7x Adjusted PF EBITDA.

Outlook and guidance

• 2025 Adjusted EBITDA guidance is $175–$190 million, with expectations of flat construction equipment sales, low single-digit growth in material handling, and ~20% growth in master distribution.

• Product support growth is expected from billable rate realization and efficiency improvements.

• Rental volumes projected to remain stable with improved utilization on a lower average fleet.

• Leverage targeted at 3.0x–4.0x, with sufficient liquidity and a positive long-term cash flow outlook.

• Macro environment and market normalization remain key variables for 2025 performance.