Alta Equipment Group (ALTG) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue rose 2.2% year-over-year to $509.1M, driven by record new and used equipment sales and improved demand, despite seasonal and macroeconomic headwinds.

• Full-year 2025 revenue declined 2.2% to $1.84B, with adjusted EBITDA down 2.3% to $164.4M and net loss to common stockholders widening to $(83.3)M.

• Optimization initiatives and divestitures of non-core assets generated $20.9M–$24.4M in cash and reduced SG&A by $23.8M, supporting deleveraging.

• Product support margins expanded by 330 bps in Q4, with stable revenues and gross profit.

• Strategic priorities include sales transformation, technology-led efficiencies, and skilled trades investment.

Financial highlights

• Q4 2025 new and used equipment sales reached $300.9M, up $13.8M YoY and 43% sequentially; product support revenue was $127.4M, up 0.4%.

• Q4 adjusted EBITDA was $40.6M, flat YoY; full-year adjusted EBITDA was $164.4M, down 2.3% YoY.

• Full-year gross profit was $474.6M (25.9% margin), down 3.9% from 2024.

• Free cash flow for 2025 was $105M before rent-to-sell decisions, $103.1M after.

• Net debt at year-end 2025 was $806.5M, with a $25M sequential reduction in Q4.

Outlook and guidance

• 2026 adjusted EBITDA guidance is $172.5M–$187.5M, up from $164.4M in 2025.

• Recovery in equipment volumes and margin improvement expected, especially in the second half, with product support and master distribution growth.

• Leverage target set below 4.5x net debt/Adjusted EBITDA by end of 2026.