Alta Equipment Group (ALTG) investor relations material

Executive summary

• Q3 2025 revenues decreased 5.8% year-over-year to $422.6 million, mainly due to lower equipment and rental sales, with product support revenue up 1.1% and gross profit margin at 27.9%.

• Adjusted EBITDA for Q3 was $41.7 million, with a margin of 9.9%, slightly down year-over-year, while cost savings initiatives reduced SG&A by $4.7–$4.8 million.

• Net loss for Q3 was $41.6 million, with basic and diluted loss per share of $(1.31), impacted by a significant non-cash tax expense from OBBBA.

• Divestiture of the Dock and Door division completed for $6.4 million, sharpening focus on core operations.

• Macro uncertainty from tariffs, trade policy, and interest rates led to deferred capital spending and market caution.

Financial highlights

• Q3 revenue was $422.6 million, a 5.8% organic decline year-over-year, with gross profit margin at 27.9%.

• Adjusted EBITDA for Q3 was $41.7 million; for the nine months ended September 30, 2025, it was $123.8 million.

• Free cash flow before rent-to-sale decisioning was $25 million for Q3 and $80 million year-to-date; full-year guidance is $105–$110 million.

• Rental revenues declined $5.3 million year-over-year to $48.4 million but increased $2.1 million sequentially.

• SG&A expenses decreased by $4.7 million year-over-year to $105.9 million.

Outlook and guidance

• Adjusted EBITDA guidance for FY2025 is $168–$172 million, with Q4 expected to be stronger than Q3.

• Free cash flow before rent-to-sale decisioning is guided at $105–$110 million for FY2025.

• Management expects strong Q4 performance, citing increased demand for heavy equipment, infrastructure funding, and OBBBA tax incentives.

• Tariff impacts on margins expected to persist in Master Distribution but lessen in Q4.

• Anticipates entering a fleet replenishment cycle extending into 2026.