Alta Equipment Group (ALTG) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $410.5 million, down 3% year-over-year, with organic revenue declining 2.1%; adjusted EBITDA was $28.1 million, impacted by Q4 pull-forward sales, harsh winter, and margin pressures.

• Gross margins on new and used equipment improved 240 basis points sequentially to 15.1%, but overall gross profit margin decreased to 26.6% year-over-year.

• Operating cash flow reached $20.8 million, up $38.3 million from Q1 2025, reflecting disciplined fleet and working capital management.

• Interest expense declined $2.4 million year-over-year to $19.5 million due to deleveraging and inventory optimization.

• Net loss available to common stockholders was $20.3 million, an improvement from Q1 2025.

Financial highlights

• New and used equipment sales fell 6.7% to $206.9 million, while rental equipment sales surged 44.5% to $30.2 million.

• Gross profit was $109.3 million, down from $115.0 million in Q1 2025; gross profit margin for the company was 26.6%, down 60bps year-over-year.

• Adjusted EBITDA margin dropped to 6.8% from 7.9% in Q1 2025.

• Net leverage held flat versus year-end, with total liquidity of approximately $249 million as of March 31, 2026.

• SG&A expenses rose $1.5 million (1.4%) year-over-year.

Outlook and guidance

• Full-year 2026 adjusted EBITDA guidance updated to $167.5–$182.5 million, reflecting Q1 performance.

• Free cash flow before rent-to-sell decisions expected at $100–$110 million, back-half weighted.

• Leverage target remains below 4.5x by year-end.

• Management expects Material Handling equipment sales to outperform 2025, with strong bookings and backlog.

• Construction business expected to benefit from infrastructure projects and federal highway reauthorization.