Alta Equipment 2025 Q3 Earnings 50.2% Wider Net Loss Despite Strong Construction Sales

Alta Equipment (ALTG) reported Q3 2025 results that missed revenue estimates and guidance, with a 5.8% revenue decline to $422.6 million and a net loss of $41.6 million, a 50.2% increase in losses year-over-year. , reflecting ongoing industry challenges and operational adjustments.

Revenue

, driven by a strategic reduction in rental fleet size and softer demand in material handling. , the strongest month of the year, but this segment’s overall revenue declined due to fleet optimization. , . Rental revenue dipped to $48.4 million, reflecting the deliberate reduction in the rent-to-sell fleet.

Earnings/Net Income

The company’s losses widened significantly, with a net loss of $41.6 million ($1.31 per share), . This represents a 52.3% wider loss per share, underscoring operational pressures despite cost-cutting initiatives that reduced SG&A expenses by $25 million year-to-date. The earnings performance highlights the challenges in stabilizing profitability amid market oversupply and pricing pressures.

Post-Earnings Price Action Review

Following the earnings release, , , and 11.69% month-to-date. Analysts remain cautiously optimistic, citing infrastructure tailwinds and operational improvements, though the market reaction reflects skepticism about near-term recovery. The stock’s performance suggests investor concern over the company’s ability to reverse its EBITDA and margin trends despite management’s confidence in long-term growth drivers.

CEO Commentary

CEO emphasized resilience in a challenging macroeconomic environment, highlighting October’s $75 million construction sales as a “strongest month of the year” and 60% of Q3 totals. He cited infrastructure funding in Florida and Michigan and reindustrialization in the Great Lakes region as key opportunities. Strategic priorities include divesting non-core assets like the dock and door division to focus on core dealership operations and optimizing processes to enhance profitability.

Guidance

CFO provided 2025 adjusted EBITDA guidance of $168–172 million, below prior expectations, citing impacts from tariff-related costs and equipment sales volatility. , while maintaining confidence in its enduring business model despite Q3 challenges.

Additional News

Alta completed the divestiture of its dock and door division, aligning with its strategy to focus on core dealership operations. The Ecoverse business faced significant tariff-related impacts, affecting key metrics. Additionally, , signaling future visibility, and noted improved delivery times from manufacturers as a factor in reduced backlog levels.