ALTG · Alta Equipment Group Inc.

Alta Equipment Group Inc. announced first quarter 2026 results showing total revenues of $410.5 million, a 3.0% decline from $423.0 million in the prior year quarter, driven by decreases across most categories: new and used equipment sales down 6.7% to $206.9 million, parts sales down 1.1% to $71.2 million, service revenues down 3.8% to $63.6 million, and rental revenues down 8.7% to $38.6 million. Offsetting this was a 44.5% increase in rental equipment sales to $30.2 million. Gross profit fell 5.0% to $109.3 million, with gross margins stable in equipment sales at 19.6% for new/used Material Handling and 11.7% for Construction Equipment, while service margins improved to 60.2%. Operating loss widened to $(5.7) million from income of $0.8 million, primarily due to higher SG&A expenses up 1.4%. Interest expense improved significantly to $19.5 million, down $2.4 million YoY, contributing to a narrower pre-tax loss. CEO Ryan Greenawalt highlighted seasonality from harsh winter weather but noted positive momentum, including 12.7% higher lift truck bookings in Material Handling versus prior year, with March 2026 as the highest monthly level since June 2023, continuing into April. Construction Equipment faced volume pressure and weather impacts but achieved $26.3 million in rental sales for de-fleeting, strong quoting for heavy earthmoving, and sequential margin expansion of 240 bps signaling supply/demand improvement. Master Distribution expects normalized margins post-tariff issues. Operating cash flow surged to $20.8 million, up $38.3 million YoY, supporting balance sheet optimization. Rental fleet gross book value declined $59.5 million to $524.6 million. The company updated 2026 Adjusted EBITDA guidance to $167.5-$182.5 million, reflecting Q1 performance, with optimism for peak season, infrastructure tailwinds, and dealership model strength.