Alta Equipment Group Inc. (ALTG) Market Cap
Alta Equipment Group Inc. has a market capitalization of $222M.
Financials based on reported quarter end 2025-12-31
Price: $6.88
▲ 0.13 (1.93%)
Market Cap: 221.99M
NYSE · time unavailable
CEO: Ryan Greenawalt
Sector: Industrials
Industry: Rental & Leasing Services
IPO Date: 2019-04-25
Website: https://www.altaequipment.com
Alta Equipment Group Inc. (ALTG) - Company Information
Market Cap: 221.99M · Sector: Industrials
Alta Equipment Group Inc. owns and operates integrated equipment dealership platforms in the United States. It operates in two segments, Material Handling and Construction Equipment. The company operates a branch network that sells, rents, and provides parts and service support for various categories of specialized equipment, including lift trucks and aerial work platforms, earthmoving equipment, cranes, paving and asphalt equipment, and other material handling and construction equipment. It also offers repair and maintenance services for its equipment. In addition, the company designs and builds warehouses; and provides automated equipment installation and system integration solutions. It serves diversified manufacturing, food and beverage, wholesale/retail, construction, automotive, municipal/government, and medical sectors. Alta Equipment Group Inc. was founded in 1984 and is headquartered in Livonia, Michigan.
Analyst Sentiment
Based on 5 ratings
Analyst 1Y Forecast: $8.25
Average target (based on 1 sources)
Consensus Price Target
Low
$7
Median
$8
High
$10
Average
$8
Potential Upside: 19.9%
Price & Moving Averages
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Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"ALTG reported revenue of $509.1M for the year ending December 31, 2025, with a net loss of $11.7M and EPS of -0.39. The company has total assets of $1.3363B and total liabilities of $1.3451B, resulting in negative equity of $8.8M. Cash flow from operations remains zero while dividends paid totaled $800k. Although revenues exceed $500M, the company is showing a concerning trend in profitability and leverage. With a market price of $5.51, the stock has seen a 1-year gain of 7.41%, indicating modest appreciation, though it suffered a decline of over 27% in the past six months. The dividend yield appears minimal relative to the context of ongoing losses, which may raise concerns among investors regarding sustainability. Overall, the performance in terms of shareholder returns is moderate, impacted significantly by recent price fluctuations and a positive yet low-yielding dividends policy."
Revenue Growth
Revenue is substantial at $509.1M, but growth trends need further analysis.
Profitability
Net loss indicates ongoing profitability issues.
Cash Flow Quality
No positive cash flow reported; dividends despite losses.
Leverage & Balance Sheet
Negative equity and high net debt raise red flags.
Shareholder Returns
Limited total returns with a modest dividend yield and price changes.
Analyst Sentiment & Valuation
Analyst target suggests upside potential from current price.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
Management is broadly constructive: Q4 produced a record equipment-sales quarter, product support margins expanded +330 bps to 46.1%, and the company ended 2025 with ~$249M liquidity and reduced net debt by ~$25M sequentially (4.9x leverage). They guided to $180M adjusted EBITDA at the 2026 midpoint and framed the year as second-half weighted, with improved pricing discipline and easing competitive discounting as key drivers. However, the Q&A pressure points show the real execution risk: (1) Q1 operations are weather-sensitive—technician mobility challenges hit parts/service first; equipment sales are not expected to be as YoY impacted, but service is. (2) The margin cycle depends on the marketplace easing off discounting and on OEM/manufacturing activity reverting—management explicitly cited oversupply and that downside exists if reversion is slower or Midwest manufacturing doesn’t come back. (3) Net leverage targets constrain capital return (dividend not expected soon; buybacks immaterial).
Growth Catalysts
- Construction Florida pipeline: transportation projects set to begin in coming quarters
- Improving quote activity (Construction quoting already ahead of where it started 2025)
- Material Handling quote/bookings strengthening; backlog up YoY (with natural quote-to-order-to-delivery cycle making 2H volume acceleration more likely)
- Product support (parts & service) compounding as fleets age; 2026 re-growth path in product support
- Master Distribution EBITDA lift in 2026 as trade/tariff-related conditions stabilize and 2025 OEM price renegotiations take hold
Business Development
- Volvo partnership: Michigan sold first two global Volvo EC950F high reach machines; deliveries scheduled for Q2
- PeakLogix & Ecoverse referenced as growth platforms (warehouse automation software PickPro; Ecoverse a one-for-one within Master Distribution)
Financial Highlights
- Q4 revenue: ~$509.0M (+$11.0M YoY); record quarter for equipment sales (new+used equipment ~$301.0M: +$13.8M YoY and +$90.0M sequentially from Q3)
- Q4 product support margin expansion: +330 bps to 46.1% (despite early winter shortening field workdays)
- Q4 rental revenue: -$4.7M (~-10% YoY) tied to continued rental fleet reduction
- Q4 adjusted EBITDA: $40.6M (essentially flat YoY); earnings quality improved (higher product support contribution; less reliance on rental equipment sales)
- Full-year 2025 revenue: $1.84B; full-year adjusted EBITDA: $164.4M (down modestly vs 2024)
- Full-year equipment gross margin compression: 14.1% in 2025, ~-100 bps YoY (tariff-related impacts, competitive discounting, oversupply)
- Construction product support EBITDA: +$13.0M+ YoY; rental equipment sales gains in Construction: -$11.0M YoY (shift toward recurring service-driven earnings)
- 2025 free cash flow: $105.0M before rent-to-sell decisioning; $103.1M after
- Balance sheet: exited 2025 with ~$249.0M total liquidity; net debt reduced by ~$25.0M sequentially in Q4; ended at 4.9x net leverage
Capital Funding
- Dividend: cut common dividend in Q2 2024/2025 timeframe and management expects status quo (no short-run reinstatement)
- Share buybacks: 10b5-1 plan in place; management characterized it as immaterial versus business cash flows
- Deleveraging priority: target to be below 4.5x net leverage by end of 2026
Strategy & Ops
- Rental fleet: reduced total rental fleet gross book value by ~$38.0M during 2025
- Cost actions: SG&A decreased by >$20.0M in 2025 via structural actions (headcount management, operational simplification, spend controls); not described as temporary deferrals
- ERP transformation/automation/technology: referenced as foundational (automation + AI enablement expectations), but no specific bps/financial step-change disclosed in Q&A
- M&A posture: selective, smaller ‘strike zone’ aligned to cultural fit, return thresholds, OEM fit, and post-close integration capability
Market Outlook
- 2026 guidance midpoint (Slide 28 bridge): $180.0M adjusted EBITDA (from $164.4M 2025)
- H2-weighted 2026 recovery expectation: Material Handling volume acceleration more second-half weighted; EBITDA beats expected more in back half of year
- Q1 caution: product support start impacted by technician travel constraints in the North (winter/weather); management expects Q1 is typically difficult and expects beats more back-end weighted
Risks & Headwinds
- Material Handling market still depressed: mentioned ITA cycle low slipped under 30,000 units (risk that reversion timing/intensity drives guidance upside/downside)
- Construction equipment market still oversupplied/competitive: management expects relief from reduced 2026 discounting dollars vs 2024/2025; competitive intensity easing is a key assumption
- Equipment margin pressure persisted for two years: oversupply + tariff/cost pressure + competitive discounting noted; 2025 equipment gross margin down ~100 bps YoY
- Weather-driven operational hurdle: early winter in Q4; Q1 2026 start described as difficult for getting technicians on the road (parts/service most impacted; rental ‘somewhere in the middle’; Material Handling rental less impacted due to indoor utilization)
Sentiment: MIXED
Note: This summary was synthesized by AI from the ALTG Q4 2025 (reported 2026-02-26) earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.