Distributor Alta Equipment Group posted $466.2 million in third quarter 2023 revenues compared to $405 million in the third quarter of 2022, a 15.1 percent year-over-year increase. Rental revenue increased a more modest 7.6 percent, from $50.2 million in last year’s third quarter to $54 million this year. New and used equipment sales totaled $253.6 million in Q323 compared to $210.1 million in the year-ago quarter, a 20.7-percent boost.
For the first nine months of the year, total revenues were $1,355.3 million compared to $1,143.2 million, an 18.5-percent jump. Rental revenues increased from $131.5 million in the first nine months of 2022 to $147.1 million, an 11.9-percent hike. New and used equipment sales totaled $727.8 million for the first nine months of 2023 compared to $579 million for the same period in 2022, a 25.7-percent climb.
“Our diversified end-user markets remain strong despite macroeconomic headwinds,” said CEO Ryan Greenawalt. “Given this solid demand, and operational excellence from the Alta team, we achieved strong results during the third quarter. All our business segments continue to perform well. Our Construction segment new and used equipment sales continue to benefit from the increased availability of equipment from our OEM partners, which is evidenced by the 19.3-percent organic growth this quarter when compared to the third quarter of 2022. Demand for material handling equipment also remains strong as we continue to work off of a high level of equipment sales backlog in that segment. Between all segments, we have sold nearly $149 million more new and used equipment into field population year to date than we did for the same period in 2022, which we know will correlate to future high-margin product support revenues. To that end, our product support revenues increased 12.1 percent from a year ago as we continue to support an ever-increasing field population and provide our customers with reliable service through our more than 1,300 skilled technicians.
“We continue to execute upon our acquisition and growth strategy, acquiring Burris Equipment, which will expand our construction equipment presence in the Illinois market, and most recently, Ault Industries, which expands our Construction segment into Canada for the first time. Notably, both acquisitions are immediately accretive to shareholders and all major financial and valuation metrics. Additionally, in terms of further organic opportunities, as announced today we are expanding into western Pennsylvania through our new relationship with Case Construction Equipment to serve construction contractors throughout the region. Including Burris and Ault, since the company’s initial public offering in 2020, Alta has now completed 16 acquisitions, which have contributed $537 million in revenue, and $65 million in Adjusted EBITDA.”
Greenawalt expressed optimism in the company’s markets for the year ahead.
“Most importantly, our customers remain positive throughout the balance of this year and into 2024. Incrementally beneficial to our business, federal spending initiatives will extend the cycle for years to come as well as increases in state DOT budgets and onshoring projects, some of which are currently underway in several of our markets,” Greenawalt said.
Headquartered in Livonia, Mich., Alta Equipment is No. 21 on the RER 100.