Alta Equipment Revenue Dips 5.8 Percent in Third Quarter

Alta Equipment posted third quarter 2025 total revenues of $422.6 million, compared to $448.8 million in the third quarter of 2024, a decline of 5.8 percent. Rental revenues decreased 9.9 percent from $53.7 million in Q324 to $48.4 million in the recently concluded quarter. New and used equipment sales dipped 4 percent from $219.8 million a year ago to $211.1 million this year, while parts sales were about flat, from $75.6 million to $76.3 million.

For the first nine months of the year, total revenue is $1,326.8 million compared to $1,378.5 million last year, a 3.8-percent decrease. Rental revenue for the nine-month period was $137 million, compared to $155.9 million a year ago, a 12.1-percent drop. New and used equipment sales were flat, dipping from $699.9 million to $698.4 million. 
Service revenues rose slightly during the third quarter from $64.6 million to $66.4 million, a 2.8-percent increase, while for the nine-month period, a 2.6 percent increase from $194.8 million to $197.4 million.

“Our employees delivered exceptional performance in the third quarter, navigating a challenging environment marked by subdued capital investment on material handling and heavy equipment across select end markets and geographies,” said Ryan Greenawalt, Alta CEO. “Industry volumes have remained depressed throughout the year and have persisted below the norm now for multiple quarters. Despite this, and while equipment sales were down during the quarter, October emerged as our strongest month of the year in that category, especially in the Construction Equipment segment. We are hopeful this signals continued customer activity for the remainder of the year as we believe the recent surge reflects a positive buyer response to the recently enacted OBBBA and the latest rounds of interest rate cuts. Looking ahead, we are encouraged by October’s momentum and remain confident in a return to normalized industry volumes across both of our major segments.

“Importantly, our product support business lines continued to act as a pillar of strength for our business in the quarter, increasing versus last year and in the face of a volatile macroenvironment. In our Construction Equipment segment, our strategic focus remains on serving customers engaged in long-term federal and state DOT infrastructure projects. Notably, DOT spending budgets in our major U.S. markets are projected to rise another 6.0 percent in fiscal 2026, building on record levels. We are especially proud to support Michigan’s newly passed $2 billion infrastructure funding bill, which targets critical road and bridge repairs. In our Material Handling business, while we continue to see softness in the automotive and general manufacturing sectors, specifically in our Midwest and Canada regions, demand remains strong among our energy, utility, and food and beverage customers across all territories. Additionally, we remain focused on our long-term initiative of driving market share in warehousing related product categories in this segment.”

Construction Equipment Segment aligns supply with demand
Greenawalt explained Alta’s financial performance. “In terms of our financial performance, total revenues for the quarter decreased 5.8 performance or $26.2 million compared to the prior year. The majority of this decrease stemmed from our Construction Equipment segment, which saw a $20.7 million reduction in revenue. This decrease was primarily driven by our deliberate fleet optimization strategy, aimed at aligning supply with demand for lightly used rental equipment. As a result, the size of our total rental fleet is approximately $40 million below the prior year period. While our strategy to optimize our rental fleet has led to comparatively lower disposal volumes, rental revenues and rental equipment sales, it reflects our commitment to enhancing earnings quality by emphasizing core dealership operations over episodic rental activity.

“Material Handling revenues were essentially flat at $167.9 million as sales continue to be pressured by ongoing caution related to tariffs and the broader economy. Product support revenues increased 1.1 percent to $141.7 million supported by strong technician productivity across both major segments. We continue to be pleased with the progress on the cost savings initiatives we implemented in the second half of last year as SG&A expenses were down $4.7 million for the third quarter and $24.8 million year-to-date versus the prior year. Additionally, we completed the divesture of our Dock and Door division during the quarter, another step in our ongoing efforts to optimize our portfolio and focus on serving the right customers with the right products.”

Greenwalt expressed optimism about the fourth quarter and the coming year. 

“The fourth quarter is shaping up to be strong for our business, with demand for heavy earthmoving equipment gaining momentum as customers act on the tax incentives provided by the OBBBA. We also believe we are also entering a fleet replenishment cycle, which we are optimistic will extend into next year. In the meantime, our management team is laser focused on executing sales initiatives to drive market share and enhancing operational and capital efficiency to ultimately drive improved profitability and cash flows. In conclusion, while equipment markets have faced headwinds for nearly two years, our strong October sales performance, a more favorable interest rate environment, the benefits of the OBBBA, our belief over the long-term in the equipment replenishment cycle, and the confidence we have in our OEM partners give us reassurance as we look forward to 2026.”