Alta Equipment Increases Total Revenue in Fourth Quarter While Rental Revenue Dips 9.9 Percent

Alta Equipment posted $509.1 million in total revenue in the fourth quarter of 2025, compared to $498.1 million in the fourth quarter of 2024, a 2.2-percent increase. Rental revenue declined from $47.5 percent to $42.8 percent, a 9.9-percent dip. Parts sales increased 0.3 percent from $67.9 million to $68.1 million. Service revenue was also basically flat, increasing 0.5 percent from $59 million in Q424 to $59.3 percent in the fourth quarter of 2025.

For the full year, total revenue was $1,835.9 million, compared to $1,876.6 million in 2024, a 2.2-perent decrease. Rental revenue decreased 11.6 percent from $203.4 million in 2024 to $179.8 million in 2025. New and used equipment sales increased from $987 million in 2024 to $999.3 million in 2025, a 1.2-perent hike. Parts sales declined from $294.4 million in 2024 to $291 million in 2025, a 1.2-percent declined. Service revenues increased from $253.8 million in 2024 to $256.7 million in 2025, a 1.1-percent increase. Rental equipment sales declined from $138 million in 2025 to $109.1 million in 2025, a 20.9-percent decrease.

“Our fourth quarter equipment sales performance was encouraging as demand for equipment significantly improved due to the tax benefits of the OBBBA, lower interest rates, project permitting 'green-lights' and strengthening customer sentiment based on their project backlogs for 2026,” said Ryan Greenawalt, Alta Equipment CEO. “The over $300 million of new and used equipment sales this quarter was the highest in the company’s history, surpassing our previous largest quarter of equipment sales in the fourth quarter of 2023. Given our business model, this quarter’s record equipment sales will generate field population and future product support opportunities for years to come. The gain in equipment sales in the quarter was offset by typical seasonal pullbacks in our product support and rental businesses, which were exacerbated by an early winter in our northern regions. Importantly, after two tumultuous years marked by macroeconomic uncertainty, oversupply of equipment, and tariff-related cost pressures, the backdrop for 2026 presents a more constructive and increasingly opportunistic environment across our business segments.

“Industry volumes in both our Construction Equipment and Material Handling segments are forecast to grow in 2026. Our Construction Equipment segment is expected to continue benefiting from a customer base highly embedded on long-term and fully funded federal and state DOT infrastructure projects. Project activity in our Florida market continues to expand, and per ARTBA, the value of transportation projects in the United States expected to break ground in the next 30 to 60 days was $14.6 billion in December 2025, up 65.5 percent from $8.9 billion a year ago.

“The outlook for our Material Handling business this year is favorable relative to the tariff-impacted 2025, as we expect higher volumes, weighted to the second half of the year, due to customer fleet replenishment, and more stable conditions in the manufacturing and auto sector. The underlying fundamentals remain steady in our core market segments including food and beverage, medical, retail and wholesale distribution and logistics. We continue to be excited and well positioned for organic growth as it relates emerging technologies in the material handling sector, which include autonomous lift trucks, advanced power solutions, and warehouse automation via our Peaklogix subsidiary.”

Overview of 2025

Greenawalt also gave a detailed analysis of the company’s 2025 results including its rental business.

“In terms of our performance for 2025, total revenues down 2.2 percent to $1.8 billion, a result of slight gains in new and used equipment sales and service revenues being offset by declines largely related to our rental business,” he said. “As a reminder, we continued the strategic reduction of our rent-to-sell fleet as we re-position the business to focus on its core dealership capabilities and to drive better returns on capital in the segment overall. To that end, while our Construction Equipment segment’s adjusted EBITDA was down $3.2 million, or 3.1 percent in 2025, the segment reduced its total assets base by $89.3 million, increasing returns on capital year over year by replacing low-return rental revenues with asset-light product support profitability. 

“Our Material Handling segment revenues decreased 4.8 percent to $654.3 million in 2025, due primarily to lower equipment sales and unit deliveries as customers, especially in our Midwest region, continued to delay fleet replacements amid tariff-driven uncertainty. Despite a challenging environment for both business segments, total product support revenues remained comparatively resilient, with revenues relatively flat at $547.7 million for the year. Lastly, the cost savings and business optimization initiatives we’ve implemented continued to drive lower selling, general and administrative expenses, which decreased $23.8 million, or 5.3 percent, to $422.7 million for the year. In addition, during the fourth quarter of 2025, we meaningfully reduced total debt compared to the third quarter, driven by disciplined working capital management and continued optimization of our rental fleet. This deleveraging, combined with ample liquidity and no near-term debt maturities, positions us well as industry conditions continue to stabilize entering 2026.”

Greenawalt added that after two years of challenging business conditions, he is hopeful that the company will face more stable operating conditions in 2026. “We are laser focused on delivering improved performance this year, which we believe is achievable given industry forecasts, customer feedback and dedication to to our vision and to one another.”

Alta released its 2026 guidance range and expects to report adjusted EBITDA between $172.5 million and $187.5 million for the 2026 fiscal year.