Alta Equipment Group reported financial results for the fourth quarter and full year ended Dec. 31, 2024, according to a March 5 Alta Equipment Group release.
Alta CEO Ryan Greenawalt attributed the company’s performance to elevated interest rates and uncertainty surrounding the U.S. presidential election, which led to a slowdown in construction spending and non-residential project starts, according to the release. The North American construction equipment market saw a decline, with some regional markets dropping 10% to 20% year-over-year.
Despite these challenges, Greenawalt noted resilience in the material handling segment, which saw a slight revenue increase to $687.4 million due to continued lift truck deliveries, according to the release. Industry-wide overstocked inventories further pressured construction pricing, while seasonal rental equipment trends and holiday-related downtime also affected fourth-quarter results.
Customer sentiment improved post-election, leading to the strongest quarterly equipment sales of the year in Q4, according to the release. However, gross margins on equipment sales remained pressured as dealers adjusted inventories and rental fleet levels.
Greenawalt highlighted Alta’s ability to generate stable revenues despite market cyclicality, supported by a diversified product portfolio and strong customer relationships, according to the release. Product support revenue grew for the fifth consecutive year, while fleet adjustments in the second half of 2024 led to strong operating cash flows and a $60 million reduction in debt since June 30, 2024.
Looking ahead, Greenawalt expressed optimism for 2025, expecting the oversupply of new equipment to normalize and improve competitiveness in the construction segment, according to the release. He pointed to ongoing cost and inventory optimization initiatives as a foundation for future growth.
Fourth Quarter 2024 Financial Highlights
- Total revenue fell 4.5% year-over-year to $498.1 million.
- Construction and material handling revenue was $318.6 million and $168.6 million, respectively.
- Product support revenue declined 2.3%, with parts sales at $67.9 million and service revenue at $59 million.
- New and used equipment sales dropped 3.7% to $287.1 million.
Full Year 2024 Financial Highlights
- Total revenue remained flat at $1.88 billion, down $0.2 million year-over-year.
- Construction and material handling revenue was $1.13 billion and $687.4 million, respectively.
- Master distribution revenue totaled $59.2 million.
- Product support revenue increased 5.5%, with parts sales at $294.4 million and service revenue at $253.8 million.
- New and used equipment sales fell 3.8% to $987 million.
Market Reaction
Shares of Alta Equipment Group (NYSE: ALTG) were down 0.95% or 5 cents from market open to $5.05 as of market close today. Alta Equipment Group has a market capitalization of $169.61 million.
Alta operates one of North America’s largest integrated equipment dealership platforms, providing sales, rentals, and parts and service support across material handling, construction, and environmental processing equipment categories, according to the March 5 release. The company has a network of more than 85 locations across multiple U.S. states and Canadian provinces.
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