Alta’s new equipment floorplan payables fall 17.9% YoY

Alta Equipment Group reported a decline in floorplan expense, as well as an increase in new and used sales, as market conditions improved.

Alta ended 2025 on firmer footing than it began the year, as equipment demand rebounded with record quarterly sales and improved inventory levels despite seasonal softness in product support and rental, Chief Executive and President Ryan Greenawalt said during the company’s fourth-quarter earnings call Feb. 26.

“Competitive discounting is moderating and customers are returning to more typical fleet replenishment cycles across both construction and material handling segments,” he said. “The tone in the market has improved, and we are beginning to see that translate into real demand.”

With an improving market, Alta reported growth in new- and used-equipment sales in Q4 and for the full year, Chief Financial Officer Anthony Colucci said during the call.

“Importantly, this strong level of equipment sales activity translated directly into strong operating cash flows and balance sheet improvement,” he said. “Combined with our ongoing fleet, rental fleet reductions, the company was able to meaningfully de-lever in the quarter with net debt reduced by approximately $25 million sequentially.”

In addition to the debt reduction, Alta reduced its floorplan payables for new equipment to $241 million and its floorplan payables for used and rental equipment to $72.3 million as of Dec. 31, 2025, down 17.9% year over year and 10.9% YoY, respectively, according to the company’s Feb. 26 earnings release.

By the numbers

According to the company’s Feb. 26 earnings presentation, Alta’s Q4 results included:

Total revenue of $509.1 million, up 2.2% YoY;

Construction total revenue of $328.6 million, up 3.1% YoY;

Material handling total revenue of $167.8 million, down 0.5% YoY;

Master distribution, the company’s environmental processing division, revenue of $14 million, up 21.7% YoY;

Product support revenue, consisting of parts sales at $68.1 million and service revenue, at $59.3 million, up 0.4% YoY;

New- and used-equipment sales of $300.9 million, up 4.8% YoY;

Rental revenue of $42.8 million, down 9.9% YoY; and

Rental equipment sales of $38 million, up 3.8% YoY.

Additionally, the company’s full-year 2025 results, according to the earnings presentation, included:

Total revenue of $1.8 billion, down 2.2% YoY;

Construction revenue of $1.1 billion, down 1.3% YoY;

Material handling revenue of $654.3 million, down 4.8% YoY;

Master distribution revenue of $67.3 million, up 13.7% YoY;

Product support revenue dipped 0.1% YoY, with parts sales at $291 million and service revenue at $256.7 million;

New- and used-equipment sales of $999.3 million, up 1.2% YoY;

Rental revenue of $179.8 million, down 11.6% YoY; and

Rental equipment sales of $109.1 million, down 20.9% YoY.

Market Outlook

Meanwhile, Alta expects modest 2026 volume growth and margin recovery, supported by parts growth and distribution gains, partially offset by higher costs as the company navigates the bridge between 2025 and 2026, Colucci said.

The bridge “reflects a cumulative impact of multiple incremental improvements across the business layered on to a more normalized demand environment and a structurally lower cost base,” he said. “While 2025 was another challenging operating year for the business, our customers and our partners, Alta exits the year leaner and better positioned to take advantage of the future as we continue to refocus on our core dealership capabilities.”

Shares of Alta Equipment Group (NYSE: ALTG) were up 6.2% or 40 cents from market open to $6.90 as of market close today. Alta Equipment Group has a market capitalization of $209.5 million.

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