Alta Equipment Group’s third quarter results were met with a significant negative market reaction, as the company’s sales and non-GAAP earnings came in well below Wall Street expectations. Management attributed the underperformance primarily to softness in equipment sales, which they linked to customers delaying purchases amid uncertainty around interest rates and tax incentives. CEO Ryan Greenawalt described the period as “turbulent,” explaining that many customers pushed capital spending into the following quarter while awaiting more clarity on economic policy and funding. The company also cited persistent headwinds from tariffs and manufacturing sector weakness, but noted that their product support and services business provided some stability during the quarter.
Is now the time to buy ALTG? Find out in our full research report (it’s free for active Edge members).
Alta (ALTG) Q3 CY2025 Highlights:
- Revenue: $422.6 million vs analyst estimates of $461.6 million (5.8% year-on-year decline, 8.4% miss)
- Adjusted EPS: -$1.10 vs analyst estimates of -$0.17 (significant miss)
- Adjusted EBITDA: $41.7 million vs analyst estimates of $46.1 million (9.9% margin, 9.5% miss)
- EBITDA guidance for the full year is $170 million at the midpoint, below analyst estimates of $173.8 million
- Operating Margin: 1.1%, in line with the same quarter last year
- Market Capitalization: $162.8 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Alta’s Q3 Earnings Call
- Liam Burke (B. Riley Securities) asked about the prospects for a near-term sales and margin upswing in Construction Equipment. CFO Anthony Colucci replied that October’s strong sales were encouraging, but gross margins may only improve as industry oversupply dissipates.
- Liam Burke (B. Riley Securities) inquired about signs of manufacturing recovery in Material Handling. CEO Ryan Greenawalt explained that replenishment cycles are back on track, with a stable backlog and optimism for long-term regional growth driven by policy support.
- Steven Ramsey (Thompson Research Group) questioned the stability of Material Handling backlog and its drivers. Colucci clarified that backlog reductions were more related to improved factory lead times than to lower demand, and highlighted ongoing strength in allied and used equipment sales.
- Steven Ramsey (Thompson Research Group) asked about drivers of strong aftermarket margins in Material Handling. Colucci pointed to midyear pricing increases and tighter control over non-billable labor as key contributors, with long-term margins expected to remain stable.
- Steven Ramsey (Thompson Research Group) sought clarity on the timing and impact of the Dock and Door divestiture. Colucci confirmed the sale had minimal EBITDA impact and was mainly a strategic step to focus on core dealership strengths.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) whether deferred equipment purchases convert to higher sales volumes and gross margins, (2) the pace and impact of infrastructure project spending in core Alta regions, and (3) further evidence of margin improvement from ongoing cost reductions and business portfolio optimization. Successful execution in these areas will be critical for validating management’s recovery narrative.
Alta currently trades at $5.05, down from $5.89 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).
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