Third Quarter Financial Highlights:

• Total revenues decreased $26.2 million year over year to $422.6 million
• Material Handling revenues decreased $1.0 million year over year to $167.9 million, while Construction Equipment and Master Distribution revenues decreased a combined $23.9 million year over year to $256.6 million
• Product support revenues increased 1.1% year over year to $141.7 million for the quarter
• Product support gross profit percentage increased 160 basis points year over year to 47.2%
• Selling, general, and administrative expenses decreased by $4.7 million year over year
• Income tax expense of $24.4 million is primarily related to valuation allowance impacts of the One Big Beautiful Bill Act (“OBBBA”)
• Net loss available to common stockholders of $(42.3) million
• Basic and diluted net loss per share of $(1.31)
• Adjusted basic and diluted pre-tax net loss per share* of $(0.35)
• Adjusted EBITDA* decreased $1.5 million year over year to $41.7 million

Alta Equipment Group Inc., a provider of premium material handling, construction, and environmental processing equipment and related services, has announced financial results for the third quarter ended September 30, 2025.

CEO Comment:

Ryan Greenawalt, Chief Executive Officer of Alta, said, “Our employees delivered exceptional performance in the third quarter, navigating a challenging environment marked by subdued capital investment in material handling and heavy equipment across select end markets and geographies. 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.” Mr. Greenawalt continued, saying, “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% 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.”

Mr. Greenawalt continued, “In terms of our financial performance, total revenues for the quarter decreased 5.8% 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% 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 divestiture 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.”

In conclusion, Mr. Greenawalt said, “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.”

Full Year 2025 Financial Guidance and Other Financial Notes:

• In July 2025, the OBBBA was enacted into law. Before OBBBA was enacted, interest expense limitation rules positioned the Company in a taxable income situation prior to the application of its net operating loss carryforwards (“NOLs”), the use of which were limited and unable to shield the entirety of the Company’s taxable income. This resulted in cash taxes paid in recent years which reduced available cash liquidity. As the Company was using its NOLs, there was no need to recognize a valuation allowance against the NOL deferred tax assets (“DTAs”). For the Company, the enactment of the OBBBA legislative changes resulted in a taxable loss position on a trailing 12-quarter recast basis, prior to the application of its NOLs, primarily as a result of the change to the interest expense limitation rules. Thus, future usage of the Company’s NOLs to shield taxable income was no longer more likely than not and a full valuation allowance against those NOL DTAs was deemed appropriate, leading to the significant increase in a non-recurring, non-cash deferred income tax expense for the three and nine months ended September 30, 2025. Going forward, given the change to the interest expense limitation and the Company now being in a taxable loss situation, cash taxes paid by the Company will be reduced, a benefit to available cash liquidity in the future. Overall, the Company views the attributes of the OBBBA as a net positive for both the Company and its customer base.
• On August 29, 2025, the Company’s Material Handling segment entered into a definitive agreement and closed on the divestiture of its Dock and Door business for $6.4 million, $3.1 million of which was paid in cash at close with the remainder of the cash consideration expected to be paid to the Company upon a working capital true-up and the collection of specific customer receivables.
• The Company updates our guidance range and now expects to report Adjusted EBITDA between $168.0 million and $172.0 million for the 2025 fiscal year.