Alta Equipment Group Inc. — Second Quarter 2026 Earnings Summary

Financial Performance

• Total revenues were $475.5 million for the quarter, a decrease of $5.7 million (1.2%) year-over-year and an increase of $65.0 million sequentially versus Q1 2026.
• Organic revenues decreased $1.1 million (0.2%) year-over-year.
• Net loss available to common stockholders was $(8.2) million, compared to a net loss of $(6.8) million in the prior year quarter.
• Basic and diluted net loss per share was $(0.25).
• Adjusted EBITDA was $48.6 million, an increase of $0.1 million (0.2%) year-over-year and an increase of $20.5 million sequentially.
• Adjusted basic and diluted pre-tax net loss per share was $(0.04), an improvement of $0.19 per share year-over-year.
• Interest expense decreased $2.8 million year-over-year to $19.5 million.
• Net cash provided by operating activities was $26.1 million year-to-date.
• Gross profit was $124.2 million, an increase of $1.9 million year-over-year.
• New and used equipment sales gross profit margin increased 130 basis points year-over-year.
• Master Distribution equipment sales gross profit margin increased 760 basis points year-over-year.
• Service gross profit percentage increased 160 basis points year-over-year to 61.4%.
• Rental fleet gross book value decreased $50.3 million year-over-year to $519.2 million.
• Total cost of revenues was $351.3 million, a decrease of $7.6 million year-over-year.
• Selling, general and administrative expenses were $105.6 million, an increase of $3.3 million year-over-year.
• Income from operations was $12.0 million, a decrease of $0.4 million year-over-year.
• Loss before taxes was $(7.9) million, compared to $(4.8) million in the prior year quarter.
• Net loss for the six months ended June 30, 2026, was $(27.0) million, unchanged from the prior year period.
• Net loss available to common stockholders for the six months was $(28.5) million, unchanged from the prior year period.
• Adjusted EBITDA for the six months was $76.7 million, a decrease of $5.4 million (6.6%) year-over-year.

Guidance and Future Outlook

• The Company tightened its full-year 2026 Adjusted EBITDA guidance range to between $167.5 million and $177.5 million.
• Management expects to convert improving demand into profitable growth in the second half of 2026.
• Long-term growth drivers identified include infrastructure investment, domestic manufacturing expansion, and energy-related development projects.
• Management noted improving booking trends and growing backlog levels as indicators of market recovery.

Business Segments and Product Lines

• Construction Equipment segment revenue increased $53.7 million sequentially versus Q1 2026.
• Rental revenues increased $6.3 million (16.3%) sequentially versus Q1 2026.
• Material Handling business bookings increased 12.3% year-to-date.
• Construction Equipment segment benefited from improving market activity and stronger new and used equipment margins.
• Master Distribution segment performance improved meaningfully during the quarter as tariff-related disruptions eased and end-market conditions stabilized.
• Rental equipment sales increased 1.0% year-over-year to $29.1 million for the quarter.
• Service revenues were $63.8 million for the quarter, a decrease of $1.1 million year-over-year.
• Parts sales were $75.6 million for the quarter, flat year-over-year.

Market and Competitive Landscape

• The company operates in the construction and material handling industries, which experienced an extended period of challenging markets before showing signs of recovery.
• Customer investment and fleet replenishment activity are recovering, particularly in the Material Handling sector.
• End-market conditions have stabilized, contributing to stronger performance in the Master Distribution segment.
• The company serves customers across Michigan, Illinois, Indiana, Ohio, Pennsylvania, Massachusetts, Maine, Connecticut, New Hampshire, Vermont, Rhode Island, New York, Virginia, Nevada, Florida, and Canadian provinces of Ontario, New Brunswick, and Quebec.

Risks and Challenges

• The press release cites forward-looking risks including supply chain disruptions, inflationary pressures, and labor market dynamics.
• Risks include economic, industry, business, and political conditions affecting governmental policy and supply chains, including taxes and tariffs.
• Potential adverse impacts from banking and governmental regulations on asset fair value.
• Risks related to the performance of key suppliers, contractors, customers, and financing sources.
• Fluctuations in interest rate levels and the cost of diesel and unleaded gasoline.
• Risks associated with customer payments, collective bargaining agreements, and healthcare claims.
• Risks regarding the ability to identify and integrate acquisition targets and expand into new markets.
• Risks related to federal, state, and local government budget uncertainty, particularly regarding infrastructure projects.

Management Commentary and Tone

• CEO Ryan Greenawalt stated that second-quarter performance reflected the long-term value of the equipment dealership model.
• Management expressed encouragement regarding the performance and momentum within the Material Handling business.
• Operational execution was highlighted as a top priority, with the company generating positive operating cash flow and optimizing the rental fleet.
• Management remains encouraged by favorable long-term fundamentals supporting end-markets.
• The tone indicates confidence in the company's ability to leverage improving demand while prioritizing cash generation and leverage reduction.

Other Key Points

• The Company paid preferred stock dividends of $0.7 million in the quarter and $1.5 million year-to-date.
• No common stock dividends were declared or paid in the quarter or year-to-date.
• No common stock repurchases occurred in the quarter or year-to-date.
• The company reported a loss on divestitures of $0.7 million in the quarter and $0.5 million year-to-date.
• A gain on divestitures of $4.3 million was recorded in the prior year quarter.
• The company has over 80 total locations across the specified U.S. states and Canadian provinces.
• The company operates as one of the largest integrated equipment dealership platforms in North America.
• A conference call and webcast were held on August 6, 2026, at 5:00 p.m. Eastern Time to discuss results.