Alta Equipment Group (NYSE:ALTG) Posts Quarterly Earnings Results, Misses Expectations By $0.10 EPS

Alta Equipment Group (NYSE:ALTG) posted its earnings results on Thursday. The company reported ($0.39) EPS for the quarter, missing analysts’ consensus estimates of ($0.29) by ($0.10), Zacks reports. Alta Equipment Group had a negative net margin of 4.37% and a negative return on equity of 234.34%. The company had revenue of $509.10 million during the quarter, compared to analyst estimates of $489.56 million.

Here are the key takeaways from Alta Equipment Group’s conference call:

• Record equipment sales in Q4 (new and used equipment ~$301M, up ~$90M sequentially) as inventories normalize and customer demand rebounded on lower rates and tax clarity.
• Quarterly earnings quality and cash generation improved — product support margins expanded to 46.1%, construction product support EBITDA rose materially, Alta generated roughly $105M of free cash flow and reduced net debt by about $25M in Q4, ending 2025 with $249M liquidity and 4.9x net leverage with a plan to get below 4.5x in 2026.
• Ongoing rental fleet reduction weighed on rental revenue (down ~10% YoY) and reduced gains from rental equipment sales; management plans to pare roughly another $40M of fleet, which will continue to pressure rental-related revenues near term.
• 2026 guidance midpoint of ~$180M adjusted EBITDA assumes a modest, back?half recovery driven by improved OEM pricing, product support growth and normalized volumes in material handling and construction, but remains exposed to demand, weather and supply/competitive dynamics.
• Longer?term strategy focused on core dealer consolidation, selective M&A, an ERP transformation and scaling PeakLogix and Ecoverse toward $100M+ each, targeting >$200M of high?quality EBITDA and ~3.5x leverage by 2028.

Alta Equipment Group Stock Performance

Shares of Alta Equipment Group stock opened at $6.90 on Friday. The stock has a market capitalization of $222.42 million, a price-to-earnings ratio of -2.69 and a beta of 1.56. The firm’s fifty day simple moving average is $6.17 and its 200-day simple moving average is $6.33. The company has a debt-to-equity ratio of 257.10, a current ratio of 1.42 and a quick ratio of 0.49. Alta Equipment Group has a 12 month low of $3.54 and a 12 month high of $8.99.

Alta Equipment Group News Roundup

Here are the key news stories impacting Alta Equipment Group this week:

• Positive Sentiment: Q4 results topped expectations: Alta reported revenue of $509.1M (above estimates) and an EPS beat on a smaller-than-expected loss, driven by stronger equipment sales and stable product-support revenues. Press Release
• Positive Sentiment: Management set a 2026 target of ~$180M adjusted EBITDA, signaling confidence in margin recovery as the market normalizes — a clear catalyst for upside if execution meets the target. MSN Article
• Positive Sentiment: Operational cash improvements: Q4 reductions in inventory (~$31.3M) and net paydown of the line of credit (~$20.4M) reduce working-capital strain and are constructive for liquidity and leverage metrics. GlobeNewsWire Release
• Neutral Sentiment: Investor materials and transcripts available: Management commentary and the full earnings/transcript provide detail on timing of margin recovery and demand trends; useful for modeling but not an immediate directional surprise. Yahoo Finance Transcript
• Negative Sentiment: Profitability still challenged: Full-year 2025 net loss widened (net loss available to common stockholders of $83.3M vs. $65.1M in 2024) and adjusted EBITDA was down slightly year-over-year, underscoring margins remain under pressure. GlobeNewsWire Release
• Negative Sentiment: Balance-sheet and analyst outlook risks: High leverage and a negative ROE/net margin profile remain concerns; sell?side consensus still expects negative EPS for the year, leaving the stock sensitive to any execution miss. Zacks Analysis

Insider Transactions at Alta Equipment Group

In other news, Director Daniel Shribman acquired 40,000 shares of the company’s stock in a transaction on Monday, December 8th. The shares were bought at an average cost of $5.07 per share, with a total value of $202,800.00. Following the purchase, the director owned 131,393 shares of the company’s stock, valued at $666,162.51. This represents a 43.77% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. 19.20% of the stock is owned by company insiders.

Hedge Funds Weigh In On Alta Equipment Group

Several institutional investors and hedge funds have recently added to or reduced their stakes in ALTG. Public Employees Retirement System of Ohio raised its position in Alta Equipment Group by 221.1% in the fourth quarter. Public Employees Retirement System of Ohio now owns 6,100 shares of the company’s stock worth $28,000 after acquiring an additional 4,200 shares in the last quarter. Royal Bank of Canada grew its stake in shares of Alta Equipment Group by 55.1% during the 4th quarter. Royal Bank of Canada now owns 6,153 shares of the company’s stock worth $28,000 after purchasing an additional 2,186 shares during the period. Quarry LP increased its holdings in shares of Alta Equipment Group by 150.9% in the 4th quarter. Quarry LP now owns 6,676 shares of the company’s stock valued at $31,000 after purchasing an additional 4,015 shares in the last quarter. Raymond James Financial Inc. acquired a new stake in shares of Alta Equipment Group in the second quarter valued at about $35,000. Finally, Engineers Gate Manager LP lifted its stake in shares of Alta Equipment Group by 18.1% in the fourth quarter. Engineers Gate Manager LP now owns 14,940 shares of the company’s stock valued at $69,000 after purchasing an additional 2,289 shares during the period. Institutional investors and hedge funds own 73.58% of the company’s stock.

Analyst Ratings Changes

Several equities research analysts recently issued reports on the company. DA Davidson lowered their price objective on shares of Alta Equipment Group from $8.00 to $7.00 and set a “neutral” rating for the company in a research note on Wednesday, November 12th. Zacks Research raised shares of Alta Equipment Group from a “strong sell” rating to a “hold” rating in a research report on Monday, January 19th. Wall Street Zen upgraded shares of Alta Equipment Group from a “sell” rating to a “hold” rating in a research note on Saturday. Finally, Weiss Ratings reiterated a “sell (e+)” rating on shares of Alta Equipment Group in a research note on Monday, December 29th. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $11.00.

About Alta Equipment Group

Alta Equipment Group, Inc (NYSE: ALTG) is a North American distributor of material handling and logistics equipment. The company offers a broad lineup of forklifts, lift trucks, aerial work platforms, tow motors, pallet jacks and related attachments, serving manufacturing, warehousing, distribution and industrial facilities. Through its network of branch locations, Alta Equipment provides customers with new and used sales, short- and long-term rentals, and integrated fleet management solutions designed to support operational efficiency.

In addition to equipment sales, Alta Equipment supports customers with comprehensive after-sales services.