Alta Equipment Group, Inc. ( (ALTG) ) has released its Q4 earnings. Here is a breakdown of the information Alta Equipment Group, Inc. presented to its investors.
Alta Equipment Group, Inc. is a prominent North American provider of material handling, construction, and environmental processing equipment, offering sales, rentals, and services through an extensive branch network.
In its latest financial report, Alta Equipment Group announced a decline in both quarterly and annual earnings for 2024, primarily due to reduced volumes and pressured gross margins on equipment sales. Despite these challenges, the company managed to maintain stable total revenues, showcasing resilience in a fluctuating market.
Key financial metrics revealed a 4.5% year-over-year decrease in total revenues for the fourth quarter, amounting to $498.1 million. The company reported a net loss of $11.4 million for the quarter, with a basic and diluted net loss per share of $0.34. For the full year, total revenues remained nearly flat at $1.876 billion, while the net loss available to common stockholders was $65.1 million, translating to a loss of $1.96 per share. Adjusted EBITDA for 2024 decreased by 12.1% to $168.3 million.
Despite the downturn in construction equipment markets and economic uncertainties, Alta Equipment Group’s product support business demonstrated growth, with parts and service sales increasing by 5.5% year-over-year. The company also successfully optimized its fleet levels, resulting in strong operating cash flows and a reduction in balance sheet leverage by over $60 million.
Looking ahead, Alta Equipment Group remains optimistic about 2025, anticipating a normalization of equipment supply and improved competitiveness in the construction segment. The company believes that its strategic initiatives in cost and inventory optimization will provide a solid foundation for future growth and operational leverage.