Alta Equipment Group Inc.

Alta reported second-quarter revenue of $475.5 million and adjusted EBITDA of $48.6 million. Gross margin increased about 70 basis points year over year to 26.1%, and EBITDA margin rose to 10.2%; management also said company-wide new and used equipment gross margins increased to 15.3%. Revenue was modestly below prior year levels, but increased by about $65 million from Q1, while adjusted EBITDA increased from $28.1 million in Q1 to $48.6 million in Q2. In Material Handling, adjusted EBITDA was $19 million, up about 13% year over year despite lower revenue; Construction Equipment adjusted EBITDA was $30.6 million, up $16.7 million sequentially; and Ecoverse revenue rose from $20.9 million to $22.8 million year over year, with adjusted EBITDA rising from $1.1 million to $2.8 million. For the balance of 2026, Alta narrowed adjusted EBITDA guidance to $167.5 million to $177.5 million, reduced the upper end by $5 million, and reaffirmed free cash flow before rent-to-sell decisioning guidance of $100 million to $110 million. Management said the guidance change reflected timing of deliveries and backlog conversion, not a weaker demand outlook.

Ryan Greenawalt framed the quarter as evidence that the recovery discussed in Q1 is now showing up more clearly in the numbers. He emphasized improving bookings, recovering deliveries, receding dealer inventory pressure, and strengthening operating initiatives, saying the business is at a positive inflection point. He also highlighted broader supportive end-market trends, including infrastructure spending, manufacturing activity, and better conditions in Material Handling and Construction Equipment.

Anthony Colucci said Q2 reflected a return to more normalized operating conditions and the fundamental earnings power of the dealership model. He highlighted the quarter’s $475.5 million of revenue, $48.6 million of adjusted EBITDA, 26.1% gross margin, 10.2% EBITDA margin, and 15.3% new-and-used equipment gross margins, noting both year-over-year and sequential improvement. He also pointed to capital efficiency gains, including a $52 million or 11% decline in average assets in Material Handling and a $77 million or 8% decline in average assets in Construction, while liquidity remained about $225 million and net leverage was roughly 4.7x. He said there are no meaningful debt maturities until 2029 and described the debt profile as largely fixed rate, while reaffirming full-year free cash flow guidance of $100 million to $110 million.

Analysts focused on whether improving demand could support more fleet investment, how much margin upside remains, and whether Material Handling deliveries could slip into 2027. Management said the construction rental fleet will likely be pared back further by year-end because utilization is still below target, and that they do not see a short-term need to increase fleet investment. On guidance, they said the lower top end reflects delivery timing and execution risk in Material Handling, especially around Hyster-Yale production and invoicing cadence, not a change in demand, while construction visibility is supported by stronger bookings, quoting activity, and stable DOT budgets. On product strategy, management said modular Material Handling products should not hurt service revenue and may even help parts turns, and described PeakLogix and Hyster-Yale’s broader product improvements as complementary.