Alta Q3 revenue misses analyst expectations hurt by strategic fleet optimization

Alta Equipment

06/11/2025 21:29

Overview

Alta Q3 revenue fell 5.8% yr/yr, missing analyst expectations

Adjusted EPS missed analyst expectations, reflecting operational challenges

Product support revenues rose 1.1% yr/yr, showing resilience amid market challenges

Outlook

Alta expects Q4 demand for heavy earthmoving equipment to gain momentum

Alta projects 2025 Adjusted EBITDA between $168.0 mln and $172.0 mln

Alta anticipates entering a fleet replenishment cycle extending into 2026

Result Drivers

FLEET OPTIMIZATION - Revenue decline in Construction Equipment segment driven by strategic fleet optimization to align supply with demand for rental equipment

PRODUCT SUPPORT STRENGTH - Product support revenues increased 1.1% yr/yr, supported by strong technician productivity across major segments

COST SAVINGS - SG&A expenses decreased by $4.7 mln yr/yr due to cost-saving initiatives

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$422.60 mln
$456.70 mln (5 Analysts)
Q3 Adjusted EPS
Miss
-$0.35
-$0.27 (3 Analysts)
Q3 EPS
-$1.31
Q3 Net Income
-$42.30 mln
Q3 Adjusted EBITDA
Miss
$41.70 mln
$46.10 mln (4 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

Wall Street's median 12-month price target for Alta Equipment Group Inc is $10.00, about 39.3% above its November 5 closing price of $6.07

Press Release: ID:nGNXb6M9xW

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)