The company reported full‑year revenue of $1,835.9 million, a 2.2% decline from $1,875.8 million in 2024, and Q4 revenue of $509.1 million, up 2.2% from $498.9 million a year earlier. GAAP earnings per share for the quarter were $-0.27, beating the consensus estimate of $-0.29 by $0.02; the full‑year EPS also beat expectations by the same margin. The beat was driven by record new and used equipment sales and a disciplined cost program that helped preserve gross margins.
New and used equipment sales totaled $301 million in Q4, up $13.8 million year‑over‑year and $90 million sequentially from Q3. The record sales were the highest in the company’s history and were fueled by strong demand in the construction and material‑handling segments, supported by the tax benefits of the OBBBA, lower interest rates, and project permitting “green‑lights.” CEO Ryan Greenawalt said, “Our fourth quarter equipment sales performance was encouraging as demand for equipment significantly improved due to the tax benefits of the OBBBA, lower interest rates, project permitting ‘green‑lights’ and strengthening customer sentiment based on their project backlogs for 2026.”
Gross‑margin performance improved markedly: product‑support gross profit margin rose 330 basis points to 46.1% in Q4, while the full‑year gross margin was 25.84%. The margin expansion reflects a higher mix of high‑margin product support and effective cost control, offsetting the softer service and rental revenue streams that weighed on overall revenue. CFO Anthony Colucci noted, “Alta generated approximately $509 million of revenue in Q4, an increase of $11 million year‑over‑year… New and used equipment sales totaled approximately $301 million for the quarter, up $13.8 million versus Q4 2024 and up a notable $90 million sequentially from Q3 2025.”
Cash‑flow and balance‑sheet dynamics remained a focus. Q4 free cash flow reached $105 million, and the company generated $33.4 million in net cash from operating activities. Full‑year free cash flow before rent‑to‑sale was $25 million. Net debt fell by $25 million sequentially, but the company still ended 2025 with negative equity, $1,066.1 million in total debt against $(8.8) million in stockholders’ equity, underscoring a high‑leverage profile that management is actively addressing.
Guidance for 2026 signals confidence in improving profitability. Management projected Adjusted EBITDA of $172.5 million to $187.5 million, an increase from prior guidance, and reiterated its focus on deleveraging and shifting toward higher‑margin product support. The outlook reflects expectations of continued demand for equipment, a normalization of inventory levels, and a moderation of competitive discounting. Investors noted the mixed picture: while revenue and EPS beats were welcomed, the widening net loss and persistent leverage remained concerns, leading to a muted market reaction.
The company’s results illustrate a strategic pivot toward higher‑margin product support and a reduction in lower‑return rental assets. Record equipment sales and margin expansion suggest operational resilience, but the continued net loss and high debt levels highlight the need for sustained execution on cost discipline and balance‑sheet improvement to achieve long‑term profitability.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.