End market uncertainty impacts Alta results

Photo: Alta Equipment

Ryan Greenawalt, chief executive officer of Alta Equipment, has said that the company is continuing to be impacted by ongoing uncertainty in its end-user markets.

In its results for the third quarter of 2024, the company announced a 0.3% decrease in rental revenues on the same period last year, down to $53.7 million.

However, rental revenues for the nine months ended September 30 were up by 8.8% to $155.9 million. 

Sales from rental equipment for the third quarter were up by 6.6% to $35.1 million, while the period to September 30 also increased by 10% to $1.1 million.

For the business as a whole, revenues were down by 17% year over year to $448 million. EBITDA for the period was $43.6 million, while its product support business generated a revenue increase of 7.8% to $140.2 million compared to a year ago

Commenting on the results, Greenawalt said, “Our third quarter results continued to be impacted by the ongoing uncertainty in our end-user markets as it relates to customers committing to capital investment and purchasing new equipment. This dynamic has been most impactful in our Construction Equipment segment, where new and used equipment revenues decreased by $44.5 million, or 29.5%, from a year ago on an organic basis.

“Some customers put capital investments on hold in the third quarter while they waited for the election outcome and more clarity on interest rates. In the immediate aftermath post-election, it appears that sentiment has already improved, and we believe our customers will deploy capital more broadly in 2025.”

He added that while the equipment sales market has been disappointing in 2024, its dealership model with diverse revenue streams has protected its  overall business from equipment market cyclicality.

He said its material Handling segment remained steady, with revenues increasing slightly to $168.9 million as it “continues to work through a sizeable backlog.” 

“Despite a challenging market in 2024, our 3,000 employees have demonstrated unprecedented dedication to our business and our customers. I am extremely proud of their commitment to our guiding principles which are predicated on teamwork and fostering customers for life,” he concluded.