Alta Equipment reported total revenues of $488.1 million in the second quarter of 2024, compared to $468.4 million in the second quarter of 2023, an increase of 4.2 percent. Rental revenue increased from $49.6 million to $53.7 million, an increase of 8.3 percent, while rental equipment sales increased 16.6 percent from $33.2 million to $38.7 million.
Sales from parts sales increased by 9.4 percent and service sales increased by 10.9 percent.
In the first six months of the year, total revenues amounted to $929.7 million, an increase of 4.6 percent from $889.1 million in the same period last year. Rental revenues, however, rose from $93.1 million to $102.2 million, an increase of 9.8 percent. Service revenues increased 8.6 percent and parts sales increased 8 percent. Sales of new and used equipment decreased 1.2 percent in the second quarter and increased 1.2 percent in the second quarter of 2024.
“Our business rebounded well this quarter following a seasonally difficult first quarter as we faced a softening market environment for new equipment sales,” said Ryan Greenawalt, CEO of Alta. “In particular, our Product Support business performed well in this softening environment as we continued to deliver organic growth with a larger field population and revenue increased to a record $144.2 million, up $13.2 million year over year. In addition, our Material Handling segment also continued its steady trajectory of profitable growth as we progressively work through a solid backlog and gain market share in strategic regions and product categories across our footprint.
Recovery of the Master Distribution
“We also experienced a recovery in our Master Distribution segment, as revenue was $16.7 million for the quarter, compared to $12.8 million in the first quarter. While we benefited from a return to normal seasonality and a strong quarter in our Material Handling segment and our Product Support businesses, market volumes in our Construction Equipment segment remain under pressure due to uncertainty surrounding interest rates and the election outcome, particularly affecting small to mid-sized construction companies. In addition, our construction equipment sales margins continued to be impacted during the quarter by the oversupply of competitive new equipment in the market.
“In the second quarter, we continued to gain traction in our eMobility segment, which extends the Alta dealer model to the commercial vehicle industry, with a focus on commercial electric vehicles and fueling and charging infrastructure. With that in mind, we are excited about our new partnership with Harbinger Motors, a new manufacturer of best-in-class commercial electric vehicles in the medium-duty truck space. With the addition of Harbinger to our portfolio and the traction we gained with new customers in the quarter, we now have approximately $25 million of revenue backlog in the eMobility business, most of which we expect to convert into revenue in the second half of 2024.”
Greenawalt expressed optimism about the company’s business development in the coming years.
“Looking ahead to the second half of 2024 and 2025, cost and fleet optimization and other initiatives to streamline our business will be high priorities as we adapt to the changing environment. Despite what we believe may be temporary headwinds for new equipment sales, our long-term outlook for our construction equipment business remains positive. The pipeline of infrastructure-related projects is significant. We expect state departments of transportation budgets to remain strong in 2025, and spending on federal infrastructure programs is still in its early stages. In material handling, we are proud to be a best-in-class partner with Hyster-Yale Materials Handling and believe their product portfolio and commitment to advanced technologies, combined with our diversified end markets, will enable us to gain market share in key regions in the years to come, regardless of macro environment volatility.”
Alta Equipment Group, No. 22 on the Train 100, is headquartered in Livonia, Michigan.
