Alta Equipment Group Inc. (ALTG) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

October alone, top 75 million, which is nearly 60% of our entire women's sales in Q3. With that, we believe the pattern witnessed in the third quarter reflected a shift rather than an indication of softness, as customers seemingly elected to push purchases from Q3 into Q4 as they awaited more definite signals on interest rate direction and year-end tax benefits under the One Big Beautiful Bill Act. That timing dynamic, coupled with greater confidence in backlogs and financing, sets the stage for what we believe is the beginning of a fleet replenishment cycle. As we sit here today, our backlog in material handling remains over the 100 million mark, helping to provide visibility for the next several quarters. Even with muted volumes during the quarter, productivity and cash flow remained resilient. SG&A is down roughly $25 million year-to-date, driven by structural cost savings, improved efficiency, and a disciplined execution. Those efficiencies are now embedded in our run rate and provide for operating leverage as the market rebounds. Turning the focus now to our construction segment. Our construction equipment segment performed admirably given continued tightness in private capital spending. Demand from customers tied to long-term, fully funded infrastructure work remains strong. In Florida, permitting activity on large DOT and Corps of Engineers projects has accelerated, translating to greater deliveries early in Q4. In Michigan, the legislature's record $2 billion road and bridge funding package is already driving new bid activity and multi-year visibility. These are durable tailwinds that reinforce our position as a key equipment partner on essential public works projects. Taken together with rate relief and the tax incentives of the Big Beautiful Bill, we see co...