Alta Equipment Group Inc. reported a slight decline in total revenues for the fiscal year ended December 31, 2024, totaling $1.88 billion, a decrease of $0.2 million compared to $1.88 billion in 2023. The company's performance was impacted by a 3.8% drop in new and used equipment sales, which fell to $987 million from $1.03 billion in the previous year. However, parts sales increased by 5.8% to $294.4 million, and service revenues rose by 5.2% to $253.8 million, indicating a shift towards more stable revenue streams. The overall gross profit margin decreased to 26.3% from 27.0% in 2023, reflecting pressures from competitive pricing and market conditions.
The company experienced significant operational changes, including the completion of two acquisitions in late 2023: Burris, a distributor of construction and turf equipment, and Ault, a Canadian distributor of crushing and screening equipment. These acquisitions are expected to enhance Alta's market presence and operational capabilities. Additionally, Alta has been focusing on expanding its rental fleet, which saw a reduction in gross costs by $46 million to $571.2 million as of December 31, 2024, in response to changing market conditions and excess inventory.
In terms of workforce, Alta employed approximately 2,900 individuals as of December 31, 2024, with around 1,275 skilled technicians. The company has emphasized the importance of attracting and retaining skilled labor, particularly in its service operations, which are critical for maintaining customer relationships and driving aftermarket revenues. The company’s strategic focus on enhancing its service capabilities is expected to support its long-term growth objectives.
Looking ahead, Alta Equipment Group anticipates continued challenges in the construction equipment market, particularly due to economic uncertainties and fluctuating demand. The company has noted that while the North American construction equipment market experienced a downturn in 2024, the lift truck market showed resilience, driven by robust manufacturing and logistics sectors. Alta plans to leverage its expertise in electromobility and expand into the commercial electric vehicle market, which it views as a significant growth opportunity in the coming years.
Overall, while Alta Equipment Group faced a challenging fiscal year with a net loss of $62.1 million, the company remains committed to its strategic initiatives, including acquisitions and market expansion, to enhance its competitive position and drive future profitability.
About ALTA EQUIPMENT GROUP INC.
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