Equipment distribution company Alta Equipment Group (NYSE: ALTG) announced better-than-expected revenue in Q4 CY2025, with sales up 2.2% year on year to $509.1 million. Its non-GAAP loss of $0.27 per share was significantly below analysts’ consensus estimates.

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LIVONIA, Mich., Feb. 26, 2026 (GLOBE NEWSWIRE) -- Alta Equipment Group Inc. (NYSE: ALTG) (“Alta”, "we", "our" or the “Company”), a leading provider of premium material handling, construction, and environmental processing equipment and related services, today announced financial results for the fourth quarter and full year ended December 31, 2025.

Company Overview

Founded in 1984, Alta Equipment Group (NYSE: ALTG) is a provider of industrial and construction equipment and services across the Midwest and Northeast United States.

Revenue Growth

A company’s long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Luckily, Alta’s sales grew at an incredible 16% compounded annual growth rate over the last five years. Its growth beat the average industrials company and shows its offerings resonate with customers.

We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Alta’s recent performance marks a sharp pivot from its five-year trend as its revenue has shown annualized declines of 1.1% over the last two years.

Alta also breaks out the revenue for its most important segments, Equipment and Parts, which are 59.1% and 13.4% of revenue. Over the last two years, Alta’s Equipment revenue (new and used) was flat while its Parts revenue (maintenance and repair products) averaged 1.2% year-on-year declines.

This quarter, Alta reported modest year-on-year revenue growth of 2.2% but beat Wall Street’s estimates by 3.1%.

Looking ahead, sell-side analysts expect revenue to grow 3.7% over the next 12 months. While this projection suggests its newer products and services will spur better top-line performance, it is still below average for the sector.

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Operating Margin

Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals.

Alta’s operating margin might fluctuated slightly over the last 12 months but has remained more or less the same, averaging 1.9% over the last five years. This profitability was lousy for an industrials business and caused by its suboptimal cost structureand low gross margin.

Looking at the trend in its profitability, Alta’s operating margin might fluctuated slightly but has generally stayed the same over the last five years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability.

In Q4, Alta generated an operating margin profit margin of 1%, in line with the same quarter last year. This indicates the company’s cost structure has recently been stable.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Alta’s earnings losses deepened over the last five years as its EPS dropped 41% annually. We tend to steer our readers away from companies with falling EPS, where diminishing earnings could imply changing secular trends and preferences. If the tide turns unexpectedly, Alta’s low margin of safety could leave its stock price susceptible to large downswings.

Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.

Sadly for Alta, its EPS declined by more than its revenue over the last two years, dropping 127%. This tells us the company struggled to adjust to shrinking demand.

Diving into the nuances of Alta’s earnings can give us a better understanding of its performance. While we mentioned earlier that Alta’s operating margin was flat this quarter, a two-year view shows its margin has declined. This was the most relevant factor (aside from the revenue impact) behind its lower earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals.

In Q4, Alta reported adjusted EPS of negative $0.27, up from negative $0.46 in the same quarter last year. Despite growing year on year, this print missed analysts’ estimates. Over the next 12 months, Wall Street expects Alta to improve its earnings losses. Analysts forecast its full-year EPS of negative $1.94 will advance to negative $0.51.

Key Takeaways from Alta’s Q4 Results

We enjoyed seeing Alta beat analysts’ revenue expectations this quarter. We were also glad its full-year EBITDA guidance exceeded Wall Street’s estimates. On the other hand, its EPS missed and its EBITDA fell short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock remained flat at $6.50 immediately after reporting.

So do we think Alta is an attractive buy at the current price? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).