Alta Equipment Group reported total second-quarter revenues of $468 million, up 15.2 percent over the same period of 2022. Sales of new and used equipment totaled $255 million in the quarter, up 17 percent compared to Q2 2022.
Product support revenues grew 19.1 percent in the quarter, including increased in parts to $71 million and service to $60 million.
“Equipment supply chain issues continued to improve in the quarter and, as a result, we have invested in fleet and our inventory levels are returning to more normalized, pre-Covid levels, as we ensure equipment availability for our customers to meet their needs,” said Ryan Greenawalt, CEO, in a statement. “Our ability to take delivery of new equipment from OEMs in the first half of 2023 was the primary driver of the $105.3 million increase in new and used equipment sales when compared to the same period for last year.
“In terms of our business segments, Construction and Material Handling both delivered solid year-over-year revenues growth and we expect those trends to continue. Our focus on electrification of commercial vehicles, while in its infancy, is beginning to take traction as we generated $3.1 million in revenues during the quarter with our first sale of Nikola’s TRE BEV tractors and complimentary charging units. Customer adoption is ongoing and increasing and we expect additional orders throughout the balance of this year.
State DOT budgets to fuel spending
“The macro trends in our end user markets remain positive and the newly announced federal spending initiatives will further extend the cycle,” Greenawalt said. “An estimated $1 trillion in spending is forecast in the IIJA, CHIPS and IRA legislation, and this funding could span more than seven years. In addition, U.S. governmental total transportation contract awards are at all-time highs. State DOT budgets are also at record levels in the Northeast and Southeast where we operate and we expect our end markets and customers to benefit from this spending. Lastly, our acquisition pipeline remains very active with numerous accretive opportunities that complement our existing business and support further geographic expansion.”
Source: Alta Equipment Group
