What Alta Equipment Group, Inc. told the SEC could break it.

Broad-based steel/aluminum tariffs and tariffs on European-OEM imports cut Alta's 2025 parts gross margin by 190 bps and pressured equipment margins (also affected by a weaker USD vs. the euro).

“Parts sales gross profit margin were 41.9% for the year ended December 31, 2025, down 190 basis points compared to the same period last year, following broad-based increases in steel and aluminum tariffs partially offset by parts pricing actions and negotiations with major OEMs.”

Alta purchases significant volumes of diesel and unleaded fuel for its rental fleet operations; volatile fuel prices could reduce operating margins.

“The market prices of diesel and unleaded fuels are unpredictable and can fluctuate significantly. Due to the volume of fuel we purchase each year, a significant increase in the price of fuel could adversely affect our business and reduce our operating margins.”

Alta carries $500M of senior notes due 2029 plus OEM floor-plan financing and credit facilities; it may not generate enough cash flow to service all indebtedness and fund operations.

“The Company may not be able to generate sufficient cash flow to service all of the Company's indebtedness and may be forced to take other actions to satisfy our obligation”

As an equipment dealer, Alta depends on the success and continued viability of its OEM suppliers for new equipment and replacement parts; an OEM's product mix, pricing, allocation or viability directly drives Alta's sales.

“The Company is dependent upon the success and continued viability of our OEM suppliers for which we are distributors.”