Steven Ramsey's questions to ALTA EQUIPMENT GROUP (ALTG) leadership • Q2 2025
Question
Asked about the potential impact of the 'One Big Beautiful Bill' on demand and guidance, the interpretation of strong July bookings in Material Handling despite customer hesitancy, the outlook for SG&A discipline, and whether contractors would purchase equipment due to tax benefits even with flat construction activity.
Answer
The 'One Big Beautiful Bill' is expected to impact Q4 2025, leaning slightly towards the Construction segment, and any benefit would help reach the high end of guidance. Strong Material Handling bookings are seen as volatile fleet replenishments rather than a broad sentiment shift. SG&A fixed costs are believed to have bottomed out, with hopes for higher variable selling expenses from increased sales. Customer equipment purchases are primarily driven by confidence in their backlog, with tax benefits being a secondary factor.