Alta Equipment Group Inc.

Good afternoon, and thank you for attending today's Alta equipment group fourth quarter and full year 2025 earnings conference call. My name is Reagan and I'll be your moderator for today's call. I'll now turn the call over to Jason Danmeyer, Vice President of Accounting and Reporting with Alta equipment group. Please proceed.

Thank you, Reagan. Good afternoon, everyone, and thank you for joining us today. A press release detailing Alto's fourth quarter and full year 2025 financial results was issued this afternoon and is posted on our website, along with a presentation designed to assist you in understanding the company's results. On the call with me today are Ryan Greenewalt, our chairman and CEO, and Tony Colucci, our chief financial officer. For today's call, management will first provide a review of our fourth quarter and full year 2025 financial results. We will begin with some prepared remarks before we open the call for your questions. Please proceed to slide two. Before we get started, I'd like to remind everyone that this conference call may contain certain forward-looking statements, including statements about future financial results, our business strategy and financial outlook, achievements of the company, and other non-historical statements as described in our press release. These forward-looking statements are subject to both known and unknown risk, uncertainties, and assumptions. including those related to altered growth, market opportunities, and general economic and business conditions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition, and results of operations. Although we believe these expectations are reasonable, we undertake no obligation to revise any statement to reflect changes that occur after this call. Descriptions of these and other risks that could cause actual results to differ materially from these forward-looking statements are discussed in our reports filed with the SEC, including our press release that was issued today. During this call, we may present both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in today's press release and can be found on our website at investors.altaequipment.com. I will now turn the call over to Ryan.

Thank you, Jason, and good afternoon, everyone. We appreciate you joining us to review Alta Equipment Group's fourth quarter and full year 2025 results. I'll begin with an overview of our performance, highlight trends across our business segments, and outline how we're positioning Alta for long-term value creation as we look toward 2026 and beyond. We finished the year on a solid note. After operating through nearly two years of elevated inventories, tariff-driven cost pressures, and broader macro uncertainty, we are entering 2026 with a noticeably healthier backdrop. Fourth quarter demand for new and used equipment rebounded meaningfully. Lower interest rates, tax clarity following the one big beautiful bill, and improving customer sentiment all contributed to a more constructive environment heading into the new year. As expected, we experienced seasonal declines in product support and rental, and the early onset of winter in several of our northern markets amplified that pullback. Even with that impact, quarterly performance came in short of expectations, we delivered a record quarter for equipment sales. Inventories are starting to normalize, competitive discounting is moderating, and customers are returning to more typical fleet replenishment cycles across both construction and material handling segments. Importantly, the broader economic data aligns with what we are seeing in order activity. Construction employment posted one of its strongest gains in more than two years, and manufacturing employment turned positive for the first time since early 2023. The tone in the market has improved and we are beginning to see that translate into real demand. Turning to our construction segment, we exited 2025 with real momentum. Our strategy remains intentionally anchored to customers tied to long-term, fully funded infrastructure programs. That discipline continues to provide visibility and stability, particularly as we enter 2026. Florida stands out as a key growth driver with a significant pipeline of transportation projects set to begin in the coming quarters. Across our broader footprint, quoting activity is already running ahead of where we started 2025 and encouraging leading indicator. Dealer inventories are normalizing, competitive intensity is easing, and we are beginning to see early restocking behavior. Importantly, demand for high value specialty equipment remains strong. A great example of our differentiated value proposition with Volvo. Our Michigan team sold the first two Volvo EC950F ultra high reach machines globally. These units are purpose built for heavy demolition, one of the toughest, most demanding end markets. That win speaks to Alta's technical expertise, our deep customer relationships, and the strength of the Volvo partnership in complex applications where performance, safety, and uptime are mission critical. Deliveries are scheduled for the second quarter. OEM pricing support has improved, helping to offset last year's tariff impacts. While OEMs are projecting a stable 2026 market overall, we believe ALTA is positioned towards the upper end of that range, supported by our infrastructure weighted customer base, geographic exposure, and our ability to execute in specialized high spec applications. Turning to material handling, the trend entering 2026 is similarly encouraging. Quote activity has improved meaningfully from late year lows. Bookings strengthened to start the year. Our share position improved and backlog is up year over year. While it's still early, the direction is clearly positive and consistent with what we're hearing from customers across our region. Importantly, given the natural sales cycle and material handling from quote to order to delivery, any meaningful volume acceleration will be second half weighted. What we are seeing today in quotes and backlog gives us confidence in that setup. Customers are reengaging in fleet planning as replacement cycles begin to normalize. That's particularly evident in several of our core verticals, food and beverage, distribution, pharmaceuticals, and logistics, where activity levels remain steady and capital conversations are becoming more constructive. With improved OEM pricing support and a stabilizing manufacturing environment, we expect demand to build as the year progresses, positioning 2026 as a year of sequential strengthening with momentum carrying into the back half. Master distribution delivered double-digit revenue growth in 2025 as we expanded our presence across structurally attractive environmental processing markets, including biofuels, waste, and recycling. While tariff impacts and supply chain timing created meaningful margin pressure throughout the year, underlying demand remains fully intact. Throughout 2025, we demonstrated resilience, sustaining quality EBITDA, generating cash flow, and sharpening our focus on the core. We operated with discipline, we protected margin, and we allocated capital intentionally. Our M&A strategy remains active but selective. Over the past two years, we have refined our acquisition criteria with greater rigor around cultural alignment, return thresholds, OEM fit, and post-closed integration capability. Going forward, we will pursue opportunities that clearly meet those standards, consolidating high-quality independent dealers, strengthening strategic OEM relationships, and selectively expanding complementary capabilities where we see durable returns. Equally important, the divestiture of non-core assets reflects our commitment to focus in capital redeployment towards higher return opportunities. If you turn to slide 10, our 2028 and beyond framework, the ambition is clear. Over $200 million of high quality EBITDA, approximately $1.4 billion in equipment sales, mid to high single digit annual growth and product support, and a disciplined leverage target of approximately three and a half times. That is the profile we are building toward. To achieve this, we are executing against five strategic priorities. Sales transformation. We are aligning the right products, the right people, and the right customers, ensuring we go to market with best-in-class offerings that command leadership positions. Leadership upgrades across material handling, peak logics, and targeted construction geographies are already strengthening execution. Market volume normalization. As equipment markets stabilize closer to pre-COVID addressable levels, we are positioned to capture share gains in our strongest regions through coverage density OEM alignment, and customer intimacy. Third, scaling growth platforms. PeakLogix and Ecoverse represent scalable growth platforms. Both have credible paths to becoming $100 million-plus businesses over time, supported by structural industry tailwinds. Technology-led efficiencies. Our ERP transformation is foundational. It positions Alta for AI enablement, automation, improved data visibility, and structural cost efficiency. we expect meaningful operating leverage while enhancing the customer experience. And lastly, a destination for skilled trades. Nearly half of our workforce is in the skilled trades. Investing in the best, recruiting, developing, and retraining top technical talent remains a core competitive advantage and a key driver of customer loyalty. In closing, we enter 2026 with improving market conditions, normalized inventories, expanding product support opportunities, and a focused discipline strategic plan. The organization is aligned, we are operating with greater clarity, and we believe the industry is turning the corner. Before turning it over to Tony, I want to thank our more than 2,800 employees for their commitment and resilience, our OEM partners for their continued support, and our shareholders for their confidence in ALTA's long-term direction. Your dedication continues to define who we are and how we win, fulfilling our purpose of delivering trust that makes a difference. With that, I'll hand it over to Tony Colucci to walk through the financials in more detail.