ALTA EQUIPMENT GROUP INC.
For the period ended Mar 31, 2026. Filed May 7, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 7, 2026
ALTG$5.93+2.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-11-06.
0001193125-25-269614
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-07.
0001193125-26-212008
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 98 previous paragraphs and 89 current paragraphs.
55 unchanged; 20 reworded; 14 added; 23 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 16 previous and 16 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (14)
Current report
Revenues: Consolidated total revenues in the three months ended March 31, 2026 decreased $12.5 million, or 3.0%, to $410.5 million, compared to $423.0 million in the same period in 2025. On an organic basis, total revenues decreased by $8.6 million, or 2.1%, from $418.2 million to $409.6 million. Organic new and used equipment revenues decreased 5.4% against the three months ended March 31, 2025. The decline in equipment sales was driven by lower unit deliveries reflecting a combination of timing‑related demand softness as tax incentives of the One Big Beautiful Bill Act contributed to an elevated level of sales in the fourth quarter of 2025, pulling forward certain customer purchases that would have otherwise occurred in the first quarter of 2026. Product support revenues contracted modestly, declining 2.5% organically for the three months ended March 31, 2026. The decline in product support revenues was primarily driven by amplified winter weather-related impacts when compared to last year as conditions made the deployment of our field service technicians more difficult, which limited billable capacity despite stable demand and disciplined pricing execution. Rental revenues for the three months ended March 31, 2026 decreased 6.3% organically. The decline in rental revenues was primarily driven by holding a lower average rental fleet size and reduced utilization in certain markets, specifically in our weather impacted northern regions. Conversely, rental equipment sales increased 44.5% for the three months ended March 31, 2026 compared to the same period in 2025. This increase was primarily driven by the targeted disposals of underutilized and aged assets across both segments, and to match customer demand for lower cost used equipment alternatives.
Current report
The consolidated gross profit margin for the three months ended March 31, 2026 was 26.6%, a 60 basis point decrease from 27.2% for the same period in 2025, reflecting margin pressures across several revenue streams that offset stable service margin performance. Gross profit margins on new and used equipment sales were largely stable year over year, decreasing 10 basis points to 15.1%, as margin stability in the Material Handling and Construction Equipment segments was offset by tariff-related cost pressures in the Master Distribution segment. Notably, new and used equipment gross margins increased by 240 basis points on a sequential basis when compared to the fourth quarter of 2025. Rental equipment sales margins declined 650 basis points year over year reflecting a higher mix of lower-margin asset dispositions as the Company continued to optimize fleet levels and exit underperforming rental product categories. Parts gross margins declined modestly by 80 basis points but remained within expectations while service gross margins increased 10 basis points as higher effective labor rates and operational initiatives helped to offset weather-related challenges on technician availability. Rental revenue gross margins decreased 50 basis points, primarily due to fixed depreciation expense comprising a higher proportion of rental cost of sales on a lower revenue base, particularly within the Material Handling segment.
Current report
Operating expenses: Consolidated operating expenses increased by $0.8 million to $115.0 million for the three months ended March 31, 2026, compared to the same period last year, driven primarily by inflationary cost pressures and higher health benefit costs associated with unfavorable claims experience. These increases were partially offset by lower operating expenses in the Construction Equipment segment resulting from workforce and expense management initiatives.
Current report
Other expense, net: Consolidated other expense, net for the three months ended March 31, 2026 reduced by $3.4 million to $17.6 million compared to $21.0 million for the same period in 2025. The variance was primarily attributable to lower interest expense resulting from lower borrowing rates and inventory optimization initiatives as well as a gain on divestiture in our Material Handling segment.
Current report
Income tax (benefit) expense: The Company recorded an income tax benefit of $3.8 million and expense of $0.7 million for the three months ended March 31, 2026 and 2025, respectively. During the three months ended March 31, 2026, the income tax benefit was primarily attributable to the net loss for the period. The income tax expense in 2025 was primarily a result of adjustments of the Company's valuation allowance against a portion of the deferred tax asset relating to U.S. disallowed interest expense carryforwards partially offset by the benefit attributable to the net loss for the period.
Current report
Operating expenses: Material Handling operating expenses increased modestly by $0.4 million to $49.4 million for the three months ended March 31, 2026 as compared to the same periods last year. The increase reflects inflationary cost pressures and higher healthcare costs, offset by cost management initiatives.
Current report
Other expense, net: For the three months ended March 31, 2026, other expense, net decreased by $0.7 million to $5.5 million, compared to the same period in 2025. The improvement was primarily attributable to a $0.2 million gain on the divestiture of the Company's battery shop business in New England and lower floor plan interest expense.
Current report
Revenues: Construction Equipment segment revenues decreased by $1.5 million, or 0.6%, to $244.3 million for the three months ended March 31, 2026 as compared to the same period last year. The overall decline in revenues reflects a combination of seasonality and winter weather disruption early in the quarter, partially offset by strategic inventory actions resulting in higher rental equipment sales volumes. New and used equipment sales decreased $5.5 million from the prior year driven by moderately softer new equipment demand across all regions and typical seasonal softness following a record sales quarter in the fourth quarter of 2025. Rental equipment sales increased for the three months ended March 31, 2026 by $8.9 million primarily due to the targeted disposals and portfolio optimization efforts to address underutilized assets and align the rent-to-sell fleet with sustainable customer demand. Product support revenues were modestly lower overall with parts sales essentially flat year over year and service revenues down versus the prior year. The overall decrease in product support of 3.0% was primarily the result of constrained billable capacity due to weather-impacted seasonal factors. Rental revenues decreased $1.4 million organically for the three months ended March 31, 2026 reflecting a smaller average rental fleet and lower utilization in select markets compared to the prior year. The year-over-year decline in rental revenues is consistent with the Company’s strategic repositioning of its rent-to-sell fleet to align with current market demand.
Current report
Operating expenses: Construction Equipment operating expenses decreased by $1.0 million to $57.6 million for the three months ended March 31, 2026, as compared to the same period in 2025, reflecting continued cost discipline and the impact of workforce and expense management initiatives. These reductions were partially offset by higher healthcare costs compared to the prior year reflecting unfavorable claims experience.
Current report
Other expense, net: Construction Equipment other expense, net decreased $0.9 million to $11.5 million for the three months ended March 31, 2026, as compared to the same period in 2025. The improvement was primarily attributable to lower interest expense, driven by a combination of lower rates and the Company's enterprise-wide inventory optimization initiative.
Current report
Revenues: Master Distribution segment revenues for the three months ended March 31, 2026 were $17.1 million, a decrease of $0.3 million from the prior year same period. Despite ongoing tariff-related challenges impacting new equipment sales, sales of used equipment improved during the quarter and helped mitigate the overall decline, resulting in a net decrease of $0.7 million in combined new and used equipment sales year over year. Parts sales were up modestly by $0.3 million year over year with improved pricing execution and steady aftermarket demand. Service revenues were flat year over year, while rental revenues increased modestly due to incremental rental activity during the quarter.
Current report
For the three months ended March 31, 2026, gross profit was $3.9 million, a decrease of $0.6 million compared to the prior year. Gross profit margin decreased 310 basis points to 22.8%, primarily reflecting margin compression in new and used equipment sales. Gross profit margins on new and used equipment sales were 19.1%, down from the prior year reflecting higher relative product costs driven by the impact of tariff costs embedded in inventory sold during the quarter. Parts gross profit margin was 44.4% for the three months ended March 31, 2026, up 270 basis points compared to the same period last year but consistent with expectations and historical averages overall. Easing tariff regulations and renegotiated pricing with OEMs are expected to provide further support of the segment's gross margins in future periods.
Current report
Operating expenses: Master Distribution segment operating expenses totaled $3.5 million for the three months ended March 31, 2026, an increase of $0.1 million, or 2.9%, compared to the prior year. The increase was primarily attributable to normal cost inflation and remains aligned with expectations.
Current report
Other expense, net: Master Distribution other expense, net was $1.8 million for the three months ended March 31, 2026, an increase of $0.2 million compared to the prior year. The increase was primarily attributable to higher interest expense driven by higher average inventory balances partially offset by lower benchmark interest rates.
Removed paragraphs (23)
Previous report
The three and nine months ended September 30, 2025 and 2024
Previous report
Consolidated total revenues in the nine months ended September 30, 2025 decreased $51.7 million, or 3.8%, and on an organic basis decreased by $51.2 million, or 3.7%, compared to the same period in 2024. The majority of this reduction stemmed from the rental business, where rental revenues for the nine months ended September 30, 2025 decreased 11.0% and rental equipment sales decreased 30.0% on an organic basis. The decline in rental revenues was primarily due to holding a smaller average fleet size and experiencing lower utilization rates in the year, while the decrease in rental equipment sales is reflective of maintaining a reduced rent-to-sell fleet in the Construction Equipment segment and reduced throughput of lightly used, rent-to-sell heavy equipment to our customer base. Beyond the results of our rental departments, organic new and used equipment revenues decreased 0.2% against the nine months ended September 30, 2024 as strong second quarter growth in our Construction Equipment segment helped offset softness experienced in the first and third quarters. In the Construction Equipment segment, year-to-date gains on new and used equipment sales were supported by improved deliveries, stable market share and customer demand across our geographic footprint. Meanwhile, the Material Handling segment experienced a decline in equipment sales due to lower unit deliveries and a modest contraction in market size and market share in certain key geographies. Product support revenues have remained relatively stable year to date, declining 0.6% organically for the nine months ended September 30, 2025. Product support declines were experienced mainly in the Material Handling segment, where changes in customer fleet composition and reduced billable headcounts, particularly in the Midwest, led to softer demand and lower revenues. The Construction Equipment segment, by contrast, maintained stable product support activity, supported by consistent customer demand and strong field execution. Importantly, technician productivity remained high across the enterprise throughout the period and effective headcount management ensured that our workforce remained aligned with service demand.
Previous report
The consolidated gross profit margin for the three months ended September 30, 2025 was 27.9%, a 10 basis point increase from 27.8% for the same period in 2024. New and used equipment sales margins decreased 110 basis points to 15.0%, primarily due to unfavorable sales mix, persistent oversupply in equipment markets, and rising input costs. Tariff-related pressures have begun to affect cost structures, with limited pricing offsets available, particularly impacting margins in the Master Distribution segment. Rental equipment sales margins showed a slight reduction, with a 20 basis point decrease year-over-year, maintaining stability through the strategic sale of highly depreciated fleet assets. Parts gross margins increased 290 basis points reflecting adjustments to inventory reserves partially offset by the impact of tariff-driven cost increases. Service gross margins decreased by 30 basis points due to headwinds from non-billable work associated with preparation and delivery of new units partially offset by improved rate realization, technician efficiency initiatives, and stronger margins on OEM warranty labor. Rental revenue gross margins declined 240 basis points for the three months ended September 30, 2025, as depreciation expense remained consistent while lower rental revenues, particularly within the Material Handling segment, reduced the ability to absorb fixed depreciation on rental fleet, resulting in margin compression.
Previous report
The consolidated gross profit margin for the nine months ended September 30, 2025 was 26.8%, a 60 basis point decrease from 27.4% for the same period in 2024. This decrease was primarily driven by margin compression on new and used equipment sales, which decreased 130 basis points to 14.6%, impacted by unfavorable sales mix, competitive pricing pressures stemming from industry oversupply, and rising input costs, some of which were tariff-related and not fully offset through pricing actions. Rental equipment sales margins declined 100 basis points year-over-year, reflecting a higher mix of lower-margin asset dispositions, particularly in the first quarter, as we focus on optimizing rent-to-sell fleet levels in certain product categories. Parts gross margins for the nine months ended September 30, 2025 improved slightly by 40 basis points and are in line with expectations. Service gross margins continued to improve year to date, increasing by 80 basis points when compared to the same period last year, supported by stronger rate realization, technician efficiency gains, and enhanced warranty labor recoveries. Rental revenues gross margins decreased 140 basis points for the nine months ended September 30, 2025, primarily due to depreciation expense comprising a larger share of total rental cost of sales. As a fixed cost, particularly in the Material Handling segment, depreciation remained steady while lower rental revenues resulted in overall margin pressure in this business line.
Previous report
Operating expenses: Consolidated operating expenses decreased by $4.8 million to $113.0 million for the three months ended September 30, 2025 and by $23.9 million to $337.1 million for the nine months ended September 30, 2025, compared to the same periods last year, primarily due to cost savings initiatives implemented in the second half of 2024 and early 2025. These initiatives included workforce optimization measures that resulted in improved efficiency and reduced personnel-related costs. Further savings were achieved through changes to the Company’s self-insured healthcare program. The sustained reduction in operating expenses reflects disciplined execution and ongoing focus on cost control across the enterprise.
Previous report
Other expense, net: Consolidated other expense, net for the three months ended September 30, 2025 was $22.0 million compared to $22.9 million for the same period in 2024. The decrease is due to improved interest expense on floor-planned new equipment as well as the impact of one-time items in 2025, with the gain on sale from divestiture occurring in the third quarter of 2025.
Previous report
Consolidated other expense, net for the nine months ended September 30, 2025 was $60.2 million compared to $63.0 million for the same period in 2024. The difference is primarily attributed to the impact of one-time events attributed to gain on divestitures in 2025 and debt extinguishment losses in 2024 related to refinancing activities, all of which being partially offset by changes in interest expense year over year.
Previous report
Income tax provision: The Company recorded income tax expense of $24.4 million and $11.6 million for the three months ended September 30, 2025 and 2024 and income tax expense of $26.4 million and $4.7 million for the nine months ended September 30, 2025 and 2024, respectively. During the three months ended September 30, 2025, the OBBBA was enacted into law. Before OBBBA was enacted, interest expense limitation rules positioned the Company in a taxable income situation prior to the application of its net operating losses (“NOLs”), the use of which were limited and unable to shield the entirety of the Company’s taxable income. This resulted in cash taxes paid in recent years which reduced available cash liquidity. As the Company was using its NOLs, there was no need to recognize a valuation allowance against the NOL DTAs. For the Company, the enactment of the OBBBA legislative changes resulted in a taxable loss position on a trailing 12-quarter recast basis, prior to the application of its NOLs, primarily as a result of the change to the interest expense limitation rules. Thus, future usage of the Company’s NOLs to shield taxable income was no longer more likely than not and a full valuation allowance against those NOL DTAs was deemed appropriate, leading to the significant increase in deferred income tax expense for the three and nine months ended September 30, 2025. Going forward, given the change to the interest expense limitation and the Company now being in a taxable loss situation, cash taxes paid by the Company will be reduced, a benefit to available cash liquidity in the future. The income tax expense in 2024 was primarily a result of a valuation allowance recorded against a portion of the DTAs relating to the U.S. disallowed interest expense carryforwards.
Previous report
Revenues: Material Handling segment revenues decreased by $1.0 million, or 0.6%, to $167.9 million for the three months ended September 30, 2025 as compared to the same period last year. Organic sales of new and used equipment decreased by 0.8% year over year in the same period primarily due to persistent customer caution regarding capital expenditures amid ongoing economic uncertainty associated with tariffs and elevated interest rates. Although certain regions, such as New York, experienced improvements in year-over-year new equipment sales, overall new equipment industry bookings have declined, with this trend being especially noticed in our Michigan, New York City and Canada regions. On an organic basis, product support revenues declined $1.4 million, or 2.3%, for the three months ended September 30, 2025 as compared to the same period last year. This decrease is primarily attributed to lower technician headcount and availability, which directly impacted service revenues. Parts sales were also pressured by the decrease in technician headcount, a refreshed customer field population and the continued transition of customer field population being more heavily weighted to electric versus gas lift trucks. Rental revenues decreased $1.5 million organically for the three months ended September 30, 2025 as compared to the same period last year. The decrease reflects reduced year-over-year utilization triggered by customer caution surrounding general macroeconomic uncertainty, particularly in the Midwest. In contrast, rental equipment sales increased by $2.1 million organically, or 75.0%, on low volumes. This increase was driven by higher rental disposal activity in connection with our strategic fleet optimization efforts.
Previous report
Material Handling gross profit for the three months ended September 30, 2025 decreased 20 basis points to 33.4% compared to the same period in 2024. New and used equipment sales gross margins decreased 110 basis points on product mix variances and tariff-related cost increases. Parts margins improved 310 basis points primarily related to aligning our parts reserve to current operational and market realities. Service margins increased 60 basis points for the three months ended September 30, 2025 compared to the prior year period, supported by selective effective labor rate increases, though partially offset by weaker recoverability on OEM warranty and fleet work, and modest unfavorable quote variances. Rental revenues gross margins have decreased 220 basis points due to the influence of fixed depreciation costs on a lower revenues base, occurring most acutely in our Midwest region. Offsetting these impacts, rental equipment sales margins improved to 34.0% from 32.1%, supported by the strategic disposal of aging assets and strong demand for competitively priced used equipment.
Previous report
Operating expenses: Material Handling operating expenses decreased by $1.2 million to $48.4 million for the three months ended September 30, 2025 and decreased by $5.9 million to $143.8 million for the nine months ended September 30, 2025, as compared to the same periods last year. The decreases are primarily due to cost savings initiatives implemented in the second half of 2024 and early 2025. These initiatives included workforce optimization measures that resulted in reduced personnel-related costs, including expenses associated with the Company’s self-insured health plan.
Previous report
Other expense, net: Material Handling other expense, net decreased by $0.7 million to $5.7 million for the three months ended September 30, 2025 primarily due to a gain on divestiture from the sale of the Dock and Door division of our business in the New York and Boston regions. For the nine months ended September 30, 2025, other expense, net increased by $0.8 million to $18.0 million mainly reflecting higher interest expense resulting from increased debt levels and a higher effective interest rate following our 2024 debt refinancing.
Previous report
Revenues: Construction Equipment segment revenues decreased by $20.7 million, or 7.9%, to $241.6 million for the three months ended September 30, 2025 as compared to the same period last year. The reduction was driven in part by a slight decline in new and used equipment sales, which decreased $2.8 million from the prior year quarter. The decrease in new and used equipment sales can be partially attributed to a contraction in market size for heavy equipment in certain of our regions compared to prior year. Rental equipment sales drove the majority of the overall segment sales reduction. Rental equipment sales decreased for the three months ended September 30, 2025 by $15.9 million, reflecting lower sales volumes following significant fleet right-sizing activity in the prior year. Efforts continue in this regard to improve fleet optimization and cash flow. Offsetting the reductions experienced in the equipment sales channels, product support revenues increased 2.4% with growth in parts and service driven by strong activity in the Florida and Pennsylvania markets. Service performance benefited from technician efficiency gains and throughput of service backlogs while parts revenues remained fairly flat against last year. Rental revenues decreased $2.3 million organically for the three months ended September 30, 2025 compared to the same period last year, primarily due to a lower average rental fleet size as the segment continues to focus on improving asset efficiency. Overall, the Construction Equipment segment enters the fourth quarter of the year with positive tailwinds to support new and used equipment demand, underpinned by recent infrastructure bills, municipal funding, and tax incentives associated with the recently enacted OBBBA.
Previous report
Construction Equipment segment revenues decreased by $24.7 million, or 3.0%, to $788.1 million for the nine months ended September 30, 2025 as compared to the same period last year. New and used equipment sales increased $19.3 million from the prior year to date, with the majority of the growth attributable to the second quarter performance. Rental equipment sales decreased for the nine months ended September 30, 2025 by $35.0 million primarily due to the significant sales activity in late 2024 leading to lower levels of rent-to-sell fleet available for retail disposition during the current year and reduced throughput of lightly used, rent-to-sell heavy equipment to our customer base in 2025. Product support revenues increased 1.7% supported by improved pricing and technician efficiency measures in several markets. Rental revenues decreased $10.4 million organically for the nine months ended September 30, 2025 driven by a lower average rental fleet size carried between the comparable periods and reduced fleet utilization in select markets. The year-over-year rental revenues decline is consistent with the Company’s strategic repositioning of its rent-to-sell fleet to align with current market demand.
Previous report
Construction Equipment gross profit increased by 40 basis points to 24.0% in the three months ended September 30, 2025 from 23.6% in the same period in 2024. New and used equipment sales margins remained unchanged at 11.9% when compared to the same time last year. Parts sales margins for the three months ended September 30, 2025 increased 320 basis points when compared to the same time last year primarily related to aligning our parts reserve to current operational and market realities. Year-over-year service gross margins remained in line with expectations, despite a decrease of 120 basis points, due to headwinds from non-billable work associated with preparation and delivery of new units partially offset by improved efficiencies on customer and OEM work. Rental revenues gross margin for the three months ended September 30, 2025 decreased 320 basis points from prior year related to lower rental revenues and increased sublease costs. Gross margins on rental equipment sales for the three months ended September 30, 2025 declined by 310 basis points, largely reflecting mix-related variation in units sold and the influence of fleet optimization efforts.
Previous report
Operating expenses: Construction Equipment operating expenses decreased by $5.9 million to $54.1 million for the three months ended September 30, 2025 and $13.1 million to $169.3 million for the nine months ended September 30, 2025, as compared to the same periods in 2024, reflecting the full impact of cost savings initiatives implemented during the second half of 2024 and early 2025. These initiatives included workforce optimization measures that resulted in improved efficiency and reduced personnel-related costs, including expenses associated with the Company’s self-insured health plan. Additional expense savings were realized through more efficient advertising and promotional activities as well as greater discipline in managing customer relationship-related costs.
Previous report
Other expense, net: Construction Equipment other expense, net increased by $0.3 million to $13.0 million for the three months ended September 30, 2025 and decreased $0.6 million to $32.8 million for the nine months ended September 30, 2025, as compared to the same periods in 2024. The nine-month variance was driven by the gain on the divestiture of substantially all of our aerial fleet rental business in the greater Chicago area and was partially offset by increased interest expense due to higher nominal levels of debt and the increase in our effective interest rate associated with the debt refinancing in 2024.
Previous report
Revenues: Master Distribution segment revenues for the three months ended September 30, 2025 were $15.0 million, a decrease of $3.2 million from the prior year same period. Equipment sales decreased $3.3 million year over year, due to the adverse impact of elevated tariff costs and ongoing trade policy developments affecting the segment. Parts sales increased $0.3 million supported by pricing adjustments aimed at mitigating rising tariff exposure.
Previous report
Master Distribution segment revenues for the nine months ended September 30, 2025 were $53.3 million, an increase of $5.6 million from the prior year same period. The majority of this growth came from new and used equipment sales, which rose by $5.6 million, as normalized dealer inventories and a more seasonally-aligned delivery cadence improved purchasing behavior across the segments sub-dealer network in the first half of the year. Parts sales were up modestly by $0.8 million year over year with stronger pricing actions beginning in the second quarter to offset softness in the first quarter. Year-to-date performance reflects successful efforts to broaden the segment’s reach while navigating tariff-driven cost volatility, but ongoing trade policy related uncertainty continues to be a headwind for the foreseeable future. The business continues to actively pursue pricing, product positioning, and sourcing strategies to support long-term profitability.
Previous report
For the three months ended September 30, 2025, gross profit margin decreased 750 basis points from the prior year primarily due to influences of elevated tariff costs and the weakening of the US dollar against the Euro. Gross profit margins on new and used equipment sales were 16.7%, a 940 basis point decrease from the prior year quarter largely driven by the impact of tariffs on equipment and limited near-term OEM offset mechanisms. Parts gross profit margin was 60.0% for the three months ended September 30, 2025, down 820 basis points compared to the same period last year following broad-based increases in steel and aluminum tariffs. Although parts pricing actions were implemented during the second quarter of the year to offset margin erosion, and negotiations with major OEMs in the segment have helped to curtail further margin erosion, full recovery to previous parts gross margin levels in the near-term is unlikely under the current tariff environment.
Previous report
For the nine months ended September 30, 2025, gross profit margin decreased 650 basis points from the prior year reflecting the cumulative effect of sustained tariff-related cost pressures and margin compression on both machine and parts sales. Gross profit margins on new and used equipment sales were 20.7%, down from the prior year and reflective of higher input costs generally related to the weakening of the US dollar against the Euro and the influence of tariffs on imported goods. Parts gross profit margin was 41.8% for the nine months ended September 30, 2025, down 10.3% compared to the same period last year due to both higher import duties as well as unfavorable freight and sourcing costs associated with stocking new product lines. Pricing actions, ongoing cost recovery strategies, and planned volume rebates from OEMs are expected to help stabilize margins in future periods.
Previous report
Operating expenses: Master Distribution segment operating expenses were $3.9 million and $11.1 million for the three and nine months ended September 30, 2025, respectively. As compared to prior year same periods, there was no change and a decrease of $2.3 million, respectively. The year-to-date decrease is primarily reflective of non-recurring costs incurred in the prior year for non-cash contingent consideration expense associated with the earnout component of the acquisition of Ecoverse in November 2022. Excluding the contingent consideration, operating expenses were relatively flat despite higher revenues in the current year.
Previous report
Other expense, net: Master Distribution other expense, net was $1.6 million for the three months ended September 30, 2025, flat to prior year. Other expense, net was $4.9 million for the nine months ended September 30, 2025, a year-to-date increase over prior year primarily attributed to higher interest costs on larger inventory balances and a higher effective interest rate given the debt refinance in 2024.
Reworded paragraphs (20)
Previous wording
We own and operate one of the largest integrated equipment dealership platforms in North America. Through our branch network, we sell, rent, and provide parts and service support for several categories of specialized equipment, including lift trucks and other material handling equipment, heavy and compact earthmoving equipment, crushing and screening equipment, environmental processing equipment, cranes and aerial work platforms, paving and asphalt equipment, other construction equipment, and related products. We engage in five principal business activities in these equipment categories:
Current wording
We own and operate one of the largest integrated equipment dealership platforms in North America. Through our branch network, we sell, rent, and provide parts and service support for several categories of specialized equipment, including lift trucks and other material handling equipment, heavy and compact earthmoving equipment, crushing and screening equipment, environmental processing equipment, cranes and aerial work platforms, paving and asphalt equipment, other construction equipment, and allied products. We engage in five principal business activities in these equipment categories:
Previous wording
We have operated as an equipment dealership for 41 years and have developed a branch network that includes over 80 total locations in Michigan, Illinois, Indiana, Ohio, Pennsylvania, Massachusetts, Maine, Connecticut, New Hampshire, Vermont, Rhode Island, New York, Virginia, Nevada, and Florida and the Canadian provinces of Ontario, Maritime, and Quebec. We offer our customers end-to-end solutions for their equipment needs by providing sales, parts, service, and rental offerings. Additionally, we provide design and build services related to automated equipment installation and warehouse management system integration solutions within our Material Handling segment.
Current wording
We have operated as an equipment dealership for 42 years and have developed a branch network that includes over 80 total locations in Michigan, Illinois, Indiana, Ohio, Pennsylvania, Massachusetts, Maine, Connecticut, New Hampshire, Vermont, Rhode Island, New York, Virginia, Nevada, and Florida and the Canadian provinces of Ontario, Quebec, and New Brunswick (serving the Maritimes). We offer our customers end-to-end solutions for their equipment needs by providing sales, parts, service, and rental offerings. Additionally, we provide design and build services related to automated equipment installation and warehouse management system integration solutions within our Material Handling segment.
Previous wording
Within our territories, we are primarily the exclusive distributor of new equipment and replacement parts on behalf of our OEM partners. We and our regional subsidiaries enjoy long-standing relationships with leading material handling and construction equipment OEMs including Hyster-Yale, Volvo, JCB, CNH, Takeuchi, McCloskey, and Kubota, among many others, as well as master dealer rights throughout North America for environmental processing equipment with Doppstadt and Backers, among others. We are consistently recognized by OEMs as a top dealership partner and have been identified as an internationally recognized Hyster-Yale dealer and are a multi-year recipient of the Volvo Dealer of the Year award. More recently, given the Company’s successful history with electrified forklifts, battery charging, and power generation, we are pursuing a synergistic, asset-light strategy focused on the distribution and powering of commercial electric vehicles in the over-the-road vehicle segment. While our electromobility (“e-mobility”) business, and the industry in general, is in its early stages of development, we believe that our expertise in this emerging market represents a future growth opportunity.
Current wording
Within our territories, we are primarily the exclusive distributor of new equipment and replacement parts on behalf of our OEM partners. We and our regional subsidiaries enjoy long-standing relationships with leading material handling and construction equipment OEMs including Hyster-Yale, Volvo, JCB, CNH, Takeuchi, McCloskey, and Kubota, among many others, as well as master dealer rights throughout North America for environmental processing equipment with Doppstadt and Backers, among others. We are consistently recognized by OEMs as a top dealership partner and have been identified as an internationally recognized high-performing Hyster-Yale dealer and are a multi-year recipient of the Volvo Dealer of the Year award.
Previous wording
Rental revenues. We rent heavy construction, compact, aerial, material handling, and a variety of other types of equipment to our customers on a daily, weekly, and monthly basis. Our rental fleet, which is well-maintained, has an original acquisition cost (which we define as the cost originally paid to manufacturers plus any capitalized costs) of $563.4 million as of September 30, 2025. The original acquisition cost of our rental fleet excludes $3.4 million of assets associated with our guaranteed purchase obligations, which are assets that are not in our day-to-day operational control. In addition to being a core business, our rental business also creates cross-selling opportunities for us in our equipment sales and product support activities.
Current wording
Rental revenues. We rent heavy construction, compact, aerial, material handling, and a variety of other types of equipment to our customers on a daily, weekly, and monthly basis. Our rental fleet, which is well-maintained, has an original acquisition cost (which we define as the cost originally paid to manufacturers plus any capitalized costs) of $522.1 million as of March 31, 2026. The original acquisition cost of our rental fleet excludes $2.5 million of assets associated with our guaranteed purchase obligations, which are assets that are not in our day-to-day operational control. In addition to being a core business, our rental business also creates cross-selling opportunities for us in our equipment sales and product support activities.
Previous wording
Operating expenses. These costs are comprised of three main components: personnel, operational, and occupancy costs. Personnel costs are comprised of hourly and salaried wages for administrative employees, including incentive compensation, sale commissions, and employee benefits, such as medical benefits. Operational costs include marketing activities, costs associated with deploying and leasing our service vehicle fleet, insurance, information technology, office and shop supplies, general corporate costs, depreciation on non-sales and rental related assets, and intangible amortization. Occupancy costs are comprised of all expenses related to our facility infrastructure, including rent, utilities, property taxes, and building insurance.
Current wording
Operating expenses. These costs are comprised of three main components: personnel, operational, and occupancy costs. Personnel costs are comprised of hourly and salaried wages for administrative employees, including incentive compensation, sale commissions, and employee benefits, such as medical benefits. Operational costs include marketing activities, costs associated with deploying and leasing our service vehicle fleet, insurance, IT, office and shop supplies, general corporate costs, depreciation on non-sales and rental-related assets, and intangible amortization. Occupancy costs are comprised of all expenses related to our facility infrastructure, including rent, utilities, property taxes, and building insurance.
Previous wording
Revenues: In the three months ended September 30, 2025, consolidated total revenues decreased 5.8% against the three months period ended September 30, 2024, with total organic revenues decreasing 5.6%. Organic new and used equipment revenues decreased 3.6% against the three months ended September 30, 2024. New and used equipment sales declined across all segments in the third quarter of 2025, primarily due to economic uncertainty, market contraction in key regions, and tariff impacts, though some areas showed localized improvement. Product support department (parts and service) revenues improved modestly, at 0.4% organically for the three months ended September 30, 2025, when compared to the prior year period. Product support performance varied across segments. The Material Handling product support business line saw a decline due to reduced technician availability and a shift in customer fleet composition, while the Construction Equipment segment product support departments posted modest gains driven by stronger service activity and productivity improvements in key markets. Technician productivity remains high across the enterprise, and our product support teams continue to provide stability amid fluctuating equipment demand. Rental revenues for the three months ended September 30, 2025 decreased 7.7% organically due to the Company carrying a reduced average fleet size and lower fleet utilization when compared to the same period last year. Rental equipment sales organically decreased 39.3% for the three months ended September 30, 2025 as compared to the same period last year. The rental equipment sales reduction was predominantly evident in our rent-to-sell product categories in our Construction Equipment segment as we have carried a lower fleet balance compared to the prior year and strategically sell equipment considering supply and demand levels and rental rates to maximize return on capital on the rent-to-sell fleet.
Current wording
The three months ended March 31, 2026 and 2025
Previous wording
We define Adjusted EBITDA as net income (loss) before interest expense (not including floor plan interest paid on new equipment), income taxes, depreciation and amortization, adjustments for certain one-time, non-recurring or non-cash items, and items not necessarily indicative of our underlying operating performance. We exclude these items from net income (loss) in arriving at Adjusted EBITDA because these amounts are either non-cash, non-recurring or can vary substantially within the industry depending upon accounting methods and book values of assets, capital structures, and the method by which the assets were acquired.
Current wording
We define Adjusted EBITDA as net income (loss) before interest expense (not including floor plan interest paid on new equipment), income taxes, depreciation and amortization, adjusted for certain one-time, non-recurring or non-cash items, and items not necessarily indicative of our underlying operating performance. We exclude these items from net income (loss) in arriving at Adjusted EBITDA because these amounts are either non-cash, non-recurring or can vary substantially within the industry depending upon accounting methods and book values of assets, capital structures, and the method by which the assets were acquired.
Previous wording
For the nine months ended September 30, 2025, Material Handling segment revenues decreased by $32.3 million, or 6.2%, to $486.5 million as compared to the same period last year. Organic sales of new and used equipment decreased by 9.4% reflective of continued customer hesitancy on capital expenditures and a reduction in overall lift truck industry bookings. Product support revenues declined $7.9 million organically, with a $5.0 million reduction in parts sales and a $2.9 million decrease in service revenues. Lower product support revenues were primarily a reflection of lower billable technician headcount and technician availability year over year. Rental revenues decreased 9.6% organically for the nine months ended September 30, 2025 as compared to the same period last year reflecting a lower average volume of fleet on rent in select markets, mainly in our Midwest and Canada regions. In contrast, rental equipment sales increased by $4.6 million organically, or 56.8%, on low volumes, supported by the targeted disposal of underutilized assets and increased customer demand for cost-effective used equipment alternatives.
Current wording
Revenues: For the three months ended March 31, 2026, Material Handling segment revenues decreased by $7.4 million, or 4.7%, to $150.5 million as compared to the same period last year. The decline in revenues reflects continued softness in new equipment deliveries partially offset by stable service revenues and higher rental equipment sales. Organic sales of new and used equipment decreased $2.6 million, or 3.5%, reflective of slow January activities. While bookings momentum developed later in the quarter in certain markets, improvements were not able to offset early quarter softness. Product support revenues declined modestly on an organic basis, with parts sales down $1.1 million and service revenues down $0.2 million compared to the prior year. Product support performance remained stable despite challenging weather conditions and technician availability constraints, supported by improved effective labor rates and continued pricing discipline. Rental revenues decreased $1.2 million, or 6.9%, on an organic basis, reflecting a lower average volume of fleet on rent. In contrast, rental equipment sales increased $0.4 million, or 11.4%, primarily due to the targeted disposal of underutilized assets and increased customer demand for cost effective used equipment alternatives. These actions were consistent with intentional enterprise-wide fleet optimization efforts.
Previous wording
Material Handling gross profit for the nine months ended September 30, 2025 increased 20 basis points to 33.5% compared to the same period in 2024. Gross margins on new and used equipment were largely consistent, declining just 60 basis points year over year due to sales mix and tariff-related cost increases. Parts gross margins improved slightly but are in line with expectations, and service margins increased 50 basis points for the period, supported by strong margin performance realized in the first and third quarters of 2025. Rental revenues gross margins have decreased 130 basis points primarily due to the influence of fixed depreciation costs on a lower revenues base. Rental equipment sales margins decreased 60 basis points on low sales volumes and can vary depending on the timing of when sales occur within the useful life of the asset.
Current wording
Material Handling gross profit for the three months ended March 31, 2026 increased 50 basis points to 35.1% compared to 34.6% in the same period in 2025. The improvement in gross margin reflects favorable mix and margin performance in service and equipment sales, partially offset by lower parts and rental revenue margins. Gross margins on new and used equipment sales increased 10 basis points, remaining largely consistent year over year. Parts gross margins decreased 10 basis points, generally consistent with expectations. Service margins increased 50 basis points, driven by higher effective labor rates and improved technician efficiency. Rental revenues gross margins have decreased 280 basis points primarily due to the influence of fixed depreciation costs on a lower revenue base. Rental equipment sales margins increased 990 basis points, reflecting favorable timing and mix of asset dispositions; however, margins on rent-to-rent equipment sales can vary meaningfully depending on the age and composition of assets sold, as many of these assets are disposed of after being fully depreciated.
Previous wording
Construction Equipment gross profit decreased by 60 basis points to 22.8% in the nine months ended September 30, 2025 from 23.4% in the same period in 2024. New and used equipment sales margins decreased 90 basis points to 11.7% as a result of pressures from product mix and pricing competitiveness due to the supply overhang within the marketplace. Parts sales margins for the nine months ended September 30, 2025 remained generally stable, increasing 100 basis points when compared to the same time last year and within expected ranges. Service gross margins increased by 150 basis points year over year, primarily from improved rate realization and efficiency measures, along with improved warranty recovery. Rental revenues gross margin for the nine months ended September 30, 2025 decreased 180 basis points from a year ago, a result of a reduced amount of fleet on rent and a more conservative rental pricing environment. Gross margins on rental equipment sales for the nine months ended September 30, 2025 declined 250 basis points from a year ago, reflecting a higher mix of lower-margin asset dispositions in the first quarter as we focus on optimizing rent-to-sell fleet levels in certain product categories.
Current wording
Construction Equipment gross profit decreased by 110 basis points to 21.6% in the three months ended March 31, 2026 compared to 22.7% in the same period of 2025. New and used equipment sales margins increased to 11.7%, up 30 basis points year over year and 150 basis points compared to the fourth quarter of 2025, reflecting favorable product mix and signaling an improving margin environment. Parts sales margins were reduced for the three months ended March 31, 2026, decreasing 140 basis points when compared to the same time last year but remain within expected ranges. Service gross margins decreased by 120 basis points year over year primarily reflecting increased non-billable activity and throughput disruption associated with winter operating conditions. Rental revenues gross margin for the three months ended March 31, 2026 increased 100 basis points compared to the prior year primarily reflecting lower sublet costs, freight, and repair and maintenance expenses as a percentage of rental revenues. Conversely, gross margins on rental equipment sales decreased 870 basis points from the prior year, reflecting a higher mix of lower-margin asset dispositions consistent with the Company’s targeted efforts to optimize rent-to-sell fleet levels and dispose of underutilized equipment.
Previous wording
The nine months ended September 30, 2025 and 2024 Cash Flows
Current wording
The three months ended March 31, 2026 and 2025 Cash Flows
Previous wording
Cash Flow from Operating Activities. Cash flows from operating activities include net loss adjusted for non-cash items and the effects of changes in working capital. For the nine months ended September 30, 2025, operating activities resulted in net cash used in operations of $0.9 million. Our reported net loss of $68.6 million, when adjusted for non-cash income and expense items, primarily depreciation and amortization, the gain on sale of rental equipment, inventory obsolescence and bad debt reserves, gain on divestitures, deferred income taxes, and stock-based compensation, provided net cash inflows of $51.3 million. Changes in working capital included $60.7 million of inventory purchased ($81.8 million of inventory was transferred into our rental fleet primarily for replenishment purposes) and an $18.3 million increase in accounts receivable. Cash flows from operating activities were favorably impacted by $64.3 million due to proceeds from the sale of rent-to-sell equipment and $4.9 million in net impact in accounts payable, accrued expenses, leases, and other operating liabilities offset by $28.3 million in net outflows related to manufacturer floor plans, and a $14.1 million net change in prepaid expenses and other assets.
Current wording
Cash Flow from Operating Activities. Cash flows provided by operating activities include net loss adjusted for non-cash items and the effects of changes in working capital. For the three months ended March 31, 2026, operating activities resulted in net cash provided by operations of $20.8 million. Our reported net loss of $19.5 million, when adjusted for non-cash income and expense items, primarily depreciation and amortization, the gain on sale of property and rental equipment, inventory and bad debt reserves, gain on divestiture, deferred income taxes, and stock-based compensation, provided net cash inflows of $4.3 million. Cash flow changes from working capital included $38.8 million of inventory purchased ($30.0 million of inventory was transferred into our rental fleet primarily for replenishment purposes) and a $6.5 million outflow from accounts receivable. Cash flows from operating activities were favorably impacted by $26.8 million due to proceeds from the sale of rent-to-sell equipment, $21.5 million in net inflows related to manufacturer floor plans and $13.7 million in net inflow from accounts payable, accrued expenses, leases, and other operating liabilities partially offset by a $0.2 million net outflow related to prepaid expenses and other assets.
Previous wording
For the nine months ended September 30, 2024, operating activities resulted in net cash provided by operations of $22.1 million. Our reported net loss of $51.5 million, when adjusted for non-cash income and expense items, primarily depreciation and amortization, the gain on sale of rental equipment, inventory obsolescence and bad debt reserves, loss on debt extinguishment, deferred income taxes, and stock-based compensation, provided net cash inflows of $56.2 million. Changes in working capital included $152.2 million of inventory purchased ($105.6 million of inventory was transferred into our rental fleet primarily for replenishment purposes) and a $26.5 million decrease in accounts receivable. Cash flows from operating activities were favorably impacted by $92.5 million due to proceeds from the sale of rent-to-sell equipment, $8.4 million in net inflows related to manufacturer floor plans, and by a $3.2 million net change in prepaid expenses and other assets and unfavorably impacted by a $12.5 million decrease in accounts payable, accrued expenses, leases, and other operating liabilities.
Current wording
For the three months ended March 31, 2025, operating activities resulted in net cash used in operations of $17.5 million. Our reported net loss of $20.9 million, when adjusted for non-cash income and expense items, primarily depreciation and amortization, the gain on sale of property and rental equipment, inventory and bad debt reserves, deferred income taxes, and stock-based compensation, provided net cash inflows of $9.3 million. Cash flow changes from working capital included $41.6 million of inventory purchased ($28.4 million of inventory was transferred into our rental fleet primarily for replenishment purposes) and a $9.1 million outflow from accounts receivable. Cash flows from operating activities were favorably impacted by $18.6 million due to proceeds from the sale of rent-to-sell equipment and a $14.4 million inflow from accounts payable, accrued expenses, leases, and other operating liabilities, partially offset by $6.0 million in net outflows related to manufacturer floor plans, and by $3.1 million net outflows pertaining to prepaid expenses and other assets.
Previous wording
Cash Flow from Investing Activities. For the nine months ended September 30, 2025, our cash used in investing activities was $19.3 million. This was mainly due to $47.6 million purchases of rental equipment and non-rental property and equipment, the acquisition of CEQ as discussed in Note 15, Business Combinations and Divestitures, and other investing activities partially offset by $21.1 million proceeds from the divestitures as discussed in Note 15, $6.8 million proceeds from the sale of rent-to-rent equipment, and $0.4 million proceeds from the sale of non-rental property and equipment.
Current wording
Cash Flow from Investing Activities. For the three months ended March 31, 2026, our cash used in investing activities was $3.5 million. This was mainly due to $10.0 million in purchases of rental equipment and non-rental property and equipment and other investing activities partially offset by $1.5 million proceeds from the divestiture as discussed in Note 15, $3.4 million proceeds from the sale of rent-to-rent equipment, and $1.6 million proceeds from the sale of non-rental property and equipment.
Previous wording
For the nine months ended September 30, 2024, our cash used in investing activities was $48.0 million. This was mainly due to $59.2 million purchases of rental equipment, non-rental property and equipment, and other investing activities partially offset by $8.9 million proceeds from the sale of rent-to-rent equipment and $2.3 million proceeds from the sale of non-rental property and equipment.
Current wording
For the three months ended March 31, 2025, our cash used in investing activities was $14.3 million. This was mainly due to $16.8 million purchases of rental equipment and non-rental property and equipment, the acquisition of Les Chariots Elevateurs Du Quebec Inc., and other investing activities, partially offset by $2.3 million proceeds from the sale of rent-to-rent equipment and $0.2 million proceeds from the sale of non-rental property and equipment.
Previous wording
Cash Flow from Financing Activities. For the nine months ended September 30, 2025, cash provided by financing activities was $20.7 million. This cash inflow was mainly due to the $42.6 million of net proceeds from our line of credit, long-term borrowings, and finance lease obligations. These cash inflows were partially offset by payments of $6.1 million for preferred and common stock dividends, net payments of $8.2 million related to non-manufacturer floor plans, $6.5 million for common stock repurchases, and $1.1 million related to other financing activities.
Current wording
Cash Flow from Financing Activities. For the three months ended March 31, 2026, cash used in financing activities was $11.9 million. This cash outflow was due to the $9.1 million of net payments on our line of credit, long-term borrowings, and finance lease obligations, net payments of $1.1 million related to non-manufacturer floor plans, payments of $0.8 million for preferred stock dividends, and $0.9 million related to other financing activities.
Previous wording
For the nine months ended September 30, 2024, cash provided by financing activities was $9.7 million. This cash inflow was mainly due to the $353.5 million of net proceeds from our line of credit, long-term borrowings, and finance lease obligations, which funded the $319.4 extinguishment of our Senior Secured Second Lien Notes due April 2026 and the increase in net working capital previously noted. These cash inflows also were partially offset by payments of $8.1 million for preferred and common stock dividends, net payments of $9.3 million related to non-manufacturer floor plans, $2.0 million for common stock repurchases, and $3.1 million related to other financing activities.
Current wording
For the three months ended March 31, 2025, cash provided by financing activities was $29.5 million. This cash inflow was mainly due to the $34.5 million of net proceeds from our line of credit, long-term borrowings, and finance lease obligations, which funded the increase in net working capital previously noted. These cash inflows were partially offset by payments of $2.7 million for preferred and common stock dividends, net payments of $1.5 million related to non-manufacturer floor plans, and $0.8 million related to other financing activities.
Previous wording
Our principal sources of liquidity have been from cash provided by our service, parts, and rental related operations and the sales of new, used, and rental fleet equipment, proceeds from the issuance of debt, and borrowings available under our line of credit and floor plans. The Company also reported $14.1 million in cash as of September 30, 2025. For more information on our available borrowings under the revolving line of credit, senior secured second lien notes, and floor plans, please refer to Note 8, Floor Plans, and Note 9, Long-term Debt. We consider the undistributed earnings of our foreign subsidiaries to be indefinitely reinvested as we do not anticipate the need to repatriate funds to the U.S. to satisfy domestic liquidity needs.
Current wording
Our principal sources of liquidity have been from cash provided by our service, parts and rental-related operations and the sales of new, used, and rental fleet equipment, proceeds from the issuance of debt, and borrowings available under our line of credit and floor plans. The Company also reported $23.9 million in cash as of March 31, 2026. For more information on our available borrowings under the revolving line of credit, senior secured second lien notes, and floor plans, please refer to Note 8, Floor Plans and Note 9, Long-term Debt. We consider the undistributed earnings of our foreign subsidiaries to be indefinitely reinvested as we do not anticipate the need to repatriate funds to the U.S. to satisfy domestic liquidity needs.
Previous wording
The amount of our future capital expenditures will depend on a number of factors including general economic conditions and our growth prospects. Our gross rental fleet capital expenditures for the nine months ended September 30, 2025 was $117.0 million, including $81.8 million of transfers from new and used inventory to rental fleet. This gross rental fleet capital expenditure was offset by sales proceeds from rental equipment of $71.1 million for the nine months ended September 30, 2025 as our business model is to sell lightly used inventory to customers from our rental fleet to increase field population in our geographies. In response to changing economic conditions, we have the flexibility to modify our capital expenditures, especially as it relates to rental fleet.
Current wording
The amount of our future capital expenditures will depend on a number of factors including general economic conditions, the state of our industry and the markets we serve, and our growth prospects. Our gross rental fleet capital expenditures for the three months ended March 31, 2026 was $36.3 million, including $30.0 million of transfers from new and used inventory to rent-to-sell rental fleet. This gross rental fleet capital expenditure was offset by sales proceeds of rental equipment of $30.2 million for the three months ended March 31, 2026 as our business model is to sell lightly used inventory to customers from our rental fleet to increase field population in our geographies. In response to changing economic conditions, we have the flexibility to modify our capital expenditures, especially as it relates to rental fleet.
Previous wording
To service our debt, we will require a significant amount of cash. Our ability to pay interest and principal on our indebtedness, will depend upon our future operating performance and the availability of borrowings under the line of credit and/or other debt and equity financing alternatives available to us, which will be affected by prevailing economic conditions and conditions in the global credit and capital markets, as well as financial, business, and other factors, some of which are beyond our control. Based on our current level of operations and given the current state of the capital markets, we believe our cash flows from operations, available cash, and available borrowings under the line of credit will be adequate to meet our future liquidity needs for the foreseeable future. As of September 30, 2025, we had $402.5 million of available borrowings under the ABL Facility and Floor Plan Facilities.
Current wording
To service our debt, we will require a significant amount of cash. Our ability to pay interest and principal on our indebtedness, will depend upon our future operating performance and the availability of borrowings under the line of credit and/or other debt and equity financing alternatives available to us, which will be affected by prevailing economic conditions and conditions in the global credit and capital markets, as well as financial, business, and other factors, some of which are beyond our control. Based on our current level of operations and given the current state of the capital markets, we believe our cash flows from operations, available cash, and available borrowings under the line of credit will be adequate to meet our future liquidity needs for the foreseeable future. As of March 31, 2026, we had $400.2 million of available borrowings under the ABL Facility and Floor Plan Facilities.