Alta Equipment Group Inc. Q1 FY2026 earnings call

Q: Okay. And then my last question shifting over to the rental fleet and it's been touched on. You know, I mean, I think it's admirable and it's actually, you know, it's going to be pretty exciting as you bring this fleet in line and start, you know, improving the utilization rates of your rental fleet. You know, you brought it down sequentially, looks like the last four quarters. You know, right now you're ending rental fleets at 525 million. At what point do you find that your fleet is right-sized? I mean, is it 500 million? Is it 450 million? Is there, you know, some kind of way for us to kind of think about that and maybe a timeline of where you think you're going to get there?

A: Yeah, Ted, I think, you know, the plan, the plan, based on the plan for this year, which, as I mentioned, we're a little, we were several million dollars off in Q1 on just rental revenue. But for us, it's not necessarily, based on the plan, I should say this to answer your question, we expect it to be sub $500 million by the end of the year on that, what was, what is at the end of Q1 525. Based on what we know about rental the rental revenues in the plan. Now we're a little bit below that, which potentially means we will drop even further below the 500. But for us, it's finding utilization targets versus nominal levels of fleet. And we've got to go out and compete for business too and start to drive revenue. So it's more about the numerator-denominator than it is hitting a target. That's a long way of saying the original plan was to be sub 500Million. Uh, we've given Q1 performance that's still intact and we expect to be there by the end of the year.

Q: What would be your target in terms of that utilization rate?

A: We want to be in the high sixties from a, a, a sort of what we would call dollar weighted time utilization, like physical utilization of fleet on rent. over a calendar year divided by total fleet. And what that typically means is that our rental revenue is trading divided by average acquisition cost is something in the mid to high 30s, what we would call dollar utilization or financial utilization. We're just not there yet. Okay. Thank you. We have reached the end of the Q&A session. This concludes today's call. Thank you for attending. You may now disconnect.