Thank you, Melissa. Good afternoon, everyone, and thank you for joining us today.

A press release detailing Alta's second quarter 2026 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 Greenawalt, our Chairman and CEO, and Tony Colucci, our Chief Financial Officer.

For today's call, management will first provide a review of our second quarter 2026 financial results. We will begin with some prepared remarks before we open the call for your questions.

Please proceed to slide 2. 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 risks, uncertainties, and assumptions, including those related to Alta's 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. Good afternoon, everyone.

I appreciate you joining us to review Alta Equipment Group's second quarter 2026 results. My comments will focus on our markets, booking and delivery trends, and progress on our strategic initiatives.

Tony will then cover the financials, capital structure, and our updated guidance. The central takeaway is that the momentum we discussed in Q1 became more visible in the second quarter.

Revenue improved by approximately $65 million from the first quarter, with sequential growth across all three segments. Order activity is improving, deliveries are recovering, dealer inventory pressures are receding, and our operating initiatives are gaining traction.

We believe improving industry indicators and stronger activity in our own markets represent a positive inflection point for Alta. The broader backdrop is becoming more supportive.

Industrial spending remains elevated, federal infrastructure funding continues to flow into state and local project pipelines, and transportation budgets in our largest construction equipment markets remain strong. The US manufacturing PMI stayed in expansion territory through the quarter and strengthened further in July, a constructive leading signal for lift truck demand.

Non-residential demand from energy infrastructure and onshoring continues to build, and Volvo recently raised its 2026 North American market forecast by 5%. Tariff-related disruption has stabilized, benefiting master distribution and overall pricing.

Material handling remains the clearest leading indicator of improving demand. As shown on slide 7, industry bookings in our areas of responsibility increased 12.3% in the first half versus a year ago, and second quarter bookings held near the strong first quarter pace, up 4.9% from prior year quarter.

This is not a one-month spike. The improvement has been sustained across the first half, a trend Hyster-Yale also noted on their earnings call this week.

The recovery is broad-based across regions and verticals, including food and beverage, manufacturing, building materials, energy, defense, distribution, and logistics. Those bookings are building backlog, and backlog is what gives us confidence in the second half.

Our material handling backlog now stands at approximately $143 million, its highest level since 2023. In this business, bookings convert to backlog, and backlog converts to revenue over the following quarters, today's order book provides meaningful visibility in the second half invoicing.

As slide 8 shows, our current booking pace points to a meaningful recovery in 2026 with volumes moving toward long-term regional norms. Two structural drivers support the trend.

First, fleet age. Many operators deferred replacement over the last two years, and as four- and five-year-old fleets become more costly to maintain, quoting activity increases, driving both equipment sales and the recurring parts and service revenues that follow each unit.

Second, product breadth. Our OEM partners are introducing modular value-oriented configurations for lighter-duty applications, allowing us to serve cost-conscious customers with fit-for-purpose equipment while preserving our premium offering where uptime and life cycle support matter most.

Our material handling share gains are being driven by three factors: stronger participation in the fast-growing warehousing segment, new products that allow us to recapture business previously lost to value-oriented brands, and PeakLogix's integration capabilities, which enable us to advise customers on and execute larger and more complex projects. Construction equipment entered the quarter with a delayed seasonal start, but activity accelerated through the quarter, carrying the segment past its first quarter low point.

Market deliveries in our areas of responsibility increased 20.1% in the second quarter versus the prior year and were up 7.5% for the first half. Florida was a notable area of strength, particularly in articulated haulers, and quoting activity is benefiting from road and bridge work, municipal projects, energy infrastructure, and manufacturing investment.

The competitive environment is healthier than a year ago. Dealer inventories have declined, OEM discounting has moderated, and used equipment values have improved from their 2025 lows, all supporting better equipment margins.

Our rental fleet initiatives continue to progress. The goal is matching fleet investment to local demand, improving utilization and returns, and avoiding underproductive assets.

Tony will detail the results. Product support remains one of the most important differentiators in Alta's dealership model, with 85 locations, approximately 1,100 factory-trained technicians, and more than 1,000 field service vehicles creating reoccurring revenue streams that pure-play rental models do not replicate.

Through our customer value mapping initiative, we are aligning capacity with customers who value uptime and life cycle support while improving rate realization and service productivity. Our strategic vision for 2028 focuses on generating more value from the platform we have built.

Since our IPO, we have completed 17 acquisitions and grown from 43 to 85 locations. The next phase centers on organic growth, operating consistency, and disciplined capital allocation: gaining share in attractive markets, scaling PeakLogix and Ecoverse, improving product support productivity, increasing inventory and fleet returns, and using technology to drive efficiency and accountability.

As we enter the second half, demand indicators remain constructive, led by material handling bookings and backlog, construction equipment project activity, and healthier channel conditions. We are maintaining a measured outlook, and Tony will discuss our revised guidance.

The second quarter does not complete the recovery, but it provides clear evidence that one is underway and that our operating model is responding as expected. I want to thank our approximately 2,600 employees for their commitment to our customers.

Their expertise is the foundation of Alta's value proposition. With that, I'll turn the call over to Tony.

Thanks, Ryan. Good evening, everyone, and thank you for your interest in Alta Equipment Group and our second quarter 2026 financial results.

Before getting into the quarter, I'd like to thank our employees, customers, OEM partners, and shareholders for their continued support. We entered 2026 facing a number of challenges, including the pull-forward buying activity that benefited late 2025, difficult winter conditions, and softer equipment markets.

While Q1 was challenging, our second quarter performance and the trending KPIs suggest all of those headwinds are behind us as the second quarter reflected a return to more normalized operating conditions and showcased the fundamental earning power of our dealership model. My remarks today will focus on three areas.

First, I'll report our second quarter financial performance and discuss the significant improvement we saw versus the first quarter, along with the key drivers behind our results. Second, I'll discuss capital efficiency, which remains an important priority as we continue to optimize inventory levels, rental fleet investment, and improve returns on capital.

Lastly, I'll provide perspective on our outlook for the balance of the year and discuss the indicators that continue to give us confidence in our ability to deliver within our previously communicated guidance. As always, I'll be referencing slides from our earnings presentation throughout today's call.

I encourage investors to review our earnings presentation as well as our 10-Q, both of which are available on our Investor Relations website at altg.com. With that, let me begin with our financial performance for the quarter, which corresponds with slides 12 through 22 of the earnings presentation.

For the quarter, Alta generated revenue of $475.5 million and adjusted EBITDA of $48.6 million. Nominal gross profit increased year-over-year, and total gross margins expanded approximately 70 basis points to 26.1%, while EBITDA margins increased to 10.2%.

While revenue remained modestly below prior-year levels, the more important takeaway is the sequential improvement versus Q1, and the results were encouraging. Revenue increased by approximately $65 million compared to the first quarter, while adjusted EBITDA increased by approximately $20.5 million, from $28.1 million in Q1 to $48.6 million in Q2.

EBITDA margins expanded 340 basis points sequentially. While some of that increase reflects normal seasonality as construction and rental activity improve entering the summer months, it also reflects strengthening equipment market conditions, improved equipment margins, and solid execution across our operating businesses.

One area I'd specifically highlight is equipment margin performance. Company-wide new and used equipment gross margins increased to 15.3% during the quarter, representing a meaningful improvement both year-over-year and sequentially.

We believe this is an important indicator of more balanced supply and demand dynamics across the competitive landscape. From a segment perspective, first, material handling, which we were particularly pleased with, generated $19 million of adjusted EBITDA in the quarter, an increase of approximately 13% from the prior year despite lower revenue.

Strong service execution, sustained booking momentum, and improved operating efficiency all contributed to this segment's performance. Construction equipment generated $30.6 million of adjusted EBITDA, a notable $16.7 million sequential improvement.

Equipment margins improved, utilization trends strengthened throughout the quarter, and the business benefited from the expected seasonal recovery following a slow start to the year. Within master distribution, Ecoverse delivered one of its strongest quarters since acquisition.

Revenue increased from $20.9 million to $22.8 million year-over-year, while adjusted EBITDA increased from $1.1 million to $2.8 million. Importantly, much of the tariff-related margin pressure that negatively impacted the business over the last year has now subsided.

Revised OEM pricing arrangements and a more stable tariff environment both contributed to materially improved profitability. As a result, Ecoverse returned to the economic profile that underpinned our original acquisition thesis.

Taken together, these results support what we discussed last quarter, namely that many of the factors impacting first quarter performance were temporary in nature and that the underlying business remains fundamentally healthy. Moving on to the second portion of my prepared remarks, I'd like to spend a few moments discussing capital efficiency.

One of the most encouraging developments during the quarter continues to be the progress we've made on improving capital efficiency across the organization. I'd direct investors to slide 16 of the earnings presentation, which highlights the tangible results of our inventory optimization and fleet rationalization initiatives.

In material handling, average assets declined by approximately $52 million, or 11%, while the business maintained relatively consistent earnings performance. As a result, trailing 12-month adjusted EBITDA as a percentage of average assets improved 120 basis points from 14.8% to 16.0%.

In the construction segment, average assets declined by approximately $77 million year-over-year, or 8%, while profitability remained resilient despite operating in a market that's still below historic levels. That resulted in a 60 basis point increase in return on assets from 10.8% to 11.4%.

We believe this demonstrates that Alta is becoming a more capital-efficient organization, generating comparable earnings while deploying less capital and ultimately improving returns. Briefly on the balance sheet for the quarter: as of June 30, total liquidity remained strong at approximately $225 million, and net leverage remained stable at roughly 4.7 times.

Importantly, our capital structure continues to provide flexibility, as we have no meaningful debt maturities until 2029, a largely fixed-rate debt profile, and ample liquidity to support the business going forward. Moving on to the final portion of my prepared remarks, I'd like to discuss our outlook for the remainder of 2026.

We continue to believe that the assumptions underlying our previously communicated guidance remain intact. As shown on slide 19, we are narrowing our adjusted EBITDA guidance range from $167.5 million to $177.5 million, reducing the upper end of the range by $5 million while reaffirming our free cash flow before rent-to-sell decisioning range of $100 to $110 million for the year.

Importantly, the adjustment to the upper bound is not being driven by a change in our view of underlying demand, as bookings trends remain supportive and backlog levels have materially increased year-over-year. Rather, the revised range reflects increased visibility into the timing of equipment deliveries and the conversion of the backlog into revenue during the second half of the year.

Overall, there are several pillars supporting our confidence in the back half of '26 when compared to '25. First, material handling fundamentals continuing to improve.

As Ryan mentioned, backlog has increased substantially year-over-year, providing for improved confidence into second-half equipment deliveries. Second, construction equipment demand is growing across our core markets, customer activity remains healthy, and infrastructure-related project activity continues to support equipment utilization and demand.

Third, equipment margins continue to trend favorably. The margin improvements we've discussed today are consistent with reduced competitive discounting, healthier used equipment market dynamics, and more balanced dealer inventories.

Fourth, Ecoverse's tariff-related challenges appear to be behind us. The business returned to a more normalized profitability level during the quarter, and we believe those improvements are sustainable moving forward.

Lastly, the organization continues to execute on productivity and operational efficiency initiatives across multiple departments. Our product support organizations remain focused on tech utilization, labor efficiency, pricing discipline, and customer profitability.

While these initiatives may not always maximize revenue growth, they do improve overall dealership profitability and support stronger long-term returns. Taken together, supportive demand indicators, growing backlog, improving equipment margins, and continued operating discipline support our confidence in the business in the second half of 2026.

In closing, the second quarter represented a step forward. The business benefited from both the expected seasonal ramp and improving conditions across our end markets.

Perhaps most importantly, we demonstrated that Alta can generate stable or improving profitability metrics on a significantly smaller asset base, which will translate into better returns on capital over the long run. Thank you for your time and continued interest in Alta Equipment Group.

I'll now turn the call back over to the operator, and we'll be happy to take your questions.

Yes. Hi.

Good afternoon. Thanks for taking my questions here.

I want to go back to some comments you made earlier about some of the material handling modular products. I really appreciate that this is a growing area, but is there an offsetting service revenue headwind when you sell more modular compared to some of the original models?

Mike, I'll take that. No, we don't perceive it as a headwind.

If anything, it's a positive because there'd be more commonality across the product lineup, and that would potentially enhance parts turns.

Okay. Then turning to construction, I do appreciate that Volvo increased their outlook.

Other large OEMs may have increased their outlook a bit more than perhaps Volvo did, and I'd just be curious whether, in Florida and your main markets, where have been strong all along I think, do you feel like your share has been hanging in there in the first half and anything that could be changing here in the second half as far as construction market share?

Hey, Mike, this is Tony. I'll take that one.

I think we've got the one slide in the deck that shows what our markets did from a delivery perspective in Q2 relative to 2026 relative to '25, and I think those markets were up something like 7%. We definitely saw that.

Now, they were down a little bit in Q1, but long and the short of it is the number that Ryan mentioned and what Volvo is focused on, I believe, is North America. The one that we're focused on obviously is the one just for our APRs.

They seem to be in alignment with one another, maybe ours being up a little bit. In terms of share, we don't call out market share specifically publicly, but I would think of us as just holding share in the current marketplace and over the first half.

Okay. Then maybe just lastly on rental fleet sizing, again, with some of the upticks we're seeing in large projects, infrastructure, and other areas, are you thinking about potentially upsizing your fleet just a little bit to match that demand, or do you think what you've got now is pretty appropriate for the ample flow of projects that your customers are facing?

Mike, this is Tony again. The way that we think about the rental fleet is laser-focused on hitting our utilization KPIs, and at the moment, we're still not there.

To the extent we see demand kind of staying where it is specifically in the construction fleet, all of this commentary would be specific to our construction fleet, we intend to continue to pair it back a bit by year-end. The other thing that I would point out to you is that some of the data centers and projects that you are referencing are more akin to vertical construction, which would mean aerial equipment, which the larger rental houses compete in, and we do not.

It's a much smaller piece of our portfolio in terms of the rental business, and that's all there on slide 17. We're certainly participating from a land-clearing perspective.

We know of jobs that our customers are on where they need dump trucks and excavators, but those projects are a little bit shorter relative to call it the vertical construction of the building. The short answer is no, we don't see investing in rental fleet in the short run here.

Okay. Fair enough.

Thanks so much. I'll pass it along.

good evening, everyone. Wanted to start with the color you shared around the marketplace being more balanced from a supply-demand standpoint, and leading to reduced discounting.

Would you say that the market is in a healthy and optimal spot at this point, or it could keep trending in a healthier way potentially through the back half of the year?

Hey, Steven, this is Tony. Before I answer your question, I just want to point out I misspoke on the question Mike had.

Equipment deliveries in our construction markets were up 20%, as suggested on slide 7. I said 7%, which is the year-to-date number.

Anyway, yeah, all signs point to more normal supply-demand dynamics, which what we have believed all along would help support more normal margins in terms of discounting that we have to do to kind of hold share, specifically in the construction segment. I think there's still a little bit more room to run.

We have, as we've suggested, really tried to optimize inventories, and by doing so, we've actually had to take some skinnier deals to offload the balance sheet a little bit. We think we've still got some tailwinds in our own numbers through the back half here from an equipment margin perspective.

I think from a macro environment, we've found that balance. What I'd say pricing-wise, I think pricing still has a little bit of room to run as well.

Some of the larger players in the construction space that you're well aware of, I think are showing price realization year-over-year of 5% in the second quarter in terms of what the OEMs are charging their dealers. As their costs have gone up, tariffs have been impacted.

It's been a while, but we're finally seeing less discounting coming out of some of the bigger houses. I would expect that to continue and prices to continue to improve just overall.

Much more balance than we've been over the last two years.

That's great to hear. Then one thing I wanted to clarify, in the guidance, the part of caution around deliveries, can you talk a bit more about where that caution or conservatism is coming from, if it's a certain product set or certain customer group?

No, so as Ryan mentioned, the material handling backlog is getting to record levels from a nominal dollar basis. We're still not there from a just a unit perspective.

It's really just timing with Hyster-Yale, with their production capabilities and ability to deliver and whether or not some of the demand sneaks into 2027, Steven, versus 2026. It's not a specific customer base, it's not really a product line per se, but it would be more on the material handling side, particularly Hyster-Yale.

It's not that we are saying that there is risk that we know of. We're just being mindful that the level of volume coming through could leak into 2027.

That's helpful. Thank you.

Thank you. Good evening, Ryan.

Good evening, Tony.

Hey, Liam.

Tony, you were talking in your prepared comments about reducing the higher end of the guidance not basically because you have better visibility. I'm looking at the two major businesses.

Materials handling, with the order flow, gives you a pretty good sense as to what the second half is, understanding that you talked about orders slipping into 2027. On the construction side, what are you seeing that gives you more visibility on the second-half activity?

I think it's just general momentum, Liam. As investors and some of the analysts are aware, the material handling purchaser and that cycle is about six months from when we get a booking, place an order with Hyster-Yale, all the way through our ability to invoice, just as a rule of thumb.

It could be less or it could be more. We have great confidence that we will outperform the back half of '25 here in '26 because of that.

Again, we're very bullish on demand, it's a timing issue that impacted the top end of the guide. On the construction side, as you mentioned, it's more momentum.

Q2 deliveries were above two Q2 '26 were 20% above Q2 '25 in our marketplace. We still see a lot of quoting activity.

DOT budgets are now in and are effectively holding pretty flat against what were peak levels seen in 2025. There's lots of work to be done here in the back half.

Our rental fleet in the construction side is out with no sign of things are still going out on jobs versus coming back. All of those things give us confidence in the back half of the year in the construction side, as well as some of the cost take-out things that we were able to kind of execute toward the end of Q2 that we expect to see in the second half as well.

Just a follow-on on the construction cost reduction, you had a step-up in gross margins on new and used equipment sales. Do you expect that momentum to continue in the second half as volumes improve?

In a word, we don't expect it to retreat, and we would probably expect a little bit more juice on gross margins in the second half.

Great. Thank you, Tony.

Thanks, Liam.

Hi guys. Thanks for the time today.

I just wanted to ask one of the earlier questions a different way. It's just around the guidance.

Any reason you didn't decide to take the lower end of the guidance up, perhaps just given all the optimistic commentary here in the outlook so far? Thanks.

Steve, I think it's just building a little bit of a level of conservatism maybe into the guide. Really, when we think of the back half, the EBITDA is heavily weighted to the back half, something like $90 or $100 million implied.

What we were looking to do, one, is just squeeze the range for the investor community, and we felt like, understanding that there can be some variability in deliveries and so on, we would take the top end down. We have great confidence in the low end at the moment.

Great. That's much appreciated.

I just wanted to go back to your asset optimization comments earlier as well, and how do you feel about the working capital build necessary to sort of support some of this growing order momentum that you see out there? Do you need to build a lot of working cap in the next sort of back half here, or how do you feel about that?

No, if you think about it, Steve, the back half is going to be supported on equipment deliveries. All of that is typically floor planned at 100% floor plan payable to value.

There'll be a little bit of investment in AR, but that's a quick turnaround typically when you're selling equipment. That's a long way of saying no, we wouldn't expect working capital investment in the back half.

In fact, as we start to see projects wrap up, especially in the fourth quarter collections come in and we end up getting working capital release in the back half, and I'd expect to see the same this year.

Appreciate it. Just one last one if I may, is just around the support side with the broader backdrop improving, as you've described.

Any desire to start to reinvest in some of the product support team or pursue techs in a more aggressive fashion here, or how do you feel about your support capabilities here moving into the new cycle?

What I would say, it's a tale of two segments probably, Steven. What we have been focused on over the last 12 to 18 months is technician retention, training, and then uptime or efficiency with technician heads versus adding technician heads.

There are elements of the business where we need more techs, and material handling, given some of the inflection that we talked about, could be one of those areas in the Midwest specifically, where manufacturing and some of the automotive stuff is starting to ramp back up. We've been in the Midwest for 40 or 50 years now and we've got all kinds of different ways to recruit and attract talent.

That would be a place where we're more bullish, and then on the construction side, it's more about getting labor utilization up. There are elements of the business, areas of the business where we would be looking to take on more heads, New England in the Northeast comes to mind.

It's spotty. Right now, we always want to look for highly technical individuals.

We're always kind of recruiting, but we don't have any major plans at the moment, we don't need 100 mechanics or anything like that at the moment.

Much appreciated. Thanks.

Thanks very much for the time. Looking forward to the second half, guys.

My first question on material handling, if you listened to the Hyster-Yale call yesterday, in one regard, they actually kind of trimmed their second-half '26 delivery outlook not because of a demand issue, clearly the bookings are very, very strong. There was a change in the 232 tariffs that in response to that, they chose to delay some deliveries so they could ship their manufacturing from say Europe to the US to avoid those tariffs, and did that obviously in conjunction with their customer base.

When that happened, did that have any impact on your look for the second half and maybe gave you a view that maybe the second half, some of the stuff that you thought you were going to be able to put revenue on the table in material handling maybe got pushed a little out and some of it's going to come in '27? Again, it's not a bookings issue, it's just kind of a smart move on their part because they're saving 15 to 20% that they would have had to pay if they hadn't made this change.

You understand what I'm asking. Did you see any impact from that?

Ted, there wasn't anything. In general, what I would say is the movement in what we were discussing about the guidance in the back half for material handling is generally correlated to just general execution risk in terms of the cadence of bookings, producing from Hyster-Yale perspective, all the way through kind of end market, our shops, prep and delivery, and then invoicing.

It's just general execution risk that we were thinking about. I'm not familiar specifically with what the tariff issue was and the repatriating of the manufacturing, so that was not a specific element.

I don't think that that would impact us one way or the other in terms of just the general execution risk that we always have when we start to see backlog jump like this.

Okay. No, it was nothing more than an interest to me.

You made some commentary on utilization rates in the rental fleet, and obviously that's an admirable goal, obviously you drive them up, use them more, you make more money off them. Is there a target that you would share in terms of where you want it to kind of settle in at?

I think right now when I looked at it and did my calcs, it's somewhere in the mid-30s with the last quarter. When we look at that business say a year from now or whatever time frame you kind of think of, where do you want to get it?

Ted, the way that we think about it is if you do the math here, TTM rental revenue, give me a minute, TTM rental revenue is 175. At the end of Q2, we're carrying $500 $500 million of gross fleet.

We would like, so that's 35%, we would like that to get into the high 30s or even touch 40 if we could get that metric there. It goes to what Mike was asking.

We still are not where we want to be on our metrics, and now we're improving and we've made a lot of progress as I mentioned on the prepared remarks, but if you wanted a kind of a benchmark, that's where we would want to be.

Okay. Third question, we don't talk too much about Ecoverse, and maybe I don't think about it that much.

You had a good quarter out of it. I'd view kind of Terex and part of their business as a comp for that.

They had also seen some challenges within that world, and in their quarterly call did express some pretty solid optimism with regards to the business, as they kind of thought through and I think they were really talking more about '27. They just felt like the business itself was really on the turn and on the mend.

Can you provide us a little update on kind of what you're seeing within that market and do you agree with that and what the drivers are?

Ted, from what I understand about Terex is they're more in the crushing and screening. They may have an environmental line or two, but they wouldn't be competitive to some of the things that Ecoverse is doing, which is more of the environmental processing equipment.

We've always seen tailwinds here in North America for this type of product. There was just given that we're an importer, just to remind everybody, we are the direct importer from Germany primarily and Europe for a lot of this specialty equipment, and there was just so much turmoil, I would say, over the last year, and we've had to renegotiate pricing, reset pricing with customers.

We believe the demand was always there. It was a margin issue and just a cost issue that we had to work through, which, as I mentioned, we feel like is behind us.

That's to say we always have felt good about the demand, we continue to feel good about demand for those products, and now we finally have our costs in line with kind of the revenue that we're able to get in the marketplace to earn an appropriate margin.

Okay. Then my last question is around PeakLogix.

You're a you've got a a product line now coming out of Hyster-Yale that's far more competitive, in terms of honestly getting into the warehouse market. You have the warehouse automation solution.

Is there a benefit to you for, having both of those together? Like is the is the better and more competitive product offering from Hyster-Yale help you sell PeakLogix?

Does PeakLogix help you sell those, better-designed, better, targeted, lift trucks from Hyster-Yale into the market as well? What kind of, synergies are there between those for you in a sales perspective?

This is Ryan. From the sales perspective, the leading part of the business, it's symbiotic.

The same customers that are looking at trying to put more through their warehouse that are using narrow aisle equipment are the same ones that would be leveraging the expertise of our PeakLogix team. The analogy we use is if we sell the vehicle, now we can design and sell the track that the vehicle runs on.

The fact that now you have a better product and can sell more vehicles and be more competitive will help you sell more tracks? Is that a fair way to think about it?

There are two sort of two product evolutions going on at Hyster-Yale. One is that they're making more competitive product for the warehousing segment, which is fast-growing and is more of a specialized piece of equipment where we haven't been as strong historically.

Then the other is that they're providing multiple price points of their legacy product, the more traditional rider forklift, so that we can compete on the high end of the market where we've always been successful, but also in the value part of the market. I wouldn't characterize our warehouse product as low cost.

It's full-featured product. That's a separate issue from trying to drive a lower-cost product offering for class 1 and 4.

Okay. All right.

Thanks for taking my questions.

Thanks, Ted.

Thanks, Ted.