Alamo Group Inc.

                                                                                                    

Edward Rizzuti

EVP Corporate Development & Investor Relations

830-372-9600

                         

Financial Relations Board

Joe Calabrese

212-827-3772

ALAMO GROUP ANNOUNCES FINANCIAL RESULTS FOR THE FIRST QUARTER 2026

 

SEGUIN, Texas, May 4, 2026 -- Alamo Group Inc. (NYSE: ALG) today reported results for the first quarter 2026.

 

Highlights:

 

        Net sales were $417.1 million, up 6.7% compared to the first quarter of 2025

        Net income was $29.2 million and adjusted net income was $31.1 million

        Fully diluted EPS was $2.41 per share and adjusted fully diluted EPS was $2.56 per share

        Adjusted EBITDA of $59.3 million was 14.2% of net sales, up 1.8% compared to the first quarter of 2025

        Net sales in the Industrial Equipment Division increased 6.5% compared to the first quarter of 2025

        Net sales in the Vegetation Management Division increased 7.0% compared to the first quarter of 2025

        Successfully closed the Petersen acquisition and commenced work on synergy realization

        Debt, net of cash, was $95.2 million at the end of first quarter of 2026

 

Robert Hureau, Alamo Group's President, and Chief Executive Officer commented, "We are pleased with the financial results for the first quarter and we believe there is good momentum across many of our key initiatives aimed at creating long-term value for our employees and shareholders."

 

First Quarter Results

 

Net sales for the first quarter of 2026 were $417.1 million, an increase of 6.7% compared to $391.0 million for the first quarter of 2025. Net income for the first quarter of 2026 was $29.2 million, or $2.41 per fully diluted share compared to $31.8 million, or $2.64 per fully diluted share for the first quarter of 2025.

 

 

 

The Company also reported adjusted net income of $31.1 million, or $2.56 per fully diluted share, for the first quarter of 2026 compared to adjusted net income $32.5 million, or $2.70 per fully diluted share for the first quarter of 2025.  Adjusted EBITDA for first quarter of 2026 was $59.3 million, or 14.2% of net sales, compared to $58.3 million, or 14.9% of net sales, for the first quarter of 2025.

 

Net sales in the Industrial Equipment Division were $241.7 million, an increase of 6.5% compared to $227.1 million for the first quarter of 2025. Adjusted EBITDA in the Industrial Equipment Division for the first quarter of 2026 was $39.7 million, or 16.4% of net sales, compared to $37.4 million, or 16.5% of net sales, for the first quarter of 2025.

 

Net sales in the Vegetation Management Division were $175.4 million, an increase of 7.0% compared to $163.9 million in the first quarter of 2025.  Adjusted EBITDA in the Vegetation Management Division for the first quarter of 2026 was $19.6 million, or 11.2% of net sales, compared to $20.8 million, or 12.7% of net sales, for the first quarter of 2025.

 

Robert Hureau, Alamo Group's President and Chief Executive Officer commented, "Our Vegetation Management Division made good progress in terms of sales growth and improvement in profitability despite the end markets continuing to be challenging."

 

Operating cash flow for the first quarter ended March 31, 2026 was negative $23.5 million due to strong sequential growth, especially in the Vegetation Management Division, where net sales increased by $36.7 million or 26.4% in the first quarter of 2026 compared to the fourth quarter of 2025. Operating Cash Flow on a last-twelve-month basis was $139.8 million, or 138.2% of net income.

 

At March 31, 2026, total debt was $290.5 million, total cash was $195.2 million and the Company had $308.4 million of availability under its Revolving Facility.

 

Mr. Hureau added, “Our leverage, cash flow and overall liquidity are strong, and we remain in good position to continue executing on our capital deployment strategies. We look forward to a further discussion regarding our results and operating strategy during our upcoming Earnings Conference Call.”

 

 

Earnings Conference Call

The Company will host a conference call to discuss the first quarter results on Tuesday, May 5, 2026, at 10:00 a.m. ET. Hosting the call will be members of senior management.  Individuals wishing to participate in the conference call should dial (833) 816-1163 (domestic) or (412) 317-1898 (international). For interested individuals unable to join the call, a replay will be available until Tuesday, May 12, 2026 by dialing (855) 669-9658 (domestic) or (412) 317-0088 (internationally), with passcode 1646754.

 

The live broadcast of Alamo Group Inc.’s quarterly conference call will be available online at the Company's website, www.alamo-group.com (under “Investor Relations/Events and Presentations”) on Tuesday, May 5, 2026, beginning at 10:00 a.m. ET. The online replay will follow shortly after the call ends and will be archived on the Company’s website for 60 days.

 

About Alamo Group

Alamo Group is a leader in the manufacture and sale of high-quality, purpose-built industrial and vegetation management equipment. We serve end-markets such as infrastructure building and maintenance, industrial construction, public works, land maintenance, agriculture and tree care. Our products are sold to independent equipment dealers and directly to contractors and municipalities.  Product categories include vocational products (vacuum trucks, street sweepers, roadside safety equipment, excavators, and snow removal equipment) and light machinery (tractor mounted mowing equipment, land maintenance and recycling equipment) as well as related after-market parts and services. The Company operates two divisions: the Industrial Equipment Division and the Vegetation Management Division. Founded in 1969, the Company has approximately 3,900 employees and operates 27 manufacturing facilities in North America, Canada, Europe, Brazil and Australia. The corporate offices of Alamo Group Inc. are located in Seguin, Texas.

 

Forward Looking Statements

This release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company’s actual results in future periods to differ materially from forecasted results.  Among those factors which could cause actual results to differ materially are the following:  adverse economic conditions which could lead to a reduction in overall market demand, supply chain disruptions, labor constraints, increasing costs due to inflation, disease outbreaks, geopolitical risks, including tariffs, trade wars, and the effects of the war in the Ukraine and the Middle East, competition, weather, seasonality, currency-related issues, and other risk factors listed from time to time in the Company’s SEC reports.  The Company does not undertake any obligation to update the information contained herein, which speaks only as of this date.

 

 

(Tables Follow)

# # #

 


Alamo Group Inc. and Subsidiaries 

Condensed Consolidated Statements of Income

(in thousands, except per share amounts)

(Unaudited)

 

 

Three Months Ended

 

 

3/31/2026

 

3/31/2025

Net sales:

 

 

 

 

  Vegetation Management

 

$       175,420   

 

$       163,890   

  Industrial Equipment

 

         241,729   

 

         227,060   

Total net sales

 

         417,149   

 

         390,950   

 

 

 

 

 

Cost of sales

 

         312,344   

 

         288,109   

Gross profit

 

         104,805   

 

         102,841   

 

 

25.1 %

 

26.3 %

 

 

 

 

 

Selling, general and administration expense

 

           57,767   

 

           54,330   

Amortization expense

 

             4,879    

 

             4,049    

Income from operations

 

           42,159   

 

           44,462   

 

 

10.1 %

 

11.4  %

 

 

 

 

 

Interest expense

 

            (4,624)   

 

            (3,194)   

Interest income

 

             1,481    

 

             1,238    

Other income (expense)

 

                   32    

 

               (663)   

 

 

 

 

 

Income before income taxes

 

           39,048   

 

           41,843   

Provision for income taxes

 

             9,864    

 

           10,043   

 

 

25.3 %

 

24.0 %

 

 

 

 

 

Net Income

 

$         29,184   

 

$         31,800   

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

Basic

 

$             2.42    

 

$             2.65    

 

 

 

 

 

Diluted

 

$             2.41    

 

$             2.64    

 

 

 

 

 

Average common shares:

 

 

 

 

Basic

 

           12,051   

 

           11,990    

 

 

 

 

 

Diluted

 

           12,103   

 

           12,048   

 

 

 

 

 

 


Alamo Group Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands)

(Unaudited) 

 

March 31,
2026

March 31,
2025

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$  195,234

 

 

$   200,274

 

Accounts receivable, net

 

     334,956

 

 

     339,596

 

Inventories

 

     425,538

 

 

     356,406

 

Other current assets

 

       27,843

 

 

       14,958

 

Total current assets

 

     983,571

 

 

     911,234

 

 

 

 

 

 

 

 

Rental equipment, net

 

       60,273

 

 

       57,198

 

 

 

 

 

 

 

 

Property, plant and equipment, net

 

     162,807

 

 

     159,183

 

 

 

 

 

 

 

 

Goodwill

 

     266,610

 

 

     204,582

 

Intangible assets, net

 

     225,691

 

 

     147,899

 

Other non-current assets

 

       28,492

 

 

       24,598

 

 

 

 

 

 

 

 

Total assets

 

$ 1,727,444

 

 

$ 1,504,694

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Trade accounts payable

 

$  141,662

 

 

$   104,977

 

Income taxes payable

 

         2,704

 

 

       18,725

 

Accrued liabilities

 

       68,466

 

 

       73,006

 

Current maturities of long-term debt and finance lease obligations

 

       15,000

 

 

       15,009

 

Total current liabilities

 

     227,832

 

 

     211,717

 

 

 

 

 

 

 

 

Long-term debt, net of current maturities

 

     275,467

 

 

     201,789

 

Long-term tax liability

 

            470

 

 

            626

 

Other long-term liabilities

 

       24,964

 

 

       24,201

 

Deferred income taxes

 

       25,787

 

 

         9,300

 

Total liabilities

 

     554,520

 

 

     447,633

 

 

 

 

 

 

 

 

Total stockholders’ equity

 

1,172,924

 

 

  1,057,061

 

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$ 1,727,444

 

 

$ 1,504,694

 

 

                                                                       

 

 


Alamo Group Inc. and Subsidiaries

Interim Condensed Consolidated Statements of Cash Flows

(in thousands)

(Unaudited)

 

Three Months Ended 

March 31,

 

2026

 

2025

Operating Activities

 

 

 

Net income

$    29,184

 

$    31,800

Adjustment to reconcile net income to net cash provided by operating activities:

 

 

 

Provision for doubtful accounts

          (376)

 

              35

Depreciation - Property, plant and equipment

         6,722

 

         6,561

Depreciation - Rental equipment

         3,029

 

         2,884

Amortization of intangibles

         4,879

 

         4,049

Amortization of debt issuance

            176

 

            176

Stock-based compensation expense

         1,847

 

         2,303

Provision for deferred income tax expense (benefit)

         1,640

 

       (1,641)

Gain on sale of property, plant and equipment

          (654)

 

             

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

     (53,368)

 

     (30,865)

Inventories

     (23,101)

 

       (9,613)

Rental equipment

       (2,262)

 

       (7,148)

Prepaid expenses and other assets

       (1,818)

 

       (7,096)

Trade accounts payable and accrued liabilities

         7,328

 

       13,987

Income taxes payable

         5,080

 

         5,489

Other long-term liabilities, net

       (1,818)

 

         3,280

Net cash (used) provided by operating activities

     (23,512)

 

       14,201

 

 

 

 

Investing Activities

 

 

 

Acquisitions, net of cash acquired

   (166,507)

 

             

Purchase of property, plant and equipment

       (4,507)

 

       (6,008)

Proceeds from sale of property, plant and equipment

         1,242

 

            116

Net cash used in investing activities

   (169,772)

 

       (5,892)

 

 

 

 

Financing Activities

 

 

 

Borrowings on bank revolving credit facility

     120,000

 

             

Repayments on bank revolving credit facility

     (31,600)

 

             

Principal payments on long-term debt and finance leases

       (3,750)

 

       (3,752)

Dividends paid

       (4,093)

 

       (3,595)

Proceeds from exercise of stock options

         1,014

 

            354

Common stock repurchased

       (1,398)

 

       (1,613)

Net cash provided by (used) in financing activities

       80,173

 

       (8,606)

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

       (1,314)

 

         3,297

Net change in cash and cash equivalents

   (114,425)

 

         3,000

Cash and cash equivalents at beginning of the year

     309,659

 

     197,274

Cash and cash equivalents at end of the period

$  195,234

 

$  200,274

 

 

 

 

Cash paid during the period for:

 

 

 

Interest

$       4,743

 

$       3,239

Income taxes

         3,525

 

         6,241

 


Alamo Group Inc.

Non-GAAP Financial Measures Reconciliation

 

From time to time, Alamo Group Inc. may disclose certain “Non-GAAP financial measures” in the course of its earnings releases, earnings conference calls, financial presentations and otherwise.  For these purposes, “GAAP” refers to generally accepted accounting principles in the United States.  The Securities and Exchange Commission (SEC) defines a “non-GAAP financial measure” as a numerical measure of historical or future financial performance, financial position, or cash flows that is subject to adjustments that effectively exclude or include amounts from the most directly comparable measure calculated and presented in accordance with GAAP.  Non-GAAP financial measures disclosed by Alamo Group are provided as additional information to investors in order to provide them with greater transparency about, or an alternative method for assessing, our financial condition and operating results.  These measures are not in accordance with, or a substitute for, GAAP and may be different from, or inconsistent with, non-GAAP financial measures used by other companies.  Whenever we refer to a non-GAAP financial measure, we will also generally present the most directly comparable financial measure calculated and presented in accordance with GAAP, along with a reconciliation of the differences between the non-GAAP financial measure we reference and such comparable GAAP financial measure.

 

Attachment 1 discloses non-GAAP measures such as Adjusted Operating Income, Adjusted Net Income and Adjusted Fully Diluted EPS, adjusts for certain items that the management believes are not indicative of underlying performance. Adjusted Operating Income accounts for these impacts on a pre-tax basis and Adjusted Net Income and Adjusted Fully Diluted EPS are calculated on a after-tax basis. Management believes isolating certain items from the core operating performance improves comparability across periods, and reflects how management plans and assesses the business.

 

Attachment 2 shows a reconciliation of Earnings Before Interest, Taxes, Depreciation, and Amortization  ("EBITDA") and Adjusted EBITDA.

 

Attachment 3 reflects Division performance inclusive of non-GAAP financial measures such as Backlog, Adjusted Operating Income, Earnings Before Interest, Tax, Depreciation and Amortization ("EBITDA") and Adjusted EBITDA.

 

Attachment 4 shows the net change in our total debt net of cash and discloses a non-GAAP financial presentation related to the impact of currency translation on net sales by division.


Attachment 1

 

Alamo Group Inc.

Non-GAAP Financial Reconciliation

(in thousands, except per share numbers)

(Unaudited)

 

 

Non-GAAP Financial Measures

 

 

 

 

 

 

 

Three Months Ended

 

 

March 31,

 

 

2026

 

2025

 

 

 

 

 

Operating Income

 

$   42,159   

 

$   44,462   

CEO Transition(1)

 

                 

 

           222   

Acquisition and Integration Expenses(2)

 

         558   

 

                 

Restructuring Expenses(3)

 

        1,942   

 

           762   

Adjusted Operating Income

 

$   44,659   

 

$   45,446   

  Adjusted Operating Income % net sales

 

10.7 %

 

11.6  %

 

 

 

 

 

Net Income

 

$   29,184   

 

$   31,800   

CEO Transition(1), net of tax benefit $53

 

                 

 

           169   

Acquisition and Integration Expenses(2), net of tax benefit $141

 

           417   

 

                 

Restructuring Expenses(3), net of tax benefit $491 and $183, respectively

 

        1,451   

 

           579   

Adjusted Net Income

 

$   31,052   

 

$   32,548   

 

 

 

 

 

Fully Diluted EPS

 

$        2.41   

 

$        2.64   

CEO Transition(1)

 

                 

 

          0.01   

       Acquisition and Integration Expenses(2)

 

          0.03   

 

                 

       Restructuring Expenses(3)

 

          0.12   

 

          0.05   

              Adjusted Fully Diluted EPS

 

$        2.56   

 

$        2.70   

 

Notes:

1.       CEO Transition includes accelerated stock compensation, recruiting expenses, sign-on bonus, and moving expenses

2.       Acquisition and integration expenses include advisory fees and other related costs for both unsuccessful and successful deals and integration expenses

3.       Restructuring expenses include costs related to leadership changes, severance costs, facility move and setup costs, and advisory fees associated with operational improvements

 


Attachment 2

 

Alamo Group Inc.

Non-GAAP Financial Reconciliation

(in thousands)

(Unaudited)

 

 

EBITDA

 

 

Three Months Ended

 

 

March 31, 2026

 

March 31, 2025

 

 

 

 

 

Net Income

 

$           29,184

 

$           31,800

 

 

 

 

 

Interest, net

 

               3,143

 

               1,956

Provision for income taxes

 

               9,864

 

             10,043

Depreciation

 

               9,751

 

               9,445

Amortization

 

               4,879

 

               4,049

     EBITDA

 

$           56,821

 

$           57,293

     EBITDA % net sales

 

13.6 %

 

14.7 %

 

 

 

 

 

Adjustments:

 

 

 

 

CEO Transition(1)

 

$                  

 

$                222

Acquisition and Integration Expenses(2)

 

                  558

 

                    

Restructuring Expenses(3)

 

               1,942

 

                  762

     Adjusted EBITDA

 

$           59,321

 

$           58,277

     Adjusted EBITDA % net sales

 

14.2 %

 

14.9 %

 

Notes:

1.       CEO Transition includes accelerated stock compensation, recruiting expenses, sign-on bonus, and moving expenses

2.       Acquisition and integration expenses include advisory fees and other related costs for both unsuccessful and successful deals and integration expenses

3.       Restructuring expenses include costs related to leadership changes, severance costs, facility move and setup costs, and advisory fees associated with operational improvements

 

 


Attachment 3

 

Alamo Group Inc.

Non-GAAP Financial Reconciliation

(in thousands)

(Unaudited)

 

Industrial Equipment Division Performance

 

 

 

 

 

 

 

Three Months Ended 

March 31,

 

 

2026

 

2025

 

 

 

 

 

Backlog

 

$      404,883   

 

$      513,215   

 

 

 

 

 

Net Sales

 

        241,729   

 

        227,060   

 

 

 

 

 

Income from Operations

 

          31,646   

 

          31,150   

Income from Operations % net sales

 

13.1 %

 

13.7 %

 

 

 

 

 

Adjustments:

 

 

 

 

CEO Transition(1)

 

$                   

 

$             119    

Acquisition and Integration Expenses(2)

 

               400   

 

                      

Restructuring Expenses(3)

 

               320   

 

                      

Adjusted Operating Income

 

$        32,366   

 

$        31,269   

Adjusted Operating Income % of sales

 

13.4 %

 

13.8 %

 

 

 

 

 

Depreciation

 

            5,487   

 

            5,393   

Amortization

 

            1,923   

 

            1,129   

Other (income) expense

 

               (27)   

 

             (360)   

EBITDA

 

$        39,029   

 

$        37,312   

EBITDA % net Sales

 

16.1 %

 

16.4 %

 

 

 

 

 

Adjustments:

 

 

 

 

CEO Transition(1)

 

$                   

 

$             119    

 Acquisition and Integration Expenses(2)

 

               400   

 

                      

Restructuring Expenses(3)

 

               320   

 

                      

Adjusted EBITDA

 

$        39,749   

 

$        37,431   

Adjusted EBITDA % net sales

 

16.4 %

 

16.5 %

 

Notes:

1.       CEO Transition includes accelerated stock compensation, recruiting expenses, sign-on bonus, and moving expenses

2.       Acquisition and integration expenses include advisory fees and other related costs for both unsuccessful and successful deals and integration expenses

3.       Restructuring expenses include costs related to leadership changes, severance costs, facility move and setup costs, and advisory fees associated with operational improvements

 

 

 

 

 

 

Attachment 3 (Continued)

 

Alamo Group Inc.

Non-GAAP Financial Reconciliation

(in thousands)

(Unaudited)

 

Vegetation Management Division Performance

 

 

 

 

 

 

 

Three Months Ended 

March 31,

 

 

2026

 

2025

 

 

 

 

 

Backlog

 

$     198,108   

 

$      189,493   

 

 

 

 

 

Net Sales

 

       175,420   

 

        163,890   

 

 

 

 

 

Income from Operations

 

         10,513   

 

          13,312   

Income from Operations % net sales

 

6.0 %

 

8.1 %

 

 

 

 

 

Adjustments:

 

 

 

 

CEO Transition(1)

 

$                   

 

$             103   

Acquisition and Integration Expenses(2)

 

              158   

 

                      

Restructuring Expenses(3)

 

           1,622   

 

               762   

Adjusted Operating Income

 

$       12,293   

 

$        14,177   

Adjusted Operating Income % of sales

 

7.0 %

 

8.7 %

 

 

 

 

 

Depreciation

 

           4,264   

 

            4,052   

Amortization

 

           2,956   

 

            2,920   

Other (income) expense

 

                 59   

 

             (303)   

EBITDA

 

$       17,792   

 

$        19,981   

EBITDA % net Sales

 

10.1 %

 

12.2 %

 

 

 

 

 

Adjustments:

 

 

 

 

CEO Transition(1)

 

$                   

 

$             103   

Acquisition and Integration Expenses(2)

 

              158   

 

                      

Restructuring Expenses(3)

 

           1,622   

 

               762   

Adjusted EBITDA

 

$       19,572   

 

$        20,846   

Adjusted EBITDA % net sales

 

11.2  %

 

12.7 %

 

Notes:

1.       CEO Transition includes accelerated stock compensation, recruiting expenses, sign-on bonus, and moving expenses

2.       Acquisition and integration expenses include advisory fees and other related costs for both unsuccessful and successful deals and integration expenses

3.       Restructuring expenses include costs related to leadership changes, severance costs, facility move and setup costs, and advisory fees associated with operational improvements

 

 

 


Attachment 4

 

Alamo Group Inc.

Non-GAAP Financial Reconciliation

(in thousands)

(Unaudited)

 

Consolidated Net Change of Total Debt, Net of Cash

 

 

March 31, 2026

 

March 31, 2025

 

Net Change

 

 

 

 

 

 

 

Current maturities

 

$            15,000

 

$            15,009

 

 

Long-term debt,net of current

 

            275,467

 

            201,789

 

 

Total debt

 

$          290,467

 

$          216,798

 

 

 

 

 

 

 

 

 

Total cash

 

            195,234

 

            200,274

 

 

     Total Debt Net of Cash

 

$            95,233

 

$            16,524

 

$           78,709

 

 

 

 

 

 

 

 

 

Impact of Currency Translation on Net Sales by Division

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

March 31,

 

 

 

Change due to currency translation

 

2026

 

2025

 

% change from 2025

 

$

 

%

 

 

 

 

 

 

 

 

 

 

Vegetation Management

$           175,420

 

$           163,890

 

7.0 %

 

$               6,335

 

3.9 %

Industrial Equipment

             241,729

 

             227,060

 

6.5 %

 

                 3,332

 

1.5 %

Total net sales

$           417,149

 

$           390,950

 

6.7 %

 

$               9,667

 

2.5 %