Alamo Group Inc.
Kevin Carter
VP Finance, Strategy, and Investor Relations
830-372-9544
Financial Relations Board
Joe Calabrese
212-827-3772
ALAMO GROUP ANNOUNCES FINANCIAL RESULTS FOR THE SECOND QUARTER 2026
SEGUIN, Texas, August 3, 2026 -- Alamo Group Inc. (NYSE: ALG) today reported results for the second quarter of 2026.
Highlights:
▪
Net sales were $450.7
million, up 7.6% compared to the second quarter of 2025
▪
Net income was $30.9 million
and adjusted net income was $34.2 million
▪
Fully diluted EPS was $2.55
per share, nearly flat compared to $2.57 per share in the second quarter of
2025
▪
Adjusted fully diluted EPS
was $2.82 per share, an increase of 7.2% compared to $2.63 per share in the
second quarter of 2025
▪
Adjusted EBITDA of $63.9
million was 14.2% of net sales, up 8.7% compared to the second quarter of 2025
▪
Net sales in the Industrial
Equipment Division were $271.6 million, up 12.8% compared to the second quarter
of 2025
▪
Net sales in the Vegetation
Management Division were $179.1 million, up 0.4% compared to the second quarter
of 2025
▪
The Company renewed its
credit facility in May 2026 with improved terms and preserved $602.5 million of
committed capacity, including a $400.0 million revolver and $202.5 million term
loan facility
▪
On June 30, 2026, cash was
$195.0 million and total debt was $262.7 million
▪
Returned $19.0 million to
stockholders in the first six months of 2026, including $10.8 million of share repurchases and $8.2 million of
dividends
Robert Hureau, Alamo Group's President and Chief
Executive Officer, commented, "Our second quarter results reflect
continued execution across the business, highlighted by strong sales growth in
our Industrial Equipment Division, improved adjusted earnings, and solid
adjusted EBITDA performance. Conditions across our end markets remain mixed,
and our teams continue to focus on operational improvement, and disciplined
execution of our strategic priorities."
Second
Quarter Results
Net sales for the second quarter of 2026 were
$450.7 million, an increase of 7.6% compared to $419.1 million for the second
quarter of 2025. Net income for the second quarter of 2026 was $30.9 million,
or $2.55 per fully diluted share compared to $31.1 million, or $2.57 per fully
diluted share for the second quarter of 2025.
The Company also reported adjusted net income of
$34.2 million, or $2.82 per fully diluted share, for the second quarter of 2026
compared to adjusted net income of $31.9 million, or $2.63 per fully diluted
share for the second quarter of 2025. Adjusted EBITDA for the second quarter of
2026 was $63.9 million, or 14.2% of net sales, compared to $58.8 million, or
14.0% of net sales, for the second quarter of 2025.
Net sales in the Industrial Equipment Division
were $271.6 million, an increase of 12.8% compared to $240.7 million for the
second quarter of 2025. The year-over-year increase in Industrial Equipment
Division sales reflected organic demand and the contribution from Petersen.
Adjusted EBITDA in the Industrial Equipment Division for the second quarter of
2026 was $45.3 million, or 16.7% of net sales, compared to $40.3 million, or
16.8% of net sales, in the second quarter of 2025.
Net sales in the Vegetation Management Division
were $179.1 million, an increase of 0.4% compared to $178.4 million in the
second quarter of 2025. Adjusted EBITDA in the Vegetation Management Division
for the second quarter of 2026 was $18.6 million, or 10.4% of net sales,
compared to $18.5 million, or 10.4% of net sales, in the second quarter of
2025.
Robert Hureau, Alamo Group's President and Chief
Executive Officer, commented, "Our Industrial Equipment Division delivered
a strong quarter, with sales growth and solid profitability, including a
meaningful contribution from Petersen following its acquisition earlier this
year. In the Vegetation Management Division, sales were relatively stable
compared to the prior year despite pressure in certain end markets. We are
continuing to focus on improving margins through operational execution, cost
discipline and targeted actions across the portfolio."
For the six months ended June 30, 2026, cash
flow provided by operations was $22.7 million, investing cash outflow was
$171.6 million, and financing cash inflow was $37.3 million.
In May 2026, the Company renewed its credit
facility on improved terms across the facility, further strengthening its
liquidity profile and financial flexibility. The successful renewal provides
$602.5 million of committed capacity, including a $400.0 million revolving
credit facility and a $202.5 million term loan facility, supporting ongoing
capital deployment priorities, working capital needs and long-term growth
initiatives. During the first six months of 2026, the Company funded the
acquisition of Petersen, repurchased $10.8 million of its common stock and paid
$8.2 million of dividends while maintaining a strong balance sheet. At June 30, 2026, cash was $195.0 million and total debt was
$262.7 million.
Mr. Hureau added, “We ended the quarter with a
strong liquidity position, supported by substantial cash balances and available
borrowing capacity under our recently renewed credit facility. That flexibility
allowed us to invest in organic growth, fund the Petersen acquisition and
repurchase shares opportunistically during the first half of the year. We remain committed to a balanced capital
allocation approach that prioritizes investment in organic growth and strategic
acquisitions while returning capital to shareholders. We look forward to
discussing our results and outlook in greater detail during our upcoming
Earnings Conference Call.”
Earnings
Conference Call
The Company will host a conference call to
discuss the results on Tuesday, August 4, 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 1-833-816-1163 (domestic) or 1-412-317-1898 (international). For
interested individuals unable to join the call, a replay
will be available until Tuesday, August 11, 2026, by dialing 1-855-669-9658
(domestic) or 1-412-317-0088 (international), passcode 7509167.
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, August 4, 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 3,800
employees and operates 27 manufacturing facilities in the United States,
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 disputes, and the effects of the wars in 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 |
|
Six Months Ended |
||||
|
|
|
6/30/2026 |
|
6/30/2025 |
|
6/30/2026 |
|
6/30/2025 |
|
Net sales: |
|
|
|
|
|
|
|
|
|
Vegetation
Management |
|
$ 179,092 |
|
$ 178,358 |
|
$ 354,512 |
|
$ 342,248 |
|
Industrial
Equipment |
|
271,641 |
|
240,715 |
|
513,370 |
|
467,775 |
|
Total net sales |
|
450,733 |
|
419,073 |
|
867,882 |
|
810,023 |
|
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
339,877 |
|
310,781 |
|
652,221 |
|
598,890 |
|
Gross profit |
|
110,856 |
|
108,292 |
|
215,661 |
|
211,133 |
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administration expense |
|
60,076 |
|
57,136 |
|
117,843 |
|
111,466 |
|
Amortization expense |
|
5,015 |
|
4,078 |
|
9,894 |
|
8,127 |
|
Income from operations |
|
45,765 |
|
47,078 |
|
87,924 |
|
91,540 |
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
(4,792) |
|
(3,684) |
|
(9,416) |
|
(6,878) |
|
Interest income |
|
1,239 |
|
1,195 |
|
2,720 |
|
2,433 |
|
Other income (expense) |
|
(619) |
|
(3,183) |
|
(587) |
|
(3,846) |
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
|
41,593 |
|
41,406 |
|
80,641 |
|
83,249 |
|
Provision for income taxes |
|
10,653 |
|
10,300 |
|
20,517 |
|
20,343 |
|
Effective Tax Rate |
|
25.6 % |
|
24.9 % |
|
25.4 % |
|
24.4 % |
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
$ 30,940 |
|
$ 31,106 |
|
$ 60,124 |
|
$ 62,906 |
|
|
|
|
|
|
|
|
|
|
|
Net income per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ 2.57 |
|
$ 2.59 |
|
$ 4.99 |
|
$ 5.24 |
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
$ 2.55 |
|
$ 2.57 |
|
$ 4.96 |
|
$ 5.21 |
|
|
|
|
|
|
|
|
|
|
|
Average common shares: |
|
|
|
|
|
|
|
|
|
Basic |
|
12,068 |
|
12,020 |
|
12,060 |
|
12,005 |
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
12,122 |
|
12,083 |
|
12,112 |
|
12,066 |
|
|
|
|
|
|
|
|
|
|
Alamo Group Inc. and
Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)
|
|
June 30, |
June 30, |
||||
|
ASSETS |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ 194,995 |
|
|
$ 201,823 |
|
|
Accounts receivable, net |
|
343,326 |
|
|
356,236 |
|
|
Inventories |
|
432,262 |
|
|
372,074 |
|
|
Other current assets |
|
22,114 |
|
|
12,461 |
|
|
Total current assets |
|
992,697 |
|
|
942,594 |
|
|
|
|
|
|
|
|
|
|
Rental equipment, net |
|
56,033 |
|
|
59,606 |
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net |
|
161,165 |
|
|
160,716 |
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
271,318 |
|
|
221,607 |
|
|
Intangible assets, net |
|
212,999 |
|
|
145,040 |
|
|
Other non-current assets |
|
29,390 |
|
|
28,086 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ 1,723,602 |
|
|
$ 1,557,649 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Trade accounts payable |
|
$ 148,039 |
|
|
$ 111,820 |
|
|
Income taxes payable |
|
3,685 |
|
|
3,973 |
|
|
Accrued liabilities |
|
69,307 |
|
|
76,113 |
|
|
Current maturities of long-term debt |
|
5,063 |
|
|
15,000 |
|
|
Total current liabilities |
|
226,094 |
|
|
206,906 |
|
|
|
|
|
|
|
|
|
|
Long-term debt, net of current maturities |
|
257,679 |
|
|
198,115 |
|
|
Long-term tax liability |
|
470 |
|
|
626 |
|
|
Other long-term liabilities |
|
24,127 |
|
|
25,975 |
|
|
Deferred income taxes |
|
27,122 |
|
|
10,631 |
|
|
Total liabilities |
|
535,492 |
|
|
442,253 |
|
|
|
|
|
|
|
|
|
|
Total stockholders’ equity |
|
1,188,110 |
|
|
1,115,396 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
|
$ 1,723,602 |
|
|
$ 1,557,649 |
|
Alamo Group
Inc. and Subsidiaries
Condensed Consolidated
Statements of Cash Flows
(in thousands)
(Unaudited)
|
|
Six Months Ended June 30, |
||
|
|
2026 |
|
2025 |
|
Operating
Activities |
|
|
|
|
Net income |
$ 60,124 |
|
$ 62,906 |
|
Adjustment to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
Provision for doubtful accounts |
(230) |
|
(11) |
|
Depreciation - Property, plant and equipment |
13,240 |
|
13,398 |
|
Depreciation - Rental equipment |
5,927 |
|
5,819 |
|
Amortization of intangibles |
9,894 |
|
8,127 |
|
Amortization of debt issuance |
343 |
|
351 |
|
Stock-based compensation expense |
3,613 |
|
4,670 |
|
Provision for deferred income tax expense (benefit) |
3,195 |
|
(2,179) |
|
Gain on sale of property, plant and equipment |
(682) |
|
(358) |
|
Changes in operating assets and liabilities: |
|
|
|
|
Accounts receivable |
(62,851) |
|
(37,267) |
|
Inventories |
(31,313) |
|
(16,593) |
|
Rental equipment |
(958) |
|
(12,263) |
|
Prepaid expenses and other assets |
814 |
|
1,923 |
|
Trade accounts payable and accrued liabilities |
14,453 |
|
18,494 |
|
Income taxes payable |
9,427 |
|
(9,439) |
|
Other long-term liabilities, net |
(2,339) |
|
(667) |
|
Net cash provided by operating activities |
22,657 |
|
36,911 |
|
|
|
|
|
|
Investing
Activities |
|
|
|
|
Acquisitions, net of cash acquired |
(162,933) |
|
(17,571) |
|
Purchase of property, plant and equipment |
(10,319) |
|
(12,971) |
|
Proceeds from sale of property, plant and equipment |
1,621 |
|
812 |
|
Net cash used in investing activities |
(171,631) |
|
(29,730) |
|
|
|
|
|
|
Financing
Activities |
|
|
|
|
Borrowings on bank revolving credit facility |
120,000 |
|
50,000 |
|
Repayments on bank revolving credit facility |
(57,500) |
|
(50,000) |
|
Principal payments on long-term debt and finance leases |
(5,016) |
|
(7,504) |
|
Debt issuance cost |
(2,286) |
|
— |
|
Dividends paid |
(8,201) |
|
(7,196) |
|
Proceeds from exercise of stock options |
1,032 |
|
1,227 |
|
Common stock repurchased |
(10,759) |
|
(1,639) |
|
Net cash provided by (used) in financing activities |
37,270 |
|
(15,112) |
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash
equivalents |
(2,960) |
|
12,480 |
|
Net change in cash and cash equivalents |
(114,664) |
|
4,549 |
|
Cash and cash equivalents at beginning of the year |
309,659 |
|
197,274 |
|
Cash and cash equivalents at end of the period |
$ 194,995 |
|
$ 201,823 |
|
|
|
|
|
|
Cash paid during the period for: |
|
|
|
|
Interest |
$ 9,569 |
|
$ 6,861 |
|
Income taxes |
9,080 |
|
32,074 |
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,
and 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 an 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.
Alamo Group Inc.
Non-GAAP Financial Reconciliation
(in thousands, except per share numbers)
(Unaudited)
|
Non-GAAP Financial Measures |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
||||
|
|
|
June 30, |
|
June 30, |
||||
|
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
|
|
|
|
|
|
|
|
|
|
Operating
Income |
|
$ 45,765 |
|
$ 47,078 |
|
$ 87,924 |
|
$ 91,540 |
|
CEO Transition(1) |
|
— |
|
229 |
|
— |
|
451 |
|
Acquisition and Integration Expenses(2) |
|
357 |
|
235 |
|
915 |
|
235 |
|
Restructuring Expenses(3) |
|
3,998 |
|
605 |
|
5,940 |
|
1,367 |
|
Adjusted
Operating Income |
|
$ 50,120 |
|
$ 48,147 |
|
$ 94,779 |
|
$ 93,593 |
|
Adjusted Operating
Income % net sales |
|
11.1 % |
|
11.5 % |
|
10.9 % |
|
11.6 % |
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
$ 30,940 |
|
$ 31,106 |
|
$ 60,124 |
|
$ 62,906 |
|
CEO Transition(1),
net of tax benefit $56 and $110, respectively |
|
— |
|
173 |
|
— |
|
341 |
|
Acquisition and Integration Expenses(2),
net of tax benefit $91 and $57, $233 and $57, respectively |
|
266 |
|
178 |
|
682 |
|
178 |
|
Restructuring Expenses(3),
net of tax benefit $1,017 and $148, $1,511 and $334, respectively |
|
2,981 |
|
457 |
|
4,429 |
|
1,033 |
|
Adjusted Net
Income |
|
$ 34,187 |
|
$ 31,914 |
|
$ 65,235 |
|
$ 64,458 |
|
|
|
|
|
|
|
|
|
|
|
Fully Diluted
EPS |
|
$ 2.55 |
|
$ 2.57 |
|
$ 4.96 |
|
$ 5.21 |
|
CEO Transition(1) |
|
— |
|
0.01 |
|
— |
|
0.03 |
|
Acquisition
and Integration Expenses(2) |
|
0.02 |
|
0.01 |
|
0.06 |
|
0.01 |
|
Restructuring
Expenses(3) |
|
0.25 |
|
0.04 |
|
0.37 |
|
0.09 |
|
Adjusted Fully Diluted EPS |
|
$ 2.82 |
|
$ 2.63 |
|
$ 5.39 |
|
$ 5.34 |
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 successful and unsuccessful deals,
integration and divestiture expenses
3.
Restructuring expenses include costs related to
leadership changes, severance costs, facility move and setup costs, and
advisory fees associated with operational improvements
Alamo Group Inc.
Non-GAAP Financial Reconciliation
(in thousands)
(Unaudited)
|
EBITDA |
||||||||
|
|
|
Three Months Ended |
|
Six Months Ended |
||||
|
|
|
June 30, 2026 |
|
June 30, 2025 |
|
June 30, 2026 |
|
June 30, 2025 |
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
$ 30,940 |
|
$ 31,106 |
|
$ 60,124 |
|
$ 62,906 |
|
|
|
|
|
|
|
|
|
|
|
Interest,
net |
|
3,553 |
|
2,489 |
|
6,696 |
|
4,445 |
|
Provision for income taxes |
|
10,653 |
|
10,300 |
|
20,517 |
|
20,343 |
|
Depreciation |
|
9,416 |
|
9,772 |
|
19,167 |
|
19,217 |
|
Amortization |
|
5,015 |
|
4,078 |
|
9,894 |
|
8,127 |
|
EBITDA |
|
$ 59,577 |
|
$ 57,745 |
|
$ 116,398 |
|
$ 115,038 |
|
EBITDA % net
sales |
|
13.2 % |
|
13.8 % |
|
13.4 % |
|
14.2 % |
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
CEO Transition(1) |
|
$ — |
|
$ 229 |
|
$ — |
|
$ 451 |
|
Acquisition and Integration Expenses(2) |
|
357 |
|
235 |
|
915 |
|
235 |
|
Restructuring Expenses(3) |
|
3,998 |
|
605 |
|
5,940 |
|
1,367 |
|
Adjusted EBITDA |
|
$ 63,932 |
|
$ 58,814 |
|
$ 123,253 |
|
$ 117,091 |
|
Adjusted EBITDA % net sales |
|
14.2 % |
|
14.0 % |
|
14.2 % |
|
14.5 % |
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 successful and unsuccessful deals,
integration and divestiture expenses
3.
Restructuring expenses include costs related to
leadership changes, severance costs, facility move and setup costs, and
advisory fees associated with operational improvements
Alamo Group Inc.
Non-GAAP Financial Reconciliation
(in thousands)
(Unaudited)
|
Industrial Equipment Division Performance |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||
|
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
|
|
|
|
|
|
|
|
|
|
Backlog |
|
|
|
|
|
$ 365,286 |
|
$ 509,610 |
|
|
|
|
|
|
|
|
|
|
|
Net Sales |
|
$ 271,641 |
|
$ 240,715 |
|
513,370 |
|
467,775 |
|
|
|
|
|
|
|
|
|
|
|
Income from Operations |
|
36,860 |
|
34,327 |
|
68,506 |
|
65,477 |
|
Income from Operations % net sales |
|
13.6 % |
|
14.3 % |
|
13.3 % |
|
14.0 % |
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
CEO Transition(1) |
|
$ — |
|
$ 121 |
|
$ — |
|
$ 240 |
|
Acquisition and Integration Expenses(2) |
|
221 |
|
125 |
|
621 |
|
125 |
|
Restructuring Expenses(3) |
|
1,389 |
|
— |
|
1,709 |
|
— |
|
Adjusted
Operating Income |
|
$ 38,470 |
|
$ 34,573 |
|
$ 70,836 |
|
$ 65,842 |
|
Adjusted
Operating Income % of sales |
|
14.2% |
|
14.4% |
|
13.8 % |
|
14.1 % |
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
5,339 |
|
5,519 |
|
10,826 |
|
10,912 |
|
Amortization |
|
2,031 |
|
1,132 |
|
3,954 |
|
2,261 |
|
Other income (expense) |
|
(508) |
|
(895) |
|
(535) |
|
(1,255) |
|
EBITDA |
|
$ 43,722 |
|
$ 40,083 |
|
$ 82,751 |
|
$ 77,395 |
|
EBITDA % net Sales |
|
16.1 % |
|
16.7 % |
|
16.1 % |
|
16.5 % |
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
CEO Transition(1) |
|
$ — |
|
$ 121 |
|
$ — |
|
$ 240 |
|
Acquisition and
Integration Expenses(2) |
|
221 |
|
125 |
|
621 |
|
125 |
|
Restructuring Expenses(3) |
|
1,389 |
|
— |
|
1,709 |
|
— |
|
Adjusted EBITDA |
|
$ 45,332 |
|
$ 40,329 |
|
$ 85,081 |
|
$ 77,760 |
|
Adjusted EBITDA % net sales |
|
16.7 % |
|
16.8 % |
|
16.6 % |
|
16.6 % |
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 successful and unsuccessful deals,
integration and divestiture 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 June 30, |
|
Six Months Ended June 30, |
||||
|
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
|
|
|
|
|
|
|
|
|
|
Backlog |
|
|
|
|
|
$ 184,031 |
|
$ 177,625 |
|
|
|
|
|
|
|
|
|
|
|
Net Sales |
|
$ 179,092 |
|
$ 178,358 |
|
354,512 |
|
342,248 |
|
|
|
|
|
|
|
|
|
|
|
Income from Operations |
|
8,905 |
|
12,751 |
|
19,418 |
|
26,063 |
|
Income from Operations % net sales |
|
5.0 % |
|
7.1 % |
|
5.5 % |
|
7.6 % |
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
CEO Transition(1) |
|
$ — |
|
$ 108 |
|
$ — |
|
$ 211 |
|
Acquisition and Integration Expenses(2) |
|
136 |
|
110 |
|
294 |
|
110 |
|
Restructuring Expenses(3) |
|
2,609 |
|
605 |
|
4,231 |
|
1,367 |
|
Adjusted
Operating Income |
|
$ 11,650 |
|
$ 13,574 |
|
$ 23,943 |
|
$ 27,751 |
|
Adjusted
Operating Income % of sales |
|
6.5 % |
|
7.6 % |
|
6.8 % |
|
8.1 % |
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
4,077 |
|
4,253 |
|
8,341 |
|
8,305 |
|
Amortization |
|
2,984 |
|
2,946 |
|
5,940 |
|
5,866 |
|
Other income (expense) |
|
(111) |
|
(2,288) |
|
(52) |
|
(2,591) |
|
EBITDA |
|
$ 15,855 |
|
$ 17,662 |
|
$ 33,647 |
|
$ 37,643 |
|
EBITDA % net Sales |
|
8.9 % |
|
9.9 % |
|
9.5 % |
|
11.0 % |
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
CEO Transition(1) |
|
$ — |
|
$ 108 |
|
$ — |
|
$ 211 |
|
Acquisition and Integration Expenses(2) |
|
136 |
|
110 |
|
294 |
|
110 |
|
Restructuring Expenses(3) |
|
2,609 |
|
605 |
|
4,231 |
|
1,367 |
|
Adjusted EBITDA |
|
$ 18,600 |
|
$ 18,485 |
|
$ 38,172 |
|
$ 39,331 |
|
Adjusted EBITDA % net sales |
|
10.4 % |
|
10.4 % |
|
10.8 % |
|
11.5 % |
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 successful and unsuccessful deals,
integration and divestiture expenses
3.
Restructuring expenses include costs related to
leadership changes, severance costs, facility move and setup costs, and
advisory fees associated with operational improvements
Alamo Group Inc.
Non-GAAP Financial Reconciliation
(in thousands)
(Unaudited)
|
Consolidated Net Change of Total Debt, Net of Cash |
||||||
|
|
|
June 30, 2026 |
|
June 30, 2025 |
|
Net Change |
|
|
|
|
|
|
|
|
|
Current maturities |
|
$ 5,063 |
|
$ 15,000 |
|
|
|
Long-term debt, net of current |
|
257,679 |
|
198,115 |
|
|
|
Total debt |
|
$ 262,742 |
|
$ 213,115 |
|
|
|
|
|
|
|
|
|
|
|
Total cash |
|
194,995 |
|
201,823 |
|
|
|
Total Debt, Net of Cash |
|
$ 67,747 |
|
$ 11,292 |
|
$ 56,455 |
|
|
|
|
|
|
|
|
|
Impact of Currency Translation on Net Sales by Division |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
|
Change due to currency translation |
||||
|
|
2026 |
|
2025 |
|
% change from 2025 |
|
$ |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
Vegetation Management |
$ 179,092 |
|
$ 178,358 |
|
0.4 % |
|
$ 1,345 |
|
0.8 % |
|
Industrial Equipment |
271,641 |
|
240,715 |
|
12.8 % |
|
359 |
|
0.1 % |
|
Total net sales |
$ 450,733 |
|
$ 419,073 |
|
7.6 % |
|
$ 1,704 |
|
0.4 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
|
|
Change due to currency translation |
||||
|
|
2026 |
|
2025 |
|
% change from 2025 |
|
$ |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
Vegetation Management |
$ 354,512 |
|
$ 342,248 |
|
3.6 % |
|
$ 6,731 |
|
2.0 % |
|
Industrial Equipment |
513,370 |
|
467,775 |
|
9.7 % |
|
3,735 |
|
0.8 % |
|
Total net sales |
$ 867,882 |
|
$ 810,023 |
|
7.1 % |
|
$ 10,466 |
|
1.3 % |
|
|
|
|
|
|
|
|
|
|
|