ALAMO GROUP ANNOUNCES FINANCIAL RESULTS FOR THE THIRD QUARTER 2025

06.11.25 22:15 Uhr

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SEGUIN, Texas, Nov. 6, 2025 /PRNewswire/ -- Alamo Group Inc. (NYSE: ALG) today reported results for the third quarter 2025.

Highlights: 

  • Net sales increased 4.7% to $420 million compared with the third quarter of 2024
  • Income from operations of $37.5 million decreased 6.3% versus the third quarter of 2024
  • Fully diluted EPS of $2.10 per share decreased $0.18 per share compared to the third quarter of 2024
  • Adjusted fully diluted EPS of $2.34 per share decreased $0.04 per share compared to the third quarter of 2024, which includes CEO transition, acquisition, and restructuring costs(1)
  • Adjusted EBITDA of $55.0 million was flat compared to the third quarter of 2024(1)
  • Operating cash flow for the first nine months of 2025 was $102.4 million

Third Quarter Results 

Net sales for the third quarter of 2025 were $420.0 million, an increase of 4.7% compared to $401.3 million for the third quarter of 2024. Income from operations for the third quarter of 2024 was $37.5 million or 8.9% of net sales, compared to $40.1 million, or 10.0% of net sales, for the third quarter of 2024. Net income for the third quarter of 2025 was $25.4 million, or $2.10 per fully diluted share compared to $27.4 million, or $2.28 per fully diluted share for the third quarter of 2024.

The Company also reported adjusted net income of $28.2 million, or $2.34 per fully diluted share, for the third quarter of 2025 compared to adjusted net income $28.6 million, or $2.38 per fully diluted share for the third quarter of 2024.(1)  Adjusted EBITDA for third quarter of 2025 was $55.0 million, or 13.1% of net sales, compared to $54.9 million, or 13.7% of net sales, for the third quarter of 2024.(1)

Net sales in the Industrial Equipment Division were $247.0 million, an increase of 17.0% in total and 14.5% organically, compared to $211.2 million for the third quarter of 2024. Adjusted EBITDA in the Industrial Equipment Division for the third quarter of 2025 was $38.2 million, or 15.5% of net sales, compared to $33.1 million, or 15.7% of net sales, for the third quarter of 2024. (1)

Net sales in the Vegetation Management Division were $173.1 million, a decrease of 9.0% compared to $190.1 million in the third quarter of 2024. Adjusted EBITDA in the Vegetation Management Division for the third quarter of 2025 was $16.8 million, or 9.7% of net sales, compared to $21.8 million, or 11.5% of net sales, for the third quarter of 2024.(1)

Robert Hureau, Alamo Group's President and Chief Executive Officer commented, "The Company's third quarter results were mixed. The Industrial Equipment Division continued to perform exceptionally well, delivering strong year-over-year double digit net sales growth for the seventh consecutive quarter. While Industrial Equipment orders fluctuate from quarter to quarter, year-to-date bookings in the division reflect modest growth and backlog levels remain healthy. In contrast, the Vegetation Management Division continued to experience softness in its end markets, however, bookings in the division slightly improved. Operationally, in the Vegetation Management Division we have consolidated facilities in an effort to reduce fixed costs and improve manufacturing throughput and materials management. To date, we have realized the fixed cost savings. While productivity improvements are tracking more slowly than anticipated, we are advancing our operational initiatives and expect further benefits in the coming quarters."

Operating cash flow for the nine months ended September 30, 2025 was $102.4 million

At September 30, 2025, total debt was $209.4 million, total cash was $244.8 million and the Company had $397.2 million of availability under its Revolving Facility.

Mr. Hureau added, "With continued strong operating cash flows, ample cash on hand and significant availability under our Revolving Facility, we are well positioned to invest in both organic growth and operating initiatives as well as to deliver on our acquisition strategy. Regarding our acquisition strategy, we are excited about our growing pipeline of opportunities that have a strong strategic fit and attractive financial profiles.  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 second quarter results on Friday, November 7th, 2025, 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 Friday, November 14, 2025 by dialing (877) 344-7529 (domestic) or (412) 317-0088 (internationally), passcode 5234040.

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 Friday, November 7, 2025, 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) and 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 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 and operational disruptions, labor constraints, increasing costs due to inflation, disease outbreaks, geopolitical risks, including tariffs, trade wars, and the effects of the wars 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)

(1) This is a non-GAAP financial measure that we have provided to investors in order to allow greater transparency and a deeper understanding of our financial condition and operating results. For a reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures, refer to the "Non-GAAP Financial Measures Reconciliation" below and the Attachments thereto.

 

Alamo Group Inc. and Subsidiaries 

Condensed Consolidated Statements of Income

(in thousands, except per share amounts)

(Unaudited)








Three Months Ended


Nine Months Ended



9/30/2025


9/30/2024


9/30/2025


9/30/2024

Net sales:









  Vegetation Management


$        173,059


$        190,115


$    515,307


$    625,397

  Industrial Equipment


246,983


211,186


714,758


617,793

Total net sales


420,042


401,301


1,230,065


1,243,190










Cost of sales


318,359


300,414


917,249


922,490

Gross profit


101,683


100,887


312,816


320,700










Selling, general and administration expense


59,931


56,747


171,397


178,158

Amortization expense


4,210


4,061


12,337


12,175

Income from operations


37,542


40,079


129,082


130,367










Interest expense


(3,897)


(4,886)


(10,775)


(17,075)

Interest income


1,522


562


3,955


1,877

Other income (expense)


(210)


(32)


(4,056)


1










Income before income taxes


34,957


35,723


118,206


115,170

Provision for income taxes


9,574


8,318


29,917


27,321










Net Income


$          25,383


$          27,405


$      88,289


$      87,849










Net income per common share:


















Basic


$              2.11


$              2.29


$           7.35


$           7.34










Diluted


$              2.10


$              2.28


$           7.31


$           7.30










Average common shares:









Basic


12,029


11,977


12,013


11,965










Diluted


12,094


12,041


12,075


12,035










 

Alamo Group Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands)

(Unaudited) 





September 30,
2025

September 30,
2024

ASSETS







Current assets:







Cash and cash equivalents


$  244,806



$   140,038


Accounts receivable, net


335,210



356,617


Inventories


378,166



371,999


Other current assets


21,211



10,950


Total current assets


979,393



879,604









Rental equipment, net


61,558



47,260









Property, plant and equipment


165,887



163,374









Goodwill


214,429



206,458


Intangible assets


147,322



156,399


Other non-current assets


26,390



28,246









Total assets


$  1,594,979



$  1,481,341









LIABILITIES AND STOCKHOLDERS' EQUITY







Current liabilities:







Trade accounts payable


$  129,297



$     97,259


Income taxes payable




15,687


Accrued liabilities


76,770



84,061


Current maturities of long-term debt and finance lease obligations


15,000



15,009


Total current liabilities


221,067



212,016









Long-term debt, net of current maturities


194,430



209,157


Long-term tax liability


471



708


Other long-term liabilities


24,423



28,886


Deferred income taxes


21,982



12,854


Total liabilities


462,373



463,621









Total stockholders' equity


1,132,606



1,017,720









Total liabilities and stockholders' equity


$  1,594,979



$  1,481,341


 

Alamo Group Inc. and Subsidiaries

Interim Condensed Consolidated Statements of Cash Flows

(in thousands)

(Unaudited)




Nine Months Ended 

September 30,

(in thousands)

2025


2024

Operating Activities




Net income

$     88,289


$     87,849

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




Provision for doubtful accounts

(46)


1,234

Depreciation - Property, plant and equipment

20,144


20,027

Depreciation - Rental equipment

8,719


7,257

Amortization of intangibles

12,337


12,175

Amortization of debt issuance

527


527

Stock-based compensation expense

8,363


7,185

Provision for deferred income tax

8,681


(2,406)

Gain on sale of property, plant and equipment

(489)


(789)

Changes in operating assets and liabilities:




Accounts receivable

(18,815)


4,847

Inventories

(24,382)


5,451

Rental equipment

(17,235)


(15,259)

Prepaid expenses and other assets

6,200


(1,583)

Trade accounts payable and accrued liabilities

37,156


(804)

Income taxes payable

(24,860)


3,172

Long-term tax payable

(156)


(1,925)

Other long-term liabilities, net

(2,009)


3,684

Net cash provided by operating activities

102,424


130,642





Investing Activities




Acquisitions, net of cash acquired

(17,582)


Purchase of property, plant and equipment

(25,400)


(18,988)

Proceeds from sale of property, plant and equipment

1,064


2,906

Net cash used in investing activities

(41,918)


(16,082)





Financing Activities




Borrowings on bank revolving credit facility

50,000


187,000

Repayments on bank revolving credit facility

(50,000)


(187,000)

Principal payments on long-term debt and finance leases

(11,257)


(11,317)

Contingent consideration payment from acquisition


(4,402)

Dividends paid

(10,805)


(9,329)

Proceeds from exercise of stock options

1,502


1,589

Common stock repurchased

(3,022)


(1,944)

Net cash used in financing activities

(23,582)


(25,403)





Effect of exchange rate changes on cash and cash equivalents

10,608


(1,038)

Net change in cash and cash equivalents

47,532


88,119

Cash and cash equivalents at beginning of the year

197,274


51,919

Cash and cash equivalents at end of the period

$  244,806


$  140,038





Cash paid during the period for:




Interest

$     10,742


$     17,349

Income taxes

45,939


29,004

 

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, related to certain items that the management believes are not indicative of underlying performance. Adjusted Operating Income and Adjusted EBITDA accounts for these impacts on a pre-tax basis and Adjusted Fully Diluted EPS is 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. These metrics are supplements to GAAP, not substitutes; reconciliations to GAAP are provided.

Attachment 2 discloses a non-GAAP financial presentation related to the impact of currency translation on net sales by division. 

Attachment 3 shows the net change in our total debt net of cash, earnings before interest, taxes, depreciation and amortization ("EBITDA") and Adjusted EBITDA which are non-GAAP financial measures.

Attachment 4 reflects Division performance inclusive of non-GAAP financial measures such as backlog, earnings before interest, tax, depreciation and amortization ("EBITDA") and Adjusted EBITDA. The Company considers this information useful to investors to allow better comparability of period-to-period operating performance.

Attachment 1


Alamo Group Inc.

Non-GAAP Financial Reconciliation

(in thousands, except per share numbers)

(Unaudited)



Adjusted Operating Income, Net Income, and Diluted EPS












Three Months Ended


Nine Months Ended



September 30,


September 30,



2025


2024


2025


2024










Operating Income - GAAP


$       37,542


$       40,079


$     129,082


$     130,367

add: CEO Transition(1)


1,859



2,310


       add: Acquisition and Integration Expenses(2)


1,392



1,627


       add: Restructuring Expenses(3)


572


1,607


1,939


3,226

add: Gradall Strike(4)





3,556

Adjusted Operating Income - non-GAAP


$       41,365


$       41,686


$     134,958


$     137,149










Net Income - GAAP


$       25,383


$       27,405


$       88,289


$       87,849

add: CEO Transition(1), net of tax benefit $470 and $585,
respectively


1,389



1,725


add: Acquisition and Integration Expenses(2), net of tax
benefit $352 and $412, respectively


1,040



1,215


add: Restructuring Expenses(3), net of tax benefit $145
and $381, $491, and $765, respectively


427


1,226


1,448


2,461

add: Gradall Strike(4), net of tax benefit $ - and $851,
respectively





2,705

Adjusted Net Income - non-GAAP


$       28,239


$       28,631


$       92,677


$       93,015










Fully Diluted EPS - GAAP


$           2.10


$           2.28


$           7.31


$           7.30

add: CEO Transition(1)


0.11



0.14


       add: Acquisition and Integration Expenses(2)


0.09



0.10


       add: Restructuring Expenses(3)


0.04


0.10


0.12


0.20

add: Gradall Strike(4)





0.22

              Adjusted Fully Diluted EPS - non-GAAP


$           2.34


$           2.38


$           7.67


$           7.72



Notes:


1.

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

2.

Acquisition and integration expenses include advisory fees for both unsuccessful and successful deals

3.

Restructuring expenses include severance cost, moving and set up cost

4.

Gradall strike represents lost profitability during the 5-week labor strike in Q2 2024

 

Attachment 2 


Alamo Group Inc.

Non-GAAP Financial Reconciliation

(in thousands)

(Unaudited)



Impact of Currency Translation on Net Sales by Division












Three Months Ended

September 30,




Change due to currency
translation


2025


2024


% change
from 2024


$


%











Vegetation Management

$           173,059


$           190,115


(9.0) %


$                2,166


1.1 %

Industrial Equipment

246,983


211,186


17.0 %


448


0.2 %

Total net sales

$           420,042


$           401,301


4.7 %


$                2,614


0.7 %






















Nine Months Ended 

September 30,




Change due to currency
translation


2025


2024


% change
from 2024


$


%











Vegetation Management

$           515,307


$           625,397


(17.6) %


$                   324


0.1 %

Industrial Equipment

714,758


617,793


15.7 %


(1,996)


(0.3) %

Total net sales

$        1,230,065


$        1,243,190


(1.1) %


$              (1,672)


(0.1) %











 

Attachment 3


Alamo Group Inc.

Non-GAAP Financial Reconciliation

(in thousands)

(Unaudited)


Consolidated Net Change of Total Debt, Net of Cash



September 30,
2025


September 30,
2024


Net Change








Current maturities


$             15,000


$             15,009



Long-term debt,net of current


194,430


209,157



Total debt


$           209,430


$           224,166










Total cash


244,806


140,038



     Total Debt Net of Cash


$           (35,376)


$             84,128


$       (119,504)








 

EBITDA



Three Months Ended


Nine Months Ended



September 30,
2025


September 30,
2024


September 30,
2025


September 30,
2024










Net Income


$            25,383


$            27,405


$            88,289


$            87,849










Interest, net


2,375


4,324


6,820


15,198

Provision for income taxes


9,574


8,318


29,917


27,321

Depreciation


9,646


9,191


28,863


27,284

Amortization


4,210


4,061


12,337


12,175

     EBITDA


$            51,188


$            53,299


$         166,226


$         169,827

     EBITDA % net sales


12.2 %


13.3 %


13.5 %


13.7 %










Adjustments:









add: CEO Transition(1)


$              1,859


$                    —


$              2,310


$                    —

add: Acquisition and Integration Expenses(2)


1,392



1,627


add: Restructuring Expenses(3)


572


1,607


1,939


3,226

add: Gradall Strike(4)





3,556

     Adjusted EBITDA


$            55,011


$            54,906


$         172,102


$         176,609

     Adjusted EBITDA % net sales


13.1 %


13.7 %


14.0 %


14.2 %



Notes:


1.

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

2.

Acquisition and integration expenses include advisory fees for both unsuccessful and successful deals

3.

Restructuring expenses include severance cost, moving and set up cost

4.

Gradall strike represents lost profitability during the 5-week labor strike in Q2 2024

 

Attachment 4


Alamo Group Inc.

Non-GAAP Financial Reconciliation

(in thousands)

(Unaudited)


Vegetation Management Division Performance












Three Months Ended

September 30,


Nine Months Ended 

September 30,



2025


2024


2025


2024










Backlog






$         180,232


$         185,353










Net Sales


$          173,059


$         190,115


515,307


625,397










Income from Operations


7,478


12,404


33,541


50,089

Income from Operations % net sales


4.3 %


6.5 %


6.5 %


8.0 %










Depreciation


4,096


4,457


12,401


13,224

Amortization


2,955


2,934


8,821


8,793

Other (income) expense


185


371


(2,406)


645










EBITDA


$            14,714


$           20,166


$           52,357


$            72,751

EBITDA % net Sales


8.5 %


10.6 %


10.2 %


11.6 %

Adjustments:









add: CEO Transition(1)


$                  893


$                    —


$             1,104


$                    —

add: Acquisition and Integration Expenses(2)


668



778


add: Restructuring Expenses(3)


572


1,607


1,939


3,226

Adjusted EBITDA


$            16,847


$           21,773


$           56,178


$            75,977

Adjusted EBITDA % net sales


9.7 %


11.5 %


10.9 %


12.1 %



Notes:


1.

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

2.

Acquisition and integration expenses include advisory fees for both unsuccessful and successful deals

3.

Restructuring expenses include severance cost, moving and set up cost

 

Attachment 4 (Continued)


Alamo Group Inc.

Non-GAAP Financial Reconciliation

(in thousands)

(Unaudited)


Industrial Equipment Division Performance












Three Months Ended

September 30,


Nine Months Ended 

September 30,



2025


2024


2025


2024










Backlog






$         438,106


$         543,425










Net Sales


$         246,983


$         211,186


714,758


617,793










Income from Operations


30,064


27,675


95,541


80,278

Income from Operations % net sales


12.2 %


13.1 %


13.4 %


13.0 %










Depreciation


5,550


4,734


16,462


14,060

Amortization


1,255


1,127


3,516


3,382

Other (income) expense


(395)


(403)


(1,650)


(644)










EBITDA


$           36,474


$           33,133


$         113,869


$            97,076

EBITDA % net Sales


14.8 %


15.7 %


15.9 %


15.7 %

Adjustments:









add: CEO Transition(1)


$                 966


$                    —


$              1,206


$                    —

add: Acquisition and Integration Expenses(2)


724



849


add: Gradall Strike(3)





3,556

Adjusted EBITDA


$           38,164


$           33,133


$         115,924


$         100,632

Adjusted EBITDA % net sales


15.5 %


15.7 %


16.2 %


16.3 %



Notes:


1.

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

2.

Acquisition and integration expenses include advisory fees for both unsuccessful and successful deals

3.

Restructuring expenses include severance cost, moving and set up cost

 

Cision View original content:https://www.prnewswire.com/news-releases/alamo-group-announces-financial-results-for-the-third-quarter-2025-302607787.html

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