SEGUIN, Texas, Aug. 3, 2026 /PRNewswire/ -- 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,
2026 2025
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
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, 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.
Attachment 1
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, 173 341
respectively
Acquisition and Integration Expenses(2), net of tax benefit 266 178 682 178
$91 and $57, $233 and $57, respectively
Restructuring Expenses(3), net of tax benefit $1,017 and 2,981 457 4,429 1,033
$148, $1,511 and $334, respectively
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
Attachment 2
Alamo Group Inc.
Non-GAAP Financial Reconciliation
(in thousands)
(Unaudited)
EBITDA
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2026 2025 2026 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
Attachment 3
Alamo Group Inc.
Non-GAAP Financial Reconciliation
(in thousands)
(Unaudited)
Industrial Equipment Division Performance
Three Months Ended Six Months Ended
June 30, 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 Six Months Ended
June 30, 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
Attachment 4
Alamo Group Inc.
Non-GAAP Financial Reconciliation
(in thousands)
(Unaudited)
Consolidated Net Change of Total Debt, Net of Cash
June 30, June 30,
2026 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 Change due to
currency
translation
June 30,
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 Change due to
currency
translation
June 30,
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 %
View original content:https://www.prnewswire.com/news-releases/alamo-group-announces-financial-results-for-the-second-quarter-2026-302841581.html
SOURCE Alamo Group Inc.
Kevin Carter, VP Finance, Strategy, and Investor Relations, 830-372-9544; Financial Relations Board, Joe Calabrese, 212-827-3772