SEGUIN, Texas, May 4, 2026 /PRNewswire/ -- 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, March 31,
2026 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, March 31,
2026 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 Change due to
currency
translation
March 31,
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 %
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SOURCE Alamo Group Inc.
Edward Rizzuti, EVP Corporate Development & Investor Relations, 830-372-9600, or Financial Relations Board, Joe Calabrese, 212-827-3772