Alamo Group Inc

Latest Results (27.02.2026):

Alamo Group Inc. reported results for the first quarter of 2025 (Q1 2025): net sales of $391.0 million (down 8.1% year‑over‑year, up 1.5% sequentially), income from operations of $44.5 million (11.4% of sales), net income of $31.8 million, and diluted EPS of $2.64. The Industrial Equipment Division strengthened while Vegetation Management continued recovering from 2024 destocking; backlog, cash and non‑GAAP EBITDA show improved leverage and profitability trends.

Net sales

Q1 2025 net sales were $390.95 million, down 8.1% versus Q1 2024 but modestly higher than Q4 2024 (+1.5%). Currency translation reduced sales by about $6.0 million (≈1.4%).

Division performance

Industrial Equipment net sales were $227.06 million (up 12.5% YoY) and delivered a 13.7% operating margin. Vegetation Management sales were $163.89 million (down 26.8% YoY) but its operating margin improved sequentially to 8.1% on cost reductions.

Profitability & margins

Gross profit was $102.8 million (26.3% margin, +~10 bps YoY). Income from operations was $44.5 million (11.4% of sales), up 40 bps versus Q1 2024 and 130 bps versus FY2024; SG&A declined >10% and interest expense fell roughly 50% YoY.

Earnings per share

Consolidated net income was $31.8 million, producing diluted EPS of $2.64 (basic $2.65). Adjusted non‑GAAP diluted EPS was $2.65 after a small workforce‑reduction adjustment.

Backlog

Total backlog at March 31, 2025 was $702.7 million, up 5.1% from year‑end 2024. Industrial backlog was $513.2 million (up vs YE 2024) and Vegetation Management backlog was $189.5 million (steady sequentially, down vs Q1 2024).

Balance sheet & leverage

Total debt was $216.8 million with cash and equivalents of $200.3 million, leaving debt net of cash at $16.5 million — a $183.2 million (91.7%) improvement versus Q1 2024. Total equity was $1,057.1 million.

Working capital & cash flow

Accounts receivable were $339.6 million with DSO of 78 days (improved 6 days YoY). Inventory was $356.4 million (down from $384.5 million YoY). Operating cash flow was $14.2 million in the quarter.

Non‑GAAP metrics

Trailing twelve‑month EBITDA was $217.8 million (13.7% of net sales). Q1 EBITDA was $57.3 million. Management also reported modest adjustments for non‑recurring workforce actions in adjusted operating income and EPS.

Outlook & management commentary

Management expects continued strong demand in Industrial Equipment and modest Vegetation Management recovery as channel inventories normalize, with further margin improvement from 2024 cost actions and completed capital investments to benefit results later in 2025. They noted macro/geopolitical risks (tariffs, trade) but described a cautiously optimistic near‑term outlook.