ALAMO GROUP ANNOUNCES FINANCIAL RESULTS FOR THE FOURTH QUARTER AND YEAR END 2025

Rhea-AI Summary

Alamo Group (NYSE: ALG) reported Q4 2025 net sales of $373.7M and full-year 2025 net sales of $1,603.7M. Full-year adjusted EBITDA was $216.9M (13.5% of sales). Cash was $309.7M versus total debt of $205.7M. The company closed the acquisition of Petersen Industries in January 2026 and raised the quarterly dividend to $0.34 per share.

Q4 showed division divergence: Industrial Equipment grew while Vegetation Management declined; operating cash flow was $177.5M with strong cash conversion.

Positive

• Cash exceeds debt by $103.9M at year-end
• Adjusted EBITDA of $216.9M for 2025 (13.5% margin)
• Industrial Division net sales +12.6% for full year
• Acquisition of Petersen Industries closed January 2026
• Dividend increase to $0.34 per quarter (13.3% raise)

Negative

• Net sales decline of 1.5% year-over-year to $1,603.7M
• Vegetation Management net sales down 16.7% for 2025
• Q4 EPS fell to $1.28 from $2.33 year-ago

Market Reaction – ALG

-15.71% $184.15

15m delay 7 alerts

-15.71% Since News

$184.15 Last Price

$179.92 $203.70 Day Range

-$416M Valuation Impact

$2.23B Market Cap

1.5x Rel. Volume

Following this news, ALG has declined 15.71%, reflecting a significant negative market reaction. Our momentum scanner has triggered 7 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $184.15. This price movement has removed approximately $416M from the company's valuation.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Silver for real-time data.

Key Figures

Q4 2025 net sales: $373.7M Q4 2025 adjusted EPS: $1.70 FY 2025 net sales: $1,603.7M +5 more

8 metrics

Q4 2025 net sales $373.7M vs. $385.3M in Q4 2024

Q4 2025 adjusted EPS $1.70 vs. $2.39 in Q4 2024

FY 2025 net sales $1,603.7M vs. $1,628.5M in 2024

FY 2025 adjusted EPS $9.37 vs. $10.12 in 2024

FY 2025 adjusted EBITDA $216.9M (13.5% margin) vs. $228.4M (14.0%) in 2024

Operating cash flow $177.5M 171% conversion of net income in 2025

Cash and debt $309.7M cash, $205.7M debt Cash exceeds debt by $103.9M at 12/31/2025

Quarterly dividend $0.34 per share Up from $0.30; 13.3% increase

Market Reality Check

Price: $218.47 Vol: Volume 212,283 vs 20-day ...

high vol

$218.47 Last Close

Volume Volume 212,283 vs 20-day average 115,298 suggests elevated interest ahead of the earnings release. high

Technical Price at $213.53 is trading above the 200-day MA of $197.40, indicating a pre-news uptrend.

Peers on Argus

ALG was down 1.37% pre-release, while key peers showed mixed moves (e.g., AGCO u...

ALG was down 1.37% pre-release, while key peers showed mixed moves (e.g., AGCO up 3.00%, TEX up 2.66%, REVG and BLBD slightly negative), pointing to stock-specific factors rather than a broad sector move.

Common Catalyst Some peers had company-specific news (conference participation, partnerships), but no clear sector-wide earnings or macro theme emerged.

Previous Earnings Reports

5 past events · Latest: Nov 06 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Nov 06	Q3 2025 earnings	Positive	-3.6%	Q3 2025 sales and earnings growth with Industrial strength, Vegetation weakness.
Aug 06	Q2 2025 earnings	Positive	-1.2%	Strong Q2 2025 operating results and Industrial organic growth despite Vegetation decline.
May 08	Q1 2025 earnings	Positive	+7.2%	Q1 2025 margins, backlog and leverage improved despite lower year-over-year sales.
Feb 27	FY 2024 results	Neutral	-5.0%	2024 revenue decline offset by strong cash flow, dividend increase and backlog levels.
Oct 31	Q3 2024 earnings	Positive	+10.6%	Q3 2024 Industrial growth and cost reductions despite overall sales decline.

Pattern Detected

Earnings releases often contained generally positive or mixed fundamentals, yet price reactions skewed volatile with several negative or sharply positive moves, indicating choppy sentiment around results.

Recent Company History

Over the past five earnings cycles from Q3 2024 through Q3 2025, Alamo Group reported solid Industrial Equipment growth, ongoing weakness in Vegetation Management, and repeated cost-savings and balance-sheet improvement. Backlog and cash flow were recurring strengths, while revenue growth remained pressured. Market reactions ranged from about -5% to roughly +11%, showing that investors responded strongly to shifts in division mix, margin trends, and cash generation. Today’s FY 2025 report continues that pattern of Industrial strength and Vegetation softness with robust cash flow.

Historical Comparison

+1.6% avg move · In the last five earnings releases, ALG’s next-day moves averaged about 1.58%, with reactions rangin...

earnings

+1.6%

Average Historical Move earnings

In the last five earnings releases, ALG’s next-day moves averaged about 1.58%, with reactions ranging from notably negative to strongly positive, underscoring that earnings updates frequently acted as meaningful trading catalysts.

Earnings reports from late 2024 through 2025 show recurring Industrial Equipment strength, persistent Vegetation Management headwinds, and ongoing cost actions, culminating in today’s full-year 2025 results with strong cash generation and a dividend increase.

Market Pulse Summary

The stock is dropping -15.7% following this news. A negative reaction despite the dividend hike and ...

Analysis

The stock is dropping -15.7% following this news. A negative reaction despite the dividend hike and strong cash generation fits prior volatility around earnings. FY 2025 net sales of $1,603.7M and adjusted EPS of $9.37 were below 2024, and Vegetation Management margins compressed sharply, which could overshadow Industrial strength and cash of $309.7M against $205.7M of debt. Past earnings have sometimes seen downside moves even when fundamentals were mixed rather than outright weak.

Key Terms

fully diluted eps, adjusted ebitda, operating cash flow

3 terms

fully diluted eps financial

"Fully diluted EPS was $1.28 per share and adjusted fully diluted EPS..."

Fully diluted EPS is a measure of a company’s net profit divided by the total number of shares that would exist if every convertible instrument (stock options, warrants, convertible debt and preferred shares) were converted into common stock. For investors it shows a 'worst-case' earnings-per-share figure—like slicing a pie assuming every possible extra slice is cut—so you can judge share value and compare companies while accounting for potential dilution.

adjusted ebitda financial

"Adjusted EBITDA of $44.8 million was 12.0% of net sales..."

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

operating cash flow financial

"Operating cash flow was $177.5 million, resulting in a 171% conversion..."

Operating cash flow is the amount of money a company earns from its main business activities, like selling products or services. It shows how well the company can generate cash to pay bills, invest in growth, or return money to shareholders. This figure helps investors understand if the company’s core operations are healthy and sustainable.

AI-generated analysis. Not financial advice.

SEGUIN, Texas, March 2, 2026 /PRNewswire/ -- Alamo Group Inc. (NYSE: ALG) today reported results for the fourth quarter and fiscal year ended December 31, 2025.

Highlights:

Fourth Quarter Results:

• Net sales of $373.7 million compared to $385.3 million in the fourth quarter of 2024
• Fully diluted EPS was $1.28 per share and adjusted fully diluted EPS was $1.70 per share
• Adjusted EBITDA of $44.8 million was 12.0% of net sales
• Continued optimizing our manufacturing footprint to reduce fixed cost and streamline operations
• Entered into a definitive agreement to acquire Petersen Industries, a leader in grapple equipment serving bulky waste end market; the transaction successfully closed in January 2026

Full Year Results:

• Net sales of $1,603.7 million compared to $1,628.5 million in 2024
• Fully diluted EPS was $8.59 per share and adjusted fully diluted EPS was $9.37 per share
• Adjusted EBITDA of $216.9 million was 13.5% of net sales
• Operating cash flow was $177.5 million, resulting in a 171% conversion of net income to cash
• Total debt was $205.7 million and cash was $309.7 million, or $103.9 million in excess of debt

Robert Hureau, Alamo Group's President, and Chief Executive Officer commented, "Fiscal year 2025 was a year of transition as we position our Company for long term growth and success.  Over the past few months, we've taken several decisive steps to strengthen our foundation including restructuring certain manufacturing facilities, reshaping the organizational structure, sharpening our commercial and operational priorities, accelerating our M&A engine and setting a clear vision for the future.  Despite the challenges in the quarter, I'm excited about where we are taking our company and the success that lies ahead."

Fourth Quarter Results
Net sales for the fourth quarter of 2025 were $373.7 million, a decrease of 3.0% compared to $385.3 million for the fourth quarter of 2024. Net income per fully diluted share for the fourth quarter of 2025 was $1.28 compared to $2.33 for the fourth quarter of 2024. Adjusted net income per fully diluted share for the fourth quarter of 2025 was $1.70 compared to $2.39 for the fourth quarter of 2024. Adjusted EBITDA for the fourth quarter of 2025 was $44.8 million, or 12.0% of net sales, compared to $51.8 million, or 13.4% of net sales, for the fourth quarter of 2024.

Net sales for the fourth quarter of 2025 in the Industrial Equipment Division were $234.9 million, an increase of 4.2% compared to $225.5 million for the fourth quarter of 2024. Adjusted EBITDA of the fourth quarter of 2025 in the Industrial Equipment Division was $41.5 million, or 17.7%, compared to $35.5 million, or 15.7%, for the fourth quarter of 2024.

Net sales for the fourth quarter of 2025 in the Vegetation Management Division were $138.7 million, a decrease of 13.2%, compared to $159.8 million for the fourth quarter of 2024. Adjusted EBITDA for the fourth quarter of 2025 in the Vegetation Management Division was $3.2 million, or 2.3%, compared to $16.3 million, or 10.2%, for the fourth quarter of 2024.

Mr. Hureau commented, "The fourth quarter reflected mixed performance for the Company.  Our Industrial Equipment Division delivered stellar results while our Vegetation Management Division continued to experience headwinds. The Vegetation Management Division continued to face weak end-market demand, particularly in tree care and recycling, agriculture and municipal mowing. Each of these markets was impacted by low housing demand, low crop prices, elevated interest rates, and further amplified by tariff-driven costs and uncertainty.  Amid these end market dynamics, we intensified our focus on cost discipline and continued to improve manufacturing throughput, particularly in those facilities that underwent consolidation earlier in the year.  These actions are showing significant progress." 

He further added, "Regarding the Industrial Equipment Division, we performed quite well in terms of  net sales growth, adjusted EBITDA margins, and solid bookings. The Excavator and Vacuum Truck, and Sweepers and Safety businesses delivered double-digit growth in net orders and net sales. Snow performed quite well also. The Division delivered impressive adjusted operating income of 14.9%, benefiting from strong net sales and favorable mix.

In addition, total Company cash flows were also strong enabling investment in the business and positioning us well to take advantage of a growing pipeline of acquisition targets."

Full Year Results
Net sales for the full year 2025 were $1,603.7 million, a decrease of 1.5% compared to $1,628.5 million for the full year 2024. Net income per fully diluted share for the full year 2025 was $8.59 compared to $9.63 for the full year 2024. Adjusted net income per fully diluted share for the full year 2025 was $9.37 compared to $10.12 for the full year 2024. Adjusted EBITDA for the full year 2025 was $216.9 million, or 13.5% of net sales, compared to $228.4 million, or 14.0% of net sales, for the full year 2024.

Net sales for the full year 2025 in the Industrial Equipment Division were $949.7 million, an increase of 12.6% compared to $843.3 million for the full year 2024. Adjusted EBITDA for the full year 2025 in the Industrial Equipment Division was $157.5 million, or 16.6%, compared to $136.1 million, or 16.1%, for the full year 2024.

Net sales for the full year 2025 in the Vegetation Management Division were $654.1 million, a decrease of 16.7% compared to $785.2 million for the full year 2024. Adjusted EBITDA for the full year 2025 in the Vegetation Management Division was $59.4 million, or 9.1%, compared to $92.3 million, or 11.8%, for the full year 2024.

Operating cash flow for the full year was $177.5 million. At December 31, 2025, total debt was $205.7 million and total cash was $309.7 million. Reflecting the resilience of the Company's business and continued confidence in its future, the Company increased its quarterly dividend from $0.30 to $0.34 per share. This 13.3% increase in the dividend per share highlights the Company's strong financial position and commitment to delivering shareholder value.

Mr. Hureau commented, "Our strong cash generation and solid balance sheet create tremendous opportunity for us to invest in the business and advance our long-term strategy.  The acquisition of Petersen Industries is a great example of how we're positioning the Company for growth. We look forward to discussing our results and priorities in more detail during our upcoming earnings conference call."

Earnings Conference Call
The Company will host a conference call to discuss fourth quarter and year end 2025 financial results on Tuesday, March 3, 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, March 10, 2026 by dialing 1-855-669-9658 (domestic) or 1-412-317-0088 (internationally), passcode 4809758.

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, March 3, 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 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				Year Ended
	12/31/2025		12/31/2024		12/31/2025		12/31/2024
Net sales:
Vegetation Management	$            138,746		$            159,802		$            654,053		$            785,199
Industrial Equipment	234,904		225,521		949,662		843,314
Total Net Sales	373,650		385,323		1,603,715		1,628,513
Cost of Sales	288,649		293,535		1,205,898		1,216,025
Gross Margin	85,001		91,788		397,817		412,488
	22.7 %		23.8 %		24.8 %		25.3 %
Selling, general and administration expense	58,260		53,295		229,657		231,453
Amortization Expense	4,210		4,052		16,547		16,227
Income from Operations	22,531		34,441		151,613		164,808
	6.0 %		8.9 %		9.5 %		10.1 %
Interest Expense	(4,102)		(3,473)		(14,877)		(20,548)
Interest Income	1,614		760		5,569		2,637
Other Income (expense)	1,263		2,730		(2,793)		2,731
Income before income taxes	21,306		34,458		139,512		149,628
Provision for income taxes	5,794		6,377		35,711		33,698
Net Income	$              15,512		$              28,081		$            103,801		$            115,930
Net Income per common share:
Basic	$                   1.29		$                   2.35		$                   8.64		$                   9.69
Diluted	$                   1.28		$                   2.33		$                   8.59		$                   9.63
Average common shares:
Basic	12,033		11,979		12,018		11,968
Diluted	12,082		12,043		12,077		12,037

 

Alamo Group Inc. and Subsidiaries Condensed Consolidated Balance Sheets (in thousands) (Unaudited)
	December 31, 2025			December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents		$       309,659			$       197,274
Accounts receivable, net		276,866			305,561
Inventories		383,252			343,363
Other current assets		28,316			11,297
Total current assets		998,093			857,495
Rental equipment, net		61,102			52,942
Property, plant and equipment		165,977			158,332
Goodwill		214,611			203,027
Intangible assets		144,932			151,360
Other non-current assets		21,901			27,123
Total assets		$    1,606,616			$    1,450,279
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Trade accounts payable		$       125,130			$         84,505
Income taxes payable		2,332			13,259
Accrued liabilities		75,905			77,537
Current maturities of long-term debt and finance lease obligations		15,000			15,008
Total current liabilities		218,367			190,309
Long-term debt, net of current maturities		190,748			205,473
Long term tax payable		470			626
Other long-term liabilities		24,113			24,619
Deferred income taxes		24,215			10,998
Total liabilities		457,913			432,025
Total stockholders' equity		1,148,703			1,018,254
Total liabilities and stockholders' equity		$    1,606,616			$    1,450,279

 

Alamo Group Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (in thousands) (Unaudited)
	Year Ended December 31,
	2025		2024
Operating Activities
Net income	$  103,801		$  115,930
Adjustment to reconcile net income to net cash provided by operating activities:
Provision for doubtful accounts	129		1,718
Depreciation - Property, plant and equipment	27,084		26,865
Depreciation - Rental equipment	11,740		9,992
Amortization of intangibles	16,547		16,227
Amortization of debt issuance	703		703
Stock-based compensation expense	9,938		9,141
Provision for deferred income tax expense (benefit)	10,583		(3,607)
Gain on sale of property, plant and equipment	(2,564)		(639)
Changes in operating assets and liabilities:
Accounts receivable	40,618		47,012
Inventories	(28,135)		26,494
Rental equipment	(19,741)		(23,830)
Prepaid expenses and other assets	6,823		(2,608)
Trade accounts payable and accrued liabilities	30,243		(15,673)
Income taxes payable	(27,375)		1,000
Long-term tax payable	(156)		(2,007)
Other long-term liabilities, net	(2,695)		3,060
Net cash provided by operating activities	177,543		209,778
Investing Activities
Acquisitions, net of cash acquired	(18,283)		—
Purchase of property, plant and equipment	(30,627)		(24,993)
Proceeds from sale of property, plant and equipment	4,480		3,045
Purchase of patents	(1,763)		(233)
Net cash used in investing activities	(46,193)		(22,181)
Financing Activities
Borrowings on bank revolving credit facility	50,000		195,000
Repayments on bank revolving credit facility	(50,000)		(195,000)
Principal payments on long-term debt and finance leases	(15,007)		(15,069)
Contingent consideration payment from acquisition	—		(4,402)
Dividends paid	(14,415)		(12,442)
Proceeds from exercise of stock options	1,650		1,912
Common stock repurchased	(3,022)		(1,972)
Net cash used in financing activities	(30,794)		(31,973)
Effect of exchange rate changes on cash and cash equivalents	11,829		(10,269)
Net change in cash and cash equivalents	112,385		145,355
Cash and cash equivalents at beginning of the year	197,274		51,919
Cash and cash equivalents at end of the period	$  309,659		$  197,274
Cash paid during the period for:
Interest	$     14,735		$     20,787
Income taxes	52,932		40,426

 

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 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 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				Year Ended
		December 31,				December 31,
		2025		2024		2025		2024
Operating Income		$    22,531		$    34,441		$  151,613		$  164,808
CEO Transition(1)		—		—		2,310		—
Acquisition and Integration Expenses(2)		1,647		—		3,274		—
Restructuring Expenses(3)		7,323		1,002		9,262		4,228
Gradall Strike(4)		—		—		—		3,556
Adjusted Operating Income		$    31,501		$    35,443		$  166,459		$  172,592
Adjusted Operating Income % net sales		8.4 %		9.2 %		10.4 %		10.6 %
Net Income		$    15,512		$    28,081		$  103,801		$  115,930
CEO Transition(1), net of tax benefit $— and $591, respectively		—		—		1,719		—
Acquisition and Integration Expenses(2), net of tax benefit $422 and $838, respectively		1,225		—		2,436		—
Restructuring Expenses(3), net of tax benefit $1,318 and $226, $1,815, and $952, respectively		3,832		776		5,274		3,276
Gradall Strike(4), net of tax benefit $ — and $851, respectively		—		—		—		2,705
Adjusted Net Income		$    20,569		$    28,857		$  113,230		$  121,911
Fully Diluted EPS		$         1.28		$         2.33		$         8.59		$         9.63
CEO Transition(1)		—		—		0.14		—
Acquisition and Integration Expenses(2)		0.10		—		0.20		—
Restructuring Expenses(3)		0.32		0.06		0.44		0.27
Gradall Strike(4)		—		—		—		0.22
Adjusted Fully Diluted EPS		$         1.70		$         2.39		$         9.37		$       10.12

Notes:
				1.	CEO Transition includes accelerated stock compensation, recruiting expenses, sign-on bonus, and moving expenses.
				2.	Acquisition and integration expenses include advisory fees for both unsuccessful and successful deals.
				3.	Restructuring expenses include severance cost, relocation and set up cost, reduction in the realizable value of inventory as a result of strategic brand review, offset by gain on sale of Gibson City, Illinois facility.
				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)
EBITDA
		Three Months Ended December 31,				Twelve Months Ended December 31,
		2025		2024		2025		2024
Net Income		$        15,512		$        28,081		$      103,801		$      115,930
Interest, net		2,488		2,713		9,308		17,911
Provision for income taxes		5,794		6,377		35,711		33,698
Depreciation		9,961		9,573		38,824		36,857
Amortization		4,210		4,052		16,547		16,227
EBITDA		$        37,965		$        50,796		$      204,191		$      220,623
EBITDA % net sales		10.2 %		13.2 %		12.7 %		13.5 %
Adjustments:
CEO Transition(1)		$                 —		$                 —		$           2,310		$                 —
Acquisition and Integration Expenses(2)		1,647		—		3,274		—
Restructuring Expenses(3)		5,150		1,002		7,089		4,228
Gradall Strike(4)		—		—		—		3,556
Adjusted EBITDA		$        44,762		$        51,798		$      216,864		$      228,407
Adjusted EBITDA % net sales		12.0 %		13.4 %		13.5 %		14.0 %

Notes:
				1.	CEO Transition includes accelerated stock compensation, recruiting expenses, sign-on bonus, and moving expenses.
				2.	Acquisition and integration expenses include advisory fees for both unsuccessful and successful deals.
				3.	Restructuring expenses include severance cost, relocation and set up cost, reduction in the realizable value of inventory as a result of strategic brand review, offset by gain on sale of Gibson City, Illinois facility.
				4.	Gradall strike represents lost profitability during the 5-week labor strike in Q2, 2024.

 

Attachment 3   Alamo Group Inc. Non-GAAP Financial Reconciliation (in thousands) (Unaudited)
Industrial Equipment Division Performance
		Three Months Ended December 31,				Twelve Months Ended December 31,
		2025		2024		2025		2024
Backlog						$      400,955		$      481,544
Net Sales		$      234,904		$      225,521		$      949,662		$      843,314
Income from Operations		33,104		27,973		128,645		108,251
Income from Operations % net sales		14.1 %		12.4 %		13.5 %		12.8 %
Adjustments:
CEO Transition(1)		$                —		$                —		$          1,206		$                —
Acquisition and Integration Expenses(2)		913		—		1,762		—
Restructuring Expenses(3)		1,027		—		1,027		—
Gradall Strike(4)		—		—		—		3,556
Adjusted Operating Income		$        35,044		$        27,973		$      132,640		$      111,807
Adjusted Operating Income % of sales		14.9 %		12.4 %		14.0 %		13.3 %
Depreciation		$          5,712		$          5,131		$        22,174		$        19,191
Amortization		1,258		1,127		4,774		4,508
Other income (expense)		(472)		1,249		(2,122)		605
EBITDA		$        39,602		$        35,480		$      153,471		$      132,555
EBITDA % net Sales		16.9 %		15.7 %		16.2 %		15.7 %
Adjustments:
CEO Transition(1)		$                —		$                —		$          1,206		$                —
Acquisition and Integration Expenses(2)		913		—		1,762		—
Restructuring Expenses(3)		1,027		—		1,027		—
Gradall Strike(4)		—		—		—		3,556
Adjusted EBITDA		$        41,542		$        35,480		$      157,466		$      136,111
Adjusted EBITDA % net sales		17.7 %		15.7 %		16.6 %		16.1 %

Notes:
						1.	CEO Transition includes accelerated stock compensation, recruiting expenses, sign-on bonus, and moving expenses.
						2.	Acquisition and integration expenses include advisory fees for both unsuccessful and successful deals.
						3.	Restructuring expenses include severance cost, relocation and set up cost, reduction in the realizable value of inventory as a result of strategic brand review, offset by gain on sale of Gibson City, Illinois facility.
						4.	Gradall strike represents lost profitability during the 5-week labor strike in Q2, 2024.

 

Attachment 3 (continued)   Alamo Group Inc. Non-GAAP Financial Reconciliation (in thousands) (Unaudited)
Vegetation Management Division Performance
		Three Months Ended December 31,				Twelve Months Ended December 31,
		2025		2024		2025		2024
Backlog						$     198,735		$      187,102
Net Sales		$      138,746		$      159,802		$     654,053		$      785,199
Income from Operations		(10,573)		6,468		22,968		56,557
Income from Operations % net sales		(7.6) %		4.0 %		3.5 %		7.2 %
Adjustments:
CEO Transition(1)		$                 —		$                —		$          1,104		$                —
Acquisition and Integration Expenses(2)		734		—		1,512		—
Restructuring Expenses(3)		6,296		1,002		8,235		4,228
Adjusted Operating Income		$         (3,543)		$          7,470		$       33,819		$        60,785
Adjusted Operating Income % of sales		(2.6) %		4.7 %		5.2 %		7.7 %
Depreciation		$           4,249		$          4,442		$       16,650		$        17,666
Amortization		2,952		2,925		11,773		11,719
Other (income) expense		1,735		1,481		(671)		2,126
EBITDA		$         (1,637)		$        15,316		$       50,720		$        88,068
EBITDA % net Sales		(1.2) %		9.6 %		7.8 %		11.2 %
Adjustments:
CEO Transition(1)		$                 —		$                —		$          1,104		$                —
Acquisition and Integration Expenses(2)		734		—		1,512		—
Restructuring Expenses(3)		4,123		1,002		6,062		4,228
Adjusted EBITDA		$           3,220		$        16,318		$       59,398		$        92,296
Adjusted EBITDA % net sales		2.3 %		10.2 %		9.1 %		11.8 %

Notes:
						1.	CEO Transition includes accelerated stock compensation, recruiting expenses, sign-on bonus, and moving expenses.
						2.	Acquisition and integration expenses include advisory fees for both unsuccessful and successful deals.
						3.	Restructuring expenses include severance cost, relocation and set up cost, reduction in the realizable value of inventory as a result of strategic brand review, offset by gain on sale of Gibson City, Illinois facility.

 

Attachment 4   Alamo Group Inc. Non-GAAP Financial Reconciliation (in thousands) (Unaudited)
Consolidated Net Change of Total Debt, Net of Cash
		December 31, 2025		December 31, 2024		Net Change
Current maturities		$                   15,000		$                   15,008
Long-term debt, net of current		190,748		205,473
Total Debt		$                205,748		$                220,481
Total Cash		309,659		197,274
Total Debt Net of Cash		$               (103,911)		$                   23,207		$         127,118

 

Impact of Currency Translation on Net Sales by Division
	Three Months Ended December 31,						Change due to currency translation
	2025		2024		% change from 2024		$		%
Vegetation Management	$           138,746		$          159,802		(13.2) %		$                3,364		2.1 %
Industrial Equipment	234,904		225,521		4.2 %		1,453		0.6 %
Total Net Sales	$           373,650		$          385,323		(3.0) %		$                4,817		1.3 %
	Twelve Months Ended December 31,						Change due to currency translation
	2025		2024		% change from 2024		$		%
Vegetation Management	$           654,053		$          785,199		(16.7) %		$                3,986		0.5 %
Industrial Equipment	949,662		843,314		12.6 %		(94)		— %
Total Net Sales	$        1,603,715		$       1,628,513		(1.5) %		$                3,892		0.2 %

 

View original content:https://www.prnewswire.com/news-releases/alamo-group-announces-financial-results-for-the-fourth-quarter-and-year-end-2025-302701500.html

SOURCE Alamo Group Inc.

FAQ

What were Alamo Group's (ALG) key Q4 2025 financial results?

Alamo reported Q4 2025 net sales of $373.7M and adjusted EBITDA of $44.8M. According to the company, Q4 adjusted EPS was $1.70 and adjusted EBITDA represented 12.0% of net sales, with Industrial strength offset by Vegetation weakness.

Why did Alamo Group (ALG) raise its dividend to $0.34 in 2026?

The dividend was increased to $0.34 per share, a 13.3% raise reflecting balance-sheet strength. According to the company, strong cash generation and a cash balance of $309.7M supported the decision to return capital to shareholders.

What is the impact of Alamo Group's (ALG) Petersen Industries acquisition?

Alamo closed the purchase of Petersen Industries in January 2026 to expand grapple equipment offerings into bulky waste markets. According to the company, the acquisition advances M&A strategy and complements Industrial Equipment end markets and product mix.

How financially strong is Alamo Group (ALG) at year-end 2025?

At December 31, 2025, Alamo reported $309.7M cash and $205.7M total debt, leaving $103.9M excess cash. According to the company, operating cash flow was $177.5M with 171% conversion of net income to cash.

Which Alamo Group (ALG) division performed best in 2025 and why?

The Industrial Equipment division outperformed, with full-year net sales up 12.6% and improved adjusted EBITDA. According to the company, strong orders across excavator, vacuum truck, and sweepers drove favorable mix and margins.

What caused Alamo Group's (ALG) Vegetation Management sales decline in 2025?

Vegetation Management net sales fell 16.7% in 2025 due to weak end-market demand across tree care, agriculture, and municipal mowing. According to the company, low housing demand, low crop prices, higher rates, and tariff-driven costs pressured results.