Alamo Group (NYSE: ALG) posts Q1 2026 growth and higher net debt
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Alamo Group Inc. reported first quarter 2026 net sales of $417.1 million, up 6.7% from the first quarter of 2025, driven by growth in both major divisions. Industrial Equipment net sales were $241.7 million, up 6.5%, while Vegetation Management net sales were $175.4 million, up 7.0%.
Net income was $29.2 million, or $2.41 per diluted share, compared with $31.8 million, or $2.64 per diluted share, a year earlier. Adjusted net income was $31.1 million, or $2.56 per diluted share, versus $32.5 million and $2.70 per share in 2025.
Adjusted EBITDA was $59.3 million, representing 14.2% of net sales, compared with $58.3 million and 14.9% in the prior-year quarter. Operating cash flow was negative $23.5 million for the quarter, reflecting higher working capital needs amid strong sequential growth, but last-twelve-month operating cash flow reached $139.8 million, or 138.2% of net income.
The company closed the Petersen acquisition and ended March 31, 2026 with total debt of $290.5 million, cash of $195.2 million, and availability of $308.4 million under its revolving credit facility, resulting in total debt net of cash of $95.2 million.
Positive
- None.
Negative
- None.
Insights
Solid Q1 sales growth with slightly lower margins and higher net leverage.
Alamo Group delivered Q1 2026 net sales of $417.1 million, up 6.7% year over year, with both Industrial Equipment and Vegetation Management divisions contributing mid-single-digit growth. This shows continued demand across infrastructure, public works and land maintenance end markets.
Profitability moderated: net income fell to $29.2 million from $31.8 million, and adjusted EBITDA margin slipped to 14.2% from 14.9% as costs, restructuring and integration spending weighed on results. Division data show particularly softer margins in Vegetation Management despite its higher sales.
Cash flow and balance sheet movements were influenced by growth and acquisitions. Operating cash flow was negative $23.5 million in the quarter, while last-twelve-month operating cash flow of $139.8 million equaled 138.2% of net income. Total debt increased to $290.5 million with cash of $195.2 million, leaving net debt of $95.2 million and $308.4 million of revolver availability as of March 31, 2026.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Net sales: $417.1 million
Net income: $29.2 million
Diluted EPS: $2.41 per share
+5 more
8 metrics
Net sales
$417.1 million
Q1 2026, up 6.7% vs Q1 2025
Net income
$29.2 million
Q1 2026 vs $31.8 million Q1 2025
Diluted EPS
$2.41 per share
Q1 2026 vs $2.64 Q1 2025
Adjusted EBITDA
$59.3 million
Q1 2026, 14.2% of net sales
Industrial Equipment net sales
$241.7 million
Q1 2026, up 6.5% year over year
Vegetation Management net sales
$175.4 million
Q1 2026, up 7.0% year over year
Operating cash flow
-$23.5 million
Q1 2026 net cash used in operating activities
Total debt net of cash
$95.2 million
As of March 31, 2026
Key Terms
Adjusted EBITDA, Non-GAAP financial measures, Backlog, Revolving Facility, +2 more
6 terms
Adjusted EBITDA financial
"Adjusted EBITDA of $59.3 million was 14.2% 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.
Non-GAAP financial measures financial
"Alamo Group Inc. may disclose certain “Non-GAAP financial measures”"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
Backlog financial
"Industrial Equipment Division Performance ... Backlog $404,883"
A backlog is the amount of work or orders that a company has received but hasn't completed yet. It’s like a restaurant with many dishes to serve; the backlog shows how many orders are still waiting to be finished. It matters because a large backlog can indicate strong demand or potential delays in delivering products or services.
Revolving Facility financial
"the Company had $308.4 million of availability under its Revolving Facility"
A revolving facility is a bank loan that works like a company credit card: the borrower can draw funds, repay them, and draw again up to a set limit during the agreement period. It matters to investors because it provides short-term cash flexibility for operations, investments, or emergencies, and the cost or availability of that credit can affect a company’s liquidity, interest expenses, and financial stability.
Restructuring expenses financial
"Restructuring expenses include costs related to leadership changes, severance costs"
Restructuring expenses are one-time costs a company incurs when it reorganizes how it operates — for example, closing locations, laying off employees, reducing the recorded value of assets, or ending contracts — to cut costs or shift strategy. Investors pay attention because these charges lower reported profits now but can indicate steps to improve future cash flow and competitiveness, like paying for renovations to make a house easier to run or sell later.
EBITDA financial
"Attachment 2 shows a reconciliation of Earnings Before Interest, Taxes, Depreciation, and Amortization ("EBITDA")"
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.
Earnings Snapshot
Net sales: $417.1 million
Q1 2026
Net sales
$417.1 million
+6.7% YoY
Net income
$29.2 million
Diluted EPS
$2.41
Adjusted EBITDA
$59.3 million
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 4, 2026
(Exact name of registrant as specified in its charter)
State of | ||||||||
| (State or other jurisdiction of incorporation) | (Commission File No.) | (IRS Employer Identification No.) | ||||||
| (Address of Registrant’s principal executive offices) | (Zip Code) | ||||||||||
( | ||||||||
Registrant's telephone number, including area code: | ||||||||
| Securities registered pursuant to Section 12(b) of the Act: | ||||||||
| Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, par value $.10 per share | ||||||||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of
the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of
1934 (§240.12b-2 of this chapter).Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the
extended transition period for complying with any new or revised financial accounting standards provided
pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition
On May 4, 2026, Alamo Group Inc., a Delaware corporation (the "Company"), issued a press release announcing, among other things, financial results for the quarter ended March 31, 2026. A copy of the press release is filed as Exhibit 99.1 to this Current Report on Form 8-K. The foregoing description is qualified by reference to such exhibit.
Item 9.01 Financial Statements and Exhibits
Exhibit 99.1 - Press Release dated May 4, 2026.
Exhibit 104 - Cover Page Interactive Data File - Inline XBRL for the cover page of this Current Report on Form 8-K
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| May 4, 2026 | By: /s/ Edward T. Rizzuti | ||||
| Edward T. Rizzuti, | |||||
| EVP, Corporate Development & Investor Relations & Secretary | |||||
 | For: | Alamo Group Inc. | ||||||
| Contact: | Edward Rizzuti | |||||||
| EVP Corporate Development & Investor Relations | ||||||||
| 830-372-9600 | ||||||||
| Financial Relations Board | ||||||||
| Joe Calabrese | ||||||||
| 212-827-3772 | ||||||||
ALAMO GROUP ANNOUNCES FINANCIAL RESULTS FOR THE FIRST QUARTER 2026
SEGUIN, Texas, May 4, 2026 -- 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.
ALAMO GROUP ANNOUNCES FINANCIAL RESULTS FOR THE FIRST QUARTER 2026 Page 2
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.
ALAMO GROUP ANNOUNCES FINANCIAL RESULTS FOR THE FIRST QUARTER 2026 Page 3
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)
# # #
Page 4
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 | ||||||||||||
Page 5
Alamo Group Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)
| March 31, 2026 | March 31, 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 | ||||||||||||||||
Page 6
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 | |||||||||
Page 7
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.
Page 8
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
Page 9
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
Page 10
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
Page 11
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
Page 12
Attachment 4
Alamo Group Inc.
Non-GAAP Financial Reconciliation
(in thousands)
(Unaudited)
| Consolidated Net Change of Total Debt, Net of Cash | ||||||||||||||||||||
| March 31, 2026 | March 31, 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 March 31, | Change due to currency translation | ||||||||||||||||||||||||||||
| 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 | % | |||||||||||||||||||
FAQ
How did Alamo Group (ALG) perform in Q1 2026 versus Q1 2025?
Alamo Group’s Q1 2026 net sales were $417.1 million, up 6.7% from $391.0 million a year earlier. However, net income declined to $29.2 million from $31.8 million, reflecting slightly lower margins despite higher revenue.
How did Alamo Group’s business segments perform in Q1 2026?
The Industrial Equipment Division generated net sales of $241.7 million, up 6.5% year over year. The Vegetation Management Division delivered net sales of $175.4 million, up 7.0%. Both divisions grew revenue, though Vegetation Management saw lower operating margins.
What was Alamo Group’s Q1 2026 adjusted EBITDA and margin?
Alamo Group’s Q1 2026 adjusted EBITDA was $59.3 million, slightly above $58.3 million in Q1 2025. The adjusted EBITDA margin was 14.2% of net sales, compared with 14.9% in the prior-year period, indicating modest margin compression.
What does Alamo Group’s Q1 2026 cash flow and debt position look like?
Operating cash flow for Q1 2026 was negative $23.5 million, driven partly by higher working capital needs. As of March 31, 2026, the company had $290.5 million of debt, $195.2 million of cash, and $308.4 million of revolving facility availability.
Did Alamo Group complete any acquisitions in early 2026?
Yes. Alamo Group successfully closed the Petersen acquisition in early 2026 and began work on synergy realization. Acquisition and integration expenses contributed to the non-GAAP adjustments in Q1 2026 operating income, net income and EBITDA metrics.
How strong was Alamo Group’s backlog by division at March 31, 2026?
At March 31, 2026, the Industrial Equipment backlog was $404.9 million, down from $513.2 million a year earlier. The Vegetation Management backlog was $198.1 million, slightly above $189.5 million, indicating mixed backlog trends across the two divisions.