Alamo Group Inc
NYSE:ALG

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Alamo Group Inc
NYSE:ALG
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Price: 178.03 USD 0.38% Market Closed
Market Cap: 2.2B USD

Alamo Group Inc
Investor Relations

Alamo Group Inc. emerges as a formidable name in the world of industrial and agricultural machinery, tracing its roots back to 1969. Headquartered in Seguin, Texas, the company has steadily grown its presence through an unwavering commitment to manufacturing quality equipment designed for vegetation management, infrastructure, and agricultural maintenance. Alamo’s extensive product line includes mowers and tractors, brush cutters, vacuum trucks, road maintenance apparatus, and snow removal machines. Each piece of equipment is meticulously engineered to ensure that landscape contractors, farmers, and state agencies can perform tasks with maximum efficiency and minimum downtime.

The company operates through two main segments: Industrial and Agricultural. In the Industrial division, Alamo sells products primarily to governmental entities and related contractors. These include road maintenance and vegetation management equipment crucial for public safety and infrastructure upkeep. Their Agricultural segment, meanwhile, caters to a global clientele of farmers by providing essential machinery that enhances the productivity and sustainability of agricultural operations. With a robust distribution network and a reputation for reliability, Alamo Group drives revenue by continually meeting the evolving needs of its diverse customer base through a combination of strategic acquisitions and innovations in product offerings.

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Last Earnings Call
Fiscal Period
Q3 2025
Call Date
Nov 7, 2025
AI Summary
Q3 2025

Sales Growth: Net sales grew 4.7% year-over-year to $420 million, driven by strong Industrial Equipment division performance.

Division Divergence: Industrial Equipment achieved a record quarter, up 17%, while Vegetation Management sales dropped 9% due to market and production challenges.

Margin Pressure: Gross margin declined by 90 basis points to 24.2%, mainly from production inefficiencies and tariffs; price increases were implemented to offset tariffs.

Earnings Dip: Adjusted net income and adjusted EPS both declined slightly compared to the prior year.

Outlook: Management expects sequential sales and margin declines in Q4 due to seasonality, with Vegetation Management margins not improving until late Q4 or early 2026.

Strategic Focus: Emphasis on operational efficiency, centralization, M&A (mostly tuck-in deals), and product innovation for long-term growth.

Strong Balance Sheet: Company has significant cash reserves, low debt, and continued dividend payments, supporting ongoing investments and future acquisitions.

Key Financials
Net Sales
$420 million
Gross Profit
$101.7 million
Gross Margin
24.2%
Adjusted Net Income
$28 million
Adjusted EBITDA
$55 million
Adjusted EBITDA Margin
13% of net sales
Operating Cash Flow (9 months)
$102 million
Operating Cash Flow Conversion
116% of net income
SG&A Expense
$59.9 million
Interest Expense
$3.9 million
Interest Income
$1.5 million
Effective Income Tax Rate (9 months)
25.3%
Adjusted EPS (Diluted)
$2.34
Industrial Equipment Division Net Sales
$247 million
Industrial Equipment Division Adjusted EBITDA Margin
15.5%
Vegetation Management Division Net Sales
$173.1 million
Vegetation Management Division Adjusted EBITDA Margin
9.7%
Total Assets
$1.595 million
Accounts Receivable
$335.2 million
Inventory
$378.2 million
Accounts Payable
$129.3 million
Cash Used in Investing (9 months)
$41.9 million
Capital Expenditures (9 months)
$25.4 million
Cash Used in Financing (9 months)
$23.6 million
Total Debt
$209.4 million
Cash on Balance Sheet
$244.8 million
Revolver Facility Availability
$397 million
Dividend per Share (Quarterly)
$0.30
Earnings Call Recording
Other Earnings Calls

Management

Mr. Jeffery A. Leonard
President, CEO & Director
No Bio Available
Mr. Edward T. Rizzuti J.D.
Executive VP, Chief Legal Officer & Secretary
No Bio Available
Mr. Richard Hodges Raborn
Executive Vice President of Vegetation Management Division
No Bio Available
Ms. Agnes Kamps
Executive VP, CFO & Treasurer
No Bio Available
Mr. Ian M. Eckert
VP, Corporate Controller & Chief Accounting Officer
No Bio Available
Ms. Janet S. Pollock SPHR
Senior Vice President of Corporate Human Resources
No Bio Available
Mr. Dan E. Malone
Executive VP & Chief Sustainability Officer
No Bio Available
Mr. Kevin J. Thomas
Executive Vice President of the Industrial Equipment Division
No Bio Available

Contacts

Address
TEXAS
Seguin
1627 E Walnut St
Contacts
+18303791480.0
www.alamo-group.com