ALAMO GROUP ANNOUNCES FINANCIAL RESULTS FOR THE SECOND QUARTER 2026

By PR Newswire | August 03, 2026, 4:15 PM

SEGUIN, Texas, Aug. 3, 2026 /PRNewswire/ -- Alamo Group Inc. (NYSE: ALG) today reported results for the second quarter of 2026.

Highlights: 

  • Net sales were $450.7 million, up 7.6% compared to the second quarter of 2025
  • Net income was $30.9 million and adjusted net income was $34.2 million
  • Fully diluted EPS was $2.55 per share, nearly flat compared to $2.57 per share in the second quarter of 2025
  • Adjusted fully diluted EPS was $2.82 per share, an increase of 7.2% compared to $2.63 per share in the second quarter of 2025
  • Adjusted EBITDA of $63.9 million was 14.2% of net sales, up 8.7% compared to the second quarter of 2025
  • Net sales in the Industrial Equipment Division were $271.6 million, up 12.8% compared to the second quarter of 2025
  • Net sales in the Vegetation Management Division were $179.1 million, up 0.4% compared to the second quarter of 2025
  • The Company renewed its credit facility in May 2026 with improved terms and preserved $602.5 million of committed capacity, including a $400.0 million revolver and $202.5 million term loan facility
  • On June 30, 2026, cash was $195.0 million and total debt was $262.7 million 
  • Returned $19.0 million to stockholders in the first six months of 2026, including $10.8 million of share repurchases and $8.2 million of dividends

Robert Hureau, Alamo Group's President and Chief Executive Officer, commented, "Our second quarter results reflect continued execution across the business, highlighted by strong sales growth in our Industrial Equipment Division, improved adjusted earnings, and solid adjusted EBITDA performance. Conditions across our end markets remain mixed, and our teams continue to focus on operational improvement, and disciplined execution of our strategic priorities."

Second Quarter Results

Net sales for the second quarter of 2026 were $450.7 million, an increase of 7.6% compared to $419.1 million for the second quarter of 2025. Net income for the second quarter of 2026 was $30.9 million, or $2.55 per fully diluted share compared to $31.1 million, or $2.57 per fully diluted share for the second quarter of 2025.

The Company also reported adjusted net income of $34.2 million, or $2.82 per fully diluted share, for the second quarter of 2026 compared to adjusted net income of $31.9 million, or $2.63 per fully diluted share for the second quarter of 2025. Adjusted EBITDA for the second quarter of 2026 was $63.9 million, or 14.2% of net sales, compared to $58.8 million, or 14.0% of net sales, for the second quarter of 2025.

Net sales in the Industrial Equipment Division were $271.6 million, an increase of 12.8% compared to $240.7 million for the second quarter of 2025. The year-over-year increase in Industrial Equipment Division sales reflected organic demand and the contribution from Petersen. Adjusted EBITDA in the Industrial Equipment Division for the second quarter of 2026 was $45.3 million, or 16.7% of net sales, compared to $40.3 million, or 16.8% of net sales, in the second quarter of 2025.

Net sales in the Vegetation Management Division were $179.1 million, an increase of 0.4% compared to $178.4 million in the second quarter of 2025. Adjusted EBITDA in the Vegetation Management Division for the second quarter of 2026 was $18.6 million, or 10.4% of net sales, compared to $18.5 million, or 10.4% of net sales, in the second quarter of 2025.

Robert Hureau, Alamo Group's President and Chief Executive Officer, commented, "Our Industrial Equipment Division delivered a strong quarter, with sales growth and solid profitability, including a meaningful contribution from Petersen following its acquisition earlier this year. In the Vegetation Management Division, sales were relatively stable compared to the prior year despite pressure in certain end markets. We are continuing to focus on improving margins through operational execution, cost discipline and targeted actions across the portfolio."

For the six months ended June 30, 2026, cash flow provided by operations was $22.7 million, investing cash outflow was $171.6 million, and financing cash inflow was $37.3 million.

In May 2026, the Company renewed its credit facility on improved terms across the facility, further strengthening its liquidity profile and financial flexibility. The successful renewal provides $602.5 million of committed capacity, including a $400.0 million revolving credit facility and a $202.5 million term loan facility, supporting ongoing capital deployment priorities, working capital needs and long-term growth initiatives. During the first six months of 2026, the Company funded the acquisition of Petersen, repurchased $10.8 million of its common stock and paid $8.2 million of dividends while maintaining a strong balance sheet. At June 30, 2026, cash was $195.0 million and total debt was $262.7 million.

Mr. Hureau added, "We ended the quarter with a strong liquidity position, supported by substantial cash balances and available borrowing capacity under our recently renewed credit facility. That flexibility allowed us to invest in organic growth, fund the Petersen acquisition and repurchase shares opportunistically during the first half of the year.  We remain committed to a balanced capital allocation approach that prioritizes investment in organic growth and strategic acquisitions while returning capital to shareholders. We look forward to discussing our results and outlook in greater detail during our upcoming Earnings Conference Call."

Earnings Conference Call

The Company will host a conference call to discuss the results on Tuesday, August 4, 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, August 11, 2026, by dialing 1-855-669-9658 (domestic) or 1-412-317-0088 (international), passcode 7509167.

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, August 4, 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 the United States, 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 disputes, and the effects of the wars in 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



Six Months Ended





6/30/2026



6/30/2025



6/30/2026



6/30/2025

Net sales:

















  Vegetation Management



$     179,092



$     178,358



$  354,512



$  342,248

  Industrial Equipment



271,641



240,715



513,370



467,775

Total net sales



450,733



419,073



867,882



810,023



















Cost of sales



339,877



310,781



652,221



598,890

Gross profit



110,856



108,292



215,661



211,133



















Selling, general and administration expense



60,076



57,136



117,843



111,466

Amortization expense



5,015



4,078



9,894



8,127

Income from operations



45,765



47,078



87,924



91,540



















Interest expense



(4,792)



(3,684)



(9,416)



(6,878)

Interest income



1,239



1,195



2,720



2,433

Other income (expense)



(619)



(3,183)



(587)



(3,846)



















Income before income taxes



41,593



41,406



80,641



83,249

Provision for income taxes



10,653



10,300



20,517



20,343

Effective Tax Rate



25.6 %



24.9 %



25.4 %



24.4 %



















Net Income



$      30,940



$      31,106



$    60,124



$    62,906



















Net income per common share:



































Basic



$         2.57



$         2.59



$       4.99



$       5.24



















Diluted



$         2.55



$         2.57



$       4.96



$       5.21



















Average common shares:

















Basic



12,068



12,020



12,060



12,005



















Diluted



12,122



12,083



12,112



12,066



















 

Alamo Group Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands)

(Unaudited) 





June 30,

2026

June 30,

2025

ASSETS













Current assets:













Cash and cash equivalents



$ 194,995





$  201,823



Accounts receivable, net



343,326





356,236



Inventories



432,262





372,074



Other current assets



22,114





12,461



Total current assets



992,697





942,594

















Rental equipment, net



56,033





59,606

















Property, plant and equipment, net



161,165





160,716

















Goodwill



271,318





221,607



Intangible assets, net



212,999





145,040



Other non-current assets



29,390





28,086

















Total assets



$            1,723,602





$            1,557,649

















LIABILITIES AND STOCKHOLDERS' EQUITY













Current liabilities:













Trade accounts payable



$ 148,039





$  111,820



Income taxes payable



3,685





3,973



Accrued liabilities



69,307





76,113



Current maturities of long-term debt



5,063





15,000



Total current liabilities



226,094





206,906

















Long-term debt, net of current maturities



257,679





198,115



Long-term tax liability



470





626



Other long-term liabilities



24,127





25,975



Deferred income taxes



27,122





10,631



Total liabilities



535,492





442,253

















Total stockholders' equity



1,188,110





1,115,396

















Total liabilities and stockholders' equity



$            1,723,602





$            1,557,649



 

Alamo Group Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(in thousands)

(Unaudited)





Six Months Ended 

June 30,



2026



2025

Operating Activities







Net income

$   60,124



$   62,906

Adjustment to reconcile net income to net cash provided by operating activities:







Provision for doubtful accounts

(230)



(11)

Depreciation - Property, plant and equipment

13,240



13,398

Depreciation - Rental equipment

5,927



5,819

Amortization of intangibles

9,894



8,127

Amortization of debt issuance

343



351

Stock-based compensation expense

3,613



4,670

Provision for deferred income tax expense (benefit)

3,195



(2,179)

Gain on sale of property, plant and equipment

(682)



(358)

Changes in operating assets and liabilities:







Accounts receivable

(62,851)



(37,267)

Inventories

(31,313)



(16,593)

Rental equipment

(958)



(12,263)

Prepaid expenses and other assets

814



1,923

Trade accounts payable and accrued liabilities

14,453



18,494

Income taxes payable

9,427



(9,439)

Other long-term liabilities, net

(2,339)



(667)

Net cash provided by operating activities

22,657



36,911









Investing Activities







Acquisitions, net of cash acquired

(162,933)



(17,571)

Purchase of property, plant and equipment

(10,319)



(12,971)

Proceeds from sale of property, plant and equipment

1,621



812

Net cash used in investing activities

(171,631)



(29,730)









Financing Activities







Borrowings on bank revolving credit facility

120,000



50,000

Repayments on bank revolving credit facility

(57,500)



(50,000)

Principal payments on long-term debt and finance leases

(5,016)



(7,504)

Debt issuance cost

(2,286)



Dividends paid

(8,201)



(7,196)

Proceeds from exercise of stock options

1,032



1,227

Common stock repurchased

(10,759)



(1,639)

Net cash provided by (used) in financing activities

37,270



(15,112)









Effect of exchange rate changes on cash and cash equivalents

(2,960)



12,480

Net change in cash and cash equivalents

(114,664)



4,549

Cash and cash equivalents at beginning of the year

309,659



197,274

Cash and cash equivalents at end of the period

$ 194,995



$ 201,823









Cash paid during the period for:







Interest

$    9,569



$    6,861

Income taxes

9,080



32,074

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, and 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 an 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



Six Months Ended





June 30,



June 30,





2026



2025



2026



2025



















Operating Income



$  45,765



$  47,078



$  87,924



$  91,540

CEO Transition(1)





229





451

Acquisition and Integration Expenses(2)



357



235



915



235

Restructuring Expenses(3)



3,998



605



5,940



1,367

Adjusted Operating Income



$  50,120



$  48,147



$  94,779



$  93,593

  Adjusted Operating Income % net sales



11.1 %



11.5 %



10.9 %



11.6 %



















Net Income



$  30,940



$  31,106



$  60,124



$  62,906

CEO Transition(1), net of tax benefit $56 and $110,

respectively





173





341

Acquisition and Integration Expenses(2), net of tax benefit

$91 and $57, $233 and $57, respectively



266



178



682



178

Restructuring Expenses(3), net of tax benefit $1,017 and

$148, $1,511 and $334, respectively



2,981



457



4,429



1,033

Adjusted Net Income



$  34,187



$  31,914



$  65,235



$  64,458



















Fully Diluted EPS



$     2.55



$     2.57



$     4.96



$     5.21

CEO Transition(1)





0.01





0.03

       Acquisition and Integration Expenses(2)



0.02



0.01



0.06



0.01

       Restructuring Expenses(3)



0.25



0.04



0.37



0.09

              Adjusted Fully Diluted EPS



$     2.82



$     2.63



$     5.39



$     5.34

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 successful and unsuccessful deals, integration and divestiture 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



Six Months Ended





June 30, 2026



June 30, 2025



June 30, 2026



June 30, 2025



















Net Income



$       30,940



$       31,106



$       60,124



$       62,906



















Interest, net



3,553



2,489



6,696



4,445

Provision for income taxes



10,653



10,300



20,517



20,343

Depreciation



9,416



9,772



19,167



19,217

Amortization



5,015



4,078



9,894



8,127

     EBITDA



$       59,577



$       57,745



$      116,398



$      115,038

     EBITDA % net sales



13.2 %



13.8 %



13.4 %



14.2 %



















Adjustments:

















CEO Transition(1)



$             —



$           229



$             —



$           451

Acquisition and Integration Expenses(2)



357



235



915



235

Restructuring Expenses(3)



3,998



605



5,940



1,367

     Adjusted EBITDA



$       63,932



$       58,814



$      123,253



$      117,091

     Adjusted EBITDA % net sales



14.2 %



14.0 %



14.2 %



14.5 %

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 successful and unsuccessful deals, integration and divestiture 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

June 30,



Six Months Ended 

June 30,





2026



2025



2026



2025



















Backlog











$    365,286



$    509,610



















Net Sales



$    271,641



$   240,715



513,370



467,775



















Income from Operations



36,860



34,327



68,506



65,477

Income from Operations % net sales



13.6 %



14.3 %



13.3 %



14.0 %



















Adjustments:

















CEO Transition(1)



$          —



$        121



$          —



$         240

Acquisition and Integration Expenses(2)



221



125



621



125

Restructuring Expenses(3)



1,389





1,709



Adjusted Operating Income



$     38,470



$     34,573



$     70,836



$     65,842

Adjusted Operating Income % of sales



14.2 %



14.4 %



13.8 %



14.1 %



















Depreciation



5,339



5,519



10,826



10,912

Amortization



2,031



1,132



3,954



2,261

Other income (expense)



(508)



(895)



(535)



(1,255)

EBITDA



$     43,722



$     40,083



$     82,751



$     77,395

EBITDA % net Sales



16.1 %



16.7 %



16.1 %



16.5 %



















Adjustments:

















CEO Transition(1)



$          —



$        121



$          —



$         240

 Acquisition and Integration Expenses(2)



221



125



621



125

Restructuring Expenses(3)



1,389





1,709



Adjusted EBITDA



$     45,332



$     40,329



$     85,081



$     77,760

Adjusted EBITDA % net sales



16.7 %



16.8 %



16.6 %



16.6 %

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 successful and unsuccessful deals, integration and divestiture 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

June 30,



Six Months Ended 

June 30,





2026



2025



2026



2025



















Backlog











$   184,031



$    177,625



















Net Sales



$    179,092



$   178,358



354,512



342,248



















Income from Operations



8,905



12,751



19,418



26,063

Income from Operations % net sales



5.0 %



7.1 %



5.5 %



7.6 %



















Adjustments:

















CEO Transition(1)



$           —



$        108



$          —



$         211

Acquisition and Integration Expenses(2)



136



110



294



110

Restructuring Expenses(3)



2,609



605



4,231



1,367

Adjusted Operating Income



$     11,650



$     13,574



$     23,943



$     27,751

Adjusted Operating Income % of sales



6.5 %



7.6 %



6.8 %



8.1 %



















Depreciation



4,077



4,253



8,341



8,305

Amortization



2,984



2,946



5,940



5,866

Other income (expense)



(111)



(2,288)



(52)



(2,591)

EBITDA



$     15,855



$     17,662



$     33,647



$     37,643

EBITDA % net Sales



8.9 %



9.9 %



9.5 %



11.0 %



















Adjustments:

















CEO Transition(1)



$           —



$        108



$          —



$         211

Acquisition and Integration Expenses(2)



136



110



294



110

Restructuring Expenses(3)



2,609



605



4,231



1,367

Adjusted EBITDA



$     18,600



$     18,485



$     38,172



$     39,331

Adjusted EBITDA % net sales



10.4 %



10.4 %



10.8 %



11.5 %

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 successful and unsuccessful deals, integration and divestiture 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





June 30, 2026



June 30, 2025



Net Change















Current maturities



$          5,063



$        15,000





Long-term debt, net of current



257,679



198,115





Total debt



$       262,742



$       213,115



















Total cash



194,995



201,823





     Total Debt, Net of Cash



$        67,747



$        11,292



$       56,455















 

Impact of Currency Translation on Net Sales by Division























Three Months Ended

June 30,







Change due to currency

translation



2026



2025



% change

from 2025



$



%





















Vegetation Management

$       179,092



$       178,358



0.4 %



$          1,345



0.8 %

Industrial Equipment

271,641



240,715



12.8 %



359



0.1 %

Total net sales

$       450,733



$       419,073



7.6 %



$          1,704



0.4 %











































Six Months Ended 

June 30,







Change due to currency

translation



2026



2025



% change

from 2025



$



%





















Vegetation Management

$       354,512



$       342,248



3.6 %



$          6,731



2.0 %

Industrial Equipment

513,370



467,775



9.7 %



3,735



0.8 %

Total net sales

$       867,882



$       810,023



7.1 %



$        10,466



1.3 %





















 

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