Highlights:
Net sales increased 4.7% to $420 million compared with the third quarter of 2024
Income from operations of $37.5 million decreased 6.3% versus the third quarter of 2024
Fully diluted EPS of $2.10 per share decreased $0.18 per share compared to the third quarter of 2024
Adjusted fully diluted EPS of $2.34 per share decreased $0.04 per share compared to the third quarter of 2024, which includes CEO transition, acquisition, and restructuring costs(1)
Adjusted EBITDA of $55.0 million was flat compared to the third quarter of 2024(1)
Operating cash flow for the first nine months of 2025 was $102.4 million
Third Quarter Results
Net sales for the third quarter of 2025 were $420.0 million, an increase of 4.7% compared to $401.3 million for the third quarter of 2024. Income from operations for the third quarter of 2024 was $37.5 million or 8.9% of net sales, compared to $40.1 million, or 10.0% of net sales, for the third quarter of 2024. Net income for the third quarter of 2025 was $25.4 million, or $2.10 per fully diluted share compared to $27.4 million, or $2.28 per fully diluted share for the third quarter of 2024.
The Company also reported adjusted net income of $28.2 million, or $2.34 per fully diluted share, for the third quarter of 2025 compared to adjusted net income $28.6 million, or $2.38 per fully diluted share for the third quarter of 2024.(1) Adjusted EBITDA for third quarter of 2025 was $55.0 million, or 13.1% of net sales, compared to $54.9 million, or 13.7% of net sales, for the third quarter of 2024.(1)
Net sales in the Industrial Equipment Division were $247.0 million, an increase of 17.0% in total and 14.5% organically, compared to $211.2 million for the third quarter of 2024. Adjusted EBITDA in the Industrial Equipment Division for the third quarter of 2025 was $38.2 million, or 15.5% of net sales, compared to $33.1 million, or 15.7% of net sales, for the third quarter of 2024. (1)
Net sales in the Vegetation Management Division were $173.1 million, a decrease of 9.0% compared to $190.1 million in the third quarter of 2024. Adjusted EBITDA in the Vegetation Management Division for the third quarter of 2025 was $16.8 million, or 9.7% of net sales, compared to $21.8 million, or 11.5% of net sales, for the third quarter of 2024.(1)
Robert Hureau, Alamo Group's President and Chief Executive Officer commented, "The Company's third quarter results were mixed. The Industrial Equipment Division continued to perform exceptionally well, delivering strong year-over-year double digit net sales growth for the seventh consecutive quarter. While Industrial Equipment orders fluctuate from quarter to quarter, year-to-date bookings in the division reflect modest growth and backlog levels remain healthy. In contrast, the Vegetation Management Division continued to experience softness in its end markets, however, bookings in the division slightly improved. Operationally, in the Vegetation Management Division we have consolidated facilities in an effort to reduce fixed costs and improve manufacturing throughput and materials management. To date, we have realized the fixed cost savings. While productivity improvements are tracking more slowly than anticipated, we are advancing our operational initiatives and expect further benefits in the coming quarters."
Operating cash flow for the nine months ended September 30, 2025 was $102.4 million.
At September 30, 2025, total debt was $209.4 million, total cash was $244.8 million and the Company had $397.2 million of availability under its Revolving Facility.
Mr. Hureau added, "With continued strong operating cash flows, ample cash on hand and significant availability under our Revolving Facility, we are well positioned to invest in both organic growth and operating initiatives as well as to deliver on our acquisition strategy. Regarding our acquisition strategy, we are excited about our growing pipeline of opportunities that have a strong strategic fit and attractive financial profiles. We look forward to a further discussion regarding our results and operating strategy during our upcoming Earnings Conference Call."
Earnings Conference CallThe Company will host a conference call to discuss the second quarter results on Friday, November 7th, 2025, 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 Friday, November 14, 2025 by dialing (877) 344-7529 (domestic) or (412) 317-0088 (internationally), passcode 5234040.
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 Friday, November 7, 2025, 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 GroupAlamo 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) and 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 and operational disruptions, labor constraints, increasing costs due to inflation, disease outbreaks, geopolitical risks, including tariffs, trade wars, and the effects of the wars 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)
(1) This is a non-GAAP financial measure that we have provided to investors in order to allow greater transparency and a deeper understanding of our financial condition and operating results. For a reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures, refer to the "Non-GAAP Financial Measures Reconciliation" below and the Attachments thereto.
Alamo Group Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended
Nine Months Ended
9/30/2025
9/30/2024
9/30/2025
9/30/2024
Net sales:
Vegetation Management
$ 173,059
$ 190,115
$ 515,307
$ 625,397
Industrial Equipment
246,983
211,186
714,758
617,793
Total net sales
420,042
401,301
1,230,065
1,243,190
Cost of sales
318,359
300,414
917,249
922,490
Gross profit
101,683
100,887
312,816
320,700
Selling, general and administration expense
59,931
56,747
171,397
178,158
Amortization expense
4,210
4,061
12,337
12,175
Income from operations
37,542
40,079
129,082
130,367
Interest expense
(3,897)
(4,886)
(10,775)
(17,075)
Interest income
1,522
562
3,955
1,877
Other income (expense)
(210)
(32)
(4,056)
1
Income before income taxes
34,957
35,723
118,206
115,170
Provision for income taxes
9,574
8,318
29,917
27,321
Net Income
$ 25,383
$ 27,405
$ 88,289
$ 87,849
Net income per common share:
Basic
$ 2.11
$ 2.29
$ 7.35
$ 7.34
Diluted
$ 2.10
$ 2.28
$ 7.31
$ 7.30
Average common shares:
Basic
12,029
11,977
12,013
11,965
Diluted
12,094
12,041
12,075
12,035
Alamo Group Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)
September 30,2025
September 30,2024
ASSETS
Current assets:
Cash and cash equivalents
$ 244,806
$ 140,038
Accounts receivable, net
335,210
356,617
Inventories
378,166
371,999
Other current assets
21,211
10,950
Total current assets
979,393
879,604
Rental equipment, net
61,558
47,260
Property, plant and equipment
165,887
163,374
Goodwill
214,429
206,458
Intangible assets
147,322
156,399
Other non-current assets
26,390
28,246
Total assets
$ 1,594,979
$ 1,481,341
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Trade accounts payable
$ 129,297
$ 97,259
Income taxes payable
—
15,687
Accrued liabilities
76,770
84,061
Current maturities of long-term debt and finance lease obligations
15,000
15,009
Total current liabilities
221,067
212,016
