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 ResultsNet 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 ResultsNet 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 CallThe 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 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) 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 StatementsThis 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
