- Stratasys Q1 Earnings Beat Estimates, Revenues Slip Y/Y, Shares Rise
May 11, 2026
Stratasys SSYS reported a first-quarter 2026 non-GAAP loss of a penny per share, which beat the Zacks Consensus Estimate of a loss of 2 cents by 50%. However, the figure plunged 125% year over year.
Revenues decreased 2.4% year over year to $132.70 million. However, the top line beat the consensus mark of $132 million by 0.75%.
SSYS shares rose 3.9% at the time of writing this article. The stock has declined 7.4% in the year-to-date period compared with the Zacks Industrial Products sector’s return of 16%.
Stratasys’ Q1 Release in Detail
Segment-wise, product revenues decreased 5.3% year over year to $88.8 million. System revenues fell 7.7% year over year to $28.8 million. Consumables revenues declined 4.2% year over year to $60 million.
Stratasys, Ltd. Price, Consensus and EPS SurpriseStratasys, Ltd. Price, Consensus and EPS Surprise
Stratasys, Ltd. price-consensus-eps-surprise-chart | Stratasys, Ltd. Quote
Services revenues increased 4% year over year to $43.9 million, driven by Stratasys Direct’s 23% organic year-over-year growth after divestments. Customer support revenues were $29.7 million, down 1% from the year-ago quarter. Management noted that recurring revenues from consumables and support continue to provide stability as customers remain cautious in capital equipment spending.
Stratasys’ non-GAAP gross margin contracted 200 basis points (bps) year over year to 46.3% from 48.3% in the same period last year. Management attributed the decline primarily to the impact of $2.4 million in incremental tariff expense, along with the effect of lower revenues.
Stratasys’ non-GAAP operating expenses in the first quarter of 2026 were $64.6 million, representing 48.7% of revenues compared with $62.6 million (46% of revenues) in the year-ago quarter. The increase was largely driven by foreign exchange, with management citing an approximately $3.1 million impact from the appreciation of the Israeli shekel against the U.S. dollar.
Adjusted EBITDA was $2.0 million compared with $8.2 million in the year-ago quarter. The adjusted EBITDA margin contracted 450 bps on a year-over-year basis to 1.5%. The non-GAAP operating loss was $3.2 million compared with an operating profit of $3 million in the year-over-year period.
Stratasys’ Balance Sheet & Cash Flow Details
As of March 31, 2026, Stratasys had $237.8 million in cash, cash equivalents and short-term deposits compared with $244.5 million as of Dec. 31.
The company emphasized that it remains debt-free, preserving flexibility to invest in technology and market development while evaluating inorganic opportunities aligned with its focus on high-requirement use cases.
In the first quarter of 2026, the company reported operating cash flow of $2.4 million compared with $15.1 million in the previous quarter, supported by working-capital discipline.
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Stratasys Offers Positive 2026 Outlook
For 2026, Stratasys reiterated its outlook for revenues between $565 million and $575 million, implying sequential growth through the year. The company expects non-GAAP earnings of 9-14 cents per share.
Stratasys continues to forecast non-GAAP gross margin of 46.7-47.1% and non-GAAP operating margin of 0.7-1.5%. The company noted that its outlook remains subject to foreign exchange rate and tariff uncertainty.
Zacks Rank & Stocks to Consider
Currently, SSYS has a Zacks Rank #4 (Sell).
ABB ABBNY, Alamo Group ALG and Enersys ENS are some better-ranked stocks in the broader Zacks Industrial Products sector.
ABBNY sports a Zacks Rank #1 (Strong Buy), whereas Alamo Group and Enersys carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rates for ABBNY, Alamo Group and Enersys are currently pegged at 17.25%, 16% and 15%, respectively.
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- ALG vs. DE: Which Stock Is the Better Value Option?
May 11, 2026
Investors interested in Manufacturing - Farm Equipment stocks are likely familiar with Alamo Group (ALG) and Deere (DE). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Alamo Group has a Zacks Rank of #2 (Buy), while Deere has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ALG is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
ALG currently has a forward P/E ratio of 15.41, while DE has a forward P/E of 31.92. We also note that ALG has a PEG ratio of 0.96. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DE currently has a PEG ratio of 2.01.
Another notable valuation metric for ALG is its P/B ratio of 1.7. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, DE has a P/B of 5.9.
These metrics, and several others, help ALG earn a Value grade of B, while DE has been given a Value grade of D.
ALG stands above DE thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ALG is the superior value option right now.
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- ALG vs. DE: Which Stock Is the Better Value Option?
May 11, 2026 · zacks.com
Investors interested in Manufacturing - Farm Equipment stocks are likely familiar with Alamo Group (ALG) and Deere (DE). But which of these two companies is the best option for those looking for undervalued stocks?
- How Investors Are Reacting To Alamo Group (ALG) Revenue Growth Paired With Softer Earnings
May 10, 2026
In early May 2026, Alamo Group Inc. reported first‑quarter 2026 results showing sales of US$417.15 million, up from US$390.95 million a year earlier, while net income eased to US$29.18 million and diluted earnings per share from continuing operations slipped to US$2.41 from US$2.64. The combination of higher revenue but lower earnings highlights rising cost or mix pressures in Alamo Group’s business, raising questions about how effectively the company can convert growing demand into profit. We’ll now examine how this revenue growth alongside softer earnings might affect Alamo Group’s investment narrative and future expectations.
Find 51 companies with promising cash flow potential yet trading below their fair value.
Alamo Group Investment Narrative Recap
To own Alamo Group, you need to believe that its niche municipal and industrial equipment can keep finding buyers even as cycles and budgets shift. The latest quarter’s higher sales but lower earnings suggest near term margin pressure, but do not clearly alter the key catalyst of operational improvements in Industrial Equipment or the main risk around ongoing earnings softness if costs, mix, or demand in weaker segments do not improve.
In this context, the recent decision to maintain the quarterly dividend at US$0.34 per share in April 2026 stands out as the most relevant announcement, because it comes shortly before Alamo Group reported rising revenue but softer profitability. Keeping the payout steady, alongside the absence of share repurchases under the US$50 million buyback authorization, reinforces that cash generation remains an important focus while the company works through margin and earnings pressures.
Yet behind the higher sales and steady dividend, investors should be aware of the risk that persistent earnings pressure and weaker profitability could...
Read the full narrative on Alamo Group (it's free!)
Alamo Group's narrative projects $1.9 billion revenue and $191.6 million earnings by 2029. This implies an earnings increase of roughly $191.6 million from earnings today.
Uncover how Alamo Group's forecasts yield a $210.20 fair value, a 26% upside to its current price.
Exploring Other PerspectivesALG 1-Year Stock Price Chart
Two Simply Wall St Community fair value estimates cluster between US$179.31 and US$210.20, underscoring how far individual views can diverge. Set these opinions against the recent pattern of revenue growth but softer earnings and you have a useful starting point to examine how profitability trends might influence Alamo Group’s performance over time.
Explore 2 other fair value estimates on Alamo Group - why the stock might be worth as much as 26% more than the current price!
Story Continues
The Verdict Is Yours
Don't just follow the ticker - dig into the data and build a conviction that's truly your own.
A great starting point for your Alamo Group research is our analysis highlighting 4 key rewards that could impact your investment decision. Our free Alamo Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Alamo Group's overall financial health at a glance.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include ALG.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
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- Alamo (ALG) Q1 2026 Earnings Call Transcript
May 5, 2026
Image source: The Motley Fool.
DATE
Tuesday, May 5, 2026 at 10 a.m. ET
CALL PARTICIPANTS
President and Chief Executive Officer — Robert Hureau Executive Vice President and Chief Financial Officer — Agnes Kamps
Full Conference Call Transcript
Robert Hureau, President and Chief Executive Officer; and Agnes Kamps, Executive Vice President and Chief Financial Officer. Management will make some opening remarks and then we will open up the line for your questions. During the call today, management may reference certain non-GAAP numbers in their remarks. Reconciliations of these non-GAAP results to applicable GAAP numbers are included in the attachment to our earnings release. Before turning the call over to Robert, I would like to make a few comments about forward-looking statements. We will be making forward-looking statements today 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, competition, weather, seasonality, currency-related issues, geopolitical events 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. I would now like to introduce Robert Hureau. Robert, please go ahead.
Robert Hureau: Thank you, Ed. I'd like to thank everyone for joining our first quarter earnings conference call. We appreciate your continued interest in the Alamo Group. Overall, we're pleased with the first quarter financial results. We made good progress with many of our key initiatives. In particular, the Vegetation Management division reported solid improvement in terms of both sales and profitability. I'll turn the call over to Agnes to review our financial results in detail. When she's finished, I'll come back and discuss the performance of each of our divisions and make some remarks regarding our long-term strategic priorities. Agnes?
Agnes Kamps: Thank you, Robert. Good morning, everyone. Net sales for the first quarter of 2026 were $417.1 million, an increase of 6.7% compared to the first quarter of 2025. Gross profit for the first quarter of 2026 was $104.8 million compared to $102.8 million for the first quarter of 2025. Gross margin for the first quarter of 2026 was 25.1%, down 118 basis points compared to the first quarter of 2025. The year-over-year decline was primarily driven by Vegetation Management division reflecting lower net sales in our municipal mowing business and certain manufacturing facilities, which are continuing to ramp up in terms of efficient throughput.
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Importantly, Vegetation Management margins improved meaningfully on a sequential basis as we exited the quarter reflecting operational progress in both facilities. While there's still work to be done, we are encouraged by the traction we are seeing and expect continued improvement as the year progresses. Selling, general and administrative expense or SG&A expense for the first quarter was $57.8 million, up 6.3% from the first quarter of 2025. SG&A expense in the first quarter of 2026 included approximately $3.5 million related to acquisition and integration costs, restructuring costs and the addition of Petersen and Ring-O-Matic acquisitions.
SG&A expense, as a percentage of net sales in the first quarter of 2026, was 13.8% compared to 13.9% in the first quarter of 2025. Net interest expense for the first quarter of 2026 was $3.1 million compared to $2 million in the first quarter of 2025, higher year-over-year as a result of Petersen acquisition. The effective income tax rate was 25.3%, in line with our current and longer-term expectations. During the first quarter of 2026, we recognized $2.5 million of acquisition, integration and restructuring expenses. These costs included $0.6 million primarily related to acquisition and integration of Petersen Industries and $1.9 million in restructuring expenses.
Approximately $1.6 million of this cost was recorded in SG&A and $0.9 million in cost of sales. All of these amounts are treated as adjustments for certain non-GAAP measures as shown in the press release. Adjusted EBITDA for the 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 in the first quarter of 2025. On a sequential basis, adjusted EBITDA improved significantly from the fourth quarter of 2025 when it totaled $44.8 million or 12% of net sales.
Adjusted earnings per share on a fully diluted basis for the first quarter of 2026 were $2.56 compared to $2.70 for the first quarter of 2025 and compared to $1.70 for the fourth quarter of 2025. Now I'll share some comments regarding the results of each of the divisions. Net sales in the Industrial Equipment division for the first quarter of 2026 were $241.7 million, an increase of 6.5% compared to net sales of $227.1 million in the first quarter of 2025. Excluding acquisitions, net sales declined $2.4 million or 1% compared to the first quarter of 2025 largely due to timing of orders in our snow group.
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. We are pleased with the continued strong performance in this division and particularly with the successful integration of Petersen acquisition. Net sales in Vegetation Management division for the first quarter of 2026 were $175.4 million, an increase of 7% compared to net sales of $163.9 million in the first quarter of 2025. The increase is a result of operational improvement in our facilities and modest support from the agricultural end market offsetting weakness in municipal mowing.
Adjusted EBITDA in the Vegetation Management division for the first quarter in 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. Moving on to the balance sheet and cash flow. Cash provided by operating activities for the first quarter of 2026 was negative $23.5 million due to strong sequential growth especially in the Vegetation Management division where the net sales increased by $36.7 million or 26.4% in the first quarter of 2026 compared to the fourth quarter of 2025. The operating cash flow on the last 12-month basis was $139.8 million or 138.2% of net income.
Cash used in investing activities for the first quarter of 2026 was $169.8 million and reflects cash used for the acquisition of Petersen Industries in January 2026 and $4.5 million used for capital expenditures. We funded Petersen acquisition with $120 million draw on our revolver and approximately $50 million cash on hand. We're excited about the acquisition of Petersen given its leadership position, attractive margins and commercial synergies. As of March 31, 2026, our gross debt was $290.5 million and we had $195.2 million in cash on the balance sheet resulting in net leverage ratio of less than 1x. Total liquidity remains very strong, positioning the company well to continue pursuing disciplined M&A opportunities.
To conclude, I would like to emphasize our commitment to delivering long-term value to our shareholders. We are pleased that our Board has approved a quarterly dividend of $0.34 per share. As we move forward, we remain focused on driving growth and optimization of our operations. Thank you. I'll turn it back over to Robert.
Robert Hureau: Thank you, Agnes. Let me start by providing more color on the operating performance for each of our divisions. First, the Industrial Equipment division. As Agnes mentioned, net sales in the Industrial Equipment division increased by about 7% during the quarter. The increase in net sales during the quarter was driven primarily by our acquisitions, including the Petersen acquisition, which closed earlier in this first quarter and Ring-O-Matic acquisition, which closed during the middle of 2025. Net sales in our excavator and vacuum business performed well during the quarter. Net sales in our sweeper and safety business, excluding the effects of the Petersen acquisition, were flattish. And net sales in our snow business declined compared to the prior year.
The decline in net sales in the snow business, as we've discussed, was due to the change in our sales strategy and our placing more emphasis on the quality of its earnings. We believe this strategy is and will continue to prove successful. As for profitability, the adjusted EBITDA margins in the Industrial Equipment division in the quarter were good at around 16%. This was roughly level to the adjusted EBITDA margins in the same quarter in the prior year and reflects positive pricing, procurement savings and the inclusion of the Petersen business given its above-average margin profile partially offset by material inflation, including tariffs and various investments we're making in the division to support long-term growth.
As for the Petersen business, although it's still early, we're very pleased with the initial financial results, the integration activities, the leadership team and the progress related to both the commercial and operational synergies. We'll keep you posted on the performance of this acquisition as it continues to evolve. The book-to-bill in the Industrial Equipment division for the first quarter of 2026 was around 1x. Net orders for the Industrial Equipment division during the first quarter of 2026 were down 11% compared to the prior year. Net orders in the snow business were robust, up double digit year-over-year again this quarter.
This strength reflects the continued end market demand and the strength of our brands, commercial organization and our customer partners. Net orders in the excavation and vacuum business were down. Within the excavation and vacuum business, we're seeing strong order growth in the European markets, which bodes well for our expanded manufacturing facility in France, with softer activity in the U.S. Net orders in our sweeper and safety business, excluding the newly acquired Petersen business, were down but reflect an unusually large multiyear order in the first quarter of 2025 making comparability challenging. Lead times in all the businesses within the Industrial Equipment division are in a good competitive position.
Today, our Industrial Equipment division represents 58% of our total net sales. As a reminder, the products in the Industrial Equipment division serve end markets, including public works, utilities, infrastructure and construction. These are very attractive long-cycle markets. As I mentioned during our last call, net sales in this division and its end markets have been very robust, growing in the high teens over the past few years and were fueled in part by various government-driven investments in infrastructure.
Looking forward, we expect the rate of growth in several of these end markets to slow in 2026 as the near-term effect of those prior external investments and the overall rate of construction spending slows before normalizing and then returning to steady long-term growth. Now the Vegetation Management division. Net sales in the Vegetation Management division increased 7% compared to the first quarter of 2025. This is the first year-over-year increase in quarterly net sales in the Vegetation Management division in 9 quarters. This is a very positive development and it is another data point indicating certain end markets might be settling.
The 7% increase in net sales was due to several factors including the ramping of our production activities in certain key manufacturing facilities, the improvement in underlying demand in certain end markets and favorable pricing partially offset by continued weakness in other end markets. Net sales in our North American ag business were positive reflecting a slightly more constructive end market and ramping manufacturing activity. Net sales in our tree care business were also positive. Performance in the North American portion of this business reflect improved manufacturing efficiencies not necessarily a recovery in the end markets. On the other hand, performance in the European markets reflect improving end market demand and overall strong commercial and operational performance by that team.
Net sales in our municipal mowing business were down in the first quarter of 2026 reflecting continued cautiousness we're experiencing with dealers and the related state DOT offices that use our products as they navigate their fiscal budgets. As for profitability, the adjusted EBITDA margins in the Vegetation Management division in the first quarter of 2026 were about 11%. This is up significantly from the second half of 2025 and just shy of the margins in the first quarter of 2025. This is a positive development. The adjusted EBITDA margins of 11% compared to the first quarter of 2025 reflect volume leverage and favorable pricing offset by material inflation including tariffs and various investments we're making to support long-term growth.
While there's much more work to be done, we're pleased with the margin progression during the quarter. The book-to-bill in the Vegetation Management division for the first quarter of 2026 was 1x. Net orders for the total division during the first quarter of 2026 were up 5% compared to the prior year. Net orders in the North American and European ag businesses were strong. Net orders in tree care were soft reflecting the state of those end markets including the U.S. housing market, which remains weak. And net orders in municipal mowing were down for the reasons I previously highlighted. Today, our Vegetation Management division represents 42% of our total net sales.
As a reminder, the products in the Vegetation Management division serve end markets, including tree care and recycling, agriculture, public works and landscape maintenance. As I mentioned on our last call, net sales in this division and its end markets have declined over the past few years rolling over a period of significant growth that occurred between 2021 and 2023. Looking forward, we expect the rate of decline in the end markets to slow. While we're pleased with the improvement in net sales in the Vegetation Management division during the quarter, we would not necessarily expect the end markets to support this level of year-over-year growth over the balance of the year.
I'd now like to share some comments regarding the broad framework of our long-term strategy. As mentioned before, there are 4 pillars of the strategy, which will focus into both resources: first, people and culture; second, commercial excellence; third, operational excellence; and fourth, capital deployment. Within each of these strategic pillars, there exists a series of prioritized initiatives on which our teams are working. We made good progress on all initiatives during the quarter. Today, I'd like to provide an update on our product innovation activities. Over the past 2 calls, we highlighted a few exciting new products.
As a reminder, these included: first, our new non-CDL vacuum truck that can be purpose-built as a hydro excavator or a sewer combo cleaner providing greater appeal in the urban and rental applications due to its compact size and the operator not needing to hold a commercial driver's license. This product was engineered for efficient manufacturing and economical international shipping. Interestingly, this product is already sold out in 2026. And second, our next-generation hybrid sweepers that run on diesel, CNG or electric chassis globally and use a proprietary electric sweeping architecture delivering superior efficiency, safety and performance. We have a smaller NiteHawk hybrid air sweeper that's already in commercial production and generating significant customer interest.
And we have a larger Schwarze hybrid mechanical sweeper that is smashing performance standards in testing in advance of a commercial launch in the second half of 2026. Operators love these products. Today, I'd like to highlight our new Wide Wing System introduced by our snow business. This innovative snow plow operates an extendable side wing system attached to a tri-drive chassis offering a clearing capacity up to 27 feet, which is roughly 80% greater than standard large plows. This dramatically improved productivity, lowered total cost of ownership and increased operational flexibility is a game changer for state DOTs and road maintenance contractors.
In addition, its technology is patent protected in both the United States and Canada demonstrating once again our first-mover advantage. This product is quickly becoming the industry standard in the heavy-duty category and will eventually obsolete the traditional tow plow approach to snow removal. We highlight this and the other products today not necessarily to support or help you forecast what sales might be in coming quarters, but simply to provide color around and share a vision regarding how Alamo Group and all our wonderful brands will revolutionize the vocational truck and land maintenance segments through our engineering expertise, adaptive technologies and entrepreneurial culture over the next 3 to 5 years. Much more to come in future calls.
In summary, I'd like to express our thanks and appreciation to all our employees who work tirelessly to produce, sell and develop the very best brands of vocational trucks and mowing and tree care products in the industry. I'd also like to thank our customers and our investors for their trust and support. This concludes our prepared remarks. Operator, please open the lines for questions.
Operator:[Operator Instructions] Our first question comes from Chris Moore of CJS Securities.
Christopher Moore: Maybe we can start on the Industrial side. So Industrial organic growth declined 1% in Q1. You said book-to-bill was about 1. I guess the question is what are the puts and takes to doing that 5% organic growth for Industrial in '26?
Robert Hureau: Yes. I think maybe we can start with net sales expectations and then move into end markets and orders. Overall, Chris, I think as we said in the past when we take a look at the industrial business and we look out over the course of the year, we think the year is likely to be excluding acquisitions kind of a flattish year, anywhere between flattish to up very low single digits and then acquisitions on top of that.
The basis in part for that is as we reflect over the last several years as we mentioned a number of times, really extraordinary growth over the past few years; 17%, 18%, 19% year-over-year growth for nearly 8 quarters in a row. We simply think it's going to be really difficult to keep that pace. Although we think the markets are constructive and healthy, that order pattern is going to slow in 2026 and that's going to result in roughly flattish net sales over the course of the year and then of course adding acquisitions on to that. We think the end markets are really constructive long term.
This is a place we're going to continue to invest particularly around M&A. We like the end markets. It's just that this year is going to be a little bit of a transition year coming off the robust highs of the prior 2 years, if you will.
Christopher Moore: Got it. Very helpful. And maybe just 1 on Vegetation. So it sounds like some of the challenges in the plant consolidation, you could see significant improvement as the quarter ended. Just trying to get a feel for how we should be thinking about Vegetation operating margins for the balance of '26.
Robert Hureau: Yes. So the first comment would be or the first response to that would be that we made really good progress during the quarter. We're not where we want to be. The margin profile and the sales performance in the quarter were roughly in line with expectation. We've done well. We've got more work to do to get those margins where we want. But generally speaking, we were fairly pleased with those overall results. With respect to the Vegetation business and as we think about it long term, kind of conversely to what I said about the Industrial division, the Vegetation business has been declining for the last few years having come off those really highs of '21 and '22.
We think that rate of decline is going to slow over the course of 2026. That's likely to put us in a place where over the course of 2026, Vegetation end markets are flattish, maybe still down a little bit; but definitely sequentially improving, if you will. Versus where we were a few months ago when we last talked, I would say we're a bit more cautious on Vegetation despite the good quarter, despite the 7% year-over-year growth. And for that, we point to some of the third-party data that's out there certainly with respect to inflation. We know fertilizer cost is rising. Those input costs at farmers and ag are rising. Freight is rising.
We've seen retail tractor sales in that 40 to 100 horsepower range decline for the last few months. So while we still think 2026 is a stabilizing year, I would say that we're a bit more cautious today than we were a few months as we look out. Nonetheless, pleased with good performance during the quarter and expect continued margin progression as we move forward over the course of 2026.
Christopher Moore: Very helpful. I was going to ask you about inflation and interest rates on Vegetation. You answered it already so I will leave it there. I really appreciate it.
Operator: Our next question comes from Mike Shlisky of D.A. Davidson.
Michael Shlisky: I want to start off on the snow business. I think your comments, Agnes, were about delayed orders and you've been kind of rolling out a single-family of brand strategy, if you will, or that's what it seems like in the marketplace as Alamo snow in general as opposed to Tenco and Henke separately. Are the delayed orders due to the changeover in strategy or are there budget release or something else? I guess I'm kind of wondering if your comments, Agnes, and your comments, Robert, are related to each other.
Robert Hureau: Well, we'll step back and we'll cover a couple of pieces here on snow just to make sure we're aligned on some of the things we've said. The first comment again is just to remind everybody that the year-over-year sales decline in the snow group, if you will, is really a function of us not chasing every last single dollar of sales. In the past we would do so even if that meant outsourcing the upfitting then drives a much lower margin profile and so we've deliberately stopped that. We're being a bit more selective on the orders we take, if you will. The order pattern is good, it's strong, it's growing, it's healthy.
Importantly, our lead times are in a good competitive spot. We actually think we're in a much better position in terms of lead times relative to our competitors and so that kind of gives us confidence that this strategy is still the right strategy. And so what you're going to see as a result is top line pressure year-over-year not a tremendous amount, but you're going to see top line pressure, but we'll at the same time see improved profitability over the course of the year. Again, the robust order pattern really speaks to the health of the brand, the innovation, the commercial team, the end market demand.
Again the lead times are better positioned we feel than our competition and so we're not concerned about the growing backlog in that business. Does that help, Mike?
Michael Shlisky: Yes. I guess I also just wondering about operationally your sales strategy has changed it seems and how that was going?
Robert Hureau: Yes, it's working well. I mean I think we're not going to share the level of granularity here in the call. But when you look at the profitability of that business, it's definitively moving in the right direction and we're pretty pleased with that.
Agnes Kamps: Mike, maybe if I could add just the reference that I had made about timing of orders. I mentioned that revenue was down due to timing of orders, but that just means when those orders are placed and revenue recognized. The order intake is actually very strong in our snow business.
Michael Shlisky: Got it. Outstanding. Just also want to move on to Vegetation quickly as well. Was there -- in the first quarter, I think you mentioned you were getting production ramped up. If I'm wrong, correct me there. But just give us a sense as to the overall dealership inventory levels in that business. Did you increase throughput to meet inventory demand or end user demand in the quarter?
Robert Hureau: Yes. I would say that overall, speaking broadly, the inventory in the dealer channel is in a reasonably good spot. In the ag business, it's fairly low. In the tree care space, it's reasonable. In municipal mowing, it's low and in the European markets, it's in a reasonable position. So we feel good about that. We have in the U.S. ag business strong orders. We've had strong orders now for several quarters and that's continuing.
The ramping of production in both the U.S. ag business and the tree care business really reflect the ramping of the manufacturing efficiencies which, as you know, we struggled with during the third and fourth quarter, therefore delivering orders that were in backlog, if you will. But at the same time, continuing to refill that backlog with robust order patterns. So the comments we made in the prepared remarks, I would say the end markets are still very -- moving in a very positive manner for U.S. ag and Europe ag, but the sales were driven in part by delivering on those orders that we had from prior quarters.
Something similar with the tree care space although I would say that there really isn't a recovery yet in the end markets in the tree care space. We drove positive sales performance in tree care because the team there -- the new team there really drove that the manufacturing productivity improvement and throughput during the quarter and we're pleased with that. That will be very helpful as we continue over the balance of the year.
Operator: The next question comes from Mig Dobre of Baird.
Joseph Grabowski: It's Joe Grabowski on for Mig this morning. So I wanted to start off asking about Petersen. You've owned it for about 90 days and you talked a little bit about it in your prepared remarks. But maybe just flesh out any early impressions you have and how the integration is proceeding and maybe any updated thoughts on the commercial and operational synergies you see.
Robert Hureau: Yes. Overall, really pleased and impressed with the team at Petersen. I think as you may know as we may have mentioned as the founders exited the business, we put in a leader from our group; somebody who's very strong, very familiar with that business. The integration of that leader and the team has been really positive, smooth. The culture is strong. We've been working on the back end of the business, the systems, things of that nature. That has all gone well. Initial impressions now having owned it for a few months as we look at the commercial opportunities and the operational opportunities, I would say 2 thumbs up.
We know where there are commercial opportunities meaning dealers particularly on the West Coast of the United States where we have presence, but Petersen doesn't where we think there's an opportunity to roll those products out. As we said, we're making investments certainly on the commercial side to drive those sales to capture that share. So we're really enthusiastic about that. And we also see and have validated the operational synergies, particularly around chassis and what we can do there, leveraging the broader Alamo purchasing power, if you will. So overall, really pleased, no hiccups, should be a good year for us.
Joseph Grabowski: All right. That sounds great. And then my last question, you mentioned tariff impacts a couple of times. Obviously tariff levels and calculations have been moving around a lot lately. Any change in your outlook for the impact from tariffs maybe versus where we were last quarter?
Robert Hureau: No, not really. A few things maybe just to highlight for folks. On a year-over-year basis of course no tariffs in Q1 of 2025. They're in there in our operating results in Q1 of 2026. So on a year-over-year basis, that would have been a margin headwind. We've also said that in the aggregate on a 12-month basis, tariffs should generally be running somewhere slightly short of 1% of sales, if you will, something in that zip code. We've done the math and we've looked at what the impact of the IEA tariffs rolling off and the new ones coming in. We think generally we're in about the same spot.
But by business unit, depending on where the country of manufacturing is, we might see some differences now with the new rules by business unit and between divisions generally. But overall, the overarching theme is we're still in about that same spot at 0.8% or 0.9%, something like that as a percentage of sales.
Operator:[Operator Instructions] Our next question comes from Greg Burns of Sidoti & Company.
Gregory Burns: So I just wanted to kind of little better understand the positive revenue and order trends you've seen in recent quarters around ag versus your more cautious outlook maybe given some of the macro data points you're seeing. Are you seeing it anywhere in your -- that caution, are you seeing it anywhere in your business yet or is it just looking at the market and assuming maybe there could be a little bit more caution amongst dealers and end customers given what you're seeing in the future?
Robert Hureau: Yes. I would say there wasn't a lot of impact in the first quarter that we experienced in our financial results. I would say that we're starting to see higher levels of freight costs from the rise in fuel costs, et cetera. We are looking at a number of third-party data that would suggest things might be a little bit more negative than where we were 2, 3 months ago prior to the war. The other internal data point would be as we speak with customers, those conversations would validate that a slightly more cautious tone at this point is warranted.
Now that said, we still see really robust year-over-year order growth in the North American ag business and in the European ag business. Just the tone is changing slow here over the course of the last 30 days or thereabouts and so really just cautious. That's all.
Gregory Burns: Okay. When we look at your longer-term consolidated margin targets that you laid out a couple of quarters ago, obviously volume will benefit there and the integration of some of the more recent acquisitions. But can you maybe outline some of the other maybe internal initiatives that you're putting in place to bridge the gap from where you are now in terms of maybe EBITDA margins versus what those -- where your kind of medium-range goals are?
Robert Hureau: Yes, definitely. So let me back up and remind everyone of what some of those goals were and how we intend to get there and then, Greg, just point us in the direction where you want to drill down deeper. So we have said that long term through the cycle, we have a number of financial objectives and targets. That is 10% plus growth in terms of sales, 15% adjusted operating margins, 18% plus adjusted EBITDA margins and free cash flow as a percentage of net income of 100%. Today, I would say as we think about where we are and the initiatives that we have over the next several years, those financial targets are still intact.
We still have a high degree of confidence of getting there. It does importantly require a recovery in the Vegetation end markets. As we've said, we're starting to see that. Things are moving in the right direction. First quarter was a very positive sign of that. We've also outlined those 4 strategic pillars: culture and engagement, commercial, operational and capital deployment. Within commercial and operational, there are 3 things that we think will help drive 300 basis points or thereabouts improvement in the operating and adjusted EBITDA margins, if you will. And for simplicity's sake, you can say equal weight between the 3. Procurement savings, we've launched a company-wide project. That is well under -- Phase 1 is well underway.
In fact the work that's being done not only is it validating what we think is out there, but there appears to be some upside. So the procurement initiative is a big and important one. Secondly, we expect continued investment in our manufacturing, our lean team, our continuous improvement team to drive manufacturing efficiencies, some robotics and automation added on where we need, upgrading technologies within the plants and continued manufacturing footprint optimization. We think long term there's another 100 basis points there. And then the third one that falls within the commercial pillar is around parts and sales. We ran in 2025 somewhere in the neighborhood of 16% of sales. We believe we are underweight.
We know we're down on a year from prior years. We think there's good opportunity there. A simple 200 basis point to 300 basis point improvement of that overall mix should drive 100 basis points of margin improvement. That project is just getting started. We're making the investments. We're working with the business units to get that going. That's a longer-term project. But all 3 of those we think are the foundation for driving margin improvement over the next several years. One caution I would put there is on the procurement side. Given the level of inventory, we don't really expect to see much improvement until the latter part of 2026.
We need to burn through that inventory, which the business units are doing. So those are some of the drivers that get us to those 15% and 18%. The gap, if you will, if you're doing the math quickly and based on what I said; the gap really is the recovery in the Vegetation business. We ran 11% adjusted EBITDA margins in the quarter. We need to get that 200 basis points or 300 basis points up more, which we think will come as that Vegetation division and its end markets settle and begin to grow again. We think it's very achievable. We're very encouraged with the progress that we're making so far.
And perhaps the last thing I would say, all of that is underpinned by creating a wonderful place for the nearly 4,000 employees here at Alamo Group to work and that speaks to the culture and engagement pillar that I alluded to. That was a long-winded answer, sorry about that. But hopefully, it provides the color you're looking for.
Gregory Burns: Perfect. That's exactly what I was hoping for. Thank you for that and good luck.
Operator: This concludes our question-and-answer session. I would like to turn the conference back over to management for any closing remarks.
Robert Hureau: Thank you. Again we appreciate your support and interest in the Alamo Group and look forward to speaking with you on our next call.
Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.
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Alamo (ALG) Q1 2026 Earnings Call Transcript was originally published by The Motley Fool
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- Alamo Group Inc. (ALG) Q1 2026 Earnings Call Transcript
May 5, 2026 · seekingalpha.com
Alamo Group Inc. (ALG) Q1 2026 Earnings Call Transcript
- Alamo Group Inc. Q1 2026 Earnings Call Summary
May 5, 2026
Alamo Group Inc. Q1 2026 Earnings Call Summary - Moby
Strategic Performance Drivers
Vegetation Management achieved its first quarterly year-over-year sales increase in nine quarters, signaling a potential stabilization in previously declining end markets. Industrial Equipment growth was primarily driven by the successful integration of the Petersen and Ring-O-Matic acquisitions, offsetting a deliberate strategy to prioritize earnings quality over volume in the snow business. Gross margin compression of 118 basis points was attributed to lower municipal mowing sales and temporary inefficiencies at manufacturing facilities currently ramping up throughput. Management is pivoting the snow business strategy to be more selective with orders, favoring internal upfitting over lower-margin outsourcing to improve long-term profitability. Operational progress in Vegetation Management facilities led to meaningful sequential margin improvement as the company exited the first quarter. The Industrial division is entering a 'transition year' as it laps two years of high-teens growth fueled by prior government infrastructure investments. Strategic focus remains on four pillars: people and culture, commercial excellence, operational excellence, and disciplined capital deployment.
Outlook and Strategic Assumptions
Industrial Equipment organic sales are expected to be flattish to up low-single digits in 2026 as market growth rates normalize following a period of robust expansion. Vegetation Management end markets are projected to stabilize or decline slightly through 2026, with management expressing increased caution due to rising fertilizer, freight, and input costs. A company-wide procurement initiative is expected to yield margin benefits starting in late 2026 once current higher-cost inventory is fully processed. Long-term financial targets include 18% plus adjusted EBITDA margins, contingent on a full recovery in Vegetation Management and a 200-300 basis point improvement in parts sales mix. The company anticipates continued margin progression throughout 2026 driven by manufacturing efficiencies and new product innovation, including the commercial launch of the hybrid mechanical sweeper in the second half of the year.
Operational and Risk Factors
The Petersen acquisition was funded via a $120 million revolver draw and $50 million in cash, maintaining a net leverage ratio below 1x. Tariffs represent a persistent margin headwind, with costs estimated at approximately 0.8% to 0.9% of sales. Restructuring expenses of $1.9 million were incurred during the quarter as part of ongoing manufacturing footprint optimization. Municipal mowing remains a headwind as state DOT offices and dealers exhibit caution while navigating fiscal budget uncertainties.
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Q&A Session Highlights
Organic growth drivers and market outlook for Industrial Equipment
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Management expects a transition year with flattish organic growth after eight quarters of nearly 20% growth. The slowdown is viewed as a normalization of the order pattern rather than a fundamental market decline.
Vegetation Management margin trajectory and macro headwinds
Management is more cautious than three months ago due to rising inflation in fertilizer and freight, alongside declining retail tractor sales in the 40-100 HP range. Despite macro caution, internal manufacturing productivity improvements are expected to drive continued margin recovery.
Integration progress and synergy capture from Petersen acquisition
Integration is proceeding smoothly with a new leader from Alamo Group already installed. Commercial synergies are being targeted by introducing Petersen products to Alamo's established dealer networks on the U.S. West Coast.
Strategic shift in the snow removal business
The decline in snow sales is a deliberate result of exiting low-margin outsourced upfitting work. Order intake remains robust with double-digit growth, and lead times are currently in a better competitive position than peers.
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- Alamo Group (ALG) Q1 Earnings and Revenues Top Estimates
May 4, 2026
Alamo Group (ALG) came out with quarterly earnings of $2.56 per share, beating the Zacks Consensus Estimate of $2.15 per share. This compares to earnings of $2.65 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +19.07%. A quarter ago, it was expected that this maker of road maintenance, industrial and farm equipment would post earnings of $2.06 per share when it actually produced earnings of $1.7, delivering a surprise of -17.48%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Alamo Group, which belongs to the Zacks Manufacturing - Farm Equipment industry, posted revenues of $417.15 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 5.54%. This compares to year-ago revenues of $390.95 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Alamo Group shares have added about 2.1% since the beginning of the year versus the S&P 500's gain of 5.6%.
What's Next for Alamo Group?
While Alamo Group has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Alamo Group was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.73 on $436.5 million in revenues for the coming quarter and $10.31 on $1.68 billion in revenues for the current fiscal year.
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Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Manufacturing - Farm Equipment is currently in the bottom 11% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Deere (DE), another stock in the same industry, has yet to report results for the quarter ended April 2026. The results are expected to be released on May 21.
This agricultural equipment manufacturer is expected to post quarterly earnings of $5.81 per share in its upcoming report, which represents a year-over-year change of -12.5%. The consensus EPS estimate for the quarter has been revised 0.4% higher over the last 30 days to the current level.
Deere's revenues are expected to be $11.44 billion, up 2.4% from the year-ago quarter.
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This article originally published on Zacks Investment Research (zacks.com).
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- Alamo (NYSE:ALG) Delivers Strong Q1 CY2026 Numbers
May 4, 2026
Specialized equipment manufacturer for infrastructure and vegetation management Alamo Group (NYSE:ALG) reported Q1 CY2026 results topping the market’s revenue expectations , with sales up 6.7% year on year to $417.1 million. Its non-GAAP profit of $2.56 per share was 16.2% above analysts’ consensus estimates.
Is now the time to buy Alamo? Find out in our full research report.
Alamo (ALG) Q1 CY2026 Highlights:
Revenue: $417.1 million vs analyst estimates of $398 million (6.7% year-on-year growth, 4.8% beat) Adjusted EPS: $2.56 vs analyst estimates of $2.20 (16.2% beat) Adjusted EBITDA: $59.32 million vs analyst estimates of $51.7 million (14.2% margin, 14.7% beat) Operating Margin: 10.1%, down from 11.4% in the same quarter last year Free Cash Flow was -$28.02 million, down from $8.19 million in the same quarter last year Market Capitalization: $2.09 billion
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."
Company Overview
Expanding its markets through acquisitions since its founding, Alamo (NYSE:ALG) designs, manufactures, and services vegetation management and infrastructure maintenance equipment for governmental, industrial, and agricultural use.
Revenue Growth
A company’s long-term performance is an indicator of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last five years, Alamo grew its sales at a mediocre 7% compounded annual growth rate. This fell short of our benchmark for the industrials sector and is a poor baseline for our analysis.Alamo Quarterly Revenue
Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Alamo’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 2.2% annually.Alamo Year-On-Year Revenue Growth
This quarter, Alamo reported year-on-year revenue growth of 6.7%, and its $417.1 million of revenue exceeded Wall Street’s estimates by 4.8%.
Looking ahead, sell-side analysts expect revenue to grow 3.7% over the next 12 months. Although this projection implies its newer products and services will spur better top-line performance, it is still below the sector average.
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Operating Margin
Alamo’s operating margin has more or less stayed the same over the last 12 months , averaging 10.1% over the last five years. This profitability was solid for an industrials business and shows it’s an efficient company that manages its expenses well. This result was particularly impressive because of its low gross margin, which is mostly a factor of what it sells and takes huge shifts to move meaningfully. Companies have more control over their operating margins, and it’s a show of well-managed operations if they’re high when gross margins are low.
Looking at the trend in its profitability, Alamo’s operating margin might fluctuated slightly but has generally stayed the same over the last five years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability.Alamo Trailing 12-Month Operating Margin (GAAP)
This quarter, Alamo generated an operating margin profit margin of 10.1%, down 1.3 percentage points year on year. Since Alamo’s operating margin decreased more than its gross margin, we can assume it was less efficient because expenses such as marketing, R&D, and administrative overhead increased.
Earnings Per Share
Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.
Alamo’s EPS grew at 11.6% compounded annual growth rate over the last five years, higher than its 7% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.Alamo Trailing 12-Month EPS (Non-GAAP)
Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.
For Alamo, its two-year annual EPS declines of 9.7% mark a reversal from its (seemingly) healthy five-year trend. We hope Alamo can return to earnings growth in the future.
In Q1, Alamo reported adjusted EPS of $2.56, down from $2.64 in the same quarter last year. Despite falling year on year, this print easily cleared analysts’ estimates. Over the next 12 months, Wall Street expects Alamo’s full-year EPS of $9.17 to grow 16.3%.
Key Takeaways from Alamo’s Q1 Results
We were impressed by how significantly Alamo blew past analysts’ EBITDA expectations this quarter. We were also excited its adjusted operating income outperformed Wall Street’s estimates by a wide margin. Zooming out, we think this was a good print with some key areas of upside. The stock traded up 3% to $172.75 immediately following the results.
Sure, Alamo had a solid quarter, but if we look at the bigger picture, is this stock a buy? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free.
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- ALAMO GROUP ANNOUNCES FINANCIAL RESULTS FOR THE FIRST QUARTER 2026
May 4, 2026
SEGUIN, Texas, May 4, 2026 /PRNewswire/ -- 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.
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.
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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.
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)
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
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
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
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.
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
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
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
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
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 % Cision
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