Research Reports

Key takeaways

Revenue increased 6.7% to $417.1M from $390.9M as higher net sales in Industrial Equipment supported growth.

Gross profit rose 1.9% to $104.8M from $102.8M, though overall gross margin declined to 25.1% due to operational inefficiencies in Vegetation Management.

Operating income declined 5.2% to $42.2M from $44.5M as gross profit gains were offset by higher SG&A.

Net income decreased 8.2% to $29.2M from $31.8M, with diluted EPS falling 8.7% to $2.41 from $2.64.

Operating cash flow swung to -$23.5M from +$14.2M primarily due to cash used for Petersen Industries acquisition, partly offset by revenue-driven increases in receivables and inventory.

Free cash flow was -$28.0M after $4.5M capex, down from $6.0M prior year.

Full analysis

Alamo Group Inc. reported Q1 2026 results reflecting acquisition-driven top-line growth amid operational challenges. Revenue reached $417.1 million, up 6.7% from $390.9 million in Q1 2025, supported by higher net sales in the Industrial Equipment Division. This growth helped lift gross profit to $104.8 million, a 1.9% increase from $102.8 million, but the gross margin contracted to 25.1% due to operational inefficiencies in the Vegetation Management Division despite higher sales volumes there.

Operating income fell 5.2% to $42.2 million from $44.5 million, with the operating margin at 10.1%. The decline reflects pressures beyond gross profit, including elevated SG&A expenses likely tied to acquisition integration and amortization. Net income followed suit, dropping 8.2% to $29.2 million from $31.8 million, accompanied by diluted EPS of $2.41 versus $2.64. The higher tax rate in the quarter stemmed largely from a lower expected R&D credit for 2026.

ALG · Alamo Group Inc.

Summary

Key takeaways

Full analysis