Alamo Group Inc
NYSE:ALG
Alamo Group Inc
Alamo Group Inc. emerges as a formidable name in the world of industrial and agricultural machinery, tracing its roots back to 1969. Headquartered in Seguin, Texas, the company has steadily grown its presence through an unwavering commitment to manufacturing quality equipment designed for vegetation management, infrastructure, and agricultural maintenance. Alamo’s extensive product line includes mowers and tractors, brush cutters, vacuum trucks, road maintenance apparatus, and snow removal machines. Each piece of equipment is meticulously engineered to ensure that landscape contractors, farmers, and state agencies can perform tasks with maximum efficiency and minimum downtime.
The company operates through two main segments: Industrial and Agricultural. In the Industrial division, Alamo sells products primarily to governmental entities and related contractors. These include road maintenance and vegetation management equipment crucial for public safety and infrastructure upkeep. Their Agricultural segment, meanwhile, caters to a global clientele of farmers by providing essential machinery that enhances the productivity and sustainability of agricultural operations. With a robust distribution network and a reputation for reliability, Alamo Group drives revenue by continually meeting the evolving needs of its diverse customer base through a combination of strategic acquisitions and innovations in product offerings.
Alamo Group Inc. emerges as a formidable name in the world of industrial and agricultural machinery, tracing its roots back to 1969. Headquartered in Seguin, Texas, the company has steadily grown its presence through an unwavering commitment to manufacturing quality equipment designed for vegetation management, infrastructure, and agricultural maintenance. Alamo’s extensive product line includes mowers and tractors, brush cutters, vacuum trucks, road maintenance apparatus, and snow removal machines. Each piece of equipment is meticulously engineered to ensure that landscape contractors, farmers, and state agencies can perform tasks with maximum efficiency and minimum downtime.
The company operates through two main segments: Industrial and Agricultural. In the Industrial division, Alamo sells products primarily to governmental entities and related contractors. These include road maintenance and vegetation management equipment crucial for public safety and infrastructure upkeep. Their Agricultural segment, meanwhile, caters to a global clientele of farmers by providing essential machinery that enhances the productivity and sustainability of agricultural operations. With a robust distribution network and a reputation for reliability, Alamo Group drives revenue by continually meeting the evolving needs of its diverse customer base through a combination of strategic acquisitions and innovations in product offerings.
Revenue: Net sales for Q4 2025 were $373.7 million, down 3% year-over-year.
Margins: Gross margin fell to 22.7% (down 110 bps YoY); Q4 adjusted EBITDA was $44.8 million and adjusted EPS was $1.70 (down from $2.39).
Divisional split: Industrial Equipment grew (Q4 sales $234.9M, up 4.2%) with strong margins; Vegetation Management weakened (Q4 sales $138.7M, down 13.2%) and saw large margin compression.
Cash & balance sheet: Operating cash flow for FY2025 was $177.5 million; cash on hand $309.7 million and gross debt $205.7 million as of Dec. 31, 2025. Petersen acquisition closed in Jan 2026 (funded with $120M revolver draw + ~$50M cash).
Actions & outlook: Management is pursuing manufacturing consolidations, procurement and supply-chain initiatives, selective divestitures of product lines, and tuck-in M&A; long-term targets: ~10% sales growth, ~15% operating margin, 18–20% adjusted EBITDA margin, and 100% free-cash-flow-to-net-income conversion.
Dividend: Board increased quarterly dividend by $0.04 to $0.34 per share (13.3% increase).
