Alamo Group Inc. (NYSE:ALG) reported third-quarter 2026 financial results on November 2, 2026, disclosing net sales of $403.1 million, $33.3 million in net pre-tax portfolio optimization charges, and the acquisition of Econ Engineering Group Limited for £120.0 million ($158.7 million).

Key Highlights

  • Net sales: $403.1 million for Q3 2026, down 4.0% from $420.0 million in Q3 2025.
  • Net income: $2.0 million, or $0.17 per diluted share, compared to $25.4 million, or $2.10 per diluted share, in Q3 2025.
  • Adjusted diluted EPS: $2.06, compared to $2.34 in Q3 2025; adjusted EBITDA was $52.4 million, or 13.0% of net sales.
  • Portfolio optimization charges: $33.3 million of net pre-tax charges in Q3 2026, related to the sale and wind-down of businesses including Dixie Chopper and Boxer.
  • Econ acquisition: On October 27, 2026, the company acquired Econ Engineering Group Limited for £120.0 million ($158.7 million), funded by borrowings under its revolving credit facility.
  • Balance sheet: Cash of $230.7 million and total debt of $232.3 million at September 30, 2026; available revolving credit facility borrowings of $363.6 million.
  • Backlog: $521.3 million at September 30, 2026, compared to $618.3 million at September 30, 2025.

Alamo Group Reports Q3 2026 Results Amid Charges and Strategic Moves

According to the filing, Alamo Group's third-quarter 2026 net sales fell 4.0% to $403.1 million from $420.0 million in the prior-year period. Net income declined sharply to $2.0 million, or $0.17 per diluted share, from $25.4 million, or $2.10 per diluted share, in Q3 2025. The company attributed much of this decline to $33.3 million in net pre-tax charges related to portfolio optimization, which included inventory valuation adjustments, impairment of intangible and other long-lived assets, and wind-down costs associated with the Dixie Chopper and Boxer brands. The charges were recorded across multiple line items: $7.3 million as a reduction in sales, $15.5 million in cost of sales, $9.0 million in selling, general and administrative expenses, and $1.5 million in other income and expense.

The filing reported adjusted net income of $24.9 million, or $2.06 per diluted share, and adjusted EBITDA of $52.4 million, or 13.0% of net sales. By division, Industrial Equipment net sales were $232.8 million, down 5.8%, with adjusted EBITDA of $31.1 million, or 13.4% of net sales, compared to 15.5% in Q3 2025. Vegetation Management net sales were $170.4 million, down 1.5%, though adjusted EBITDA margin improved to 12.5% from 9.7% in the prior-year quarter, according to the filing.

Subsequent to quarter end, Alamo Group disclosed that on October 27, 2026, it acquired 100% of the outstanding equity of Econ Engineering Group Limited, a U.K. manufacturer of roadway maintenance vocational trucks, for £120.0 million ($158.7 million) plus customary closing adjustments, using borrowings under its revolving credit facility. For the first nine months of 2026, the filing reported net sales increased 3.3% to $1.3 billion, adjusted EBITDA of $175.6 million, or 13.8% of net sales, and diluted EPS of $5.14 compared to $7.31 in the same period of 2025.

What Was Disclosed

Alamo Group disclosed Q3 2026 earnings with net sales of $403.1 million, $33.3 million in portfolio optimization charges, adjusted EBITDA of $52.4 million, and the post-quarter acquisition of Econ Engineering Group Limited for £120.0 million ($158.7 million).