Alamo Group Inc. filed its quarterly report on Form 10-Q with the SEC on November 4, 2026, covering the three and nine months ended September 30, 2026, disclosing a sharp decline in third-quarter net income alongside lower total net sales compared to the same period a year earlier.

Key Highlights

  • Q3 net income fell to $2.026 million from $25.383 million in Q3 2025, according to the filing.
  • Q3 total net sales were $403.137 million, down from $420.042 million in the prior-year quarter, with Vegetation Management contributing $170.380 million and Industrial Equipment $232.757 million.
  • Q3 gross profit declined to $76.122 million from $101.683 million a year earlier, as cost of sales rose to $327.015 million from $318.359 million.
  • Nine-month net income was $62.150 million, or $5.14 per diluted share, compared to $88.289 million, or $7.31 per diluted share, for the same period of 2025.
  • Dividends declared in Q3 were $0.34 per share, bringing the nine-month total to $1.02 per share, up from $0.90 per share in the first nine months of 2025.
  • Total assets stood at $1.699 billion at September 30, 2026, versus $1.607 billion at December 31, 2025, with goodwill increasing to $270.922 million from $214.611 million.
  • Common stock repurchases of $9.360 million were executed during the second quarter of 2026, with 144,532 treasury shares held as of September 30, 2026.

Alamo Group's Third-Quarter 2026 Financial Results: Sales Decline and Margin Compression

According to the filing, Alamo Group (NYSE:ALG) reported Q3 2026 net income of $2.026 million, or $0.17 per basic and diluted share, a significant reduction from $25.383 million, or $2.10 per diluted share, in Q3 2025. The company attributed the decline in profitability partly to higher selling, general and administrative expenses, which rose to $67.610 million in Q3 2026 from $59.931 million in Q3 2025, and higher amortization expense of $5.073 million versus $4.210 million in the prior-year quarter. Income from operations fell to $3.439 million from $37.542 million.

For the nine months ended September 30, 2026, the filing reported total net sales of $1.271 billion, up from $1.230 billion in the comparable 2025 period. The Industrial Equipment segment contributed $746.127 million and Vegetation Management contributed $524.892 million for the nine-month period. Nine-month cost of sales, however, rose to $979.236 million from $917.249 million, compressing gross profit to $291.783 million from $312.816 million year over year.

The balance sheet as of September 30, 2026 reflected total assets of $1.699 billion and total stockholders' equity of $1.186 billion. Goodwill increased to $270.922 million from $214.611 million at December 31, 2025, and intangible assets, net, rose to $202.531 million from $144.932 million, suggesting acquisition activity during the period. Cash and cash equivalents declined to $230.650 million from $309.659 million at year-end 2025. Long-term debt, net of current maturities, increased to $227.252 million from $190.748 million. As of November 3, 2026, the filing stated that 12,164,936 shares of common stock were outstanding.

What Was Disclosed

Alamo Group's Form 10-Q for Q3 2026 disclosed lower quarterly net income, reduced gross profit, higher operating expenses, and an increase in goodwill and intangible assets on the balance sheet relative to year-end 2025, alongside continued quarterly dividends of $0.34 per share.