Key Highlights

  • Net sales were USD 403.1 million, down 4.0%, and diluted EPS was USD 0.17 versus USD 2.10 a year earlier.
  • Adjusted Net Income was USD 24.9 million, or USD 2.06 per diluted share, versus USD 28.2 million, or USD 2.34.
  • Adjusted EBITDA was USD 52.4 million, or 13.0% of net sales, compared with USD 55.0 million, or 13.1%.
  • The company acquired Econ Engineering Group, a U.K. roadway maintenance truck maker, for GBP 120.0 million on October 27.

Results and Charges

Alamo Group Inc. (NYSE:ALG) reported third-quarter 2026 net sales of USD 403.1 million, down 4.0% from the prior year. Net income was USD 2.0 million, or USD 0.17 per diluted share, compared with USD 25.4 million, or USD 2.10. Adjusted net income was USD 24.9 million, or USD 2.06 per diluted share, versus USD 28.2 million, or USD 2.34.

Results included USD 33.3 million of net pre-tax charges for the sale and wind-down of several businesses and product lines, including Dixie Chopper and Boxer. USD 7.3 million was recorded as a reduction in sales, USD 15.5 million in cost of sales, USD 9.0 million in selling, general and administrative expenses and USD 1.5 million in other income and expense. The charges covered Inventory Valuation adjustments, Impairment of intangible and other long-lived Assets and wind-down costs, and also produced discrete tax effects that temporarily raised the effective tax rate.

Margins and Cash

The Industrial Equipment Division had net sales of USD 232.8 million, down 5.8% from USD 247.0 million, as softer end markets and order timing were partly offset by the Petersen acquisition, and sales fell about 12.6% excluding Petersen. Its adjusted EBITDA was USD 31.1 million, or 13.4% of net sales, versus USD 38.2 million, or 15.5%, reflecting material and freight Inflation and lower sales over fixed costs. The Vegetation Management Division had net sales of USD 170.4 million, down 1.5% from USD 173.1 million, but up 2.7% excluding a USD 7.3 million reduction from divestitures, on improved Manufacturing throughput. Its adjusted EBITDA was USD 21.3 million, or 12.5%, versus USD 16.8 million, or 9.7%.

Gross profit was USD 76.1 million versus USD 101.7 million, and adjusted Gross Profit was USD 99.8 million, or 24.7% of net sales, versus USD 102.2 million, or 24.3%. Selling, general and administrative expenses were USD 67.6 million versus USD 59.9 million, while adjusted SG&A was USD 56.0 million, or 13.9% of net sales, versus USD 56.6 million, or 13.5%. Amortization expense rose to USD 5.1 million from USD 4.2 million.

At September 30, 2026, cash was USD 230.7 million and total Debt was USD 232.3 million. Net cash from Operating Activities over the last twelve months was USD 158.3 million, or 204% of net income for the same period.

Econ Acquisition

On October 27, 2026 the company acquired Econ Engineering Group Limited, a leading U.K. manufacturer of roadway maintenance vocational trucks, for GBP 120.0 million (USD 158.7 million), plus customary closing adjustments. President and chief executive Robert Hureau said the company completed its planned portfolio optimization, particularly in its Vegetation Management Division, and that the Acquisition further enhances its industrial portfolio of vocational truck brands, aiming to improve Margin profile and portfolio quality.

Indicators After the Reset

Items to track include margin progress as the divested lines roll off, integration of Econ, the discrete tax effects and cash deployment after the acquisition.