Key Highlights

  • ALG reported third quarter 2026 net sales of $403.1 million, down 4.0% from $420.0 million a year earlier.
  • Diluted EPS was $0.17 against $2.10 a year ago, while adjusted diluted EPS was $2.06 against $2.34.
  • Net pre-tax charges of $33.3 million were tied to the sale and wind-down of several businesses and product lines.
  • Adjusted EBITDA was $52.4 million, or 13.0% of net sales, compared with $55.0 million, or 13.1%, a year earlier.
  • Backlog stood at $521.3 million at Sep 30, 2026, down from $618.3 million a year earlier.

Portfolio Clean-Up Charges Pull Quarterly Net Income Down to $2.0 Million

Alamo Group (NYSE:ALG) reported results for the third quarter ended Sep 30, 2026 on Nov 2, 2026. Net sales were $403.1 million, down 4.0% from $420.0 million in the third quarter of 2025, and net income fell to $2.0 million, or $0.17 per diluted share, from $25.4 million, or $2.10.

The gap to adjusted results came mainly from $33.3 million of net pre-tax charges for the sale and wind-down of several businesses and product lines, which the company said it substantially completed in the quarter. The charges covered inventory write-downs, asset impairments and wind-down costs.

Alamo Group makes industrial and vegetation management equipment, including vacuum trucks, street sweepers and tractor-mounted mowers, sold through dealers and directly to contractors and municipalities. Adjusted net income was $24.9 million, or $2.06 per diluted share, versus $28.2 million, or $2.34.

Industrial Equipment Margin Slips on Freight and Material Costs While Vegetation Management Improves

Industrial Equipment Division net sales fell 5.8% to $232.8 million, or about 12.6% lower excluding the Petersen Industries acquisition, on softer end markets and order timing. Adjusted EBITDA was $31.1 million, or 13.4% of sales, down from $38.2 million, or 15.5%, on material and freight Inflation and lower fixed-cost absorption.

Management said pricing actions lagged inflation during the quarter. Division bookings rose to $217.9 million from $175.5 million a year earlier, with stronger activity in vacuum trucks and sweepers.

Vegetation Management Division net sales eased 1.5% to $170.4 million, though they would have risen 2.7% without the $7.3 million divestiture-related reduction. Adjusted EBITDA there climbed to $21.3 million, or 12.5% of sales, from $16.8 million, or 9.7%.

Econ Engineering Purchase Funded by the Revolver as Backlog Moderates

On Oct 27, 2026, Alamo Group acquired Econ Engineering Group, a U.K. maker of roadway maintenance vocational trucks, for 120.0 million pounds ($158.7 million) plus customary closing adjustments, using its revolving Credit facility.

At Sep 30, 2026, cash was $230.7 million and total Debt was $232.3 million, with $363.6 million of revolver borrowings available before the Acquisition draw. Trailing twelve-month Operating Cash Flow was $158.3 million, or 204% of net income.

Backlog was $521.3 million, down from $618.3 million a year earlier, with Industrial Equipment at $350.4 million and Vegetation Management at $170.9 million. Management said order activity stayed solid.

Nine-Month Sales Growth and Post-Acquisition Debt Frame the Next Reporting Period

For the first nine months of 2026, net sales rose 3.3% to $1.27 billion (calculated), diluted EPS was $5.14 versus $7.31, and adjusted diluted EPS was $7.43 versus $7.67. The release gave no formal guidance, so the next checkpoints are Econ's contribution after its Oct 27 close, whether freight-driven margin pressure eases, and backlog trends.