Alamo Group Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 4 May 2026: press release. The quarter’s numbers.

Read the filing

Key takeaways

• Net sales grew 6.7%: Net sales reached $417.1 million, up from $391.0 million a year earlier. Currency translation accounted for $9.7 million of the change. Source
• Adjusted EBITDA margin narrowed: Adjusted EBITDA was $59.3 million, up 1.8%. Its margin was 14.2% of net sales, compared with 14.9% a year earlier. Source
• Vegetation sales rose 7.0%: Vegetation Management net sales rose 7.0% to $175.4 million, compared with $163.9 million. Currency translation accounted for $6.3 million of the increase. Source
• Vegetation margin fell to 11.2%: Vegetation Management adjusted EBITDA was $19.6 million, or 11.2% of sales, compared with $20.8 million and 12.7% a year earlier. Source
• Operating cash flow was negative: Operating cash flow was negative $23.5 million, which management linked to sequential sales growth, especially in Vegetation Management. Source
• Net debt rose to $95.2 million: Net debt was $95.2 million at March 31, 2026, against $16.5 million a year earlier. Source
• Petersen closed, synergy work started: The Petersen acquisition closed, and management said work on synergy realization had begun. Source

“We are pleased with the financial results for the first quarter and we believe there is good momentum across many of our key initiatives aimed at creating long-term value for our employees and shareholders.”

Robert Hureau, President and Chief Executive Officer

What changed from last quarter

• New: The Petersen acquisition moved from a definitive agreement in the prior release to a closed transaction in January 2026.

Results and growth drivers

• Net sales grew 6.7%: Net sales reached $417.1 million, up from $391.0 million a year earlier. Currency translation accounted for $9.7 million of the change. Source
• Net income and EPS declined: Net income was $29.2 million, against $31.8 million a year earlier. Diluted EPS was $2.41, against $2.64; adjusted diluted EPS was $2.56, against $2.70. Source
• Adjusted EBITDA margin narrowed: Adjusted EBITDA was $59.3 million, up 1.8%. Its margin was 14.2% of net sales, compared with 14.9% a year earlier. Source

Segments and regions

• Industrial sales rose 6.5%: Industrial Equipment net sales rose 6.5% to $241.7 million, compared with $227.1 million a year earlier. Source
• Industrial margin little changed: Industrial Equipment adjusted EBITDA was $39.7 million, or 16.4% of sales, compared with $37.4 million and 16.5% a year earlier. Source
• Vegetation sales rose 7.0%: Vegetation Management net sales rose 7.0% to $175.4 million, compared with $163.9 million. Currency translation accounted for $6.3 million of the increase. Source
• Vegetation margin fell to 11.2%: Vegetation Management adjusted EBITDA was $19.6 million, or 11.2% of sales, compared with $20.8 million and 12.7% a year earlier. Source

“Our Vegetation Management Division made good progress in terms of sales growth and improvement in profitability despite the end markets continuing to be challenging.”

Robert Hureau, President and Chief Executive Officer

Costs, margins and pricing

• Gross margin narrowed to 25.1%: Gross profit was $104.8 million, or 25.1% of net sales, compared with 26.3% a year earlier, as cost of sales rose to $312.3 million. Source
• Overhead and amortization increased: Selling, general and administration expense was $57.8 million, compared with $54.3 million, and amortization was $4.9 million, compared with $4.0 million. Source
• Operating margin fell to 10.1%: Income from operations was $42.2 million, or 10.1% of net sales, compared with 11.4%. Adjusted operating income was $44.7 million, or 10.7% of net sales. Source
• Interest expense rose: Interest expense was $4.6 million, compared with $3.2 million. The effective tax rate was 25.3%, compared with 24.0%. Source

Demand and end markets

• Vegetation sales rose sequentially: Vegetation Management net sales rose $36.7 million, or 26.4%, from the fourth quarter of 2025 to the first quarter of 2026. Source
• Industrial backlog lower year on year: Industrial Equipment backlog at quarter end was lower than a year earlier. Source
• Vegetation backlog higher year on year: Vegetation Management backlog at quarter end was higher than a year earlier. Source

Cash flow and working capital

• Operating cash flow was negative: Operating cash flow was negative $23.5 million, which management linked to sequential sales growth, especially in Vegetation Management. Source
• Trailing cash flow above net income: Trailing twelve-month operating cash flow was $139.8 million, or 138.2% of net income. Source
• Receivables and inventories absorbed cash: Accounts receivable used $53.4 million of cash, compared with $30.9 million a year earlier. Inventories used $23.1 million, compared with $9.6 million. Source

Balance sheet, capital and returns

• Net debt rose to $95.2 million: Net debt was $95.2 million at March 31, 2026, against $16.5 million a year earlier. Source
• Revolver availability remained large: Revolver availability was $308.4 million at quarter end. The company borrowed $120.0 million and repaid $31.6 million under the revolving credit facility. Source
• Acquisition cash outflow: Acquisitions used $166.5 million of cash, net of cash acquired, and purchases of property, plant and equipment were $4.5 million. Source
• Dividends and buybacks reported: Dividends paid were $4.1 million and common stock repurchases were $1.4 million, against $3.6 million and $1.6 million a year earlier. Source

Petersen acquisition and strategy

• Petersen closed, synergy work started: The Petersen acquisition closed, and management said work on synergy realization had begun. Source
• Workforce and footprint reported: The company reported approximately 3,900 employees and 27 manufacturing facilities across North America, Canada, Europe, Brazil and Australia. Source
• Capital deployment strategies continue: Management said the company remains in good position to keep executing its capital deployment strategies. Source

Risks management discussed

• Demand: Management described end markets for the Vegetation Management Division as still challenging. Source

Earlier plans management reported on

• Not stated: Management said synergy work had started after the Petersen closing; no target or timing was given. Source

Other quarters

• Q2 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.