<span item_type="fundamental" item_id="4941e9338d100016843cc9ff375232be" counter_id="ST/US/ALG" env="prod"></span><span item_type="announcement" item_id="621940058360125185" env="prod"></span><p>Revenue: As of FY2025 Q4, the actual value is USD 373.65 M, missing the estimate of USD 405.18 M.</p><p>EPS: As of FY2025 Q4, the actual value is USD 1.28, missing the estimate of USD 2.295.</p><p>EBIT: As of FY2025 Q4, the actual value is USD 25.02 M.</p><p></p><h3>Fourth Quarter 2025 Financial Highlights</h3><h4>Net Income</h4><p>Alamo Group Inc. reported a net income of $15,512 thousand for Q4 2025, a decrease from $28,081 thousand in Q4 2024. Adjusted net income for Q4 2025 was $20,569 thousand, compared to $28,857 thousand in Q4 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/897077/000089707726000015/ex991q42025.htm"></span></p><h4>Gross Margin</h4><p>Gross margin for Q4 2025 was $85,001 thousand, down from $91,788 thousand in Q4 2024. The gross margin percentage was 22.7% in Q4 2025, a decrease from 23.8% in Q4 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/897077/000089707726000015/ex991q42025.htm"></span></p><h4>Operating Profit</h4><p>Income from operations in Q4 2025 was $22,531 thousand, a decline from $34,441 thousand in Q4 2024. The operating margin was 6.0% in Q4 2025, compared to 8.9% in Q4 2024. Adjusted operating income was $31,501 thousand in Q4 2025, down from $35,443 thousand in Q4 2024, with an adjusted operating income percentage of 8.4% in Q4 2025 versus 9.2% in Q4 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/897077/000089707726000015/ex991q42025.htm"></span></p><h4>Operating Costs</h4><p>Cost of sales decreased to $288,649 thousand in Q4 2025 from $293,535 thousand in Q4 2024. Selling, general and administration expense increased to $58,260 thousand in Q4 2025 from $53,295 thousand in Q4 2024. Amortization expense was $4,210 thousand in Q4 2025, slightly up from $4,052 thousand in Q4 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/897077/000089707726000015/ex991q42025.htm"></span></p><h4>Adjusted EBITDA</h4><p>Adjusted EBITDA for Q4 2025 was $44,762 thousand, a decrease from $51,798 thousand in Q4 2024. The adjusted EBITDA as a percentage of net sales was 12.0% in Q4 2025, down from 13.4% in Q4 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/897077/000089707726000015/ex991q42025.htm"></span></p><h4>Segment Performance - Fourth Quarter</h4><ul><li><strong>Industrial Equipment Division:</strong> Net sales increased by 4.2% to $234,904 thousand in Q4 2025 from $225,521 thousand in Q4 2024. Adjusted EBITDA for this division rose to $41,542 thousand (17.7% of net sales) in Q4 2025, compared to $35,480 thousand (15.7% of net sales) in Q4 2024. Adjusted operating income was $35,044 thousand (14.9% of sales) in Q4 2025, up from $27,973 thousand (12.4% of sales) in Q4 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/897077/000089707726000015/ex991q42025.htm"></span></li><li><strong>Vegetation Management Division:</strong> Net sales decreased by 13.2% to $138,746 thousand in Q4 2025 from $159,802 thousand in Q4 2024. Adjusted EBITDA for this division decreased significantly to $3,220 thousand (2.3% of net sales) in Q4 2025, from $16,318 thousand (10.2% of net sales) in Q4 2024. Adjusted operating income was - $3,543 thousand (-2.6% of sales) in Q4 2025, down from $7,470 thousand (4.7% of sales) in Q4 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/897077/000089707726000015/ex991q42025.htm"></span></li></ul><h3>Full Year 2025 Financial Highlights</h3><h4>Net Income</h4><p>Alamo Group Inc. reported a net income of $103,801 thousand for the full year 2025, down from $115,930 thousand in 2024. Adjusted net income for the full year 2025 was $113,230 thousand, compared to $121,911 thousand in 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/897077/000089707726000015/ex991q42025.htm"></span></p><h4>Gross Margin</h4><p>Gross margin for the full year 2025 was $397,817 thousand, a decrease from $412,488 thousand in 2024. The gross margin percentage was 24.8% in 2025, down from 25.3% in 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/897077/000089707726000015/ex991q42025.htm"></span></p><h4>Operating Profit</h4><p>Income from operations for the full year 2025 was $151,613 thousand, a decrease from $164,808 thousand in 2024. The operating margin was 9.5% in 2025, compared to 10.1% in 2024. Adjusted operating income was $166,459 thousand in 2025, down from $172,592 thousand in 2024, with an adjusted operating income percentage of 10.4% in 2025 versus 10.6% in 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/897077/000089707726000015/ex991q42025.htm"></span></p><h4>Operating Costs</h4><p>Cost of sales for the full year 2025 was $1,205,898 thousand, down from $1,216,025 thousand in 2024. Selling, general and administration expense was $229,657 thousand in 2025, compared to $231,453 thousand in 2024. Amortization expense was $16,547 thousand in 2025, up from $16,227 thousand in 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/897077/000089707726000015/ex991q42025.htm"></span></p><h4>Cash Flow</h4><p>Operating cash flow for the full year 2025 was $177,543 thousand, resulting in a 171% conversion of net income to cash. This is a decrease from $209,778 thousand in 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/897077/000089707726000015/ex991q42025.htm"></span></p><h4>Adjusted EBITDA</h4><p>Adjusted EBITDA for the full year 2025 was $216,864 thousand, down from $228,407 thousand in 2024. The adjusted EBITDA as a percentage of net sales was 13.5% in 2025, compared to 14.0% in 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/897077/000089707726000015/ex991q42025.htm"></span></p><h4>Debt and Cash Position</h4><p>As of December 31, 2025, total debt was $205,748 thousand, and total cash was $309,659 thousand, indicating $103,911 thousand in excess of debt. This compares to total debt of $220,481 thousand and total cash of $197,274 thousand at December 31, 2024, resulting in a net change of $127,118 thousand in Total Debt Net of Cash.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/897077/000089707726000015/ex991q42025.htm"></span></p><h4>Dividends</h4><p>Alamo Group Inc. increased its quarterly dividend from $0.30 to $0.34 per share, a 13.3% increase. Dividends paid for the full year 2025 were $14,415 thousand, up from $12,442 thousand in 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/897077/000089707726000015/ex991q42025.htm"></span></p><h4>Segment Performance - Full Year</h4><ul><li><strong>Industrial Equipment Division:</strong> Net sales increased by 12.6% to $949,662 thousand in 2025 from $843,314 thousand in 2024. Adjusted EBITDA for this division rose to $157,466 thousand (16.6% of net sales) in 2025, compared to $136,111 thousand (16.1% of net sales) in 2024. Adjusted operating income was $132,640 thousand (14.0% of sales) in 2025, up from $111,807 thousand (13.3% of sales) in 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/897077/000089707726000015/ex991q42025.htm"></span></li><li><strong>Vegetation Management Division:</strong> Net sales decreased by 16.7% to $654,053 thousand in 2025 from $785,199 thousand in 2024. Adjusted EBITDA for this division decreased to $59,398 thousand (9.1% of net sales) in 2025, from $92,296 thousand (11.8% of net sales) in 2024. Adjusted operating income was $33,819 thousand (5.2% of sales) in 2025, down from $60,785 thousand (7.7% of sales) in 2024.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/897077/000089707726000015/ex991q42025.htm"></span></li></ul><h3>Outlook / Guidance</h3><p>Alamo Group Inc. is positioning for long-term growth by restructuring manufacturing facilities, reshaping organizational structure, and accelerating M&amp;A activities, as exemplified by the acquisition of Petersen Industries. The company’s strong cash generation and solid balance sheet are expected to support investments and future acquisitions. Management plans to discuss results and priorities in more detail during an upcoming earnings conference call.<span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/897077/000089707726000015/ex991q42025.htm"></span></p>

Alamo | 8-K: FY2025 Q4 Revenue Misses Estimate at USD 373.65 M