Alamo Group Reports 1Q 2025 Net Sales Drop 8%

May 15, 2025

SEGUIN, Texas —Alamo Group Inc. (ALG) today reported results for the first quarter ended March 31, 2025.

Highlights:

Net Sales of $391.0 million, down 8.1% versus the same period in the prior year, up 1.5% versus fourth quarter 2024
Industrial Equipment Division net sales of $227.1 million, up 12.5% year-over-year
Vegetation Management Division net sales of $163.9 million, down 26.8% year-over-year
Income from operations of $44.5 million, 11.4% of net sales – an increase of 40 basis points versus the first quarter of 2024 and 130 basis points versus the full year 2024
Net Income of $31.8 million
Fully diluted EPS increased to $2.64 per share, an improvement of almost 13.5% compared to the fourth quarter of 2024
Total debt was $216.8 million. Total debt net of cash was further reduced to $16.5 million, representing an improvement of $183.2 million or 91.7% compared to the first quarter in 2024 ⁽¹⁾
Backlog at the end of the first quarter was $702.7 million, up 5.1% from year-end 2024
Trailing twelve-month EBITDA of $217.8 million was 13.7% of Net Sales ⁽¹⁾

First Quarter Results

First quarter 2025 net sales of $391.0 million declined 8.1% compared to $425.6 million in the first quarter of 2024. Gross profit of $102.8 million or 26.3% of net sales declined by $8.8 million as a result of lower net sales, however, gross margin improved by nearly 10 basis points, compared to the same period of the prior year. The Vegetation Management Division began to recover as first quarter 2025 operating margin of 8.1% reflected sequential improvement of 410 basis points, driven by the cost reduction actions completed in 2024. The Industrial Equipment Division continued to carry out operational improvements, and delivered an operating margin of 13.7%, representing 130 basis points of sequential improvement.

Consolidated net income was $31.8 million or $2.64 per diluted share, compared to $32.1 million or $2.67 per diluted share in the first quarter of 2024. The Company's backlog at the end of the first quarter increased to $702.7 million and remains healthy. Compared to the fourth quarter of 2024, Vegetation Management Division backlog held steady at $189.5 million, while Industrial Equipment Division backlog increased to $513.2 million.

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