Alamo Group Inc.

Net sales for Q1 2026 were $417.1 million, up 6.7% year over year. Gross profit was $104.8 million versus $102.8 million, and gross margin was 25.1%, down 118 basis points from Q1 2025. Adjusted EBITDA was $59.3 million, or 14.2% of net sales, versus $58.3 million, or 14.9%, a year ago. Adjusted diluted EPS was $2.56 versus $2.70 in Q1 2025. For the Industrial Equipment division, sales were $241.7 million, up 6.5%, and adjusted EBITDA was $39.7 million, or 16.4%. Vegetation Management sales were $175.4 million, up 7%, and adjusted EBITDA was $19.6 million, or 11.2%. SG&A was $57.8 million, up 6.3%, including about $3.5 million of acquisition, integration and restructuring costs; net interest expense was $3.1 million; the tax rate was 25.3%. Cash from operations was negative $23.5 million, investing cash flow was negative $169.8 million, gross debt was $290.5 million, and cash was $195.2 million, resulting in net leverage of less than 1x. Management did not provide formal quarterly or full-year financial guidance, but said Industrial Equipment is likely to be flattish to up very low single digits excluding acquisitions, with acquisitions on top, and that Vegetation end markets are expected to be flattish to maybe still down a little, though sequentially improving. The company also reiterated long-term targets of 10%+ sales growth, 15% adjusted operating margins, 18%+ adjusted EBITDA margins, and free cash flow at 100% of net income.

Robert Hureau said the quarter was a good start to the year and emphasized progress on the company’s strategic priorities: people and culture, commercial excellence, operational excellence and capital deployment. He highlighted stronger performance in Vegetation Management, continued strong Industrial execution, and early success from Petersen integration, while noting that 2026 should be a transition year for Industrial after several years of unusually strong growth. His tone was constructive but more cautious on the macro backdrop, especially for Vegetation end markets and broader industrial demand growth.

Agnes Kamps walked through the quarter’s financials, highlighting $417.1 million of sales, $104.8 million of gross profit, 25.1% gross margin, and $59.3 million of adjusted EBITDA. She noted SG&A of $57.8 million included about $3.5 million of acquisition, integration and restructuring costs, and that net interest expense rose to $3.1 million because of the Petersen acquisition. She also detailed liquidity and capital structure: operating cash flow was negative $23.5 million, investing cash flow was negative $169.8 million, Petersen was funded with a $120 million revolver draw and about $50 million of cash, and quarter-end gross debt and cash were $290.5 million and $195.2 million, respectively, with net leverage below 1x. She also said the Board approved a quarterly dividend of $0.34 per share.

Analysts focused on how much of Industrial’s organic growth slowdown reflected end-market normalization versus acquisitions, and management said 2026 should be roughly flattish to very low-single-digit growth excluding acquisitions because prior years’ growth was unusually strong. Questions also centered on Vegetation margins and whether the first-quarter improvement could persist; management said margins improved sequentially and should keep progressing, but they are more cautious than a few months ago because inflation, freight, fertilizer costs and weaker tractor sales suggest end markets may be only flat to slightly down. Another major topic was snow orders and the shift to a more selective sales strategy; management said the lower revenue is due to not chasing low-margin work, while order intake remains strong and lead times are competitive. Petersen integration was also discussed, and management said it is going smoothly with clear commercial and operational synergies already visible.