Allient Inc.

Second-quarter revenue was $153.8 million, up 10% year over year, and organic revenue grew 9% on a constant-currency basis with about $1.3 million of FX tailwind. Gross margin was a record 34.9%, up 170 basis points, and gross profit was $53.6 million. Operating income rose to $15.6 million from $11.7 million, with operating margin at 10.2% versus 8.4%. Net income increased 85% to $10.4 million, or $0.61 per diluted share; adjusted net income was $13.5 million, or $0.80 per diluted share, and adjusted EBITDA was $23.7 million, or 15.4% of revenue. Orders were $201.3 million, up 49% year over year and 27% sequentially, with a 1.31x book-to-bill and backlog of $298 million. For the full year 2026, the company expects restructuring and realignment costs of about $2 million to $3 million, tax rate of 21% to 23%, and capex of about $12 million to $15 million.

Dick Warzala framed the quarter as evidence that Allient’s repositioning and operating discipline are working, emphasizing stronger demand, better mix, and the benefits of the STAN initiative. He highlighted broad strength in Industrial, data center and other infrastructure, Aerospace & Defense, and Medical, and said the company is moving toward higher-value motion, controls, and power applications. His tone was confident and constructive, with repeated comments that the business has better visibility and a more durable operating model.

Jim Michaud focused on the financial leverage in the quarter: revenue up 10% to $153.8 million, record gross margin of 34.9%, operating margin of 10.2%, and adjusted EBITDA margin of 15.4%. He said lower interest expense, down about $1 million year over year to $2.5 million, also helped earnings, while debt fell to $173.3 million and net debt to $131.2 million, with leverage at 1.63x and bank leverage at 2.07x. He added that operating cash flow was $14 million in the quarter, cash was about $42 million, unused revolver capacity was $162 million, and IEEPA-related tariff refund claims were about $1.3 million, with no receivable recorded yet due to timing uncertainty.

Analysts focused on whether the very strong orders and backlog imply a step-up in revenue, and management said some larger blanket orders are not yet booked until closer to production, so the backlog understates visible demand. Management also said lead times have expanded, causing some acceleration in order placement, and noted about $200 million in bookings with no single unusual order. Other questions centered on data center growth, where management said the quarter’s 60% growth was in line with order trends and that it expects continued growth, plus capacity expansion coming online late this quarter or early next quarter. Analysts also pressed on drones, A&D, and Dothan transition costs; management said drone and unmanned systems are becoming a meaningful opportunity, A&D demand is accelerating, and Dothan improvements are progressing but will still require investments and some restructuring costs through the year.