1st Quarter: Alamo Group's Sales Down 8%, Net Income Down 1%: $32 Million

Source: Alamo Group news release SEGUIN, Texas, May 8, 2025 -- Alamo Group Inc. (NYSE: ALG) today reported results for the first quarter ended March 31, 2025. 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. The Company's balance sheet remained strong. Accounts receivable were $339.6 million with days sales outstanding of 78 days, an improvement of 6 days versus the first quarter of 2024. Inventory was $356.4 million compared to $384.5 million in the first quarter of 2024. Operating cash flow was $14.2 million, resulting in cash and cash equivalents of $200.3 million at the end of the first quarter. As we look ahead to the remainder of the year, we expect continued strong demand within our Industrial Equipment Division coupled with a return to modest growth within our Vegetation Management Division, following the substantial channel inventory de-stocking that occurred during 2024. In addition, we anticipate improved profitability driven by the cost reduction actions that were implemented in 2024. To read the entire report click here.