$ALG

ALAMO GROUP INC

CIK:0000897077|SEC Filings

Interim Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Net sales:
Total net sales	$ 450,733	$ 419,073	$ 867,882	$ 810,023
Cost of Sales	339,877	310,781	652,221	598,890
Gross profit	110,856	108,292	215,661	211,133
Selling, general and administrative expenses	60,076	57,136	117,843	111,466
Amortization expense	5,015	4,078	9,894	8,127
Income from operations	45,765	47,078	87,924	91,540
Interest expense	(4,792)	(3,684)	(9,416)	(6,878)
Interest income	1,239	1,195	2,720	2,433
Other income (expense), net	(619)	(3,183)	(587)	(3,846)
Income before income taxes	41,593	41,406	80,641	83,249
Provision for income taxes	10,653	10,300	20,517	20,343
Net Income	$ 30,940	$ 31,106	$ 60,124	$ 62,906
Net income per common share:
Basic (in dollars per share)	$ 2.57	$ 2.59	$ 4.99	$ 5.24
Diluted (in dollars per share)	$ 2.55	$ 2.57	$ 4.96	$ 5.21
Average common shares:
Basic (in shares)	12,068	12,020	12,060	12,005
Diluted (in shares)	12,122	12,083	12,112	12,066
Dividends declared (in dollars per share)	$ 0.34	$ 0.30	$ 0.68	$ 0.60
Vegetation Management
Net sales:
Total net sales	$ 179,092	$ 178,358	$ 354,512	$ 342,248
Cost of Sales	139,461	134,193	273,951	255,706
Income from operations	8,905	12,751	19,418	26,063
Industrial Equipment
Net sales:
Total net sales	271,641	240,715	513,370	467,775
Cost of Sales	200,416	176,588	378,270	343,184
Income from operations	$ 36,860	$ 34,327	$ 68,506	$ 65,477

Interim Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Operating Activities
Net income	$ 60,124	$ 62,906
Adjustment to reconcile net income to net cash provided by operating activities:
Provision for doubtful accounts	(230)	(11)
Depreciation - Property, plant and equipment	13,240	13,398
Depreciation - Rental equipment	5,927	5,819
Amortization of intangibles	9,894	8,127
Amortization of debt issuance	343	351
Stock-based compensation expense	3,613	4,670
Provision for deferred income tax expense (benefit)	3,195	(2,179)
Gain on sale of property, plant and equipment	(682)	(358)
Changes in operating assets and liabilities:
Accounts receivable	(62,851)	(37,267)
Inventories	(31,313)	(16,593)
Rental equipment	(958)	(12,263)
Prepaid expenses and other assets	814	1,923
Trade accounts payable and accrued liabilities	14,453	18,494
Income taxes payable	9,427	(9,439)
Other long-term liabilities, net	(2,339)	(667)
Net cash provided by operating activities	22,657	36,911
Investing Activities
Acquisitions, net of cash acquired	(162,933)	(17,571)
Purchase of property, plant and equipment	(10,319)	(12,971)
Proceeds from sale of property, plant and equipment	1,621	812
Net cash used in investing activities	(171,631)	(29,730)
Financing Activities
Borrowings on bank revolving credit facility	120,000	50,000
Repayments on bank revolving credit facility	(57,500)	(50,000)
Principal payments on long-term debt and finance leases	(5,016)	(7,504)
Debt issuance cost	(2,286)	0
Dividends paid	(8,201)	(7,196)
Proceeds from exercise of stock options	1,032	1,227
Common stock repurchased	(10,759)	(1,639)
Net cash provided by (used) in financing activities	37,270	(15,112)
Effect of exchange rate changes on cash and cash equivalents	(2,960)	12,480
Net change in cash and cash equivalents	(114,664)	4,549
Cash and cash equivalents at beginning of the year	309,659	197,274
Cash and cash equivalents at end of the period	194,995	201,823
Cash paid during the period for:
Interest	9,569	6,861
Income taxes	$ 9,080	$ 32,074

Interim Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 194,995	$ 309,659
Accounts receivable, net	343,326	276,866
Inventories, net	432,262	383,252
Prepaid expenses and other current assets	13,406	11,629
Income tax receivable	8,708	16,687
Total current assets	992,697	998,093
Rental equipment, net	56,033	61,102
Property, plant and equipment	389,561	392,029
Less: Accumulated depreciation	(228,396)	(226,052)
Total property, plant and equipment, net	161,165	165,977
Goodwill	271,318	214,611
Intangible assets, net	212,999	144,932
Deferred income taxes	1,263	1,264
Other non-current assets	28,127	20,637
Total assets	1,723,602	1,606,616
Current liabilities:
Trade accounts payable	148,039	125,130
Income taxes payable	3,685	2,332
Accrued liabilities	69,307	75,905
Current maturities of long-term debt	5,063	15,000
Total current liabilities	226,094	218,367
Long-term debt, net of current maturities	257,679	190,748
Long-term tax liability	470	470
Other long-term liabilities	24,127	24,113
Deferred income taxes	27,122	24,215
Total liabilities	535,492	457,913
Stockholders’ equity:
Common stock, $0.10 par value, 20,000,000 shares authorized; 12,108,752 and 12,073,713 outstanding at June 30, 2026 and December 31, 2025, respectively	1,211	1,207
Additional paid-in-capital	158,669	155,427
Treasury stock, at cost; 144,532 and 82,600 shares at June 30, 2026 and December 31, 2025, respectively	(13,926)	(4,566)
Retained earnings	1,097,656	1,045,733
Accumulated other comprehensive loss	(55,500)	(49,098)
Total stockholders’ equity	1,188,110	1,148,703
Total liabilities and stockholders’ equity	$ 1,723,602	$ 1,606,616