alg-20250630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE

ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE

ACT OF 1934

FOR THE TRANSITION PERIOD FROM ____ TO ____

Commission file number 0-21220


ALAMO GROUP INC.
(Exact name of registrant as specified in its charter)

Delaware						74-1621248
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification Number)

1627 East Walnut, Seguin, Texas 78155

(Address of principal executive offices, including zip code)

830-379-1480

(Registrant’s telephone number, including area code)


Securities registered pursuant to Section 12(b) of the Act:

	Title of each class	Trading symbol(s)	Name of each exchange on which registered
	Common Stock, par value $.10 per share	ALG	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

At August 1, 2025, 12,110,910 shares of common stock, $.10 par value, of the registrant were outstanding.

Alamo Group Inc. and Subsidiaries

INDEX


PART I.	FINANCIAL INFORMATION		PAGE

Item 1.	Interim Condensed Consolidated Financial Statements (Unaudited)

	Interim Condensed Consolidated Statements of Income		3
		Three and Six Months Ended June 30, 2025 and June 30, 2024

	Interim Condensed Consolidated Statements of Comprehensive Income		4
		Three and Six Months Ended June 30, 2025 and June 30, 2024

	Interim Condensed Consolidated Balance Sheets		5
		June 30, 2025 and December 31, 2024

	Interim Condensed Consolidated Statements of Stockholders' Equity		6
		Three and Six Months Ended June 30, 2025 and June 30, 2024

	Interim Condensed Consolidated Statements of Cash Flows		7
		Six Months Ended June 30, 2025 and June 30, 2024

	Notes to Interim Condensed Consolidated Financial Statements		8

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations		17

Item 3.	Quantitative and Qualitative Disclosures About Market Risks		22

Item 4.	Controls and Procedures		23

PART II.	OTHER INFORMATION		23

Item 1.	Legal Proceedings
Item 1A.	Risk Factors
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds
Item 3.	Defaults Upon Senior Securities
Item 4.	Mine Safety Disclosures
Item 5.	Other Information
Item 6.	Exhibits

	SIGNATURES		25

Alamo Group Inc. and Subsidiaries

Interim Condensed Consolidated Statements of Income

(Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands, except per share amounts)	2025		2024		2025		2024

Net sales:
Vegetation Management	$	178,358	$	211,535	$	342,248	$	435,282
Industrial Equipment	240,715		204,768		467,775		406,607

Total net sales	419,073		416,303		810,023		841,889
Cost of sales	310,781		308,122		598,890		622,076
Gross profit	108,292		108,181		211,133		219,813

Selling, general and administrative expenses	57,136		60,817		111,466		121,411
Amortization expense	4,078		4,055		8,127		8,114
Income from operations	47,078		43,309		91,540		90,288

Interest expense	(3,684)		(6,098)		(6,878)		(12,189)
Interest income	1,195		514		2,433		1,315
Other income (expense), net	(3,183)		(65)		(3,846)		33
Income before income taxes	41,406		37,660		83,249		79,447
Provision for income taxes	10,300		9,336		20,343		19,003
Net Income	$	31,106	$	28,324	$	62,906	$	60,444

Net income per common share:
Basic	$	2.59	$	2.36	$	5.24	$	5.05
Diluted	$	2.57	$	2.35	$	5.21	$	5.02
Average common shares:
Basic	12,020		11,974		12,005		11,959
Diluted	12,083		12,044		12,066		12,032

Dividends declared	$	0.30	$	0.26	$	0.60	$	0.52

See accompanying notes.

Alamo Group Inc. and Subsidiaries

Interim Condensed Consolidated Statements of Comprehensive Income

(Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2025		2024		2025		2024
Net income	$	31,106	$	28,324	$	62,906	$	60,444
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments, net of tax (expense) and benefit of $(1,296) and $8, and $(1,837) and $387, respectively	28,062		(5,509)		38,883		(12,781)
Recognition of deferred pension and other post-retirement benefits, net of tax expense of $(58) and $(68), and $(117) and $(137), respectively	201		235		401		470
Unrealized (loss) income on derivative instruments, net of tax benefit and (expense) of $190 and $(28), and $618 and $(197), respectively	(647)		95		(2,110)		673


Other comprehensive income (loss), net of tax	27,616		(5,179)		37,174		(11,638)
Comprehensive income	$	58,722	$	23,145	$	100,080	$	48,806

See accompanying notes.

Alamo Group Inc. and Subsidiaries

Interim Condensed Consolidated Balance Sheets

(Unaudited)


(in thousands, except share amounts)	June 30, 2025			December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents		$	201,823		$	197,274
Accounts receivable, net		356,236			305,561
Inventories, net		372,074			343,363

Prepaid expenses and other current assets		12,461			11,206
Income tax receivable		—			91
Total current assets		942,594			857,495

Rental equipment, net		59,606			52,942

Property, plant and equipment		371,621			365,608
Less: Accumulated depreciation		(210,905)			(207,276)
Total property, plant and equipment, net		160,716			158,332

Goodwill		221,607			203,027
Intangible assets, net		145,040			151,360
Deferred income taxes		1,118			1,118
Other non-current assets		26,968			26,005

Total assets		$	1,557,649		$	1,450,279

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Trade accounts payable		$	111,820		$	84,505
Income taxes payable		3,973			13,259
Accrued liabilities		76,113			77,537
Current maturities of long-term debt and finance lease obligations		15,000			15,008

Total current liabilities		206,906			190,309

Long-term debt and finance lease obligations, net of current maturities		198,115			205,473
Long-term tax liability		626			626

Other long-term liabilities		25,975			24,619
Deferred income taxes		10,631			10,998
Total liabilities		442,253			432,025

Stockholders’ equity:
Common stock, $0.10 par value, 20,000,000 shares authorized; 12,063,098 and 12,017,308 outstanding at June 30, 2025 and December 31, 2024, respectively		1,206			1,202
Additional paid-in-capital		151,120			146,866
Treasury stock, at cost; 82,600 shares at June 30, 2025 and December 31, 2024, respectively		(4,566)			(4,566)
Retained earnings		1,012,057			956,347
Accumulated other comprehensive loss		(44,421)			(81,595)
Total stockholders’ equity		1,115,396			1,018,254

Total liabilities and stockholders’ equity		$	1,557,649		$	1,450,279

See accompanying notes.

Alamo Group Inc. and Subsidiaries

Interim Condensed Consolidated Statements of Stockholders’ Equity

(Unaudited)


For six months ended June 30, 2025

	Common Stock			Additional Paid-in Capital		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Loss		Total Stock- holders’ Equity
(in thousands)	Shares	Amount
Balance at December 31, 2024	11,935	$	1,202	$	146,866	$	(4,566)	$	956,347	$	(81,595)	$	1,018,254





Other comprehensive income	—	—		—		—		31,800		9,558		41,358
Stock-based compensation expense	—	—		2,303		—		—		—		2,303

Stock-based compensation transactions	29	3		(1,262)		—		—		—		(1,259)


Dividends paid ($0.30 per share)	—	—		—		—		(3,595)		—		(3,595)
Balance at March 31, 2025	11,964	$	1,205	$	147,907	$	(4,566)	$	984,552	$	(72,037)	$	1,057,061





Other comprehensive income	—	—		—		—		31,106		27,616		58,722
Stock-based compensation expense	—	—		2,367		—		—		—		2,367

Stock-based compensation transactions	16	1		846		—		—		—		847


Dividends paid ($0.30 per share)	—	—		—		—		(3,601)		—		(3,601)
Balance at June 30, 2025	11,980	$	1,206	$	151,120	$	(4,566)	$	1,012,057	$	(44,421)	$	1,115,396

See accompanying notes.


For six months ended June 30, 2024

	Common Stock			Additional Paid-in Capital		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Loss		Total Stock- holders’ Equity
(in thousands)	Shares	Amount
Balance at December 31, 2023	11,882	$	1,196	$	137,791	$	(4,566)	$	852,859	$	(54,517)	$	932,763





Other comprehensive income (loss)	—	—		—		—		32,120		(6,459)		25,661
Stock-based compensation expense	—	—		2,125		—		—		—		2,125

Stock-based compensation transactions	31	4		(894)		—		—		—		(890)


Dividends paid ($0.26 per share)	—	—		—		—		(3,103)		—		(3,103)
Balance at March 31, 2024	11,913	$	1,200	$	139,022	$	(4,566)	$	881,876	$	(60,976)	$	956,556





Other comprehensive income (loss)	—	—		—		—		28,324		(5,179)		23,145
Stock-based compensation expense	—	—		2,633		—		—		—		2,633

Stock-based compensation transactions	14	1		492		—		—		—		493


Dividends paid ($0.26 per share)	—	—		—		—		(3,111)		—		(3,111)
Balance at June 30, 2024	11,927	$	1,201	$	142,147	$	(4,566)	$	907,089	$	(66,155)	$	979,716

See accompanying notes.

Alamo Group Inc. and Subsidiaries

Interim Condensed Consolidated Statements of Cash Flows

(Unaudited)


	Six Months Ended June 30,
(in thousands)	2025		2024
Operating Activities
Net income	$	62,906	$	60,444
Adjustment to reconcile net income to net cash provided by operating activities:
Provision for doubtful accounts	(11)		508
Depreciation - Property, plant and equipment	13,398		13,279
Depreciation - Rental equipment	5,819		4,814
Amortization of intangibles	8,127		8,114
Amortization of debt issuance	351		351
Stock-based compensation expense	4,670		4,758
Provision for deferred income tax	(2,179)		(21)
(Gain) Loss on sale of property, plant and equipment	(358)		126
Changes in operating assets and liabilities:
Accounts receivable	(37,267)		(30,657)
Inventories	(16,593)		(11,160)
Rental equipment	(12,263)		(12,198)
Prepaid expenses and other assets	1,923		(3,348)
Trade accounts payable and accrued liabilities	18,494		(34)
Income taxes payable	(9,439)		9
Long-term tax payable	—		(2,143)
Other long-term liabilities, net	(667)		1,474
Net cash provided by operating activities	36,911		34,316

Investing Activities
Acquisitions, net of cash acquired	(17,571)		—
Purchase of property, plant and equipment	(12,971)		(11,061)
Proceeds from sale of property, plant and equipment	812		796

Net cash used in investing activities	(29,730)		(10,265)

Financing Activities
Borrowings on bank revolving credit facility	50,000		176,000
Repayments on bank revolving credit facility	(50,000)		(110,250)
Principal payments on long-term debt and finance leases	(7,504)		(7,564)


Contingent consideration payment from acquisition	—		(4,402)
Dividends paid	(7,196)		(6,214)
Proceeds from exercise of stock options	1,227		1,422

Common stock repurchased	(1,639)		(1,819)
Net cash (used in) provided by financing activities	(15,112)		47,173

Effect of exchange rate changes on cash and cash equivalents	12,480		(4,608)
Net change in cash and cash equivalents	4,549		66,616
Cash and cash equivalents at beginning of the year	197,274		51,919
Cash and cash equivalents at end of the period	$	201,823	$	118,535

Cash paid during the period for:
Interest	$	6,861	$	12,144
Income taxes	32,074		21,852

See accompanying notes.

Alamo Group Inc. and Subsidiaries

Notes to Interim Condensed Consolidated Financial Statements - (Unaudited)

June 30, 2025

1. Basis of Financial Statement Presentation

General

The accompanying unaudited interim condensed consolidated financial statements of Alamo Group Inc. and its subsidiaries (the “Company”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulations S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2025. The balance sheet at December 31, 2024 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2024 (the "2024 10-K").

Accounting Pronouncements Not Yet Adopted

In December 2023, the FASB issued ASU No. 2023-09, Improvements to Income Tax Disclosures (Topic 740). The ASU requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as additional information on income taxes paid. The ASU is effective on a prospective basis for annual periods beginning after December 15, 2024. Early adoption is also permitted for annual financial statements that have not yet been issued or made available for issuance. This ASU will result in the required additional disclosures being included in our consolidated financial statements, once adopted.

In November 2024, the FASB issued ASU No. 2024-03, Expense Disaggregation Disclosures (Subtopic 220-40). The ASU requires disaggregated Income Statement Expenses. The ASU is effective for annual periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is also permitted. This ASU will result in the required additional disclosures being included in our consolidated financial statements, once adopted.

2. Business Combinations

On June 30, 2025, the Company acquired 100% of the outstanding membership interests in Ring-O-Matic, LLC (“Ring-O-Matic”) for approximately $17.6 million. Ring-O-Matic is a leading provider of trailer-mounted industrial vacuum excavation equipment. The purpose of the acquisition was to expand our current product offerings and to achieve cost and revenue synergies within our Industrial Equipment division. The Company has included the opening balance sheet for Ring-O-Matic in its consolidated financial statements; however, the impact to the consolidated balance sheet was immaterial.

3. Accounts Receivable

Accounts receivable is shown net of sales discounts and the allowance for credit losses.

At June 30, 2025 the Company had $12.1 million in reserves for sales discounts compared to $14.2 million at December 31, 2024 related to products shipped to our customers under various promotional programs.

4. Inventories

Inventories are stated at the lower of cost or net realizable value. Net inventories consist of the following:


(in thousands)	June 30, 2025			December 31, 2024


Finished goods		$	344,217		$	317,169
Work in process		21,996			21,310
Raw materials		5,861			4,884
Inventories, net		$	372,074		$	343,363

Inventory obsolescence reserves were $9.9 million at June 30, 2025 and $8.3 million at December 31, 2024.

5. Rental Equipment

Rental equipment is shown net of accumulated depreciation of $22.3 million and $25.0 million at June 30, 2025 and December 31, 2024, respectively. The Company recognized depreciation expense of $2.9 million and $2.5 million for the three months ended June 30, 2025 and 2024, respectively, and $5.8 million and $4.8 million for the six months ended June 30, 2025 and 2024, respectively.

6. Fair Value Measurements

The carrying values of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses, approximate their fair value because of the short-term nature of these items. The carrying value of our debt approximates the fair value as of June 30, 2025 and December 31, 2024. This conclusion was made based on Level 2 inputs. Fair values determined by Level 2 utilize inputs that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

Derivative Instruments and Hedging Activities

The Company records all derivatives in accordance with ASC 815, Derivatives and Hedging, which requires derivative instruments to be reported on the condensed consolidated balance sheets at fair value and establishes criteria for designation and effectiveness of hedging relationships. The Company is exposed to market risk such as changes in foreign currencies and interest rates. The Company does not hold or issue derivative financial instruments for trading purposes.

The Company may periodically utilize derivative instruments such as foreign currency or interest rate swaps in the normal course of business to partially offset exposure. The related gains and losses are reported as a component of accumulated other comprehensive loss ("AOCL") in the condensed consolidated balance sheets.

The Company has two interest rate swap agreements outstanding as of June 30, 2025. The notional amount of the Company’s outstanding swap agreements is $263.8 million. The fair value of the Company’s derivative liabilities is $1.9 million as of June 30, 2025 compared to a derivative asset of $0.8 million as of December 31, 2024. In the condensed consolidated balance sheet, the fair value of the interest rate swaps is included in other long-term liabilities. The gains and losses are not material to the Company’s condensed consolidated financial statements for the periods presented.

7. Goodwill and Intangible Assets

The following is the summary of changes to the Company's Goodwill for the six months ended June 30, 2025:


(in thousands)	Vegetation Management			Industrial Equipment			Consolidated
Balance at December 31, 2024		$	126,729		$	76,298		$	203,027
Translation adjustment		3,260			1,689			4,949
Goodwill acquired		—			13,631			13,631
Balance at June 30, 2025		$	129,989		$	91,618		$	221,607

SEC Form 10-Q filed by Alamo Group Inc.