Alamo Group (ALG) Investor presentation summary

Business overview and market position

• Manufactures industrial and vegetation management equipment for infrastructure and land management worldwide.

• 2025 net sales reached $1.60B, with a 12.7% EBITDA margin and 24.8% gross margin.

• Operates 27 global manufacturing facilities and employs over 3,700 people.

• Sales are diversified across industrial (28%), public works (38%), and agriculture (13%) end markets.

• Equipment sales account for 84% of revenue, with strong dealer and retailer channels.

Segment performance

• Industrial Equipment Division grew net sales from $711M in 2023 to $950M in 2025, with operating margin rising to 13.5%.

• Vegetation Management Division saw net sales decline from $979M in 2023 to $654M in 2025, with operating margin dropping to 3.5%.

• Key products include excavators, vacuum trucks, mowers, mulchers, and tree care equipment.

• Serves public works, industrial, agriculture, and government sectors through direct and dealer channels.

Financial highlights

• 2025 operating income was $151.6M, with net income of $103.8M and diluted EPS of $8.59.

• Adjusted EBITDA for 2025 was $216.9M, with a margin of 13.5%.

• Free cash flow in 2025 was $147M, and net leverage was (0.5)x.

• Debt as a percentage of capitalization decreased to 15.2%, with net cash position improving.