Corporate

Alamo Group raises Q2 sales, adjusted earnings as it cites mixed demand

Alamo Group reported higher second-quarter sales and adjusted earnings on Aug. 3, 2026, and said it is keeping a close watch on mixed end-market conditions.

Alamo Group said second-quarter sales rose 7.6% from a year earlier, while adjusted earnings and adjusted EBITDA also improved, as the company pointed to mixed end-market conditions and ongoing cost discipline.

Alamo Group Inc. reported second-quarter 2026 results on Aug. 3 from Seguin, Texas, saying net sales, adjusted net income and adjusted EBITDA all increased from a year earlier.

The maker of industrial and vegetation management equipment said demand remained uneven across its markets even as it posted higher sales and profit measures. Management said it is focusing on operational improvement, disciplined execution, margin improvement and targeted actions across the business.

The company said net sales in the quarter were $450.7 million, up 7.6% from $419.1 million in the second quarter of 2025. Net income was $30.9 million, or $2.55 per fully diluted share, compared with $31.1 million, or $2.57 per share, a year earlier.

Adjusted net income rose to $34.2 million, or $2.82 per fully diluted share, from $31.9 million, or $2.63 per share, in the prior-year quarter. Adjusted EBITDA was $63.9 million, or 14.2% of net sales, compared with $58.8 million, or 14.0% of net sales a year earlier.

By division, Industrial Equipment net sales were $271.6 million, up 12.8% from $240.7 million. The company said that increase reflected organic demand and the contribution from Petersen. Industrial Equipment adjusted EBITDA was $45.3 million, or 16.7% of net sales, compared with $40.3 million, or 16.8% a year earlier.

Vegetation Management net sales were $179.1 million, up 0.4% from $178.4 million. Adjusted EBITDA in that division was $18.6 million, or 10.4% of net sales, versus $18.5 million, or 10.4% in the second quarter of 2025.

For the first six months of 2026, cash flow from operations was $22.7 million, investing cash outflow was $171.6 million and financing cash inflow was $37.3 million. Alamo Group said it renewed its credit facility in May on improved terms, giving it $602.5 million of committed capacity, including a $400.0 million revolving credit facility and a $202.5 million term loan facility.

The company said it used cash in the first half of the year to fund the acquisition of Petersen, repurchase $10.8 million of common stock and pay $8.2 million in dividends. At June 30, 2026, cash stood at $195.0 million and total debt was $262.7 million.

President and CEO Robert Hureau said the quarter reflected continued execution, strong sales growth in the Industrial Equipment Division, improved adjusted earnings and solid adjusted EBITDA performance. He said end-market conditions remain mixed.

Alamo Group said it will host an earnings conference call on Tuesday, Aug. 4, 2026, at 10:00 a.m. ET. A replay is scheduled to be available until Aug. 11, and the webcast replay will be archived for 60 days on the company website.

Sources