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Alamo (ALG) - 2024 Q4 - Annual Results
ALGAlamo (ALG)2025-02-27 21:26

Financial Performance - Fourth quarter net sales were 385.3million,adecreaseof7.7385.3 million, a decrease of 7.7% compared to 417.5 million in Q4 2023[5]. - Full year net sales totaled 1.629billion,down3.61.629 billion, down 3.6% from the previous year, with Industrial Equipment Division sales increasing by 18.7% to 843.3 million[3][7]. - Net income for Q4 was 28.1million,or28.1 million, or 2.33 per diluted share, compared to 31.5million,or31.5 million, or 2.63 per diluted share in Q4 2023[6]. - Full year net income was 115.9million,or115.9 million, or 9.63 per diluted share, down from 136.2million,or136.2 million, or 11.36 per diluted share in 2023[9]. - Adjusted net income for Q4 2024 was 28.9million,comparedto28.9 million, compared to 31.5 million in Q4 2023, reflecting a decline of 8.4%[33]. - EBITDA for the year ended December 31, 2024, was 220.6million,downfrom220.6 million, down from 247.7 million in 2023, a decrease of 10.9%[38]. - The company reported a diluted EPS of 2.33forQ42024,downfrom2.33 for Q4 2024, down from 2.63 in Q4 2023[33]. Backlog and Division Performance - The backlog at the end of Q4 was 668.6million,withtheIndustrialEquipmentDivisionbacklogremainingelevateddespitenormalizationintheVegetationManagementDivision[6].−ThebacklogfortheVegetationManagementDivisiondecreasedto668.6 million, with the Industrial Equipment Division backlog remaining elevated despite normalization in the Vegetation Management Division[6]. - The backlog for the Vegetation Management Division decreased to 187.1 million from 352.1millionyear−over−year[40].−TheIndustrialEquipmentDivisionreportednetsalesof352.1 million year-over-year[40]. - The Industrial Equipment Division reported net sales of 225.5 million in Q4 2024, an increase of 11.0% from 203.2millioninQ42023[42].−TheIndustrialEquipmentDivision′sincomefromoperationsforQ42024was203.2 million in Q4 2023[42]. - The Industrial Equipment Division's income from operations for Q4 2024 was 28.0 million, up from 25.0millioninQ42023,reflectingagrowthof7.825.0 million in Q4 2023, reflecting a growth of 7.8%[42]. Cash Flow and Debt Management - Operating cash flow for the year was 209.8 million, driven by disciplined inventory management and efficient receivables control[8]. - Total debt net of cash decreased to 23.2millionasofDecember31,2024,from23.2 million as of December 31, 2024, from 183.4 million in 2023, a reduction of 160.2million[38].FutureOutlookandStrategicInitiatives−Thecompanyexpectsannualizedcostsavingsofapproximately160.2 million[38]. Future Outlook and Strategic Initiatives - The company expects annualized cost savings of approximately 25 to 30millionfromongoingcostreductioninitiativeslaunchedinQ32024[10].−Theoutlookfor2025iscautiouslyoptimistic,withexpectationsforelevatedactivityingovernmentalandindustrialcontractormarkets,andamodestrecoveryinVegetationManagementmarketsanticipatedinthesecondhalfoftheyear[15].−Thecompanyiscloselymonitoringpotentialimpactsfromtariffsandinflation,withplanstoadjustmanufacturingstrategiesandpricingasnecessary[16].ShareholderValue−Aquarterlydividendincreaseof1530 million from ongoing cost reduction initiatives launched in Q3 2024[10]. - The outlook for 2025 is cautiously optimistic, with expectations for elevated activity in governmental and industrial contractor markets, and a modest recovery in Vegetation Management markets anticipated in the second half of the year[15]. - The company is closely monitoring potential impacts from tariffs and inflation, with plans to adjust manufacturing strategies and pricing as necessary[16]. Shareholder Value - A quarterly dividend increase of 15% from 0.26 to $0.30 per share reflects the company's strong financial position and commitment to shareholder value[11]. Gross Margin - Gross margin for Q4 2024 was 23.8%, compared to 26.1% in Q4 2023, indicating a decrease of 2.3 percentage points[27].