Alamo (US:ALG)2025-02-27 21:26Financial Performance - Fourth quarter net sales were $385.3 million, a decrease of 7.7% compared to $417.5 million in Q4 2023[5]. - Full year net sales totaled $1.629 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 $28.1 million, or $2.33 per diluted share, compared to $31.5 million, or $2.63 per diluted share in Q4 2023[6]. - Full year net income was $115.9 million, or $9.63 per diluted share, down from $136.2 million, or $11.36 per diluted share in 2023[9]. - Adjusted net income for Q4 2024 was $28.9 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 $220.6 million, down from $247.7 million in 2023, a decrease of 10.9%[38]. - The company reported a diluted EPS of $2.33 for Q4 2024, down from $2.63 in Q4 2023[33]. Backlog and Division Performance - The backlog at the end of Q4 was $668.6 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 $352.1 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 $203.2 million in Q4 2023[42]. - The Industrial Equipment Division's income from operations for Q4 2024 was $28.0 million, up from $25.0 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 $23.2 million as of December 31, 2024, from $183.4 million in 2023, a reduction of $160.2 million[38]. Future Outlook and Strategic Initiatives - The company expects annualized cost savings of approximately $25 to $30 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].