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ALAMO GROUP ANNOUNCES FINANCIAL RESULTS FOR THE FIRST QUARTER 2025
ALGAlamo (ALG) Prnewswire·2025-05-08 20:15

Core Insights - Alamo Group Inc. reported a net sales decline of 8.1% in Q1 2025, totaling 391.0millioncomparedto391.0 million compared to 425.6 million in Q1 2024, while gross profit decreased by 8.8millionbutgrossmarginimprovedslightly[3][4][9]−ThecompanyexperiencedastrongperformanceinitsIndustrialEquipmentDivision,withsalesup12.58.8 million but gross margin improved slightly [3][4][9] - The company experienced a strong performance in its Industrial Equipment Division, with sales up 12.5% year-over-year, while the Vegetation Management Division saw a significant decline of 26.8% [8][11] - The backlog at the end of Q1 2025 increased to 702.7 million, indicating a healthy demand outlook, with the Industrial Equipment Division backlog rising to 513.2million[4][11]FinancialPerformance−ConsolidatednetincomeforQ12025was513.2 million [4][11] Financial Performance - Consolidated net income for Q1 2025 was 31.8 million, or 2.64perdilutedshare,slightlydownfrom2.64 per diluted share, slightly down from 32.1 million, or 2.67perdilutedshareinQ12024[4][9]−Operatingcashflowwasreportedat2.67 per diluted share in Q1 2024 [4][9] - Operating cash flow was reported at 14.2 million, with cash and cash equivalents reaching 200.3millionattheendofthequarter[5]−Thecompany’stotaldebtwasreducedto200.3 million at the end of the quarter [5] - The company’s total debt was reduced to 216.8 million, with total debt net of cash improving significantly by 183.2millionor91.7183.2 million or 91.7% compared to Q1 2024 [9][31] Division Performance - The Industrial Equipment Division achieved an operating margin of 13.7%, reflecting a sequential improvement of 130 basis points, while the Vegetation Management Division's operating margin was 8.1%, showing a recovery with a sequential improvement of 410 basis points [3][10] - Orders in the Industrial Equipment Division were up nearly 59% compared to Q4 2024, indicating robust demand, while the Vegetation Management Division saw a 18% increase in orders compared to Q1 2024 [11][12] - The backlog for the Vegetation Management Division was 189.5 million, down 30.3% year-over-year but increased for the third consecutive quarter [12][34] Outlook - The company anticipates continued strong demand in the Industrial Equipment Division and a return to modest growth in the Vegetation Management Division, driven by cost reduction actions implemented in 2024 [6][13] - The outlook for the next several quarters remains cautiously optimistic, with expectations for improved profitability and a stable market environment [13][14]