Alamo (US:ALG) Yahoo Finance·2025-11-06 22:03Core Insights - Alamo Group has shown mixed performance in its recent financial results, with a notable decline in its operating margin and challenges in its Vegetation Management Division, while the Industrial Equipment Division continues to perform well [4][10][15] Company Performance - Alamo's revenue for Q3 CY2025 increased by 4.7% year-on-year to $420 million, surpassing Wall Street's estimates by 3.1% [5][6] - The company reported a non-GAAP profit of $2.34 per share, which was 11.3% below analysts' consensus estimates [5] - Over the past five years, Alamo's sales grew at a compounded annual growth rate (CAGR) of 6.6%, which is below the benchmark for the industrials sector [2] - The company's operating margin for the quarter was 8.9%, down from 10% in the same quarter last year, indicating increased operational inefficiencies [4][10] Division Performance - The Industrial Equipment Division has shown strong year-over-year double-digit net sales growth for seven consecutive quarters, with healthy backlog levels [4] - The Vegetation Management Division has faced softness in its end markets, although bookings have slightly improved [4] Profitability Metrics - Alamo's operating margin has decreased by 1 percentage point year-on-year, attributed to rising expenses in marketing, R&D, and administrative overhead [10] - Despite the recent decline, Alamo's operating margin has improved by 1.7 percentage points over the last five years, reflecting better cost management [9][12] - The company's earnings per share (EPS) grew at a remarkable CAGR of 13.2% over the last five years, indicating improved profitability on a per-share basis [11] Future Outlook - Analysts expect Alamo's revenue to grow by 5.3% over the next 12 months, driven by newer products and services [6] - Wall Street anticipates a full-year EPS of $9.94, projecting a growth of 20.5% over the next year [14]