SEGUIN, Texas, Jan. 26, 2026 /PRNewswire/ -- Alamo Group Inc. (NYSE: ALG), a leading global manufacturer of high-quality industrial and vegetation management equipment, today announced that it has completed the acquisition of Petersen Industries, a manufacturer of specialized truck-mounted grapple loader equipment, serving both municipal and industrial customers. The signing of the acquisition purchase agreement was previously announced on December 10, 2025. "We are thrilled to welcome the men and women of ...

Group 1 - Alamo Group Inc. has declared a quarterly dividend of $0.34 per share, representing an increase of $0.04 per quarter, which is more than a 13 percent rise [1] - The increase in the dividend reflects the company's commitment to delivering long-term value to shareholders and aligns with its disciplined capital allocation strategy [1] - The payment of the dividend will occur on January 29, 2026, for shareholders of record as of January 16, 2026 [1] Group 2 - Alamo Group is a leading global manufacturer of industrial and vegetation management equipment, essential for infrastructure maintenance and land management [2] - The company's product offerings include vacuum trucks, hydro-excavator machines, street sweepers, and other related equipment and services [2] - As of September 30, 2025, Alamo Group operates 27 plants across North America, Europe, Australia, and Brazil [2]

Core Viewpoint - Alamo Group Inc. has signed a definitive agreement to acquire Petersen Industries, Inc. for a purchase price of $166.5 million, which is expected to enhance Alamo's product offerings and market position in the industrial equipment sector [1][3]. Group 1: Acquisition Details - The acquisition price of $166.5 million is subject to customary post-closing adjustments and will be financed through cash on hand and Alamo Group's credit facility [1]. - When accounting for expected tax benefits, the effective purchase price is approximately $150 million, representing about 7.9 times Petersen's EBITDA [1]. - The transaction is anticipated to close in the first quarter of 2026, pending regulatory approval and customary closing conditions [3]. Group 2: Company Background - Petersen Industries is a market leader in truck-mounted grapple loader equipment, primarily serving governmental customers for bulky waste collection, with annual revenue of approximately $75 million in 2024 [2]. - Founded over 65 years ago, Petersen has been recognized for its innovative contributions to the bulky waste collection industry [2]. Group 3: Strategic Fit and Future Outlook - The acquisition aligns with Alamo Group's strategy of acquiring profitable companies with innovative product portfolios that serve stable and growing markets [3]. - Alamo Group expects to unlock significant cost savings and revenue growth by integrating Petersen into its supply chain and dealer networks [3]. - Petersen's products are expected to complement Alamo's existing offerings, enhancing the company's growth and margins while providing recurring revenue from aftermarket parts and services [3].

Core Insights - Alamo Group Inc. reported a modest increase in net sales for Q2 2025, reaching $419.1 million, a 0.7% increase from $416.3 million in Q2 2024, with a notable performance in the Industrial Equipment Division [3][8][9] - The company experienced a 9.8% year-over-year increase in net income, amounting to $31.1 million, or $2.57 per diluted share, driven by improved operating results despite currency revaluation impacts [4][8][9] - The company's backlog at the end of Q2 2025 was $687.2 million, indicating a healthy demand outlook, with the Industrial Equipment Division backlog at $509.6 million [5][8][9] Financial Performance - Q2 2025 gross profit was $108.3 million, representing 25.8% of net sales, slightly down from 26.0% in Q2 2024 [3][8] - Selling, general and administrative (SG&A) expenses decreased by 6.1% to $57.1 million, or 13.6% of net sales, reflecting successful cost reduction efforts [3][8] - The Industrial Equipment Division achieved net sales of $240.7 million, a 17.6% organic growth compared to Q2 2024, while the Vegetation Management Division saw a decline of 15.7% to $178.4 million [3][8][10] Operational Highlights - The company's operating income for Q2 2025 was $47.1 million, or 11.2% of net sales, marking an improvement of 83 basis points from the previous year [3][8][12] - The Industrial Equipment Division's operating margin improved to 14.3%, up 93 basis points year-over-year, driven by strong demand and market share gains [3][10][12] - The Vegetation Management Division's operating margin was 7.1%, impacted by costs associated with manufacturing facility consolidations [3][11][12] Strategic Developments - Alamo Group welcomed Ring-O-Matic into its portfolio, enhancing its product offerings in industrial vacuum excavation equipment, funded by existing cash [13] - The company anticipates continued operational gains, particularly in the Industrial Equipment Division, while the Vegetation Management Division is expected to improve following recent consolidations [7][14] - The balance sheet remains strong, with cash and cash equivalents of $201.8 million and total debt reduced to $213.1 million, net of cash [6][8][29]