Key Takeaways:
- Net sales rose 4.7% to $420.0 million; income from operations decreased 6.3% to $37.5 million
- Diluted EPS was $2.10; adjusted diluted EPS was $2.34 including CEO transition, acquisition, and restructuring costs
- Adjusted EBITDA remained stable at $55.0 million compared to the prior year
- Industrial Equipment Division sales grew 17.0% (14.5% organically), while Vegetation Management Division declined 9.0%
- Nine-month operating cash flow totaled $102.4 million; cash on hand reached $244.8 million with $397.2 million available under the revolving facility
Alamo Group Inc. Third-Quarter Overview
Alamo Group Inc. (NYSE: ALG) announced third-quarter 2025 results showing solid performance in its Industrial Equipment Division, offset by continued softness in Vegetation Management. Net sales were $420.0 million, up 4.7% year-over-year, with income from operations of $37.5 million compared to $40.1 million in the prior year.
Net income was $25.4 million, or $2.10 per diluted share, versus $27.4 million, or $2.28 per share, last year. Adjusted net income reached $28.2 million, or $2.34 per diluted share. Adjusted EBITDA stood at $55.0 million, or 13.1% of net sales, nearly unchanged from 2024 levels.
Segment Results
In the Industrial Equipment Division, net sales rose 17.0% to $247.0 million (14.5% organically), marking the seventh consecutive quarter of double-digit growth. Adjusted EBITDA reached $38.2 million, or 15.5% of net sales, compared with $33.1 million a year ago.
The Vegetation Management Division reported net sales of $173.1 million, down 9.0% year-over-year, with adjusted EBITDA of $16.8 million, or 9.7% of net sales, compared to $21.8 million and 11.5% respectively in 2024. While end markets remained soft, bookings showed slight improvement.
Financial Position and Cash Flow
Operating cash flow for the first nine months of 2025 was $102.4 million. As of September 30, total cash stood at $244.8 million, with total debt of $209.4 million and $397.2 million in available credit. Gross profit was $101.7 million, with selling, general, and administrative expenses totaling $59.9 million.
CEO Robert Hureau noted, “The Industrial Equipment Division continued to perform exceptionally well, delivering strong year-over-year growth. In the Vegetation Management Division, we have consolidated facilities to reduce fixed costs and are seeing progress in operational efficiency.”
Strategic Outlook
Alamo Group stated it remains positioned to pursue both organic and acquisition-driven growth, supported by strong liquidity and cash generation. The company expects productivity improvements and further operational benefits in upcoming quarters.
An earnings conference call is scheduled for Friday, November 7, 2025, at 10:00 a.m. ET, with a webcast available via the company’s website.
Read the full financial report here.
