Alamo Group Inc. reported results for the fourth quarter and fiscal year ended Dec. 31, 2025. Alamo Group is the manufacturer of the Bush Hog, Dixie Chopper, RhinoAg and Schulte brands of equipment.
Fourth Quarter Results:
- Net sales of $373.7 million compared to $385.3 million in the fourth quarter of 2024
- Adjusted EBITDA of $44.8 million was 12.0% of net sales
- Continued optimizing the company's manufacturing footprint to reduce fixed cost and streamline operations
- Entered into a definitive agreement to acquire Petersen Industries, a leader in grapple equipment serving bulky waste end market; the transaction successfully closed in January 2026
Full Year Results:
- Net sales of $1,603.7 million compared to $1,628.5 million in 2024
- Adjusted EBITDA of $216.9 million was 13.5% of net sales
- Operating cash flow was $177.5 million, resulting in a 171% conversion of net income to cash
- Total debt was $205.7 million and cash was $309.7 million, or $103.9 million in excess of debt
Robert Hureau, Alamo Group's President, and Chief Executive Officer commented, “Fiscal year 2025 was a year of transition as we position our Company for long term growth and success. Over the past few months, we’ve taken several decisive steps to strengthen our foundation including restructuring certain manufacturing facilities, reshaping the organizational structure, sharpening our commercial and operational priorities, accelerating our M&A engine and setting a clear vision for the future. Despite the challenges in the quarter, I’m excited about where we are taking our company and the success that lies ahead.”
Net sales for the full year 2025 were $1,603.7 million, a decrease of 1.5% compared to $1,628.5 million for the full year 2024. Net income per fully diluted share for the full year 2025 was $8.59 compared to $9.63 for the full year 2024. Adjusted net income per fully diluted share for the full year 2025 was $9.37 compared to $10.12 for the full year 2024. Adjusted EBITDA for the full year 2025 was $216.9 million, or 13.5% of net sales, compared to $228.4 million, or 14.0% of net sales, for the full year 2024.
Net sales for the full year 2025 in the Industrial Equipment Division were $949.7 million, an increase of 12.6% compared to $843.3 million for the full year 2024. Adjusted EBITDA for the full year 2025 in the Industrial Equipment Division was $157.5 million, or 16.6%, compared to $136.1 million, or 16.1%, for the full year 2024.
Net sales for the full year 2025 in the Vegetation Management Division, which includes its agricultural equipment products, were $654.1 million, a decrease of 16.7% compared to $785.2 million for the full year 2024. Adjusted EBITDA for the full year 2025 in the Vegetation Management Division was $59.4 million, or 9.1%, compared to $92.3 million, or 11.8%, for the full year 2024.
Operating cashflow for the full year was $177.5 million. At December 31, 2025, total debt was $205.7 million and total cash was $309.7 million. Reflecting the resilience of the Company's business and continued confidence in its future, the Company increased its quarterly dividend from $0.30 to $0.34 per share. This 13.3% increase in the dividend per share highlights the Company's strong financial position and commitment to delivering shareholder value.
Hureau commented, “Our strong cash generation and solid balance sheet create tremendous opportunity for us to invest in the business and advance our long-term strategy. The acquisition of Petersen Industries is a great example of how we’re positioning the Company for growth. We look forward to discussing our results and priorities in more detail during our upcoming earnings conference call.”
