Financial Data and Key Metrics Changes - Fourth quarter revenue was $385.3 million, reflecting a 7.7% decline compared to the same period last year [13] - Gross profit for the quarter was $91.8 million with a margin of 23.8%, a decline of 230 basis points year-over-year [13] - Net income for the fourth quarter was $28.1 million or $2.33 per diluted share, compared to $31.5 million or $2.63 per diluted share in the same period last year [15] - Full year net sales were $1.6 billion, a 3.6% decrease compared to 2023 [19] - Operating income for the year was $164.8 million or 10.1% of net sales, representing a decrease of $33.2 million year-over-year [20] Business Line Data and Key Metrics Changes - The vegetation management division reported net sales of $159.8 million, a 25.5% reduction compared to the fourth quarter of 2023 [16] - Operating income for the vegetation management division was $6.5 million, representing 4% of net sales [17] - The industrial equipment division net sales were $225.5 million, representing 11% growth compared to the fourth quarter of 2023 [18] - Operating income for the industrial equipment division was $28 million or 12.4% of net sales, a slight improvement compared to the same period last year [18] Market Data and Key Metrics Changes - Governmental and industrial contractor customers continued to invest in fleet modernization, with fourth quarter sales of $226 million up 11% [32] - The vegetation management division faced headwinds due to elevated interest rates and excess channel inventory, leading to a 25% decline in fourth quarter sales [36] - Order bookings in the vegetation management division improved sequentially during 2024, indicating potential recovery [38] Company Strategy and Development Direction - The company executed cost reduction initiatives aimed at improving efficiencies in the vegetation management division, including plant consolidations and workforce reductions [22] - The company is optimistic about meaningful acquisitions in 2025, with an active acquisition target pipeline [51] - The company aims to achieve annualized savings of $25 million to $30 million from cost reduction initiatives [23] Management's Comments on Operating Environment and Future Outlook - Management noted that the industrial equipment division is expected to continue producing strong results and mid-single-digit organic sales growth [49] - The vegetation management division is anticipated to show modest but steady recovery in order flow and operating margin [49] - Management expressed confidence in navigating inflation and tariff impacts, particularly with a strong North American presence [46][48] Other Important Information - The company reduced its total debt to $220.5 million, with net debt of $23.2 million, an improvement of $160.2 million or 87.3% compared to the end of 2023 [28] - The board approved a quarterly dividend of $0.30 per share, representing a 15% increase versus 2024 [30] Q&A Session Summary Question: Will we start seeing benefits from the plant consolidation in the second quarter? - Management confirmed that significant mix changes are not expected within the industrial equipment division and that January has started positively [55][56] Question: What will the company do with its free cash flow? - Management indicated that the primary purpose of accumulated cash is for M&A opportunities, with potential share buybacks if no suitable targets are found [61] Question: Can you discuss the order activity on the industrial side? - Management noted that the back truck market held steady, while street sweepers and snow removal saw slight declines due to seasonal factors [92][95] Question: What are the expected savings from the cost reduction initiatives? - Management confirmed that the $25 million to $30 million in savings is primarily from the vegetation management division, with expectations for improved decrementals in 2025 [104][105] Question: What are the long-term margin expectations for the industrial segment? - Management expressed confidence that a 15% operating margin in the industrial segment is achievable by the end of 2025 [110]

Government Sales and Regulatory Environment - The company reported a significant dependence on governmental sales, with a substantial portion of revenues derived from federal, state, provincial, and local governmental entities[119] - Changes in the regulatory environment regarding privacy and data protection could increase compliance costs and expose the company to significant penalties[126] - The company is subject to increasingly stringent engine emission regulations, which may impact product sales and competitive position[144] Financial Performance and Metrics - In 2024, the Company's net sales decreased by 4% to $1,628.5 million compared to $1,689.7 million in 2023, primarily due to weak demand in the Vegetation Management Division[183][190] - Net income for 2024 was $115.9 million, a decrease of 15% from $136.2 million in 2023, influenced by lower product demand and associated costs[197] - Gross profit for 2024 was $412.5 million, representing 25.3% of net sales, down from $453.6 million or 26.8% in 2023, attributed to production inefficiencies and costs related to capacity reduction[193] - Total net sales for 2024 were $1,628.5 million, a decrease of 3.6% compared to $1,689.7 million in 2023[289] - Comprehensive income for 2024 was $88.9 million, down from $149.9 million in 2023[292] Acquisitions and Growth Strategy - The company completed acquisitions of Timberwolf in 2021 and Royal Truck in 2023 as part of its growth strategy[134] - The company’s acquisition strategy is crucial for growth, but there are uncertainties regarding the identification of targets and financing for acquisitions[132] - Integration of acquired businesses may distract management and could lead to operational inefficiencies if not managed properly[135] Operational Challenges and Risks - The company faces risks from skilled labor shortages, which could negatively impact production capabilities and increase operating costs[118] - The company has experienced increased costs and supply chain disruptions for raw materials and components, which may adversely affect profitability and market share[117] - Economic downturns and adverse industry conditions could negatively impact demand for the company's products and overall financial performance[115] - Seasonal fluctuations in the agricultural and infrastructure maintenance industries may impact quarterly results and working capital[138] - Extreme weather conditions and climate change risks could adversely affect sales of agricultural and snow removal equipment[140][141] Cash Flow and Capital Management - Net cash provided by operating activities increased to $209.8 million in 2024, compared to $131.2 million in 2023, driven by improved receivables and inventory management[208] - The Company had $147.2 million in cash and cash equivalents held by foreign subsidiaries as of December 31, 2024, with plans to repatriate excess funds to reduce debt and fund working capital[210] - The Company entered into a 2022 Credit Agreement providing up to $655.0 million in loans, with $255.0 million borrowed under a Term Facility and $400.0 million available under a Revolver Facility[211] Shareholder and Equity Information - The company has issued 12,062,868 shares of common stock as of December 31, 2024, with potential dilution of ownership interests for existing shareholders[152] - As of December 31, 2024, four major investors own approximately 38% of the company's outstanding common stock, potentially influencing corporate decisions[156] - The Board of Directors increased the quarterly dividend from $0.26 to $0.30 per share, but future dividend payments are not guaranteed[153] Internal Controls and Governance - The company maintained effective internal control over financial reporting as of December 31, 2024[278] - KPMG LLP issued an unqualified opinion on the effectiveness of the Company's internal control over financial reporting as of December 31, 2024[268] - The company’s management assessed the effectiveness of internal control over financial reporting as of December 31, 2024, concluding that controls were effective[263] Market and Competitive Landscape - The company operates in a highly competitive industry, facing competition from larger firms with greater resources, which could impact its market position[127] - The introduction of new products and technological developments is critical for the company's success, and failure to keep pace could have a material adverse impact on operations[128] - The company is exposed to risks associated with international operations, including compliance with foreign laws and potential trade policy changes that could affect costs and sales[130] Currency and Economic Factors - Fluctuations in currency exchange rates may adversely affect financial results, particularly in international markets[150] - A uniform 10% strengthening of the U.S. dollar relative to foreign currencies would have resulted in a decrease in gross profit of $13.1 million as of December 31, 2024[226] - Inflation moderated in 2024, but costs for commodities and components remained elevated, leading to strategic pricing actions to offset cost pressures[214]

For: Alamo Group Inc. Contact: Edward Rizzuti EVP Corporate Development & Investor Relations 830-372-9600 Financial Relations Board Joe Calabrese 212-827-3772 ALAMO GROUP ANNOUNCES FINANCIAL RESULTS FOR THE FOURTH QUARTER AND YEAR END 2024 SEGUIN, Texas, February 27, 2025 -- Alamo Group Inc. (NYSE: ALG) today reported results for the fourth quarter and fiscal year ended December 31, 2024. Highlights: Fourth Quarter Results: Full Year Results: • Net Sales of $385.3 million, down 7.7% versus prior year ▪ Indu ...

Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:Alamo Group Inc. (ALG) is a global industrial equipment company. The Zacks Consensus Estimate for its current year earnings has been revised 6.8% downward over the last 60 days.Ashtead Group plc (ASHTY) is an equipment leasing company. The Zacks Consensus Estimate for its current year earnings has been revised 6.9% downward over the last 60 days.Clear Secure, Inc. (YOU) is a digital identity verification company.The Zacks Consensus Es ...

SEGUIN, Texas, Dec. 20, 2024 /PRNewswire/ -- Alamo Group Inc. (NYSE: ALG) announced today that Jeff Leonard, the Company's President and CEO, has informed the Board of Directors of his intention to retire preferably by mid-year 2025 and upon the appointment of his successor. As part of its succession planning efforts, the Company's Board of Directors has been preparing for such a transition and anticipates naming a new President and CEO as Mr. Leonard's replacement within the next several months.  In announ ...

AUBURN HILLS, Mich., Nov. 19, 2024 /PRNewswire/ --  All-new Dodge Charger Daytona, the next generation of American muscle and the first all-electric vehicle from the Dodge brand, achieves highest residual value in J.D. Power's new electric car segment Jeep® Gladiator ranks No. 1 for residual value among midsize pickups, marking the third time Gladiator has earned a J.D. Power award* Jeep Wagoneer earns award for best residual value among large SUVs for third consecutive year Jeep Wrangler, Grand Cherokee, W ...

Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:A-Mark Precious Metals, Inc. (AMRK) is a precious metals trading company. The Zacks Consensus Estimate for its current year earnings has been revised 17.5% downward over the last 60 days.Anika Therapeutics, Inc. (ANIK) is a joint preservation company. The Zacks Consensus Estimate for its current year earnings has been revised 82.8% downward over the last 60 days.Alamo Group Inc. (ALG) is a vegetation management and maintenance equipme ...

Alamo Group Inc (NYSE:ALG) Q3 2024 Earnings Conference Call November 1, 2024 10:00 AM ET Company Participants Edward Rizzuti - Executive Vice President, General Counsel and Secretary Jeff Leonard - President and Chief Executive Officer Agnes Kamps - Executive Vice President, Chief Financial Officer, and Treasurer Conference Call Participants Mike Shlisky - D.A. Davidson Chris Moore - CJS Securities Mig Dobre - Baird Greg Burns - Sidoti & Company Operator Good day, and welcome to the Alamo Group Inc. Third Q ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ____ TO ____ Commission file number 0-21220 ALAMO GROUP INC. (Exact name of registrant as specified in its charter) Delaware 74-1621248 (State or other jurisdiction ...

| --- | --- | --- | |-------|----------|----------------------------------------| | | For: | Alamo Group Inc. | | | Contact: | Agnes Kamps | | | | Executive Vice President & CFO | | | | 830-372-9615 | | | | Financial Relations Board | | | | Joe Calabrese | | | | 212-827-3772 | ALAMO GROUP ANNOUNCES THIRD QUARTER FINANCIAL RESULTS AND COST REDUCTION ACTIONS SEGUIN, Texas, October 31, 2024 -- Alamo Group Inc. (NYSE: ALG) today reported results for the third quarter ended September 30, 2024. Highlights for the ...