Alamo Group Inc.

Alamo Group Inc. (NYSE: ALG) makes specialty equipment for infrastructure maintenance, public works, land management and agriculture. Its Industrial Equipment division includes vacuum trucks, street sweepers and other vocational equipment. Vegetation Management makes mowing, land-maintenance and tree-care equipment.

Third-quarter results

The table compares the three months ended September 30. Amounts are USD millions, except per-share figures.

Adjusted earnings remove selected acquisition, restructuring and business-exit items. Adjusted EBITDA also removes interest, taxes, depreciation and amortization. Net pretax charges tied to selling or winding down businesses were $33.3 million in Q3, including inventory write-downs and asset impairments. The planned portfolio actions were substantially completed during the quarter.

How the divisions changed

Industrial Equipment revenue was $232.8 million, down 5.8%. Excluding Petersen Industries, acquired in January, sales fell approximately 12.6%. Adjusted EBITDA fell to $31.1 million from $38.2 million, and the margin narrowed to 13.4% from 15.5%.

Vegetation Management revenue was $170.4 million, down 1.5%. Excluding a $7.3 million reduction related to divestitures, sales rose 2.7%. Adjusted EBITDA increased to $21.3 million from $16.8 million, with the margin rising to 12.5% from 9.7%.

The vegetation division's $4.4 million improvement offset about 62% of the $7.1 million industrial decline. A year earlier, industrial revenue had grown 17%, while vegetation revenue fell 9%. In August, management continued to describe progress on vegetation's manufacturing and cost initiatives; Q3 shows further improvement on the adjusted profit measure.

Orders and the next test

Industrial bookings were $217.9 million in Q3, versus $175.5 million a year earlier, including acquired businesses. Management highlighted stronger orders for vacuum trucks and sweepers. Industrial backlog was $350.4 million at September 30, versus $438.1 million a year earlier. Vegetation backlog was $170.9 million, versus $180.2 million.

Alamo said industrial price increases lagged material and freight inflation in Q3. The next results will show whether those increases and improved orders translate into better sales and margins.

Cash flow before the Econ acquisition

Operating cash flow for the first nine months was $83.2 million, versus $102.4 million a year earlier. Capital spending was $16.1 million, versus $25.4 million.

At September 30, cash was $230.7 million and total debt was $232.3 million. Available revolving credit capacity was $363.6 million. These balances precede the October 27 borrowing used to buy Econ Engineering.

Completed acquisitions and business exits

Alamo acquired all of Econ Engineering on October 27, 2026, for a base price of £120 million, approximately $158.7 million, plus closing adjustments, using its revolving credit facility. The British company makes road-maintenance equipment and operates a fleet of approximately 1,300 rental trucks. It joins Industrial Equipment.

Alamo acquired Petersen Industries on January 26, 2026. Total consideration in the June quarterly report was $163.9 million, including $0.9 million of acquired cash. Petersen makes truck-mounted grapple loaders for bulky-waste collection.

Other completed purchases include Ring-O-Matic on June 30, 2025, for approximately $17.5 million, and selected GreenMech assets and subsidiaries on October 31, 2025, for approximately £2.6 million, or $3.6 million. During Q3 2026, Alamo substantially completed sales and wind-downs involving Dixie Chopper, Boxer and other product lines.