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olivLaw · US equity research

Alamo Group Inc. ALG

Farm Machinery & Equipment · SIC 3523 · Vertical: Industrial machinery and computer equipment (SIC 352x)

144.12USD−2.94% · 1 dayClose 04 Nov 2026

Alamo Group Inc. (ALG) manufactures purpose-built industrial and vegetation management equipment sold to independent dealers, contractors and municipalities. Net sales in fiscal 2025 were [1.6 bn USD], as the Industrial Equipment division grew while Vegetation Management weakened. In the second quarter of 2026, sales reached [450.7 mn USD] and the company renewed its credit facility.

The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).

At the close of 04 Nov 2026, Alamo Group Inc. (ALG) stock was 144.12 USD (−2.94% on the day), with market capitalisation 1.8 bn USD, P/E 22.5 on diluted EPS of 6.41 USD over the last 12 months, dividend yield 0.92%, beta 0.77, 52-week range 144.12–218.47 USD. Latest reported quarter (Q3 2026): revenue of 403.1 m USD (−4.0% YoY), net income of 2.0 m USD (−92.0% YoY), diluted EPS 0.17 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
1.8 bn USD
shares as of 03 Nov 2026
P/E (TTM)
22.5
Diluted EPS TTM 6.41 · TTM to 30 Sept 2026
E/P (TTM)
4.45%
TTM to 30 Sept 2026
Dividend yield
0.92%
DPS 12m 1.32
Beta (2y)
0.77
Volatility (1y) 33%
52-week range
144.12218.47

Price history

Loading chart…

Technical reading

RSI (14)
36.8
weak (30–45)
Bollinger (20, 2)
142.23 – 156.49
in the lower half of the band · %B 0.13 · band width 9.5%
SMA 50 / 200
158.64 / 168.17
downtrend (price < SMA50 < SMA200)
MACD (12, 26, 9)
-3.30 / -3.67
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month−11.3%−1.1%−10.2 pp—
3 months−14.1%−0.5%−13.6 pp—
6 months−15.6%+4.4%−20.0 pp—
Year to date−14.1%+12.3%−26.5 pp—
1 year−17.5%+13.5%−31.1 pp+18.9%
3 years−20.3%+76.4%−96.7 pp+29.5%
5 years−8.1%+63.7%−71.8 pp—
Max drawdown (1y)
−34.0%
02 Mar 2026 → 04 Nov 2026
Max drawdown (5y)
−38.0%
13 Aug 2025 → 04 Nov 2026
Compound annual growth (5y)
−1.7%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q3 2026 · 30 Sept 2026

Revenue
403.1 m USD
−4.0% YoY
Net income
2.0 m USD
−92.0% YoY
Diluted EPS
0.17
−91.9% YoY
net / operating
0.5% / 0.9%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26
Revenue385.3 m391.0 m419.1 m420.0 m373.7 m417.1 m450.7 m403.1 m
Cost of revenue293.5 m288.1 m310.8 m318.4 m288.6 m312.3 m339.9 m327.0 m
Gross profit91.8 m102.8 m108.3 m101.7 m85.0 m104.8 m110.9 m76.1 m
SG&A53.3 m54.3 m57.1 m59.9 m58.3 m57.8 m60.1 m67.6 m
Operating income34.4 m44.5 m47.1 m37.5 m22.5 m42.2 m45.8 m3.4 m
Interest expense3.5 m3.2 m3.7 m3.9 m4.1 m4.6 m4.8 m3.9 m
Pre-tax income34.5 m41.8 m41.4 m35.0 m21.3 m39.0 m41.6 m4.7 m
Income tax6.4 m10.0 m10.3 m9.6 m5.8 m9.9 m10.7 m2.6 m
Net income28.1 m31.8 m31.1 m25.4 m15.5 m29.2 m30.9 m2.0 m
Diluted EPS2.33 ≈2.642.572.101.28 ≈2.412.550.17
Operating cash flow79.1 m14.2 m22.7 m ≈65.5 m ≈75.1 m-23.5 m46.2 m ≈60.6 m ≈
Capex6.0 m6.0 m7.0 m ≈12.4 m ≈5.2 m4.5 m5.8 m ≈5.7 m ≈
Dividends paid3.1 m3.6 m3.6 m ≈3.6 m ≈3.6 m4.1 m4.1 m ≈4.1 m ≈
Share repurchases28.0 k1.6 m26.0 k ≈1.4 m ≈01.4 m9.4 m ≈160.0 k ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 75 percentile of its own 40-quarter history (min 12.4, median 19.8, max 31.6; quarters with earnings only).

Fiscal years

Fiscal year20182019202020212022202320242025
Revenue1.0 bn1.1 bn1.2 bn1.3 bn1.5 bn1.7 bn1.6 bn1.6 bn
Revenue YoY+10.6%+10.9%+4.0%+14.7%+13.4%+11.6%−3.6%−1.5%
Net income73.5 m63.1 m57.8 m80.2 m101.9 m136.2 m115.9 m103.8 m
Net income YoY+65.8%−14.1%−8.4%+38.8%+27.0%+33.6%−14.9%−10.5%
Diluted EPS6.255.354.886.758.5411.369.638.59
Diluted EPS YoY+64.9%−14.4%−8.8%+38.3%+26.5%+33.0%−15.2%−10.8%
net %7.3%5.6%5.0%6.0%6.7%8.1%7.1%6.5%
Free cash flow-13.7 m57.5 m166.5 m24.4 m-16.6 m93.4 m184.8 m146.9 m

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
309.7 m USD
Financial debt
15.0 m USD
Net debt
-294.7 m USD
Equity
1.1 bn USD
Total assets
1.6 bn USD
Debt / equity
0.01x
Current ratio
4.57x
ROE
9.6%
ROA
6.8%
FCF margin
9.2%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
1.7 bn
2024
1.6 bn
2025
1.6 bn

SEC (XBRL)· 02 Mar 2026verified

Cost of revenue
2023
1.2 bn
2024
1.2 bn
2025
1.2 bn

SEC (XBRL)· 02 Mar 2026verified

Gross profit
2023
453.6 m
2024
412.5 m
2025
397.8 m

SEC (XBRL)· 02 Mar 2026verified

SG&A
2023
240.2 m
2024
231.5 m
2025
229.7 m

SEC (XBRL)· 02 Mar 2026verified

Operating income
2023
198.0 m
2024
164.8 m
2025
151.6 m

SEC (XBRL)· 02 Mar 2026verified

Interest expense
2023
26.1 m
2024
20.5 m
2025
14.9 m

SEC (XBRL)· 02 Mar 2026verified

Pre-tax income
2023
175.1 m
2024
149.6 m
2025
139.5 m

SEC (XBRL)· 02 Mar 2026verified

Income tax
2023
39.0 m
2024
33.7 m
2025
35.7 m

SEC (XBRL)· 02 Mar 2026verified

Net income
2023
136.2 m
2024
115.9 m
2025
103.8 m

SEC (XBRL)· 02 Mar 2026verified

Diluted EPS
2023
11.36
2024
9.63
2025
8.59

SEC (XBRL)· 02 Mar 2026verified

Weighted average diluted shares
2023
12.0 m
2024
12.0 m
2025
12.1 m

SEC (XBRL)· 02 Mar 2026verified

Dividend per share
2023
0.88
2024
1.04
2025
1.20

SEC (XBRL)· 02 Mar 2026verified

Balance sheet · USD

Cash
2023
51.9 m
2024
197.3 m
2025
309.7 m

SEC (XBRL)· 02 Mar 2026verified

Receivables
2023
362.0 m
2024
305.6 m
2025
276.9 m

SEC (XBRL)· 02 Mar 2026verified

Inventories
2023
377.5 m
2024
343.4 m
2025
383.3 m

SEC (XBRL)· 02 Mar 2026verified

Current assets
2023
804.0 m
2024
857.5 m
2025
998.1 m

SEC (XBRL)· 02 Mar 2026verified

Goodwill
2023
206.5 m
2024
203.0 m
2025
214.6 m

SEC (XBRL)· 02 Mar 2026verified

Intangibles (excl. goodwill)
2023
168.3 m
2024
151.4 m
2025
144.9 m

SEC (XBRL)· 02 Mar 2026verified

Total assets
2023
1.4 bn
2024
1.5 bn
2025
1.6 bn

SEC (XBRL)· 02 Mar 2026verified

Accounts payable
2023
99.7 m
2024
84.5 m
2025
125.1 m

SEC (XBRL)· 02 Mar 2026verified

Short-term debt
2023
15.0 m
2024
15.0 m
2025
15.0 m

SEC (XBRL)· 02 Mar 2026verified

Current liabilities
2023
213.9 m
2024
190.3 m
2025
218.4 m

SEC (XBRL)· 02 Mar 2026verified

Total liabilities
2023
—
2024
432.0 m
2025
457.9 m

SEC (XBRL)· 02 Mar 2026verified

Equity
2023
932.8 m †
2024
1.0 bn †
2025
1.1 bn †

SEC (XBRL)· 02 Mar 2026verified

Cash flow · USD

Operating cash flow
2023
131.2 m
2024
209.8 m
2025
177.5 m

SEC (XBRL)· 02 Mar 2026verified

Capex
2023
37.7 m
2024
25.0 m
2025
30.6 m

SEC (XBRL)· 02 Mar 2026verified

Free cash flow
2023
93.4 m ≈
2024
184.8 m ≈
2025
146.9 m ≈

SEC (XBRL)· 02 Mar 2026derived

Investing cash flow
2023
-52.6 m
2024
-22.2 m
2025
-46.2 m

SEC (XBRL)· 02 Mar 2026verified

Financing cash flow
2023
-76.9 m
2024
-32.0 m
2025
-30.8 m

SEC (XBRL)· 02 Mar 2026verified

Dividends paid
2023
10.5 m
2024
12.4 m
2025
14.4 m

SEC (XBRL)· 02 Mar 2026verified

Share repurchases
2023
1.0 m
2024
2.0 m
2025
3.0 m

SEC (XBRL)· 02 Mar 2026verified

Computed indicators

Growth

Revenue growth (YoY)
-1.5%
computed by olivLawFY 2025
Revenue CAGR 3Y
1.9%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
6.6%
computed by olivLawFY 2020 → FY 2025
EBIT growth (YoY)
-8.0%
computed by olivLawFY 2025
Net income growth (YoY)
-10.5%
computed by olivLawFY 2025
Net income CAGR 3Y
0.6%
computed by olivLawFY 2022 → FY 2025
Net income CAGR 5Y
12.4%
computed by olivLawFY 2020 → FY 2025
EPS growth (YoY)
-10.8%
computed by olivLawFY 2025
EPS CAGR 3Y
0.2%
computed by olivLawFY 2022 → FY 2025
EPS CAGR 5Y
12.0%
computed by olivLawFY 2020 → FY 2025
FCF growth (YoY)
-20.5%
computed by olivLawFY 2025

Profitability

Gross margin
22.9%
computed by olivLawTTM to 30 Sept 2026
EBITDA margin
unavailable
input data missing
EBIT margin
6.9%
computed by olivLawTTM to 30 Sept 2026
Net margin
4.7%
computed by olivLawTTM to 30 Sept 2026
FCF margin
8.3%
computed by olivLawTTM to 30 Sept 2026

Returns

ROE
6.7%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROA
4.7%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROIC
8.9%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROCE
7.8%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Payout ratio (EPS)
20.6%
computed by olivLawTTM to 30 Sept 2026
Payout ratio (FCF)
11.6%
computed by olivLawTTM to 30 Sept 2026

Balance sheet

Net debt
-225.6 m USD
computed by olivLawbalance sheet at 30 Sept 2026
Net debt / EBITDA
unavailable
input data missing
Debt / equity
0.0x
computed by olivLawbalance sheet at 30 Sept 2026
Interest coverage
6.6x
computed by olivLawTTM to 30 Sept 2026

Liquidity

Current ratio
4.2x
computed by olivLawbalance sheet at 30 Sept 2026
Quick ratio
2.4x
computed by olivLawbalance sheet at 30 Sept 2026
Cash ratio
1.0x
computed by olivLawbalance sheet at 30 Sept 2026

Cash

Operating cash flow
158.3 m USD
computed by olivLawTTM to 30 Sept 2026
Capital expenditure
21.3 m USD
computed by olivLawTTM to 30 Sept 2026
Free cash flow
137.1 m USD
computed by olivLawTTM to 30 Sept 2026
FCF conversion
176.5%
computed by olivLawTTM to 30 Sept 2026
Cash conversion
unavailable
input data missing

Efficiency

Days sales outstanding
72 days
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Days inventory outstanding
115 days
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Days payables outstanding
39 days
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Cash conversion cycle
148 days
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026

Market and valuation

Market capitalisation
1.8 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
Enterprise value
1.5 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
Market cap / net income TTM
22.6x
computed by olivLawTTM to 30 Sept 2026
P/E (TTM)
22.5x
computed by olivLawTTM to 30 Sept 2026
Earnings yield
4.5%
computed by olivLawTTM to 30 Sept 2026
P/B
1.5x
computed by olivLawbalance sheet at 30 Sept 2026
P/S
1.1x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
EV/EBITDA
unavailable
input data missing
EV/EBIT
13.4x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
EV/Sales
0.9x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
P/FCF
12.8x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
FCF yield
7.8%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Dividend yield
0.9%
computed by olivLawTTM to 30 Sept 2026
Shareholder yield (distributions)
1.5%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026

Risk

Altman Z
4.67
computed by olivLawbalance sheet at 30 Sept 2026

Valuation

olivLaw classification

Neutral profile

Score: 53 / 100

A scoring methodology on indicators and valuation, not investment advice.

Closing price

144.12 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 1.8 bn USD

Key indicators

Market capitalisation
1.8 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
P/E (TTM)
22.5x
computed by olivLawTTM to 30 Sept 2026
P/B
1.5x
computed by olivLawbalance sheet at 30 Sept 2026
EV/EBITDA
unavailable
input data missing
ROE
6.7%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Net margin
4.7%
computed by olivLawTTM to 30 Sept 2026
Revenue growth (YoY)
-1.5%
computed by olivLawFY 2025
Dividend yield
0.9%
computed by olivLawTTM to 30 Sept 2026

Coverage and freshness

31/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 30 Sept 2026
Latest balance sheet date: 30 Sept 2026
Share count (cover of the latest filing), as of: 03 Nov 2026
Source: SEC (XBRL)published 04 Nov 2026
verified 2714derived 206

Score by group

  • Valuation62
  • Returns53
  • Quality62
  • Balance sheet87
  • Growth9

Estimated value range

Low
171.20
USD per share
Mid
193.64
USD per share
High
225.02
USD per share
Price: 144.12 USD
The price is below the range
Potential to the central value: 34.4% (value / price − 1)
Margin of safety: 25.6% (1 − price / value)
Agreement between methods: high · 2 methods used · 2 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 171.06 – 250.13 USD.

Methods computed but outside the aggregate range: Dividend discount (DDM) (a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate).

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)171.34 – 250.13 (Mid 202.10)
    WACC 9.3% · starting FCFF 149.7 m USD · terminal value share of EV 73%
    The WACC × g sensitivity gives the method's bounds; these are not probabilities.
    Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): -13.6%
  • Peers: EV/EBITDAunavailable · input data missing
  • Peers: P/E171.06 – 199.90 (Mid 185.19)
    4 companies used · median multiple 28.9x · quartiles 26.7x – 31.2x
    AGCO, DE, LNN, TTC
  • Dividend discount (DDM)outside the aggregate15.77 – 21.21 (Mid 18.09)
    a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate
Multiple comparisons use the SIC vertical: Industrial machinery and computer equipment (SIC 352x)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Neutral profile · Score 53/100

FactorValueScoreWeight used
ROIC · Quality8.9%53 (on a fixed band)13%
Net margin · Quality4.7%40 (vs peers)8%
FCF conversion · Quality176.5%100 (on a fixed band)8%
Revenue CAGR 3Y · Growth1.9%16 (on a fixed band)11%
EPS CAGR 3Y · Growth0.2%1 (on a fixed band)11%
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheet6.6x78 (on a fixed band)8%
Current ratio · Balance sheet4.2x100 (on a fixed band)5%
P/E (TTM) · Valuation22.5x34 (on a fixed band)13%
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuation7.8%98 (on a fixed band)11%
Shareholder yield (distributions) · Returns1.5%22 (on a fixed band)8%
Payout ratio (FCF) · Returns11.6%100 (on a fixed band)5%

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet87/100 · 2/3 factors with a value
  • Growth9/100 · 2/2 factors with a value
  • Quality62/100 · 3/3 factors with a value
  • Returns53/100 · 2/2 factors with a value
  • Valuation62/100 · 2/3 factors with a value

Memo

ALAMO GROUP INC. (ALG). Latest full fiscal year: 2025; data up to 2026-09-30.

Figures computed from the financial statements: revenue 1.6 bn USD in 2025; YoY growth -1.5%; net margin 4.7%; ROE 6.7%.

The estimated value range is 171.20–225.02 USD per share (median of 2 methods, agreement: high); assumptions are illustrative. Against the central value of 193.64 USD, the price of 144.12 USD leaves a potential of 34.4% (value / price − 1) and a margin of safety of 25.6% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

olivLaw score 53/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • FCF conversion: 176.5%
  • Interest coverage: 6.6x
  • Current ratio: 4.2x
  • FCF yield: 7.8%
  • Payout ratio (FCF): 11.6%
  • The price is below the estimated value range

What contradicts it

  • Revenue CAGR 3Y: 1.9%
  • EPS CAGR 3Y: 0.2%
  • Shareholder yield (distributions): 1.5%

Not assessed (insufficient data or a ratio without meaning): Net debt / EBITDA, EV/EBITDA.

Versus the vertical median

Industrial machinery and computer equipment (SIC 352x) · same industry group (3-digit SIC) · compared with 5 companies

Multiples and returns vs the median

P/E
22.5x
vertical median 28.9x
below median (−22.2%)
EV/EBITDA
—
vertical median 17.2x
P/S
1.1x
vertical median 1.7x
below median (−39.1%)
P/B
1.5x
vertical median 2.2x
below median (−32.8%)
ROE
6.7%
vertical median 10.7%
below median (−37.5%)
Net margin
4.7%
vertical median 7.6%
below median (−38.2%)
EBIT margin
6.9%
vertical median 8.0%
below median (−13.0%)
Revenue YoY
-1.5%
vertical median -6.2%
above median
Net debt/EBITDA
—
vertical median 1.2x
Dividend yield
0.9%
vertical median 1.2%
below median (−24.0%)

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
DEDeere & Co182.4 bn37.618.3%10.2%−11.7%+46% / +86%
TTCThe Toro Company10.2 bn28.726.4%7.6%−1.6%+54% / +30%
AGCOAgco Corp7.8 bn29.06.5%2.8%−13.5%+6% / −1%
ALGAlamo Group Inc.1.8 bn22.56.7%4.7%−1.5%−18% / −20%
LNNLindsay Corporation1.1 bn20.510.7%8.8%−6.0%−5% / −8%
ARTWArts Way Manufacturing Co Inc14.6 m—-3.0%-1.6%−6.2%+19% / +36%

1- and 3-year price returns: for ALG from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
82.62
Total return -42% · Per year -42%
146.24
Total return 2% · Per year 2%
220.54
Total return 54% · Per year 54%
3 years
76.12
Total return -45% · Per year -18%
151.99
Total return 8% · Per year 3%
252.24
Total return 79% · Per year 21%
5 years
70.13
Total return -48% · Per year -12%
157.96
Total return 14% · Per year 3%
288.50
Total return 107% · Per year 16%
What moves the 3-year price the most
  • Exit P/E± 38.00
  • Net margin± 26.60
  • Annual revenue growth± 22.38
  • Annual dilution± 2.24

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 03 Aug 2026; since then the company filed 10-Q (04 Nov 2026), 8-K (02 Nov 2026 · results).

In brief

Alamo Group Inc. (ALG) manufactures purpose-built industrial and vegetation management equipment sold to independent dealers, contractors and municipalities. Net sales in fiscal 2025 were [1.6 bn USD], as the Industrial Equipment division grew while Vegetation Management weakened. In the second quarter of 2026, sales reached [450.7 mn USD] and the company renewed its credit facility.

SWOT

Strengths

  • Leading position in purpose-built niche equipment, supported by extensive dealer and distributor networks 1.
  • Solid balance sheet with substantial cash and a credit facility renewed in May 2026 on improved terms 3.
  • Geographic diversification across three continents and a broad portfolio of acquired brands 1.

Weaknesses

  • Operating margins fell in fiscal 2025 and in the second quarter of 2026, due to production inefficiencies and facility consolidation 12.
  • Dependence on the vegetation market, which has weakened, weighs on that division's results 1.
  • Restructuring and integration costs from acquisitions have pressured profit 2.

Opportunities

  • Demand in the Industrial Equipment Division could remain solid, supported by recent acquisitions and infrastructure spending 13.
  • Completing facility consolidation could lower costs and improve capacity utilization 1.
  • If interest rates ease, demand for vegetation and construction equipment could recover 1.

Threats

  • An economic downturn could reduce demand and tighten credit for dealers 1.
  • Trade wars and tariffs could raise costs and reduce sales volumes 1.
  • Cuts in government budgets could hurt sales to municipalities 1.

Risks

  • Dependence on government budgetshigh

    A substantial share of revenue comes from public agencies, and cuts to road and park budgets could reduce equipment sales 1.

  • Weak vegetation markethigh

    Demand in agriculture, forestry and recycling has stayed weak, and division orders rose only slightly in the second quarter of 2026 12.

  • Production inefficiency during consolidationmedium

    Relocating production lines could create duplicate costs and delivery delays, pressuring margins in the short term 12.

  • Goodwill impairmentmedium

    Goodwill on the balance sheet is significant, and an impairment could affect results and equity 1.

  • Cyber and information technology risklow

    Information systems could be disrupted by attacks or failures, which could interrupt operations 1.

Investment thesis

What would need to be true (bull case)

  • The Industrial Equipment Division shows solid growth, and recent acquisitions have extended the portfolio and its contribution to sales 13.
  • If operational optimization succeeds, margins could recover toward earlier levels with better production capacity 12.
  • The balance sheet and renewed credit lines give flexibility for organic investment and acquisitions 3.

What would break the thesis

  • The Vegetation Management Division has declined sharply, and backlog in the industrial division has fallen, which could slow growth 12.
  • Restructuring and integration costs have weighed on profit, and gross margin has declined 2.
  • If tariffs and input costs rise, the company may not be able to pass all of those costs on to customers 1.

What to watch

  • Trend in industrial division backlogQ3 2026
  • Completion of facility consolidation and margin recovery2027
  • Vegetation Management sales during the agricultural seasonQ1 2027
  • Effect of the Petersen acquisition on sales and debtnext 10-K

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 03 Aug 2026; since then the company filed 10-Q (04 Nov 2026), 8-K (02 Nov 2026 · results).

The business

Operations are organized in two divisions: the Industrial Equipment Division, covering vacuum trucks, street sweepers, excavators, snow removal equipment and truck mounted attenuators, and the Vegetation Management Division, covering mowing, brush and tree care, agricultural and recycling equipment 1. Growth has come through repeated acquisitions, from Bush Hog and Gradall to Morbark, Timberwolf and Ring-O-Matic, while the Herschel business was sold in 2024 1.

Products reach customers through extensive dealer and distributor networks, and the business depends on government spending, agricultural markets and construction activity 1. The company describes itself as a leading supplier to U.S. governmental markets and one of the largest suppliers in Europe for its key niche products 1.

Segments

Industrial Equipment Division

The division covers vacuum trucks, street sweepers, snow removal equipment, excavators and roadside safety equipment. Sales grew by [12.6%] in fiscal 2025, to [949.7 mn USD], and reached [271.6 mn USD] in the second quarter of 2026, helped by recent acquisitions and organic demand 13.

Vegetation Management Division

The division covers mowers, land maintenance equipment, forestry and tree care machinery. Sales fell by [16.7%] in fiscal 2025, to [654.1 mn USD], and were roughly flat in the second quarter of 2026 at [179.1 mn USD], with pressure from municipal markets 13.

Market context

The company's end markets are infrastructure, industrial construction, public works, agriculture and tree care 1. Demand for industrial and governmental equipment remains healthy, while vegetation demand is weak due to soft commodity prices, elevated interest rates and reduced construction activity 1. Backlog has declined as order patterns normalize after a period of elevated demand 2.

Reliance on government budgets, weather and raw material prices makes revenue sensitive to economic cycles 1. The sector is competitive, and the supply of steel, chassis and engines can influence margins 1.

Trends

  • Normalizing orders in industrial equipmentmixed

    Industrial Equipment backlog has fallen and new orders were slightly lower than last year, as lead times improved 2. If demand stays steady, revenue could be supported by recent acquisitions.

  • Government and infrastructure demandtailwind

    Sales to public agencies and infrastructure contractors remain important and depend on local and national budgets for road and park maintenance 1. Higher budgets could support demand.

  • Weakness in vegetation and tree care marketsheadwind

    Demand for vegetation equipment has been weak, affected by low demand in forestry, tree care and recycling 12. Pressure could persist if interest rates stay high.

  • Input costs and trade tariffsheadwind

    Tariffs and rising costs for steel, engines and components could erode margins, although the company has passed on costs through price increases in the past 1. The impact depends on its ability to pass costs on.

Competitive position

The company competes with strong makers of vegetation and vocational equipment, some with greater resources than its own 1. In Europe Alamo ranks among the largest manufacturers, and in the U.S. it holds a leading position in its niche segments 1.

Competition runs through pricing, dealer networks, innovation and the capacity for acquisitions in adjacent segments 1. The company aims to keep its position by integrating recent acquisitions and improving operating efficiency 3.

  • U.S. vegetation and forestry equipment makers

    Rivals offering mowers, chippers and tree care equipment, described in the filings as firms with larger resources.

  • Vocational and snow removal vehicle makers

    Rivals in vacuum trucks, sweepers and snow removal equipment within the Industrial Equipment Division.

  • European road and land maintenance equipment makers

    European firms active in tractor-mounted mowing and infrastructure maintenance, where Alamo holds an important position.

  • Agricultural equipment and parts suppliers

    Competitors in agricultural machinery and replacement parts, a segment where the Herschel business was sold.

News & filings

In the press

The latest news item in our archive is from 28 Sept 2026; the newest SEC filing is from 04 Nov 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.

SEC filings

  • Quarterly report04 Nov 2026
  • Current report02 Nov 2026
    Results of operations · Financial statements and exhibits
  • Current report27 Oct 2026
    Material agreement · Acquisition or disposition of assets · Regulation FD disclosure · Financial statements and exhibits
  • Current report30 Sept 2026
    Exit or disposal costs · Material impairment
  • Current report08 Sept 2026
    Exit or disposal costs · Material impairment
  • Current report11 Aug 2026
    Departure or appointment of officers · Financial statements and exhibits
  • Quarterly report03 Aug 2026
  • Current report03 Aug 2026
    Results of operations · Amendments to articles or bylaws · Financial statements and exhibits
  • Current report08 Jul 2026
    Departure or appointment of officers · Financial statements and exhibits
  • Current report28 May 2026
    Material agreement · Creation of a direct financial obligation · Financial statements and exhibits

Sources

  1. [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Alamo Group Inc. · 02 Mar 2026
  2. [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Alamo Group Inc. · 03 Aug 2026
  3. [3] Form 8-K, results release (exhibit 99.1) · SEC / Alamo Group Inc. · 03 Aug 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.