alg-20260630

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 JUNE 30, 2026

☐ 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 of incorporation or organization)						(I.R.S. Employer Identification Number)

1627 East Walnut, Seguin, Texas 78155

(Address of principal executive offices, including zip code)

830-379-1480

(Registrant’s telephone number, including area code)


Securities registered pursuant to Section 12(b) of the Act:

	Title of each class	Trading symbol(s)	Name of each exchange on which registered
	Common Stock, par value $.10 per share	ALG	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

At July 24, 2026, 12,170,965 shares of common stock, $.10 par value, of the registrant were outstanding.

Alamo Group Inc. and Subsidiaries

INDEX


PART I.	FINANCIAL INFORMATION		PAGE

Item 1.	Interim Condensed Consolidated Financial Statements (Unaudited)

	Interim Condensed Consolidated Statements of Income		3
		Three and Six Months Ended June 30, 2026 and June 30, 2025

	Interim Condensed Consolidated Statements of Comprehensive Income		4
		Three and Six Months Ended June 30, 2026 and June 30, 2025

	Interim Condensed Consolidated Balance Sheets		5
		June 30, 2026 and December 31, 2025

	Interim Condensed Consolidated Statements of Stockholders' Equity		6
		Three and Six Months Ended June 30, 2026 and June 30, 2025

	Interim Condensed Consolidated Statements of Cash Flows		7
		Six Months Ended June 30, 2026 and June 30, 2025

	Notes to Interim Condensed Consolidated Financial Statements		8

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations		17

Item 3.	Quantitative and Qualitative Disclosures About Market Risks		22

Item 4.	Controls and Procedures		23

PART II.	OTHER INFORMATION		24

Item 1.	Legal Proceedings
Item 1A.	Risk Factors
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds
Item 3.	Defaults Upon Senior Securities
Item 4.	Mine Safety Disclosures
Item 5.	Other Information
Item 6.	Exhibits

	SIGNATURES		26

Alamo Group Inc. and Subsidiaries

Interim Condensed Consolidated Statements of Income

(Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands, except per share amounts)	2026		2025		2026		2025

Net sales:
Vegetation Management	$	179,092	$	178,358	$	354,512	$	342,248
Industrial Equipment	271,641		240,715		513,370		467,775

Total net sales	450,733		419,073		867,882		810,023
Cost of sales	339,877		310,781		652,221		598,890
Gross profit	110,856		108,292		215,661		211,133

Selling, general and administrative expenses	60,076		57,136		117,843		111,466
Amortization expense	5,015		4,078		9,894		8,127
Income from operations	45,765		47,078		87,924		91,540

Interest expense	(4,792)		(3,684)		(9,416)		(6,878)
Interest income	1,239		1,195		2,720		2,433
Other income (expense), net	(619)		(3,183)		(587)		(3,846)
Income before income taxes	41,593		41,406		80,641		83,249
Provision for income taxes	10,653		10,300		20,517		20,343
Net Income	$	30,940	$	31,106	$	60,124	$	62,906

Net income per common share:
Basic	$	2.57	$	2.59	$	4.99	$	5.24
Diluted	$	2.55	$	2.57	$	4.96	$	5.21
Average common shares:
Basic	12,068		12,020		12,060		12,005
Diluted	12,122		12,083		12,112		12,066

Dividends declared	$	0.34	$	0.30	$	0.68	$	0.60

See accompanying notes.

Alamo Group Inc. and Subsidiaries

Interim Condensed Consolidated Statements of Comprehensive Income

(Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2026		2025		2026		2025
Net income	$	30,940	$	31,106	$	60,124	$	62,906
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments, net of tax benefit and (expense) of $204 and $(1,296), and $697 and $(1,837), respectively	(4,371)		28,062		(8,176)		38,883
Recognition of deferred pension and other post-retirement benefits, net of tax expense of $(48) and $(58), and $(102) and $(117), respectively	162		201		451		401
Unrealized income (loss) on derivative instruments, net of tax (expense) and benefit of $0 and $190, and $(442) and $618, respectively	140		(647)		1,323		(2,110)


Other comprehensive (loss) income, net of tax	(4,069)		27,616		(6,402)		37,174
Comprehensive income	$	26,871	$	58,722	$	53,722	$	100,080

See accompanying notes.

Alamo Group Inc. and Subsidiaries

Interim Condensed Consolidated Balance Sheets

(Unaudited)


(in thousands, except share amounts)	June 30, 2026			December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents		$	194,995		$	309,659
Accounts receivable, net		343,326			276,866
Inventories, net		432,262			383,252

Prepaid expenses and other current assets		13,406			11,629
Income tax receivable		8,708			16,687
Total current assets		992,697			998,093

Rental equipment, net		56,033			61,102

Property, plant and equipment		389,561			392,029
Less: Accumulated depreciation		(228,396)			(226,052)
Total property, plant and equipment, net		161,165			165,977

Goodwill		271,318			214,611
Intangible assets, net		212,999			144,932
Deferred income taxes		1,263			1,264
Other non-current assets		28,127			20,637

Total assets		$	1,723,602		$	1,606,616

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Trade accounts payable		$	148,039		$	125,130
Income taxes payable		3,685			2,332
Accrued liabilities		69,307			75,905
Current maturities of long-term debt		5,063			15,000

Total current liabilities		226,094			218,367

Long-term debt, net of current maturities		257,679			190,748
Long-term tax liability		470			470

Other long-term liabilities		24,127			24,113
Deferred income taxes		27,122			24,215
Total liabilities		535,492			457,913

Stockholders’ equity:
Common stock, $0.10 par value, 20,000,000 shares authorized; 12,108,752 and 12,073,713 outstanding at June 30, 2026 and December 31, 2025, respectively		1,211			1,207
Additional paid-in-capital		158,669			155,427
Treasury stock, at cost; 144,532 and 82,600 shares at June 30, 2026 and December 31, 2025, respectively		(13,926)			(4,566)
Retained earnings		1,097,656			1,045,733
Accumulated other comprehensive loss		(55,500)			(49,098)
Total stockholders’ equity		1,188,110			1,148,703

Total liabilities and stockholders’ equity		$	1,723,602		$	1,606,616

See accompanying notes.

Alamo Group Inc. and Subsidiaries

Interim Condensed Consolidated Statements of Stockholders’ Equity

(Unaudited)


For six months ended June 30, 2026

	Common Stock			Additional Paid-in Capital		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Loss		Total Stock- holders’ Equity
(in thousands)	Shares	Amount
Balance at December 31, 2025	11,991	$	1,207	$	155,427	$	(4,566)	$	1,045,733	$	(49,098)	$	1,148,703





Other comprehensive income (loss)	—	—		—		—		29,184		(2,333)		26,851
Stock-based compensation expense	—	—		1,847		—		—		—		1,847

Stock-based compensation transactions	28	3		(387)		—		—		—		(384)


Dividends paid ($0.34 per share)	—	—		—		—		(4,093)		—		(4,093)
Balance at March 31, 2026	12,019	$	1,210	$	156,887	$	(4,566)	$	1,070,824	$	(51,431)	$	1,172,924





Other comprehensive income	—	—		—		—		30,940		(4,069)		26,871
Stock-based compensation expense	—	—		1,766		—		—		—		1,766
Common stock repurchase	(62)	—		—		(9,360)		—		—		(9,360)
Stock-based compensation transactions	7	1		16		—		—		—		17


Dividends paid ($0.34 per share)	—	—		—		—		(4,108)		—		(4,108)
Balance at June 30, 2026	11,964	$	1,211	$	158,669	$	(13,926)	$	1,097,656	$	(55,500)	$	1,188,110

See accompanying notes.


For six months ended June 30, 2025

	Common Stock			Additional Paid-in Capital		Treasury Stock		Retained Earnings		Accumulated Other Comprehensive Loss		Total Stock- holders’ Equity
(in thousands)	Shares	Amount
Balance at December 31, 2024	11,935	$	1,202	$	146,866	$	(4,566)	$	956,347	$	(81,595)	$	1,018,254





Other comprehensive income	—	—		—		—		31,800		9,558		41,358
Stock-based compensation expense	—	—		2,303		—		—		—		2,303

Stock-based compensation transactions	29	3		(1,262)		—		—		—		(1,259)


Dividends paid ($0.30 per share)	—	—		—		—		(3,595)		—		(3,595)
Balance at March 31, 2025	11,964	$	1,205	$	147,907	$	(4,566)	$	984,552	$	(72,037)	$	1,057,061





Other comprehensive income (loss)	—	—		—		—		31,106		27,616		58,722
Stock-based compensation expense	—	—		2,367		—		—		—		2,367

Stock-based compensation transactions	16	1		846		—		—		—		847


Dividends paid ($0.30 per share)	—	—		—		—		(3,601)		—		(3,601)
Balance at June 30, 2025	11,980	$	1,206	$	151,120	$	(4,566)	$	1,012,057	$	(44,421)	$	1,115,396

See accompanying notes.

Alamo Group Inc. and Subsidiaries

Interim Condensed Consolidated Statements of Cash Flows

(Unaudited)


	Six Months Ended June 30,
(in thousands)	2026		2025
Operating Activities
Net income	$	60,124	$	62,906
Adjustment to reconcile net income to net cash provided by operating activities:
Provision for doubtful accounts	(230)		(11)
Depreciation - Property, plant and equipment	13,240		13,398
Depreciation - Rental equipment	5,927		5,819
Amortization of intangibles	9,894		8,127
Amortization of debt issuance	343		351
Stock-based compensation expense	3,