Alamo Group (ALG): Acquires Econ Engineering for £120.0M; Q3 gross profit falls to $76.1M
Q3 gross profit fell to $76.1M (19% margin) from $101.7M on $22.8M divestiture charges; $158.7M Econ UK acquisition closed Oct 27.
What this filing says
Alamo Group bought 100% of Econ Engineering Group, a UK maker of roadway maintenance trucks and equipment with a rental fleet, for £120.0 million, about $158.7 million, funded through its revolving credit facility. Third-quarter gross profit fell to $76.1 million from $101.7 million a year earlier, weighed down by divestiture-related charges and lower Industrial Equipment sales. For a shareholder, the deal adds a UK business but is paid for with borrowed funds, and the margin decline is a near-term negative.
Key figures
- Econ purchase price
- £120.0 million (about $158.7 million)
- Q3 2026 gross profit
- $76.1 million
- Q3 2025 gross profit
- $101.7 million
- Q3 2026 gross margin
- 19% of net sales
- Divestiture charges against revenue
- $7.3 million
- Quarterly dividend declared
- $0.34 per share
Positive for shareholders
- Quarterly dividend of $0.34 per share was declared and paid.
- Vegetation Management Division showed better operating performance and favorable pricing, according to the filing.
- The Econ acquisition expands the Industrial Equipment portfolio and strengthens the UK platform.
Negative for shareholders
- Gross profit dropped $25.6 million year over year, and gross margin fell about 530 basis points.
- Econ was funded with the revolving credit facility, adding borrowing.
- Divestiture-related charges of $7.3 million and $15.5 million against cost of sales hit the quarter.
- Elevated material and freight costs pressured results.
Written by Quantisnow AI from this filing. Not financial advice.
Key terms
- Revolving credit facility:
- A bank loan arrangement that lets a company borrow, repay and borrow again up to a set limit.
- Divestiture-related charges:
- Costs tied to selling or exiting part of a business, recorded against earnings in the period.
FAQ
How much did Alamo Group pay for Econ Engineering?
The purchase price was £120.0 million, or approximately $158.7 million, subject to certain post-closing adjustments, paid in cash through the revolving credit facility.
Why did Alamo Group's gross profit decline in the third quarter?
The filing cites lower net sales in the Industrial Equipment Division, divestiture-related charges, and elevated material and freight costs.
Historical context for ALG
Across the 17 sessions after earlier ALG headlines, the stock closed higher 9 times and lower 8 times, with a median move of 1.6% in either direction. This shows timing only: many things move a stock in a session, and these figures do not show that any headline caused a move.
| Session | Earlier headline | ALG | SPY |
|---|---|---|---|
| Nov 3, 2026 | ALAMO GROUP ANNOUNCES FINANCIAL RESULTS FOR THE THIRD QUARTER 2026 AND STRENGTHENS ITS INDUSTRIAL PORTFOLIO | -2.8% | +0.3% |
| Oct 28, 2026 | ALAMO GROUP ANNOUNCES ACQUISITION OF ECON ENGINEERING | -1.0% | +0.3% |
| Oct 27, 2026 | ALAMO GROUP INC. ANNOUNCES THIRD QUARTER 2026 EARNINGS CONFERENCE CALL | +0.8% | +0.6% |
| Oct 2, 2026 | ALAMO GROUP INC. DECLARES REGULAR QUARTERLY DIVIDEND | +3.0% | +0.7% |
| Aug 4, 2026 | ALAMO GROUP ANNOUNCES FINANCIAL RESULTS FOR THE SECOND QUARTER 2026 | +3.9% | +1.8% |
| Jul 22, 2026 | ALAMO GROUP INC. ANNOUNCES SECOND QUARTER 2026 EARNINGS CONFERENCE CALL | +1.6% | -0.1% |
- Market cap
- 30-day
- Sector
- Industrials
- Industry
- Industrial Machinery/Components
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