Cash conversion remains highly erratic, evidenced by an OCF/NI ratio that swung from a negative 0.81 in 2026Q1 to a peak of 4.84 in 2025Q4.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Cash from Operations | 139.83M | 177.54M | 209.78M | 131.15M | 14.53M | 49.67M | 184.33M | 88.81M | 12.91M | 70.8M | 75.55M | 52.56M | 30.21M | 31.63M | 51.26M | 10.91M | 41.88M | 72.09M | 8.72M | 19.19M | 4.57M | 7.6M | 14.05M | 18.23M | 27.6M | 8.23M | 9.01M | 39.19M | 463K | 12.3M | 9.6M |
| Operating CF Margin % | - | 11.07% | 12.88% | 7.76% | 0.96% | 3.72% | 15.84% | 7.94% | 1.28% | 7.76% | 8.94% | 5.98% | 3.6% | 4.67% | 8.16% | 1.81% | 7.98% | 16.15% | 1.57% | 3.81% | 1% | 2.06% | 4.11% | 6.53% | 10.64% | 3.34% | 4.17% | 22.19% | 0.23% | 6.06% | 5.23% |
| Operating CF Growth % | -334.21% | -15.37% | 59.95% | 802.64% | -70.75% | -73.06% | 107.55% | 587.94% | -81.77% | -6.29% | 43.75% | 73.98% | -4.48% | -38.3% | 369.66% | -73.94% | -41.91% | 726.3% | -54.54% | 320.14% | -39.87% | -45.91% | -22.94% | -33.95% | 235.33% | -8.66% | -77.01% | 8363.93% | -96.24% | 28.16% | 9500% |
| Net Income | 101.19M | 103.8M | 115.93M | 136.16M | 101.93M | 80.25M | 57.8M | 62.91M | 73.49M | 44.31M | 40.05M | 43.21M | 41.15M | 36.09M | 28.9M | 32.07M | 21.12M | 17.09M | 11M | 12.37M | 11.49M | 11.29M | 13.4M | 8.04M | 6.38M | 10.81M | 10.77M | 6.1M | 4.12M | 13.6M | 8.8M |
| Depreciation & Amortization | 62.37M | 43.63M | 53.08M | 47.97M | 46.69M | 44.48M | 43.84M | 29.96M | 23.11M | 20.46M | 20.8M | 22.1M | 12.65M | 8.9M | 9.95M | 10.42M | 10.9M | 8.85M | 9.36M | 9.02M | 9.2M | 6.46M | 6.3M | 5.89M | 5.55M | 6.33M | 6M | 5.15M | 5.83M | 5.06M | 5.4M |
| Stock-Based Compensation | 7.63M | 9.94M | 9.14M | 7.42M | 5.56M | 5.99M | 4.12M | 3.27M | 2.45M | 1.87M | 1.41M | 1.06M | 1.99M | 1.5M | 940K | 986K | 674K | 543K | 563K | 650K | 534K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 3M | 10.58M | -3.61M | -4.25M | -2.34M | -1.18M | -855K | 3.32M | 2.05M | 1.33M | 2.62M | 2.8M | -108K | -877K | -405K | 850K | 8.9M | 7.95M | 89K | 647K | 1.14M | -581K | 1.67M | 520K | -48K | 1.14M | 266K | 693K | -2.71M | -286K | -200K |
| Other Non-Cash Items | 7.14M | 10.01M | 1.78M | -5.67M | 930K | -2.61M | 400K | -42K | -69K | 49K | 120K | -2.73M | -353K | -80K | 1.29M | -4.99M | -14.63M | -13.22M | 5.9M | 354K | -92K | 730K | 980K | -225K | 597K | -1.3M | 231K | -915K | 975K | 453K | -200K |
| Working Capital Changes | -41.5M | -418K | 33.45M | -50.49M | -138.24M | -77.26M | 79.03M | -10.6M | -88.12M | 2.78M | 10.55M | -13.89M | -25.12M | -13.91M | 10.59M | -28.42M | 14.92M | 50.87M | -18.19M | -3.84M | -17.7M | -10.3M | -8.3M | 4M | 15.12M | -8.74M | -8.26M | 28.16M | -7.75M | -6.53M | -4.2M |
| Change in Receivables | 18.11M | 40.62M | 47.01M | -35.29M | -85.06M | -27.57M | 28.06M | 11.45M | -27.03M | -23.13M | 3.88M | -9.66M | -12.6M | -10.52M | 4.77M | -15.15M | -16.61M | 40.28M | -14.29M | -8.21M | -1.92M | -5.65M | -14.76M | -1.18M | -1.18M | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -41.62M | -28.14M | 26.49M | -10.84M | -37.74M | -78.46M | 38.27M | 657K | -25.99M | 142K | 12.34M | 9.76M | -10.99M | 776K | 6.93M | -8.67M | 24.6M | 32.43M | -6.69M | 1.92M | -11.73M | -5.32M | -2.52M | 2.99M | 9.04M | -998K | -2.51M | 18.28M | 1.47M | -6.37M | -500K |
| Change in Payables | 4.92M | 30.24M | -15.67M | 4.81M | -2.88M | 32.53M | -3.78M | 6.4M | 4.13M | 11.69M | -5.38M | -1.71M | 1.2M | 4.42M | 960K | -4.18M | -25.41M | -25.41M | 5M | 1.24M | -2.69M | 1.6M | 5.05M | 3.71M | 3.71M | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -210.07M | -46.19M | -22.18M | -52.62M | -31.74M | -33.44M | -14.17M | -429.94M | -25.36M | -51.28M | -8.66M | -14.7M | -204.83M | -14.17M | -4.09M | -11.86M | -2.97M | -2.53M | -27.69M | -13.87M | -55.12M | -14.13M | -9.14M | -4.09M | -15.18M | -12.44M | -37.07M | -3M | -1.36M | -4.31M | -2.9M |
| Capital Expenditures | -29.13M | -30.63M | -24.99M | -37.74M | -31.3M | -25.31M | -17.87M | -31.43M | -26.7M | -13.49M | -9.76M | -15.48M | -9.81M | -13.64M | -4.65M | -6.37M | -4.98M | -3.45M | -6.55M | -10.77M | -12.06M | -8.71M | -6.07M | -4.97M | -5.48M | -7.07M | -12.65M | -3.62M | -4.4M | -4.68M | -2.9M |
| CapEx % of Revenue | 1.79% | 1.91% | 1.53% | 2.23% | 2.07% | 1.9% | 1.54% | 2.81% | 2.65% | 1.48% | 1.16% | 1.76% | 1.17% | 2.02% | 0.74% | 1.06% | 0.95% | 0.77% | 1.18% | 2.13% | 2.64% | 2.36% | 1.77% | 1.78% | 2.11% | 2.88% | 5.86% | 2.05% | 2.19% | 2.31% | 1.58% |
| Acquisitions | -148.41M | -18.28M | 0 | -27.56M | -2M | -17.8M | 0 | -400.78M | 1.34M | -38.55M | -188K | -3.46M | -196.47M | -1M | 0 | -5.93M | 0 | 0 | -21.35M | -3.46M | -45.08M | -5.67M | -3.91M | -9.41M | -9.41M | -7.88M | -24.45M | 0 | 342K | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -32.54M | 2.72M | 2.81M | 12.68M | 1.57M | 9.67M | 3.7M | 2.28M | 0 | 767K | 1.29M | 4.25M | 1.44M | 475K | 564K | 440K | 2.01M | 922K | 213K | 360K | 1.67M | 246K | 839K | 876K | -693K | 2.52M | 530K | 1.12M | -3K | 224K | -600K |
| Cash from Financing | 57.98M | -30.79M | -31.97M | -76.88M | 24.45M | -23M | -164.24M | 349.22M | 22.21M | -12.4M | -77.12M | -48.2M | 152.73M | -2.48M | -9.94M | -19.07M | -26.01M | -56.97M | 19.55M | -3.1M | 45.36M | 11.17M | -5.27M | -16.67M | -11.34M | 5.55M | 25.85M | -33.48M | 2.81M | -9.28M | -6.3M |
| Debt Issued (Net) | 123.39M | -15.01M | -15.07M | -66.95M | 32.97M | -16.09M | -158.87M | 359.88M | 25.22M | -10.02M | -73.99M | -46.45M | 190.09M | -399K | -9.12M | -16.57M | -24.18M | -54.87M | 20.34M | -1.4M | 47.39M | 13.35M | -3.07M | -14.43M | -9.07M | 7.59M | 27.99M | -30.04M | 6.87M | -6.34M | -2.72M |
| Equity Issued (Net) | -1.65M | -1.37M | -1.97M | -1.03M | -768K | -1.96M | -710K | -2.16M | -436K | -166K | -19K | 0 | -34.2M | 1.29M | 2.13M | 281K | 990K | 1.12M | 1.52M | 564K | 131K | 159K | 139K | 95K | 65K | 286K | 194K | -131K | 117K | 902K | 225K |
| Dividends Paid | -14.91M | -14.41M | -12.44M | -10.48M | -8.55M | -6.63M | -6.12M | -5.63M | -5.12M | -4.61M | -4.11M | -3.63M | -3.33M | -3.37M | -2.85M | -2.85M | -2.83M | -2.4M | -2.36M | -2.35M | -2.34M | -2.34M | -2.34M | -2.33M | -2.33M | -2.33M | -2.33M | -3.31M | -4.17M | -3.84M | -3.8M |
| Share Repurchases | -2.81M | -3.02M | -1.97M | -1.03M | -768K | -1.96M | -710K | -4.73M | -436K | -166K | -19K | 79M | -34.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -26K | 0 | -400K | 0 | -1.63M | 0 |
| Other Financing | -48.85M | 0 | -2.49M | 1.59M | 803K | 1.68M | 1.46M | -2.88M | 2.55M | 2.4M | 1.01M | 1.88M | 179K | 0 | -102K | 63K | 0 | -816K | 52K | 84K | 180K | 0 | 0 | -2K | 0 | 0 | 0 | 0 | 0 | 0 | -33K |
| Net Change in Cash | -5.04M | 112.39M | 145.35M | 4.9M | 4.9M | -8.08M | 7.88M | 8.27M | 8.67M | 8.58M | -10.13M | -12.61M | -24.43M | 15.67M | 38M | -19.95M | 12.47M | 13.24M | 73K | 2.29M | -4.9M | 4.49M | -701K | -2.3M | 1.4M | 1.26M | -2.43M | 2.61M | 1.96M | -1.44M | -1.8M |
| Free Cash Flow | 110.7M | 146.92M | 184.78M | 93.41M | -16.77M | 24.36M | 166.46M | 57.38M | -13.79M | 57.31M | 65.79M | 37.08M | 20.4M | 17.99M | 46.61M | 4.55M | 36.9M | 68.63M | 2.17M | 8.43M | -7.5M | -1.11M | 7.98M | 13.26M | 22.12M | 1.16M | -3.64M | 35.57M | -3.94M | 7.62M | 6.7M |
| FCF Margin % | 6.79% | 9.16% | 11.35% | 5.53% | -1.11% | 1.83% | 14.31% | 5.13% | -1.37% | 6.28% | 7.79% | 4.22% | 2.43% | 2.66% | 7.42% | 0.75% | 7.03% | 15.37% | 0.39% | 1.67% | -1.64% | -0.3% | 2.33% | 4.75% | 8.53% | 0.47% | -1.69% | 20.14% | -1.96% | 3.75% | 3.65% |
| FCF Growth % | -44.17% | -20.49% | 97.82% | 656.87% | -168.86% | -85.37% | 190.1% | 516.13% | -124.06% | -12.89% | 77.43% | 81.73% | 13.43% | -61.41% | 925.28% | -87.68% | -46.24% | 3061.35% | -74.24% | 212.41% | -576.62% | -113.89% | -39.84% | -40.04% | 1813.41% | 131.76% | -110.23% | 1003.53% | -151.68% | 13.7% | 391.3% |
| FCF per Share | 9.15 | 12.16 | 15.35 | 7.79 | -1.41 | 2.05 | 14.05 | 4.86 | -1.17 | 4.91 | 5.69 | 3.23 | 1.69 | 1.47 | 3.87 | 0.38 | 3.10 | 6.62 | 0.22 | 0.85 | -0.76 | -0.11 | 0.81 | 1.35 | 2.26 | 0.12 | -0.37 | 3.66 | -0.40 | 0.79 | 0.70 |
| FCF Conversion (FCF/Net Income) | 1.09x | 1.71x | 1.81x | 0.96x | 0.14x | 0.62x | 3.19x | 1.41x | 0.18x | 1.60x | 1.89x | 1.22x | 0.73x | 0.88x | 1.77x | 0.34x | 1.98x | 4.22x | 0.79x | 1.55x | 0.40x | 0.67x | 1.05x | 2.27x | 4.32x | 0.76x | 0.84x | 6.42x | 0.11x | 0.90x | 1.09x |
| Interest Paid | 7.5M | 0 | 20.79M | 25.36M | 14.57M | 10.25M | 17.05M | 9.46M | 5.2M | 5.22M | 5.8M | 6.94M | 3.32M | 1.12M | 1.84M | 2.29M | 3.6M | 5.18M | 7.58M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 25.83M | 0 | 40.43M | 37.33M | 35.1M | 32.87M | 17.14M | 23.1M | 30.3M | 23.18M | 16.64M | 18.71M | 22.24M | 21.58M | 13.53M | 15.25M | 13M | 5.18M | 6.59M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Working capital volatility
According to the provided cash flow data, the relationship between net income and operating cash flow is highly erratic, with the OCF/NI ratio swinging from a negative 0.81 in 2026Q1 to a peak of 4.84 in 2025Q4, indicating significant underlying volatility in cash conversion.
The extreme variance in the OCF/NI ratio suggests that reported net income is a poor proxy for the company's immediate cash-generative capacity. Investors should monitor whether these swings are driven by seasonal municipal billing cycles or more structural issues in the company's ability to convert earnings into realized cash.
As reported in financial statements, Alamo's free cash flow margins have demonstrated significant instability, ranging from a negative 6.7% in 2026Q1 to a robust 22.0% in 2024Q3, reflecting the lumpy nature of equipment deliveries and the impact of periodic working capital requirements on liquidity.
The inability to maintain consistent positive FCF margins suggests that the business model remains highly sensitive to timing differences in project completion. This inconsistency warrants further investigation into whether the company's cost structure is sufficiently flexible to protect cash flow during periods of revenue contraction.
Based on reported figures, working capital changes have been the primary driver of cash flow variance, with a massive $70 million outflow in 2026Q1 contrasting sharply with the $58.1 million inflow observed in 2024Q3, highlighting the company's exposure to inventory and receivable timing risks.
The significant quarterly fluctuations in working capital suggest that the company's cash position is heavily dependent on the timing of municipal contract fulfillment and inventory management. This volatility may indicate that the company is carrying excess inventory or facing delays in collections, which could pressure liquidity if demand softens.
As evidenced by the company's financial records, Alamo has maintained a disciplined approach to capital deployment, characterized by minimal share repurchases and a significant $165.3 million acquisition outflow in 2026Q1, suggesting a strategic preference for inorganic growth over direct shareholder returns during this period.
The company's decision to deploy substantial cash into acquisitions while keeping debt levels negligible appears to reflect a conservative management philosophy. Investors should monitor whether these acquisitions provide the expected accretive returns, as the current lack of leverage suggests the company is well-positioned to pursue further consolidation.
Quick answers to the most common questions about buying ALG stock.
Alamo Group Inc. (ALG) generated $177.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Alamo Group Inc. (ALG) generated $146.9M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Alamo Group Inc. (ALG) spent $30.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Alamo Group Inc. (ALG) returned $14.4M to shareholders via cash dividends and spent $3.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.