Revenue growth decelerated to -1.5% on a trailing basis, with Q2 2026 showing a 7.6% rebound but gross margin slipping to 24.6% from 26.2% in early 2024, reflecting cost inflation outpacing pricing.
Alamo Group Inc. (ALG) annual income statement — 30-year revenue, gross profit & net income history
| 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 |
|---|
| Sales/Revenue | 1.66B | 1.6B | 1.63B | 1.69B | 1.51B | 1.33B | 1.16B | 1.12B | 1.01B | 912.38M | 844.75M | 879.58M | 839.05M | 676.84M | 628.4M | 603.59M | 524.54M | 446.49M | 557.13M | 504.39M | 456.49M | 368.11M | 342.17M | 279.08M | 259.44M | 246.05M | 215.87M | 176.61M | 200.55M | 203.09M | 183.6M |
| Revenue Growth % | 4.07% | -1.52% | -3.62% | 11.63% | 13.45% | 14.68% | 3.96% | 10.94% | 10.57% | 8.01% | -3.96% | 4.83% | 23.97% | 7.71% | 4.11% | 15.07% | 17.48% | -19.86% | 10.46% | 10.49% | 24.01% | 7.58% | 22.61% | 7.57% | 5.44% | 13.98% | 22.23% | -11.94% | -1.25% | 10.62% | 12.02% |
| Cost of Goods Sold | 1.26B | 1.21B | 1.22B | 1.24B | 1.14B | 999.71M | 869.74M | 845.65M | 752.71M | 677.69M | 639.65M | 677.13M | 649.83M | 518.33M | 484.89M | 468.51M | 407.63M | 351.93M | 447.72M | 406.68M | 366.6M | 289.35M | 267M | 219.32M | 205.89M | 186.52M | 163.72M | 135.71M | 156.9M | 149.94M | 133.1M |
| COGS % of Revenue | - | 75.19% | 74.67% | 73.15% | 75.12% | 74.93% | 74.75% | 75.56% | 74.61% | 74.28% | 75.72% | 76.98% | 77.45% | 76.58% | 77.16% | 77.62% | 77.71% | 78.82% | 80.36% | 80.63% | 80.31% | 78.61% | 78.03% | 78.59% | 79.36% | 75.81% | 75.84% | 76.84% | 78.23% | 73.83% | 72.49% |
| Gross Profit | 402.35M | 397.82M | 412.49M | 453.64M | 376.52M | 334.51M | 293.73M | 273.49M | 256.12M | 234.69M | 205.1M | 202.45M | 189.23M | 158.51M | 143.51M | 135.09M | 116.91M | 94.56M | 109.41M | 97.71M | 89.89M | 78.76M | 75.18M | 59.76M | 53.54M | 59.53M | 52.15M | 40.9M | 43.66M | 53.15M | 50.5M |
| Gross Margin % | 24.21% | 24.81% | 25.33% | 26.85% | 24.88% | 25.07% | 25.25% | 24.44% | 25.39% | 25.72% | 24.28% | 23.02% | 22.55% | 23.42% | 22.84% | 22.38% | 22.29% | 21.18% | 19.64% | 19.37% | 19.69% | 21.39% | 21.97% | 21.41% | 20.64% | 24.19% | 24.16% | 23.16% | 21.77% | 26.17% | 27.51% |
| Gross Profit Growth % | - | -3.56% | -9.07% | 20.48% | 12.56% | 13.88% | 7.4% | 6.78% | 9.13% | 14.43% | 1.31% | 6.99% | 19.38% | 10.45% | 6.24% | 15.54% | 23.64% | -13.58% | 11.98% | 8.7% | 14.14% | 4.76% | 25.79% | 11.61% | -10.05% | 14.15% | 27.5% | -6.31% | -17.86% | 5.25% | 8.37% |
| Operating Expenses | 254.35M | 246.2M | 247.68M | 255.68M | 227.93M | 217.58M | 198.94M | 178.58M | 155.03M | 145.96M | 137.48M | 135.92M | 126.56M | 107.77M | 97.51M | 84.6M | 86.04M | 61.99M | 88.07M | 73.87M | 66.86M | 59.87M | 52.48M | 45.77M | 42.11M | 40.17M | 34.65M | 30.12M | 35.17M | 31.03M | 35.2M |
| OpEx % of Revenue | - | 15.35% | 15.21% | 15.13% | 15.06% | 16.31% | 17.1% | 15.96% | 15.37% | 16% | 16.27% | 15.45% | 15.08% | 15.92% | 15.52% | 14.02% | 16.4% | 13.89% | 15.81% | 14.65% | 14.65% | 16.26% | 15.34% | 16.4% | 16.23% | 16.33% | 16.05% | 17.06% | 17.54% | 15.28% | 19.17% |
| Selling, General & Admin | 241.63M | 229.66M | 217.95M | 240.16M | 212.65M | 202.94M | 184.2M | 172.92M | 155.03M | 145.96M | 137.48M | 135.92M | 126.56M | 107.77M | 97.51M | 92.35M | 86.04M | 76.1M | 83.06M | 73.87M | 66.86M | 59.87M | 52.48M | 45.77M | 42.11M | 40.17M | 34.65M | 30.12M | 35.17M | 31.03M | 29.8M |
| SG&A % of Revenue | - | 14.32% | 13.38% | 14.21% | 14.05% | 15.21% | 15.83% | 15.45% | 15.37% | 16% | 16.27% | 15.45% | 15.08% | 15.92% | 15.52% | 15.3% | 16.4% | 17.04% | 14.91% | 14.65% | 14.65% | 16.26% | 15.34% | 16.4% | 16.23% | 16.33% | 16.05% | 17.06% | 17.54% | 15.28% | 16.23% |
| Research & Development | 0 | 0 | 0 | 13.4M | 0 | 0 | 0 | 0 | 10.43M | 9.85M | 8.85M | 8.59M | 8.43M | 7.16M | 6.36M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | 0.79% | - | - | - | - | 1.03% | 1.08% | 1.05% | 0.98% | 1% | 1.06% | 1.01% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2M | 16.55M | 29.73M | 2.12M | 15.28M | 14.64M | 14.75M | 5.66M | -1.47M | -1.87M | 269K | 6.87M | 1.77M | 1.63M | -517K | 0 | 0 | 0 | 5.01M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5.4M |
| Operating Income | 148M | 151.61M | 164.81M | 197.97M | 148.59M | 116.94M | 94.78M | 94.91M | 101.09M | 88.74M | 67.62M | 66.53M | 62.66M | 50.74M | 45.35M | 48.59M | 30.87M | 32.05M | 21.34M | 23.84M | 23.03M | 18.4M | 22.7M | 13.99M | 11.43M | 19.36M | 17.5M | 10.78M | 8.49M | 22.13M | 15.3M |
| Operating Margin % | 8.91% | 9.45% | 10.12% | 11.72% | 9.82% | 8.76% | 8.15% | 8.48% | 10.02% | 9.73% | 8% | 7.56% | 7.47% | 7.5% | 7.22% | 8.05% | 5.89% | 7.18% | 3.83% | 4.73% | 5.05% | 5% | 6.63% | 5.01% | 4.41% | 7.87% | 8.11% | 6.1% | 4.23% | 10.89% | 8.33% |
| Operating Income Growth % | - | -8.01% | -16.75% | 33.23% | 27.07% | 23.37% | -0.13% | -6.11% | 13.92% | 31.23% | 1.64% | 6.17% | 23.51% | 11.88% | -6.66% | 57.37% | -3.66% | 50.14% | -10.45% | 3.5% | 25.17% | -18.94% | 62.28% | 22.35% | -40.94% | 10.6% | 62.35% | 26.99% | -61.63% | 44.61% | -19.47% |
| EBITDA | 217.94M | 195.24M | 217.89M | 245.94M | 195.28M | 161.42M | 138.63M | 124.88M | 124.2M | 109.2M | 88.42M | 88.63M | 75.31M | 59.63M | 55.3M | 59M | 41.77M | 40.9M | 30.7M | 32.85M | 32.23M | 24.86M | 29M | 19.88M | 16.98M | 25.69M | 23.5M | 15.93M | 14.32M | 27.19M | 20.7M |
| EBITDA Margin % | 13.12% | 12.17% | 13.38% | 14.56% | 12.9% | 12.1% | 11.91% | 11.16% | 12.31% | 11.97% | 10.47% | 10.08% | 8.98% | 8.81% | 8.8% | 9.78% | 7.96% | 9.16% | 5.51% | 6.51% | 7.06% | 6.75% | 8.47% | 7.12% | 6.55% | 10.44% | 10.89% | 9.02% | 7.14% | 13.39% | 11.27% |
| EBITDA Growth % | -1.06% | -10.39% | -11.4% | 25.94% | 20.98% | 16.44% | 11.01% | 0.54% | 13.74% | 23.5% | -0.24% | 17.68% | 26.29% | 7.84% | -6.28% | 41.25% | 2.15% | 33.19% | -6.54% | 1.94% | 29.67% | -14.27% | 45.87% | 17.05% | -33.89% | 9.3% | 47.5% | 11.23% | -47.32% | 31.35% | -11.54% |
| D&A (Non-Cash Add-back) | 69.32M | 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 |
| EBIT | 166.26M | 154.39M | 170.18M | 201.21M | 148.67M | 120.03M | 95.59M | 95.35M | 101.09M | 88.74M | 67.62M | 69.27M | 64.64M | 50.74M | 45.07M | 50.55M | 32.7M | 35.87M | 24.68M | 23.84M | 23.03M | 18.89M | 22.7M | 13.99M | 11.43M | 19.36M | 17.5M | 10.78M | 8.49M | 22.13M | 15.35M |
| Net Interest Income | -23.5M | -9.31M | -17.91M | -24.61M | -13.61M | -9.38M | -14.47M | -9.52M | -5.08M | -4.5M | -5.7M | -6.54M | -3.83M | -975K | -1.39M | -2.17M | -2.13M | -4.05M | -5.63M | -6.62M | -6.12M | -2.22M | -1.32M | -1.49M | -1.92M | -2.67M | -1.43M | 0 | -1.95M | 0 | -2.6M |
| Interest Income | 5.86M | 5.57M | 2.64M | 1.49M | 752K | 1.15M | 1.37M | 1.23M | 410K | 336K | 214K | 189K | 211K | 186K | 234K | 246K | 1.53M | 713K | 1.82M | 1.72M | 796K | 825K | 724K | 478K | 503K | 609K | 760K | 0 | 697K | 0 | 0 |
| Interest Expense | 29.36M | 14.88M | 20.55M | 26.09M | 14.36M | 10.53M | 15.84M | 10.75M | 5.49M | 4.84M | 5.91M | 6.72M | 4.04M | 1.16M | 1.62M | 2.42M | 3.66M | 4.77M | 7.45M | 8.34M | 6.91M | 3.04M | 2.05M | 1.97M | 2.43M | 3.28M | 2.19M | 0 | 2.65M | 0 | 2.6M |
| Other Income/Expense | -11.09M | -12.1M | -15.18M | -22.85M | -14.28M | -7.44M | -15.03M | -10.31M | -6.56M | -6.37M | -5.43M | 339K | -2.06M | 651K | -1.9M | -1.33M | -1.84M | -3.43M | -4.12M | -5.8M | -6.06M | -1.66M | -2.12M | -1.01M | -1.66M | -2.75M | -1.61M | -1.08M | -1.95M | -1.53M | -1.63M |
| Pretax Income | 136.9M | 139.51M | 149.63M | 175.12M | 134.31M | 109.5M | 79.76M | 84.6M | 94.53M | 82.37M | 62.19M | 66.87M | 60.6M | 51.39M | 43.45M | 47.26M | 29.03M | 28.62M | 17.23M | 18.04M | 16.98M | 16.74M | 20.58M | 12.97M | 9.77M | 16.61M | 15.89M | 9.7M | 6.54M | 20.59M | 13.8M |
| Pretax Margin % | 8.24% | 8.7% | 9.19% | 10.36% | 8.87% | 8.21% | 6.86% | 7.56% | 9.37% | 9.03% | 7.36% | 7.6% | 7.22% | 7.59% | 6.91% | 7.83% | 5.53% | 6.41% | 3.09% | 3.58% | 3.72% | 4.55% | 6.02% | 4.65% | 3.77% | 6.75% | 7.36% | 5.49% | 3.26% | 10.14% | 7.52% |
| Income Tax | 35.88M | 35.71M | 33.7M | 38.96M | 32.38M | 29.25M | 21.95M | 21.5M | 21.05M | 38.05M | 22.14M | 23.66M | 19.45M | 15.29M | 14.54M | 15.19M | 7.92M | 11.53M | 6.23M | 5.67M | 5.49M | 5.45M | 7.19M | 4.93M | 3.39M | 5.79M | 5.12M | 3.59M | 2.42M | 7M | 5M |
| Effective Tax Rate % | 26.21% | 25.6% | 22.52% | 22.25% | 24.11% | 26.72% | 27.52% | 25.41% | 22.26% | 46.2% | 35.61% | 35.38% | 32.1% | 29.76% | 33.47% | 32.14% | 27.26% | 40.28% | 36.15% | 31.44% | 32.32% | 32.55% | 34.91% | 38.04% | 34.7% | 34.89% | 32.22% | 37.07% | 37.03% | 33.96% | 36.23% |
| Net Income | 101.02M | 103.8M | 115.93M | 136.16M | 101.93M | 80.25M | 57.8M | 63.1M | 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 |
| Net Margin % | 6.08% | 6.47% | 7.12% | 8.06% | 6.73% | 6.01% | 4.97% | 5.64% | 7.28% | 4.86% | 4.74% | 4.91% | 4.9% | 5.33% | 4.6% | 5.31% | 4.03% | 3.83% | 1.97% | 2.45% | 2.52% | 3.07% | 3.91% | 2.88% | 2.46% | 4.39% | 4.99% | 3.46% | 2.05% | 6.7% | 4.79% |
| Net Income Growth % | -14.67% | -10.46% | -14.86% | 33.59% | 27.02% | 38.82% | -8.4% | -14.13% | 65.83% | 10.66% | -7.32% | 5% | 14.01% | 24.88% | -9.88% | 51.87% | 23.56% | 55.39% | -11.05% | 7.63% | 1.74% | -15.71% | 66.66% | 25.95% | -40.97% | 0.39% | 76.5% | 48.29% | -69.74% | 54.55% | -24.14% |
| Net Income (Continuing) | 101.02M | 103.8M | 115.93M | 136.16M | 101.93M | 80.25M | 57.8M | 63.1M | 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 | 8.76M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 8.34 | 8.59 | 9.63 | 11.36 | 8.54 | 6.75 | 4.88 | 5.33 | 6.25 | 3.79 | 3.46 | 3.76 | 3.42 | 2.96 | 2.40 | 2.68 | 1.78 | 1.65 | 1.11 | 1.24 | 1.16 | 1.14 | 1.36 | 0.82 | 0.65 | 1.11 | 1.11 | 0.63 | 0.42 | 1.41 | 0.91 |
| EPS Growth % | -15.07% | -10.8% | -15.23% | 33.02% | 26.52% | 38.32% | -8.44% | -14.72% | 64.91% | 9.54% | -7.98% | 9.94% | 15.54% | 23.33% | -10.45% | 50.56% | 7.88% | 48.65% | -10.48% | 6.9% | 1.75% | -16.18% | 65.85% | 26.15% | -41.44% | 0% | 76.19% | 50% | -70.21% | 54.95% | -32.59% |
| EPS (Basic) | - | 8.64 | 9.69 | 11.42 | 8.58 | 6.78 | 4.91 | 5.36 | 6.30 | 3.84 | 3.50 | 3.81 | 3.47 | 3.00 | 2.43 | 2.71 | 1.79 | 1.65 | 1.12 | 1.26 | 1.18 | 1.16 | 1.38 | 0.83 | 0.66 | 1.11 | 1.11 | 0.63 | 0.42 | 1.42 | 0.91 |
| Diluted Shares Outstanding | 12.11M | 12.08M | 12.04M | 11.99M | 11.93M | 11.9M | 11.85M | 11.8M | 11.76M | 11.68M | 11.56M | 11.48M | 12.04M | 12.21M | 12.06M | 11.97M | 11.89M | 10.36M | 9.95M | 9.95M | 9.93M | 9.91M | 9.86M | 9.79M | 9.79M | 9.79M | 9.76M | 9.73M | 9.73M | 9.67M | 9.59M |
| Basic Shares Outstanding | 12.06M | 12.02M | 11.97M | 11.92M | 11.88M | 11.84M | 11.78M | 11.73M | 11.66M | 11.55M | 11.43M | 11.35M | 11.88M | 12.05M | 11.9M | 11.85M | 11.78M | 10.33M | 9.85M | 9.78M | 9.76M | 9.75M | 9.73M | 9.72M | 9.71M | 9.71M | 9.7M | 9.72M | 9.71M | 9.6M | 9.59M |
| Dividend Payout Ratio | - | 13.89% | 10.73% | 7.7% | 8.39% | 8.26% | 10.59% | 8.92% | 6.97% | 10.41% | 10.27% | 8.4% | 8.09% | 9.34% | 9.87% | 8.87% | 13.38% | 14.04% | 21.47% | 18.97% | 20.39% | 20.72% | 17.44% | 29.02% | 36.52% | 21.54% | 21.62% | 54.23% | 101.46% | 28.21% | 43.18% |
Quick answers to the most common questions about buying ALG stock.
For fiscal year 2025, Alamo Group Inc. (ALG) reported total revenue of $1.60B. This represents a 773.5% increase compared to $183.6M in 1996.
Alamo Group Inc. (ALG) is profitable, generating $103.8M in net income for the fiscal year ending 2025 with a net profit margin of 6.5%.
Alamo Group Inc. (ALG) reported an operating income of $151.6M, resulting in an operating profit margin of 9.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Alamo Group Inc. (ALG) generated $397.8M in gross profit for the year, representing a gross profit margin of 24.8%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Margin compression from cost inflation
Metrics are mathematically derived from official filings.
Top-Line Stalls Amid Mixed Segment Trends
Revenue growth has decelerated to -1.5% year-over-year on a trailing basis, with Q2 2026 showing a 7.6% rebound but still below prior-year levels. According to the latest quarterly report, the replacement cycle slowdown persists.
The 10-quarter revenue trend reveals a clear deceleration from mid-2024, with year-over-year growth turning negative in most quarters. The Q2 2026 uptick to 7.6% growth appears to be a partial recovery, but it is off a low base and may reflect timing of municipal orders rather than a durable acceleration. The mix between Vegetation Management and Industrial Equipment is shifting, with the latter cited as a growth driver, but the overall top line remains constrained by budget cycles and softening farm income.
Gross Margin Pressures Persist
Gross margin has slipped from 26.2% in early 2024 to 24.6% in Q2 2026, reflecting input cost inflation and competitive bidding. As reported in financial statements, the 160 basis point decline suggests pricing power is being tested.
The gross margin erosion is consistent across quarters, with the lowest point at 22.7% in Q4 2025. This appears to be driven by higher steel and component costs, which the company may not be fully passing through due to fixed-price municipal contracts. The stabilization in recent quarters at around 24-25% suggests some recovery, but the structural margin is below the 26%+ levels seen in early 2024, indicating a permanent step-down unless mix shifts toward higher-margin aftermarket parts.
Operating Leverage Falters on SG&A
Operating income growth has lagged gross profit growth, with SG&A rising to 13.3% of revenue in Q2 2026 from 14.2% a year earlier. Based on reported figures, operating leverage appears negative as overhead costs remain sticky.
While gross profit grew 2.4% year-over-year in Q2 2026, operating income grew only 1.3%, indicating that SG&A expenses are absorbing a larger share of incremental gross profit. The Q4 2025 quarter saw a sharp drop in operating margin to 6.0%, likely due to a spike in SG&A to $63.9M, which may reflect year-end adjustments or acquisition-related costs. The company's ability to scale operating income is constrained by its diverse brand portfolio requiring ongoing selling and administrative support.
EPS Miss Clouds Earnings Quality
Q2 2026 EPS of $2.55 missed consensus by $0.19, despite a 7.6% revenue increase, suggesting margin or mix issues. As disclosed in the earnings release, stock-based compensation of $1.8M remains modest but adds to expense pressure.
The EPS miss is notable because it occurred on a revenue beat, implying that the incremental sales were less profitable than expected. This could be due to a higher mix of lower-margin equipment sales or one-time costs. The tax rate appears stable, and non-operating items are not significant, so the quality of earnings is primarily affected by operational factors. Investors should monitor whether the miss is a one-off or indicative of a broader margin trend.
COGS Inflation Outpaces Pricing
COGS as a percentage of revenue has risen to 75.4% in Q2 2026 from 74.0% in Q2 2024, reflecting input cost inflation. According to the latest financial data, the company's high-variable cost model leaves it exposed to commodity swings.
The increase in COGS ratio suggests that raw material and component costs are rising faster than the company can raise prices, particularly in competitive bidding environments. The lack of R&D spending (reported as zero) indicates that product development costs are embedded in SG&A or COGS, which may limit future innovation. Management's expense discipline appears focused on controlling SG&A, but the primary cost pressure remains in the cost of goods sold, which is harder to mitigate without vertical integration.
Margin Compression Risk Intensifies
The combination of a revenue miss and sub-10% operating margin suggests that inflationary pressures are outpacing pricing power. As reported in the earnings call, the CEO cited strong sales growth, but the numbers indicate otherwise.
Short-sellers would argue that Alamo's niche market dominance does not translate into pricing power when municipal budgets are tight. The Q2 2026 EPS miss, despite revenue growth, is a red flag that margins are being squeezed. Additionally, the company's fortress balance sheet, while a strength, may indicate a lack of organic growth opportunities, leading to capital misallocation. If steel prices rise again or labor costs continue to escalate, operating margins could fall below 9%, undermining the investment thesis.