Operating margins have faced significant pressure, declining from 11.4% in 2025Q1 to 6.0% in 2025Q4, reflecting difficulties in passing input costs to municipal customers.
| 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 | 1.63B | 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 % | 2.26% | -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 | 1.23B | 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 | 399.78M | 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 % | 24.53% | 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 | 245.59M | 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 | 238.69M | 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 | 1000K | 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 | 149.31M | 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 % | 9.16% | 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 | 217.85M | 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 % | 13.37% | 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 % | 0.92% | -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) | 68.54M | 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 | 121.29M | 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 | -19.29M | -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 | 5.81M | 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 | 19M | 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 | -12.59M | -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 | 136.72M | 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 % | 8.39% | 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 | 35.53M | 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 % | 25.99% | 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 | 101.19M | 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 % | 6.21% | 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 % | -12.48% | -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) | 101.19M | 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) | 8.36 | 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 % | -12.92% | -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 | 12.1M | 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 | 12.05M | 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% |
Municipal budget cycle sensitivity
As reported in recent financial statements, Alamo Group's revenue growth has fluctuated significantly, oscillating between a 6.7% expansion in 2026Q1 and a contraction of 8.1% in 2025Q1, suggesting that the company's reliance on lumpy municipal procurement cycles creates an inconsistent top-line trajectory for investors to monitor.
The erratic quarterly revenue performance indicates that the company's specialized equipment sales are highly sensitive to the timing of government budget approvals and infrastructure project releases. This lack of consistent organic growth suggests that the firm may struggle to maintain momentum without the support of inorganic bolt-on acquisitions.
Based on the provided income statement data, gross margins have faced notable pressure, declining from a peak of 26.3% in 2025Q1 to 22.7% by 2025Q4, which indicates that the company may be struggling to fully pass through rising input costs to its price-sensitive municipal customer base.
The contraction in gross profitability suggests that inflationary headwinds in raw materials or labor are outpacing the company's pricing power. Investors should investigate whether these margin trends are structural or merely a temporary byproduct of the current industrial cycle and specific contract pricing terms.
According to the latest quarterly filings, operating margins have failed to scale efficiently, dropping from 11.4% in 2025Q1 to 6.0% in 2025Q4, which implies that the company's fixed cost structure is currently acting as a drag on profitability during periods of revenue deceleration.
The inability to maintain operating margins during revenue dips suggests that the company's SG&A expenses are relatively rigid, limiting the firm's ability to protect the bottom line during cyclical downturns. This lack of operating leverage warrants further investigation into the company's ability to rationalize overhead costs.
As evidenced by the income statement, stock-based compensation has remained a consistent feature, reaching $3.7 million in 2025Q3, which suggests that reported net income figures may be slightly inflated relative to the actual cash-generative capacity of the business when accounting for equity-based dilution.
The presence of recurring stock-based compensation, while common, requires analysts to adjust earnings expectations to account for the potential dilution of shareholder value. Furthermore, the variability in quarterly net income appears to be heavily influenced by these non-operating items and fluctuating tax impacts, complicating the assessment of core operational performance.
While the company is often viewed as a defensive industrial play, the recent 45.1% decline in EPS growth during 2025Q4 suggests that the business is more susceptible to cyclical demand shocks than the market's current valuation of its municipal-heavy revenue base might otherwise imply.
Short-term investors may focus on the potential for further margin compression if municipal budgets tighten in response to broader economic headwinds. The reliance on specialized, low-volume equipment may also limit the company's ability to pivot quickly if demand for specific vegetation management or industrial sweepers continues to soften.
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.