Alamo Group Inc.
- Open
- 164.85
- Day high
- 165.07
- Day low
- 160.95
- Prev close
- 164.49
- Volume
- 60K
- Mkt cap
- $2.0B
- P/E (TTM)
- 19.5
- EPS (TTM)
- $8.41
- P/B
- 1.7
- P/S
- 1.2
- Yield
- 0.78%
- Per share
- $1.28
Alamo Group Inc. (ALG) is a Industrials company listed on NYSE. The stock is down 26% over the past year.
Alamo Group Inc. (ALG) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
ALG earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 5, 2026 | $2.15 | $2.56 | +19.1% | $417M | +4.8% |
| Nov 6, 2025 | $2.61 | $2.34 | -10.3% | $420M | +3.7% |
| Aug 6, 2025 | $2.69 | $2.57 | -4.5% | $419M | +1.4% |
| May 8, 2025 | $2.33 | $2.65 | +13.7% | $391M | -0.0% |
| Feb 27, 2025 | $2.23 | $2.39 | +7.2% | $385M | -2.9% |
| Oct 31, 2024 | $2.44 | $2.28 | -6.6% | $401M | +1.1% |
| Jul 31, 2024 | $2.72 | $2.35 | -13.6% | $416M | -2.9% |
| May 2, 2024 | $2.53 | $2.67 | +5.5% | $426M | +3.6% |
| Feb 22, 2024 | $2.68 | $2.63 | -1.9% | $418M | -7.0% |
| Nov 2, 2023 | $2.65 | $2.91 | +9.8% | $420M | +4.5% |
| Aug 2, 2023 | $3.05 | $3.03 | -0.7% | $441M | +9.1% |
| May 4, 2023 | $2.12 | $2.79 | +31.6% | $412M | +5.6% |
ALG insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| May 12, 2026 | Haley Colleendirector | Grant | 905 | — |
| May 12, 2026 | Householder Paul Ddirector | Grant | 905 | — |
| May 12, 2026 | Etchart Ericdirector | Grant | 905 | — |
| May 12, 2026 | Bauer Robert Pdirector | Grant | 905 | — |
| May 12, 2026 | PAROD RICKdirector | Grant | 905 | — |
| May 12, 2026 | Tekorius Loriedirector | Grant | 905 | — |
| May 12, 2026 | Jokinen Tracy Cdirector | Grant | 905 | — |
| May 12, 2026 | Grooms Nina Cdirector | Grant | 905 | — |
| Mar 26, 2026 | Grooms Nina Cdirector | Buy | 233 | $171.61 |
| Mar 25, 2026 | Rizzuti Edwardofficer: EVP, Corp Dev, IR & Secretary | Sell | 600 | $170.93 |
| Mar 12, 2026 | Grooms Nina Cdirector | Sell | 499 | $175.19 |
| Mar 11, 2026 | Srinivasan Reubenofficer: VP, Human Resources - US Ops | Grant | 834 | — |
| Mar 11, 2026 | Hureau Robert Pauldirector, officer: President & CEO | Grant | 9,530 | — |
| Mar 11, 2026 | Kamps Agnesofficer: EVP & CFO, PFO and PAO | Grant | 2,517 | — |
| Mar 11, 2026 | Thomas Kevin Jonofficer: EVP Industrial Equipment | Grant | 1,832 | — |
Source: ALG SEC Form 4 filings, latest May 12, 2026. For informational purposes only — not investment advice.
See the full ALG insider & 13F page →Alamo Group Inc. company profile
Overview
Alamo Group Inc. (NYSE:ALG) is a Texas-based industrial equipment manufacturer founded in 1955 and publicly traded since 1993. The company has grown from a regional agricultural equipment producer into a global leader in vegetation management and infrastructure maintenance equipment. Headquartered in Seguin, Texas, Alamo Group serves governmental, industrial, and agricultural customers worldwide through two primary operating divisions. The company has built its reputation on designing and manufacturing heavy-duty equipment for demanding applications, from municipal street sweeping to large-scale agricultural operations.
Business
Alamo Group operates in the specialized industrial machinery sector, focusing on equipment that maintains vegetation and infrastructure. The company's business is organized into two main divisions that together generate approximately $1.6 billion in annual revenue. The Vegetation Management Division represents roughly 60% of total revenue and manufactures equipment designed to cut, maintain, and manage vegetation across various applications. This division produces hydraulically-powered and tractor-mounted mowers for heavy-duty applications, including rotary mowers that use spinning blades to cut grass and vegetation, flail mowers that use free-swinging blades for rough terrain, and finishing mowers for precision cutting. The division also manufactures specialized forestry equipment like tree care machines, agricultural implements such as rotary tillers that prepare soil for planting, and replacement parts. Key brands include equipment for governmental road maintenance, agricultural field preparation, and commercial landscaping operations. The Industrial Equipment Division accounts for approximately 40% of revenue and focuses on infrastructure maintenance equipment primarily for governmental and commercial customers. This division produces street sweepers that clean roadways using mechanical brooms and vacuum systems, vacuum trucks that remove debris and liquids from sewers and catch basins, snow removal equipment including plows and spreaders for winter road maintenance, and specialized vehicles like hydro excavators that use high-pressure water to safely dig around buried utilities. The division also manufactures pothole patchers, leaf collection systems, and runway maintenance equipment for airports. Both divisions emphasize heavy-duty construction designed for intensive commercial and governmental use, differentiating Alamo's products from lighter consumer-grade equipment. The company also maintains a significant aftermarket parts business, providing replacement components and service support for its installed equipment base.
Revenue model
Alamo Group generates revenue primarily through direct product sales to a diverse customer base spanning governmental agencies, commercial contractors, agricultural producers, and equipment dealers. The company's customers include municipalities that purchase street sweepers and mowing equipment for public works departments, state highway departments that buy vegetation management equipment for roadside maintenance, agricultural producers who purchase tractors and implements for farming operations, and commercial landscaping companies that need heavy-duty mowing equipment. The business model benefits from several revenue streams beyond initial equipment sales. Aftermarket parts and service provide recurring revenue, as the company's heavy-duty equipment requires regular maintenance and component replacement. This creates a steady income stream from the installed base of equipment, which has been built up over decades of operations. Several factors influence Alamo's profitability margins. Raw material costs, particularly steel prices, directly impact manufacturing costs since the company's products are predominantly metal fabrications. Supply chain disruptions can increase component costs and reduce manufacturing efficiency, as experienced during recent years with chassis and hydraulic component shortages. Labor availability and costs affect both manufacturing efficiency and wage expenses at the company's production facilities. Interest rate levels significantly influence customer purchasing decisions, particularly for agricultural and commercial customers who often finance equipment purchases. Higher rates can defer capital equipment investments, while lower rates typically stimulate demand. Government spending patterns are crucial for the Industrial Equipment Division, as municipal and state budgets directly affect infrastructure maintenance equipment purchases. Agricultural commodity prices influence farmer income and equipment replacement cycles, affecting the Vegetation Management Division's agricultural segment. The company's margins also benefit from operational leverage, where fixed manufacturing costs are spread across higher production volumes during strong demand periods. Conversely, margin pressure occurs during market downturns when production volumes decline but fixed facility costs remain constant.
Competitive moat
Alamo Group's competitive position rests on several defensive characteristics, though its moat is moderate rather than exceptionally strong. The company benefits from specialized engineering expertise in heavy-duty equipment design, particularly for demanding governmental and industrial applications where reliability and durability are paramount. This specialization creates switching costs for customers who value proven performance and established service networks. The company's established dealer network and aftermarket parts business provides some protection, as customers prefer suppliers who can provide ongoing service support and replacement components. Alamo's decades-long relationships with governmental customers also create some stickiness, as procurement processes often favor established suppliers with proven track records. Regulatory compliance and certification requirements for governmental equipment create barriers to entry, as new competitors must invest significantly in meeting various municipal and state specifications. The company's experience navigating these requirements provides an advantage over potential new entrants. However, Alamo's moat faces several limitations. The heavy equipment industry is cyclical and competitive, with several established players including larger industrial conglomerates that could potentially expand into Alamo's niches. The company's products, while specialized, are not protected by significant intellectual property barriers, and manufacturing processes are generally well-understood in the metalworking industry. Economic sensitivity represents a key vulnerability, as both governmental budget constraints and agricultural/commercial capital spending cycles can significantly impact demand. The company lacks the recurring revenue characteristics or network effects that create stronger defensive positions. Additionally, potential technological disruption from electrification or autonomous equipment could require substantial reinvestment to maintain competitive relevance, though Alamo has begun initiatives in these areas.
Risks & safety
Alamo Group demonstrates a solid financial position with reasonable margin of safety characteristics, though not exceptional. • Strong liquidity position: $200 million in cash and short-term investments with a 4.3x current ratio, providing substantial working capital cushion • Manageable debt levels: Debt-to-equity ratio of 0.21, indicating conservative leverage with low solvency risk • Positive cash generation: Operating cash flow of $210 million in FY 2024, though free cash flow can be volatile due to working capital swings • Reasonable valuation metrics: Trading at 16.8x P/E ratio and 9.2x EV/EBITDA, not expensive but not deeply discounted • Book value support: 2.0x price-to-book ratio with tangible assets providing some downside protection • Dividend sustainability: Recently increased dividend by 15% with strong cash generation supporting payments • Cyclical earnings risk: Net income can fluctuate significantly with economic cycles, as seen in recent vegetation management division struggles • Working capital intensity: Business requires substantial inventory and receivables, creating cash flow volatility • Market concentration risk: Heavy dependence on governmental spending and agricultural cycles creates earnings variability
Recent development
Over the past several years, Alamo Group has undertaken significant strategic restructuring to adapt to challenging market conditions, particularly in its vegetation management business. The company has implemented comprehensive cost reduction initiatives, targeting $25-30 million in annual savings through facility consolidations and workforce reductions. Major manufacturing consolidations include transferring Rayco branded tree care products and Rhino agricultural products to more efficient facilities, while divesting non-core assets like Herschel Parts. The company has maintained strong performance in its Industrial Equipment Division, which has shown consistent growth and margin expansion. This division has benefited from robust governmental spending on infrastructure maintenance, with management expanding production capacity for high-demand products like vacuum trucks. The division's order backlog has remained healthy at over $500 million, providing revenue visibility. Acquisition strategy remains a key focus, with management indicating the most active M&A pipeline since the pandemic. The company is targeting opportunities in governmental work expansion, European industrial markets, and adjacent product categories that leverage existing customer relationships and distribution channels. Alamo has also begun investing in electrification and hybrid technologies, recognizing potential long-term shifts in customer preferences and regulatory requirements. While still early-stage, these initiatives position the company for potential technology transitions in heavy equipment markets. The vegetation management business has faced prolonged challenges from high interest rates affecting agricultural equipment purchases and forestry market softness. However, management reports improving order trends and expects modest recovery beginning in the second half of 2025, supported by reduced channel inventories and potential interest rate relief.
ALG company profile · for informational purposes only — not investment advice.
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