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Alamo Group (ALG)
NYSE:ALG
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Alamo Group
(NYSE:ALG)
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Rating:70Outperform
Price Target:
$184.00
▲(3.69% Upside)
Alamo Group's overall stock score reflects a strong financial position and strategic growth initiatives, such as the acquisition of Petersen Industries. However, technical indicators suggest potential bearish momentum, and challenges in the Vegetation Management division weigh on the outlook. The stock is reasonably valued, but cash flow management remains a concern.
Alamo Group (ALG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.11B
Dividend Yield0.69%
Average Volume (3M)84.52K
Price to Earnings (P/E)18.1
Beta (1Y)0.74
Revenue Growth-2.73%
EPS Growth-2.91%
CountryUS
Employees3,750
SectorN/A
Sector StrengthN/A
IndustryAgricultural - Machinery
Share Statistics
EPS (TTM)2.10
Shares Outstanding12,115,428
10 Day Avg. Volume111,508
30 Day Avg. Volume84,518
Financial Highlights & Ratios
PEG Ratio-1.27
Price to Book (P/B)2.19
Price to Sales (P/S)1.37
P/FCF Ratio12.04
Enterprise Value/Market Cap0.00
Enterprise Value/Revenue0.00
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Alamo Group Business Overview & Revenue Model
Company DescriptionAlamo Group Inc. (ALG) is a leading manufacturer of equipment for the maintenance, repair, and construction of roadways, including street sweepers, mowers, and other specialized vehicles. The company operates in various sectors, including agriculture, industrial, and municipal markets, offering a diverse range of products such as turf care equipment, outdoor power equipment, and attachments for heavy machinery. Alamo Group's commitment to quality and innovation has positioned it as a key player in the equipment manufacturing industry.
How the Company Makes MoneyAlamo Group generates revenue primarily through the sale of its manufactured products, which include road maintenance equipment, agricultural machinery, and various attachments. Key revenue streams include direct sales to municipalities for road maintenance and to agricultural businesses for land management. The company also benefits from aftermarket sales, including parts and services for the equipment it sells, which provides a recurring revenue source. Additionally, Alamo Group may engage in strategic partnerships or collaborations with other manufacturers and distributors, enhancing its market reach and operational efficiency. Factors contributing to its earnings include strong demand in the municipal and agricultural sectors, a focus on product innovation, and a growing need for infrastructure maintenance and development.
Alamo Group Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 19, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While the Industrial Equipment division showed strong growth and the company's financial position remained healthy, the Vegetation Management division faced significant challenges. Gross margin decline and adjusted net income decrease further dampened the positive aspects.Q3-2025 Updates
Positive Updates
Industrial Equipment Division Growth
Net sales in the Industrial Equipment division were $247 million, representing an increase of 17% compared to the third quarter of 2024. This marks the seventh consecutive quarter of year-over-year double-digit net sales growth.
Healthy Financial Position
As of September 30, 2025, Alamo Group maintained a strong financial position with total assets of $1.595 billion, up $113.6 million from the third quarter of 2024, driven by higher cash and cash equivalents.
Order Pattern Improvement in Vegetation Management
Net orders in the Vegetation Management division for the third quarter of 2025 increased double digits on a percentage basis compared to the same quarter in 2024, with a solid book-to-bill ratio of one.
Improved Cash Flow
Cash provided by operating activity for the 9 months ended September 30, 2025, was $102.4 million, a healthy conversion of 116% of net income.
Negative Updates
Vegetation Management Division Weakness
Net sales in the Vegetation Management division were $173.1 million, a decrease of 9% compared to the third quarter of 2024. This was due to persistent weakness in tree care and agriculture end markets and production challenges.
Gross Margin Decline
Gross margin for the third quarter of 2025 was 24.2%, down 90 basis points from the third quarter of 2024, primarily due to unforeseen production inefficiencies and tariff costs.
Adjusted Net Income Decrease
Adjusted net income for the third quarter of 2025 was $28.2 million, down 3% compared to adjusted net income of $29 million in the third quarter of 2024.
Tariff Impact
Tariff costs affected both divisions, contributing to a gross margin decline. The company raised prices to mitigate impact but did not fully cover tariff costs in the third quarter.
Company Guidance
In the Alamo Group's third-quarter 2025 conference call, management provided guidance highlighting mixed results across divisions and shared future strategic focuses. The Industrial Equipment division demonstrated robust performance, with net sales increasing by 17% year-over-year, driven by strong sales across all groups and contributions from the Ring-O-Matic acquisition. In contrast, the Vegetation Management division saw a 9% decline in net sales, attributed to persistent market weaknesses and production challenges from consolidating manufacturing facilities. The company's net sales rose to $420 million, a 4.7% increase from the previous year, while adjusted net income slightly decreased to $28 million, down 3%. Adjusted EBITDA remained stable at $55 million, representing 13% of net sales. The management expressed optimism for future growth, emphasizing strategic pillars such as operational and commercial excellence, people and culture, and a focus on acquisitions to drive long-term shareholder value.Alamo Group Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
80
Positive
Cash Flow
70
Positive
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Alamo Group Technical Analysis
Positive
177.45
Price Trends
171.56
Positive
188.39
Negative
192.74
Negative
Market Momentum
1.40
Negative
56.21
Neutral
35.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALG, the sentiment is Positive. The current price of 177.45 is above the 20-day moving average (MA) of 169.81, above the 50-day MA of 171.56, and below the 200-day MA of 192.74, indicating a neutral trend. The MACD of 1.40 indicates Negative momentum. The RSI at 56.21 is Neutral, neither overbought nor oversold. The STOCH value of 35.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALG.
Alamo Group Peers Comparison
UnderperformOutperform
Sector (―)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | ― | ― | ― | ― | ― | ― | |
74 Outperform | $3.05B | 33.10 | 29.41% | 0.39% | 3.50% | -57.51% | |
73 Outperform | $1.26B | 17.54 | 14.61% | 1.24% | 11.41% | 13.05% | |
72 Outperform | $511.08M | 130.62 | 0.44% | 1.59% | -2.36% | -73.77% | |
71 Outperform | $3.62B | 23.40 | 7.85% | 1.24% | 4.60% | -65.73% | |
70 Outperform | $2.11B | 18.08 | 10.82% | 0.69% | -2.73% | -2.91% | |
66 Neutral | $1.05B | 22.03 | 7.37% | 1.14% | 6.66% | ― |
* Sector Average
ALG
Alamo Group
174.36
-9.85
-5.35%
ASTE
Astec
45.91
13.22
40.44%
CMCO
Columbus Mckinnon
17.79
-18.91
-51.53%
LNN
Lindsay
118.97
1.76
1.50%
TEX
Terex
55.18
10.65
23.92%
REVG
REV Group
62.55
31.39
100.74%
Alamo Group Corporate Events
M&A TransactionsBusiness Operations and Strategy
Alamo Group Announces Acquisition of Petersen Industries
Positive
Dec 10, 2025
On December 10, 2025, Alamo Group Inc. announced its plan to acquire Petersen Industries, a leader in truck-mounted grapple loader equipment, for approximately $166.5 million. This strategic acquisition, expected to close in the first quarter of 2026, aims to integrate Petersen into Alamo’s Industrial Equipment Division, enhancing its product offerings and market reach. The acquisition is anticipated to be accretive to Alamo Group’s growth and margins, providing solid recurring revenue from aftermarket parts and services, while unlocking significant cost savings and revenue growth opportunities.
Business Operations and Strategy
Alamo Group Approves New Deferred Compensation Plan
Neutral
Nov 12, 2025
On November 6, 2025, Alamo Group Inc.’s Board of Directors approved a new Nonqualified Deferred Compensation Plan effective January 1, 2026. This plan allows eligible employees to receive discretionary contributions up to 6% of their base salary and bonus, with full vesting after three years of service. The plan replaces the Supplemental Executive Retirement Plan for new participants, with initial contributions for certain executives based on the present value of their previous plan accounts.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.