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Allient Inc. (ALNT)
NASDAQ:ALNT
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Allient
(NASDAQ:ALNT)
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Rating:64Neutral
Price Target:
$66.00
▲(7.76% Upside)
Action:ReiteratedDate:03/06/26
The score is driven primarily by improving financial performance (notably stronger 2025 cash flow and deleveraging) and a positive earnings call with solid backlog and margin momentum. Offsetting this, technicals are currently soft versus the 20-day trend and valuation is stretched with a high P/E and minimal dividend yield.
Positive Factors
Improved cash generation
Allient generated record operating cash flow ($56.7M) in 2025 and materially improved free-cash-flow conversion, with FCF matching net income. Strong, repeatable cash generation reduces dependence on external funding, funds capex and capacity adds, and supports sustained deleveraging and strategic investments.
Meaningful deleveraging and balance sheet repair
Net debt declined substantially and leverage moved from ~3.0x to ~1.8x, giving the company greater financial flexibility. Lower leverage eases covenant risk, lowers interest burden, and enables disciplined capital allocation toward growth (capex for data center capacity) while preserving balance-sheet optionality.
Structural margin expansion program
Operational simplification and targeted structural savings have driven sustained gross-margin improvement into the low-30s. These structural actions improve cost base and product development speed, enhancing operating leverage so revenue growth converts more reliably into profit over the medium term.
Negative Factors
Choppy revenue history
Allient's top-line has been inconsistent across recent years, with a decline in 2024 and only modest recovery in 2025. This uneven revenue profile complicates capacity planning, undermines predictability of margins and cash flow, and raises execution risk for multi-year growth targets.
Supply-chain and sourcing risks
Reliance on rare earths and specialized magnets creates exposure to constrained supply, rising input costs, and domestic sourcing rules (DAA). These structural sourcing risks can lengthen lead times, force redesigns or higher-cost suppliers, and pressure margins and delivery reliability over the medium term.
Backlog timing and program concentration risk
While backlog is sizable, management expects most to convert in 3–9 months and has noted pull-ins and timing effects. Program cancellations and lumpy defense work show customer-concentration and timing risk that can cause volatile revenues and underutilized capacity if booked orders don't convert as assumed.
Allient (ALNT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.04B
Dividend Yield0.22%
Average Volume (3M)190.52K
Price to Earnings (P/E)40.7
Beta (1Y)1.56
Revenue Growth-2.88%
EPS Growth26.14%
CountryUS
Employees2,525
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.55
Shares Outstanding16,940,048
10 Day Avg. Volume273,785
30 Day Avg. Volume190,524
Financial Highlights & Ratios
PEG Ratio0.63
Price to Book (P/B)2.97
Price to Sales (P/S)1.62
P/FCF Ratio18.03
Enterprise Value/Market Cap1.15
Enterprise Value/Revenue2.16
Enterprise Value/Gross Profit6.82
Enterprise Value/Ebitda15.80
Forecast
1Y Price Target
$73.25Price Target Upside19.59% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)2.62
Revenue Forecast (FY)$584.54M
Allient Business Overview & Revenue Model
Company DescriptionAllient Inc., together with its subsidiaries, designs, manufactures, and sells precision and specialty controlled motion components and systems for various industries worldwide. It offers brush and brushless DC motors, brushless servo and torque motors, coreless DC motors, integrated brushless motor-drives, gearmotors, gearing, modular digital servo drives, motion controllers, optical encoders, active and passive filters, input/output modules, industrial communications gateways, light-weighting technologies, and other controlled motion-related products. The company sells its products to end customers and original equipment manufacturers in vehicle, medical, aerospace and defense, and industrial markets through direct sales force, authorized manufacturers' representatives, and distributors. The company was formerly known as Allied Motion Technologies Inc. and changed its name to Allient Inc. in August 2023. Allient Inc. was incorporated in 1962 and is headquartered in Amherst, New York.
How the Company Makes MoneyAllient generates revenue primarily through a subscription-based model for its software services, which allows clients to access its cloud platforms and data analytics tools on a recurring basis. Additionally, the company earns income from consulting services that assist clients in implementing digital transformation strategies. Key revenue streams include licensing fees for proprietary technology, support and maintenance contracts, and professional services for system integration and customization. Strategic partnerships with major technology firms enhance Allient's offerings, enabling it to expand its market reach and drive additional revenue through joint ventures and collaborative projects.
Allient Earnings Call Summary
Earnings Call Date:Mar 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call conveyed a largely positive picture: strong top-line growth (Q4 revenue +17%, organic +15%), record and expanding margins, significant operating-leverage gains, record operating cash flow (+35%), and meaningful deleveraging (net debt down $48.4M; leverage 1.82x). Management also highlighted strategic progress under the Simplify to Accelerate Now program and readiness to capture accelerating data center demand. Headwinds include a small decline in aerospace & defense (‑5%) with a program cancellation, ongoing supply-chain risks around rare earths/magnets and DAA compliance, some regional/ macro softness (notably Germany), and timing-driven pull-ins that may mute near-term sequential results. Overall, positive operational and financial momentum outweighs the identifiable risks and timing noise.Q4-2025 Updates
Positive Updates
Revenue Growth — Q4 and Organic
Fourth quarter revenue increased 17% year-over-year to $143.4M, including 15% organic growth on a constant-currency basis, driven by strengthening industrial demand and commercial vehicle shipments.
Strong Industry-Specific Performance
Industrial revenue rose 24% YoY (automation & power quality), Vehicle revenue increased 35% (commercial automotive timing), Medical up 9%, and Distribution sales grew 11%.
Margin Expansion and Operational Leverage
Gross margin expanded 90 bps in Q4 to 32.4% and full-year gross margin reached a record 32.8% (up 150 bps). Margin gains attributed to higher volumes, favorable mix, and Simplify to Accelerate Now initiatives.
Operating Income and Profitability Gains
Operating income for Q4 increased 76% to $11.4M (7.9% of revenue); full-year operating income rose 46% to $44M (7.9% of revenue). Net income Q4 more than doubled to $6.4M ($0.38 diluted); full-year net income $22M ($1.32).
Adjusted EBITDA Expansion
Adjusted EBITDA for Q4 was $19.0M (13.3% of revenue), up 170 bps YoY; full-year adjusted EBITDA was $76.9M (13.9% of revenue), a 210 bps expansion year-over-year.
Record Cash Generation and Working Capital Improvement
Record operating cash flow of $56.7M for the year, up 35% YoY. Inventory turns improved to 3.2x from 2.7x and DSO improved to 57 days from 60, reflecting better working capital management.
Material Deleveraging and Balance Sheet Strengthening
Total debt declined to $180.4M and net debt fell to $139.7M (a $48.4M reduction YoY). Leverage ratio improved to 1.82x from 3.01x and bank-defined leverage was 2.34x, comfortably within covenants.
Strategic Progress — Simplify to Accelerate Now
Company executed structural simplification (footprint optimization, lean manufacturing, faster product development) with targeted structural savings of $6–7M for 2025 and meaningful progress driving cost and margin improvements.
Backlog and Order Momentum
Backlog ended the year at approximately $233M with a book-to-bill slightly above 1 and the majority of backlog expected to convert within 3–9 months, supporting constructive momentum into 2026.
Capacity Investment and Data Center Readiness
Targeted facility expansion for data center work is on track to be fully operational late Q2/early Q3 2026, positioning the company to capitalize on expected acceleration in data center-related demand.
Negative Updates
Aerospace & Defense Near-Term Weakness and Program Cancellation
Aerospace & defense revenue declined 5% in the quarter and was impacted by the previously announced M10 Booker Tank program cancellation; defense revenue remains lumpy despite a solid pipeline.
Supply Chain Risk — Rare Earths and Magnets
Company flagged ongoing supply-chain challenges around rare earth materials and magnets that may impact compliance with evolving domestic sourcing requirements (DAA) and could increase costs or constrain supply in some products.
Macro and Geographic Softness
Management noted uneven macro conditions across end markets and specific softness in European/German industrial markets, creating potential headwinds for growth in 2026.
Q4 Pull-Ins and Timing-Related Volatility
Some Q4 revenue was driven by pull-ins (notably a one-time commercial vehicle surge ~ $2.5M), which may temper near-term sequential results and introduce volatility into Q1 2026 comparisons.
Simplify Program Not Fully Complete
While meaningful progress was delivered against the $6–7M 2025 structural savings target, certain realignment actions (e.g., Dothan transition) remain a work in progress and will continue into 2026.
Gross Margin Sequential Moderation
Sequential gross margin moderated in Q4 due to a higher proportion of lower-margin vehicle revenue, highlighting sensitivity of margins to mix shifts.
Company Guidance
Guidance highlights: for 2026 management expects an effective tax rate of 21–23% and capital expenditures of $10–$12 million (vs. $7M capex in 2025), and says the business is positioned to build on Q4 momentum — backlog ended the year at ~$233M (majority expected to convert in 3–9 months) with a book‑to‑bill slightly above 1.0; balance sheet and cash metrics provide flexibility (total debt $180.4M, net debt $139.7M, a $48.4M YoY reduction, leverage 1.82x from 3.01, bank‑defined leverage 2.34 within covenants; record operating cash flow $56.7M, +35% YoY). Operational/working‑capital targets and trends underpin the outlook: inventory turns improved to 3.2x (from 2.7), DSO improved to 57 days (from 60), and management expects continued structural margin expansion from the Simplify to Accelerate Now program (after targeting $6–7M of structural savings for 2025); timing and capacity actions (facility expansion coming late Q2/early Q3) are intended to support accelerating data‑center demand.Allient Financial Statement Overview
Summary
Fundamentals are improving but not flawless: 2025 profitability rebounded from 2024 and gross margin remains steady in the low-30s, while cash flow strengthened materially with better free-cash-flow conversion. Balance sheet risk is trending better with meaningful deleveraging, but revenue has been uneven across years and net margins are still relatively thin.Income Statement
Revenue has been choppy over the past few years (strong growth in 2021–2023, a decline in 2024, and a return to modest growth in 2025). Profitability is steady at the gross level (roughly low-30% gross margin), while bottom-line profitability is modest, improving in 2025 versus 2024 but still below peak years (net margin ~4.0% in 2025 vs ~2.5% in 2024). Overall, the business shows resilience and recovery, but earnings power remains somewhat thin for the sector and growth consistency is a key watch item.67
Positive
Balance Sheet
Leverage looks improved in 2025, with debt-to-equity moving down meaningfully versus 2022–2024, which reduces financial risk and increases flexibility. Return on equity is positive but moderate (improving in 2025 vs 2024, below stronger years like 2021/2023), suggesting decent—though not exceptional—capital efficiency. Strength is the deleveraging trend; weakness is that debt is still material and profitability levels limit how fast the balance sheet can strengthen through retained earnings alone.64
Positive
Cash Flow
Cash generation strengthened materially in 2025, with operating cash flow and free cash flow both higher and free cash flow growth strong versus the prior year. Cash conversion is solid, with free cash flow matching net income in 2025, a notable improvement from weaker conversion in 2021–2024 and the negative free cash flow year in 2022. The main risk factor is historical volatility in cash flows, but the latest year shows a clearly healthier trajectory.78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 554.48M | 529.97M | 578.63M | 502.99M | 403.52M |
| Gross Profit | 169.24M | 165.69M | 183.68M | 157.26M | 121.06M |
| EBITDA | 73.43M | 56.05M | 67.15M | 56.86M | 44.46M |
| Net Income | 22.03M | 13.17M | 24.10M | 17.39M | 24.09M |
Balance Sheet | |||||
| Total Assets | 577.60M | 575.78M | 597.54M | 588.35M | 470.79M |
| Cash, Cash Equivalents and Short-Term Investments | 40.70M | 36.10M | 31.90M | 30.61M | 22.46M |
| Total Debt | 196.82M | 249.13M | 243.49M | 258.85M | 176.28M |
| Total Liabilities | 276.14M | 310.93M | 345.97M | 372.88M | 283.02M |
| Stockholders Equity | 301.45M | 264.85M | 251.57M | 215.47M | 187.76M |
Cash Flow | |||||
| Free Cash Flow | 49.69M | 32.17M | 33.44M | -10.31M | 11.69M |
| Operating Cash Flow | 56.67M | 41.85M | 45.04M | 5.60M | 25.40M |
| Investing Cash Flow | -6.99M | -34.91M | -22.61M | -60.01M | -60.97M |
| Financing Cash Flow | -47.70M | -843.00K | -21.32M | 63.60M | 35.83M |
Allient Technical Analysis
Negative
61.25
Price Trends
63.39
Negative
58.68
Positive
50.20
Positive
Market Momentum
-0.28
Positive
44.80
Neutral
62.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALNT, the sentiment is Negative. The current price of 61.25 is below the 20-day moving average (MA) of 64.65, below the 50-day MA of 63.39, and above the 200-day MA of 50.20, indicating a neutral trend. The MACD of -0.28 indicates Positive momentum. The RSI at 44.80 is Neutral, neither overbought nor oversold. The STOCH value of 62.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALNT.
Allient Risk Analysis
Allient disclosed 32 risk factors in its most recent earnings report. Allient reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Allient Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $608.97M | 22.22 | 10.90% | 1.07% | 22.35% | 2.59% | |
68 Neutral | $989.15M | 93.63 | 9.64% | ― | -6.13% | -76.92% | |
64 Neutral | $1.04B | 40.66 | 7.61% | 0.22% | -2.88% | 26.14% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $575.64M | 96.46 | 2.37% | ― | -7.46% | -39.98% | |
52 Neutral | $381.51M | 23.27 | -30.23% | ― | 3.02% | 90.87% | |
52 Neutral | $948.18M | -193.07 | -77.78% | ― | -5.13% | -37.34% |
* Technology Sector Average
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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.