Alamo Group Inc. Reports Q2 2025: Net Sales Increase 0.7%, Net Income Up 9.8%, EPS Rises to $2.57

Reuters
Aug 09
Alamo Group Inc. Reports <a href="https://laohu8.com/S/QTWO">Q2</a> 2025: Net Sales Increase 0.7%, Net Income Up 9.8%, EPS Rises to $2.57

Alamo Group Inc. has reported strong operating results for the second quarter of 2025. The company recorded net sales of $419.1 million, marking an increase of 0.7% from $416.3 million in the second quarter of 2024, and a 7.2% rise from the first quarter of 2025. The Industrial Equipment Division contributed significantly with net sales of $240.7 million, experiencing a year-over-year organic growth of 17.6% and a 6.0% increase compared to the first quarter of 2025. Meanwhile, the Vegetation Management Division saw its net sales decline by 15.7% year-over-year to $178.4 million, but they increased by 8.8% from the previous quarter. The company's net income rose by 9.8% to $31.1 million compared to the second quarter of 2024. Earnings per share $(EPS)$ improved by $0.22 to $2.57 per share, despite an unfavorable currency revaluation impact of $0.21 per share. Alamo Group also reported an improvement in its total debt, which was reduced to $213.1 million, with total debt net of cash decreasing by $163.8 million, representing a 93.5% improvement compared to the second quarter of 2024. Operationally, the company's income from operations was $47.1 million, constituting 11.2% of net sales, which is an increase of 83 basis points from the second quarter of 2024. The backlog at the end of the quarter stood at $687.2 million, which is a 2.8% improvement from year-end 2024. Alamo Group's President and CEO, Jeff Leonard, highlighted the sustained strong demand from governmental agencies and specialty contractors for the Industrial Equipment Division's products as a key factor in the company's performance. Looking ahead, the company anticipates continued operational gains, particularly with improved productivity in the Vegetation Management Division, amidst some economic uncertainties related to tariffs.

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