Alamo's Industrial Equipment Growth Accelerates After Petersen

The Tip Desk · August 4, 2026 · 2 min read

Adjusted EBITDA reached $63.9 million, or 14.2% of sales, as Industrial Equipment sales rose 12.8% to $271.6 million.

Alamo Group Inc. (ALG) reported second-quarter net sales of $450.7 million, up 7.6% from a year earlier, as Industrial Equipment sales growth accelerated after the Petersen acquisition closed in January.

The manufacturer of industrial and vegetation-management equipment reported Industrial Equipment net sales of $271.6 million, reflecting organic demand and Petersen’s contribution. That division’s year-over-year increase was faster than the 6.5% Industrial Equipment gain in the first quarter. Vegetation Management net sales were $179.1 million.

Adjusted EBITDA was $63.9 million, or 14.2% of net sales, up 8.7% from $58.8 million, or 14.0% of sales, a year earlier. Adjusted fully diluted earnings were $2.82 a share. Fully diluted earnings were $2.55 a share.

Industrial Equipment adjusted EBITDA was $45.3 million, or 16.7% of net sales. Vegetation Management adjusted EBITDA was $18.6 million, or 10.4% of sales. President and Chief Executive Officer Robert Hureau said the Industrial Equipment Division delivered sales growth and solid profitability, including a meaningful contribution from Petersen. He said Vegetation Management sales were relatively stable despite pressure in certain end markets, and that the company is focusing on improving margins through operational execution, cost discipline and targeted actions across the portfolio.

Net income was $30.9 million. Adjusted net income was $34.2 million. Restructuring expenses were $4.0 million in the quarter.

Industrial Equipment backlog was $365.3 million at June 30, 2026. Vegetation Management backlog was $184.0 million.

In May 2026, the company renewed its credit facility on improved terms, preserving $602.5 million of committed capacity, including a $400.0 million revolver and a $202.5 million term loan. Cash was $195.0 million and total debt was $262.7 million at June 30.

For the six months ended June 30, 2026, the company returned $19.0 million to stockholders, including $10.8 million of share repurchases and $8.2 million of dividends, while funding the Petersen acquisition. Hureau said the company ended the quarter with a strong liquidity position and that flexibility allowed it to invest in organic growth, fund Petersen and repurchase shares opportunistically in the first half.

Hureau said conditions across end markets remain mixed and that teams continue to focus on operational improvement and disciplined execution of strategic priorities.