Alamo Group Reports Q4 2025 Earnings

Industrial Equipment Division sees growth, while Vegetation Management Division struggles with margin pressures

Published on Mar. 4, 2026

Got story updates? Submit your updates here. ›

Alamo Group (NYSE:ALG) reported fourth-quarter 2025 results that reflected continued strength in its Industrial Equipment Division but a sharp profitability decline in its Vegetation Management Division, as softer end-market demand and manufacturing inefficiencies weighed on results. The company also discussed its acquisition activity, margin improvement efforts, and long-term financial targets during its earnings call.

Why it matters

Alamo Group's performance provides insight into the state of the industrial equipment and vegetation management markets, as well as the company's ability to navigate challenges and execute on its strategic initiatives. The results and outlook will be closely watched by investors and industry analysts.

The details

Net sales in the fourth quarter of 2025 were $373.7 million, down 3% from the prior-year quarter. Gross profit declined to $85.0 million from $91.8 million, and gross margin fell 110 basis points year over year to 22.7%. Selling, general and administrative expense rose 9.3% to $58.3 million and included about $3.2 million of acquisition and integration costs, restructuring costs, and costs related to the addition of Ring-O-Matic. Adjusted EBITDA for the quarter was $44.8 million (12% of sales), compared with $51.8 million (13.4% of sales) in the year-ago period. Adjusted earnings per share were $1.70, down from $2.39.

  • Alamo Group reported fourth-quarter 2025 results on March 4, 2026.

The players

Alamo Group

An American company that designs, manufactures, and markets equipment for vegetation management, roadside maintenance, agricultural harvesting, and industrial applications.

Robert Hureau

Chief Executive Officer of Alamo Group.

Got photos? Submit your photos here. ›

What they’re saying

“Growth in the division was supported by favorable pricing, contributions from the Ring-O-Matic acquisition (which closed in the second quarter), and market share gains, partially offset by lower snow equipment sales.”

— Robert Hureau, Chief Executive Officer (themarketsdaily.com)

“Tree Care demand was impacted by dealer hesitation on orders for very large, high-priced land-clearing equipment that is 'partially tied to housing starts,' which he described as 'suppressed.' On municipal mowing, he said certain state Department of Transportation customers delayed orders due to budget uncertainty stemming from what he referred to as the 'One Big Beautiful Bill,' which he said shifts certain costs to states and rescinds some funding tied to highways and access.”

— Robert Hureau, Chief Executive Officer (themarketsdaily.com)

What’s next

Alamo Group expects sequential improvement in both sales and margins from the fourth quarter of 2025 into the first quarter of 2026, but not a full return to first-quarter 2025 levels. The company also plans to divest or discontinue a few product lines within the Vegetation Management Division over the course of 2026 to help improve margins.

The takeaway

Alamo Group's fourth-quarter 2025 results highlight the diverging performance of its two main divisions, with the Industrial Equipment Division showing strength but the Vegetation Management Division facing significant margin pressures. The company's strategic initiatives, including facility consolidations, procurement and supply chain improvements, and potential divestitures, aim to improve profitability and position the company for long-term success.