ALG US Earnings call
ALAMO Group Inc. (ALG) · Q1 2026 results and valuation
Share price: $141.71 · 2026-11-11
Results Q1 2026 vs Q4 2025 · previous quarter · published 5 May 2026 and 3 Mar 2026
Net income up 88.1% on the previous quarter. Management sounded restrained, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+88.1%
Net income vs Q4 2025
Net income 29.2M vs 15.5M
Revenue +11.6%
Against the same quarter last year (Q1 2025) it is −8.2%, so the move on last quarter looks seasonal or timing-related rather than a trend.
2 · How management spoke
Restrained
Less upbeat than 66% of company calls
Answers to analysts: typical, in line with the script.
Similar to last call.
3 · What stood out
Figure
The new snow plow features an extendable side wing system on a tri-drive chassis that provides a clearing capacity of up to 27 feet.
Valuation
Is ALAMO Group Inc. undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 1.9% growth a year (3-year revenue growth), the model's fair value is $152.92 a share — the stock trades 7% below it. Today's price assumes 0.9% growth a year.
Current price
$141.71
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+0.9% for 10 yrs
Fair value / share
$152.92
Buy below
$114.69
Price vs fair value
Undervalued 7%
Price vs buy-below price
Overvalued 24%
Read between the lines
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Key theme
The ag business and tree care business reflect the ramping of manufacturing efficiencies and production in both the U.S. and other markets.
Source quote
“ag business and the tree care business really reflect the ramping of the manufacturing efficiencies which, as you know, we... The ramping of production in both the U.S.”
-
Fading
Net sales in the Industrial Equipment division reached $241.7 million in the first quarter of 2026, which was an increase of 6.5%.
Source quote
“Net sales in the Industrial Equipment division for the first quarter of 2026 were $241.7 million, an increase of 6.5%... Now I'll share some comments regarding the results of each of the divisions. Excluding acquisitions, net sales declined $2.4 million or 1% compared to the first quarter of 2025 largely due to timing of...”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q1 2026. Ring: Q4 2025.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“As I mentioned during our last call, net sales in this division and its end markets have been very robust, growing in the high teens over the past few years...”
“Cash provided by operating activities for the first quarter of 2026 was negative $23.5 million due to strong sequential growth especially in the Vegetation Management division where the net sales...”
“Looking forward, we expect the rate of growth in several of these end markets to slow in 2026 as the near-term effect of those prior external investments and the overall...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-03-31)
| Metric | Q1 2026period end 2026-03-31 | Q4 2025period end 2025-12-31 | Change | Q1 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 417.1M | 373.6M | +11.6% | 390.9M | +6.7% |
| Gross profit | 104.8M | 85.0M | +23.3% | 102.8M | +1.9% |
| Operating income | 42.2M | 22.5M | +87.1% | 44.5M | −5.2% |
| Net income | 29.2M | 15.5M | +88.1% | 31.8M | −8.2% |
| EPS | 2.41 | 1.28 | +88.3% | 2.64 | −8.7% |
| P/E today 19.5 | 19.7 | 19.5 | +0.2 | 18.6 | +1.1 |
Topics
Most discussed now
- Vegetation Management margins improved meaningfully on a sequential basis as ALAMO exited the quarter reflecting operational progress in…
- The first comment would be or the first response to that would be that ALAMO made really good progress during...
- ALAMO has seen retail tractor sales in that 40 to 100 horsepower range decline for the last few months.
- ALAMO has had strong orders now for several quarters and that's continuing.
- Reasonably good spot
Faded since Q4 2025
- Fading These businesses continued to deliver double-digit year-over-year net sales growth.
- Fading In the Vegetation Management division, again, from an order pattern perspective, ALAMO saw really good order strength in the first...
- Fading It has a talented management team that is staying with the business.
- Fading ALAMO thinks in many cases, these product innovations really demonstrate the shift that it is trying to push here at...
Latest announcements
Official filings, newest first.
- Restructuring costs; Impairment · SEC 8-K
- Restructuring costs; Impairment · SEC 8-K
- Director or officer change · SEC 8-K
- Results of operations; Articles or bylaws amended · SEC 8-K
- Director or officer change · SEC 8-K
- Material agreement; New financial obligation · SEC 8-K
- Director or officer change · SEC 8-K
- Results of operations · SEC 8-K