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First quarter 2025 net sales of $391.0 million declined 8.1% compared to $425.6 million in the first quarter of 2024. Gross profit of $102.8 million or 26.3% of net sales declined by $8.8 million as a result of lower net sales, however, gross margin improved by nearly 10 basis points, compared to the same period of the prior year. The Vegetation Management Division began to recover as first quarter 2025 operating margin of 8.1% reflected sequential improvement of 410 basis points, driven by the cost reduction actions completed in 2024. The Industrial Equipment Division continued to carry out operational improvements, and delivered an operating margin of 13.7%, representing 130 basis points of sequential improvement.

Consolidated net income was $31.8 million or $2.64 per diluted share, compared to $32.1 million or $2.67 per diluted share in the first quarter of 2024. The Company's backlog at the end of the first quarter increased to $702.7 million and remains healthy. Compared to the fourth quarter of 2024, Vegetation Management Division backlog held steady at $189.5 million, while Industrial Equipment Division backlog increased to $513.2 million.

The Company’s balance sheet remained strong. Accounts receivable were $339.6 million with days sales outstanding of 78 days, an improvement of 6 days versus the first quarter of 2024. Inventory was $356.4 million compared to $384.5 million in the first quarter of 2024. Operating cash flow was $14.2 million, resulting in cash and cash equivalents of $200.3 million at the end of the first quarter.

As we look ahead to the remainder of the year, we expect continued strong demand within our Industrial Equipment Division coupled with a return to modest growth within our Vegetation Management Division, following the substantial channel inventory de-stocking that occurred during 2024. In addition, we anticipate improved profitability driven by the cost reduction actions that were implemented in 2024.

First quarter sales were in line with our expectations with Industrial Equipment Division sales up nearly 13% and Vegetation Management sales almost 27% lower than the first quarter of 2024. We were pleased that while consolidated net sales were down 8.1% compared to the first quarter of 2024, they were modestly higher sequentially.

We were also pleased to see that the benefits from our second-half 2024 cost reduction efforts were reflected in our first quarter 2025 results. Compared to the first quarter of 2024, gross margin improved almost 10 basis points, SG&A expenses declined more than 10%, and interest expense fell by almost

50% as our debt continued to decline. First quarter operating margin of 11.4% improved 40 basis points and 250 basis points as compared to the first quarter of 2024 and the fourth quarter of 2024, respectively. Notably, these results represent the best the Company has achieved since the third quarter of 2023.

The governmental and industrial contractor markets continued to display robust strength despite potential risk in the form of tariffs and trade disruptions. Industrial Equipment orders exceeded the strong pace set in the first quarter of 2024, the strongest quarter of that year, and were up nearly 59% versus the fourth quarter of 2024. All Industrial product lines reported solid orders, and activity in our sweeper and safety group was exceptionally strong. Backlog in the Industrial Equipment Division was $513 million, up $31.7 million or 6.6% from the backlog at the end of 2024.

First quarter orders in the Vegetation Management Division were up nearly 18% compared to the first quarter of 2024 and were also higher than the fourth quarter of 2024. We were pleased to note this positive development in what is traditionally a slower quarter in this division. Vegetation Management backlog of $189.5 million was down 30.3% compared to the first quarter of 2024 but increased for the third consecutive quarter. Compared to the first quarter of 2024, order activity was higher across all product lines in North America but declined modestly in South America and Europe. Governmental orders for mowers in North America were notably stronger.

Looking ahead, the outlook for the next several quarters remains cautiously optimistic. Trends in our markets during the first quarter were positive overall, and we expect profitability should continue to improve as we enter the seasonally stronger second and third quarters. In the second quarter, we expect to complete capital investments in our North American agricultural equipment facilities following the plant consolidations that were carried out last year. Consequently, in the third quarter of this year we expect to see the full benefit of the actions we took at the end of 2024. With rising backlog, stable to rising markets, and a meaningfully improved cost structure, the near-term prospects for the Company appear encouraging.

We also remain mindful of uncertainty tied to evolving global trade negotiations, and particularly how these developments may impact our markets. We are closely evaluating the effects of both existing and potential tariffs on our markets and operations, and are actively taking steps to mitigate our exposure. Despite the near-term volatility, we believe the Company is well positioned to further expand its operating margin and leverage our strong balance sheet to accelerate both organic and inorganic growth.

The Company will host a conference call to discuss the first quarter results on Friday, May 9, 2025, at 10:00 a.m. ET. Hosting the call will be members of senior management. Individuals wishing to participate in the conference call should dial (866) 524-3159 (domestic) or (412) 317-6759 (international). For interested individuals unable to join the call, a replay will be available until Friday, May 16, 2025, by dialing (877) 344-7529 (domestic) or (412) 317-0088 (internationally), passcode 3570057.

The live broadcast of Alamo Group Inc.’s quarterly conference call will be available online at the Company's website, www.alamo-group.com (under “Investor Relations/Events and Presentations”) on Friday, May 9, 2025, beginning at 10:00 a.m. ET. The online replay will follow shortly after the call ends and will be archived on the Company’s website for 60 days.

Alamo Group is a leader in the design, manufacture, distribution, and service of high-quality equipment for vegetation management, infrastructure maintenance and other applications. Our products include truck and tractor mounted mowing and other vegetation maintenance equipment, street sweepers, snow removal equipment, excavators, vacuum trucks, other industrial equipment, agricultural implements, forestry equipment and related after-market parts and services. The Company, founded in 1969, has approximately 3,750 employees and operates 27 plants in North America, Europe, Australia, and Brazil as of March 31, 2025. The corporate offices of Alamo Group Inc. are located in Seguin, Texas.

This release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company’s actual results in future periods to differ materially from forecasted results. Among those factors which could cause actual results to differ materially are the following: adverse economic conditions which could lead to a reduction in overall market demand, supply chain disruptions, labor constraints, increasing costs due to inflation, disease outbreaks, geopolitical risks, including tariffs, trade wars, and the effects of the war in the Ukraine and the Middle East, competition, weather, seasonality, currency-related issues, and other risk factors listed from time to time in the Company’s SEC reports. The Company does not undertake any obligation to update the information contained herein, which speaks only as of this date.

(1) This is a non-GAAP financial measure or other information relating to our GAAP financial measures that we have provided to investors in order to allow greater transparency and a deeper understanding of our financial condition and operating results. For a reconciliation of the non-GAAP financial measure or for a more detailed explanation of financial results, refer to “Non-GAAP Financial Measure Reconciliation” below and the Attachments thereto.


	Three Months Ended
	3/31/2025			3/31/2024
Net sales:
Vegetation Management	$	163,890		$	223,747
Industrial Equipment	227,060			201,839

Total net sales	390,950			425,586

Cost of sales	288,109			313,954
Gross margin	102,841			111,632
	26.3		%	26.2		%

Selling, general and administration expense	54,330			60,594
Amortization expense	4,049			4,059
Income from operations	44,462			46,979
	11.4		%	11.0		%

Interest expense	(3,194)			(6,091)
Interest income	1,238			801
Other income (expense)	(663)			98

Income before income taxes	41,843			41,787
Provision for income taxes	10,043			9,667

Net Income	$	31,800		$	32,120

Net income per common share:

Basic	$	2.65		$	2.69

Diluted	$	2.64		$	2.67

Average common shares:
Basic	11,990			11,944

Diluted	12,048			12,020

(Unaudited)


	March 31, 2025			March 31, 2024
ASSETS
Current assets:
Cash and cash equivalents		$	200,274		$	121,802
Accounts receivable, net		339,596			392,940
Inventories		356,406			384,488
Other current assets		14,958			16,301
Total current assets		911,234			915,531

Rental equipment, net		57,198			43,102

Property, plant and equipment		159,183			164,810

Goodwill		204,582			205,452
Intangible assets		147,899			163,909
Other non-current assets		24,598			26,616

Total assets		$	1,504,694		$	1,519,420

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Trade accounts payable		$	104,977		$	103,409
Income taxes payable		18,725			17,596
Accrued liabilities		73,006			77,349
Current maturities of long-term debt and finance lease obligations		15,009			15,008

Total current liabilities		211,717			213,362

Long-term debt, net of current maturities		201,789			306,525
Long-term tax liability		626			2,633

Other long-term liabilities		24,201			24,335
Deferred income taxes		9,300			16,009

Total stockholders’ equity		1,057,061			956,556

Total liabilities and stockholders’ equity		$	1,504,694		$	1,519,420

From time to time, Alamo Group Inc. may disclose certain “non-GAAP financial measures” in the course of its earnings releases, earnings conference calls, financial presentations and otherwise. For these purposes, “GAAP” refers to generally accepted accounting principles in the United States. The Securities and Exchange Commission (SEC) defines a “non-GAAP financial measure” as a numerical measure of historical or future financial performance, financial position, or cash flows that is subject to adjustments that effectively exclude or include amounts from the most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP financial measures disclosed by Alamo Group are provided as additional information to investors in order to provide them with greater transparency about, or an alternative method for assessing, our financial condition and operating results. These measures are not in accordance with, or a substitute for, GAAP and may be different from, or inconsistent with, non-GAAP financial measures used by other companies. Whenever we refer to a non-GAAP financial measure, we will also generally present the most directly comparable financial measure calculated and presented in accordance with GAAP, along with a reconciliation of the differences between the non-GAAP financial measure we reference and such comparable GAAP financial measure.

Attachment 1 discloses Operating Income, Adjusted Net Income and Adjusted Diluted EPS, related to the impact of non-recurring items, of which are non-GAAP financial measures. Attachment 2 discloses a non-GAAP financial presentation related to the impact of currency translation on net sales by division. Attachment 3 shows the net change in our total debt net of cash and earnings before interest, taxes, depreciation and amortization ("EBITDA") which is a non-GAAP financial measure. The Company considers this information useful to investors to allow better comparability of period-to-period operating performance. Attachment 4 reflects Division performance inclusive of non-GAAP financial measures such as backlog and earnings before interest, tax, depreciation and amortization ("EBITDA").


Impact of Non-recurring Items

	Three Months Ended
	March 31,
	2025		2024

Operating Income - GAAP	$	44,462	$	46,979



(add: workforce reduction)	82		481

Adjusted Operating Income - non-GAAP	$	44,544	$	47,460

Net Income - GAAP	$	31,800	$	32,120





(add: workforce reduction)	62		370


Adjusted Net Income - non-GAAP	$	31,862	$	32,490

Diluted EPS - GAAP	$	2.64	$	2.67




(add: workforce reduction)	0.01		0.03


Adjusted Diluted EPS - non-GAAP	$	2.65	$	2.70


Impact of Currency Translation on Net Sales by Division

	Three Months Ended March 31,						Change due to currency translation
	2025		2024		% change from 2024		$		%

Vegetation Management	$	163,890	$	223,747	(26.8)	%	$	(3,129)	(1.4)	%
Industrial Equipment	227,060		201,839		12.5	%	(2,907)		(1.4)	%

Total net sales	$	390,950	$	425,586	(8.1)	%	$	(6,036)	(1.4)	%


Consolidated Net Change of Total Debt, Net of Cash
	March 31, 2025		March 31, 2024		Net Change

Current maturities	$	15,009	$	15,008
Long-term debt,net of current	201,789		306,525
Total debt	$	216,798	$	321,533

Total cash	200,274		121,802
Total Debt Net of Cash	$	16,524	$	199,731	$	(183,207)


EBITDA
	Three Months Ended				Trailing Twelve Months Ended
	March 31, 2025		March 31, 2024		March 31, 2025		December 31, 2024

Net Income	$	31,800	$	32,120	$	115,610	$	115,930

Interest, net	1,956		5,290		14,577		17,911
Provision for income taxes	10,043		9,667		34,074		33,698
Depreciation	9,445		8,935		37,367		36,857
Amortization	4,049		4,059		16,217		16,227
EBITDA	$	57,293	$	60,071	$	217,845	$	220,623


Vegetation Management Division Performance

	Three Months Ended March 31,
		2025			2024

Backlog		$	189,493		$	271,805

Net Sales		163,890			223,747

Income from Operations		13,312			21,679
		8.1		%	9.7		%

Depreciation		4,052			4,333
Amortization		2,920			2,931
Other income (expense)		(303)			172

EBITDA		19,981			29,115
		12.2		%	13.0		%


Industrial Equipment Division Performance

	Three Months Ended March 31,
		2025			2024

Backlog		$	513,215		$	559,497

Net Sales		227,060			201,839

Income from Operations		31,150			25,300
		13.7		%	12.5		%

Depreciation		5,393			4,602
Amortization		1,129			1,128
Other income (expense)		(360)			(74)

EBITDA		37,312			30,956
		16.4		%	15.3		%


			For:			Alamo Group Inc.

			Contact:			Edward Rizzuti
						EVP Corporate Development & Investor Relations
						830-372-9600

						Financial Relations Board
						Joe Calabrese
						212-827-3772