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For:Alamo Group Inc.
                                                                              
Contact:Edward Rizzuti
 EVP Corporate Development & Investor Relations
 830-372-9600
  
 Financial Relations Board
 Joe Calabrese
 212-827-3772

ALAMO GROUP ANNOUNCES FINANCIAL RESULTS FOR THE THIRD QUARTER 2025

SEGUIN, Texas, November 6, 2025 -- Alamo Group Inc. (NYSE: ALG) today reported results for the third quarter 2025.

Highlights:

▪Net sales increased 4.7% to $420 million compared with the third quarter of 2024
▪Income from operations of $37.5 million decreased 6.3% versus the third quarter of 2024
▪Fully diluted EPS of $2.10 per share decreased $0.18 per share compared to the third quarter of 2024
▪Adjusted fully diluted EPS of $2.34 per share decreased $0.04 per share compared to the third quarter of 2024, which includes CEO transition, acquisition, and restructuring costs(1)
▪Adjusted EBITDA of $55.0 million was flat compared to the third quarter of 2024(1)
▪Operating cash flow for the first nine months of 2025 was $102.4 million

Third Quarter Results

Net sales for the third quarter of 2025 were $420.0 million, an increase of 4.7% compared to $401.3 million for the third quarter of 2024. Income from operations for the third quarter of 2024 was $37.5 million or 8.9% of net sales, compared to $40.1 million, or 10.0% of net sales, for the third quarter of 2024. Net income for the third quarter of 2025 was $25.4 million, or $2.10 per fully diluted share compared to $27.4 million, or $2.28 per fully diluted share for the third quarter of 2024.

The Company also reported adjusted net income of $28.2 million, or $2.34 per fully diluted share, for the third quarter of 2025 compared to adjusted net income $28.6 million, or $2.38 per fully diluted share







ALAMO GROUP ANNOUNCES 2025 THIRD QUARTER SALES AND EARNINGS Page 2

for the third quarter of 2024.(1) Adjusted EBITDA for third quarter of 2025 was $55.0 million, or 13.1% of net sales, compared to $54.9 million, or 13.7% of net sales, for the third quarter of 2024.(1)

Net sales in the Industrial Equipment Division were $247.0 million, an increase of 17.0% in total and 14.5% organically, compared to $211.2 million for the third quarter of 2024. Adjusted EBITDA in the Industrial Equipment Division for the third quarter of 2025 was $38.2 million, or 15.5% of net sales, compared to $33.1 million, or 15.7% of net sales, for the third quarter of 2024. (1)

Net sales in the Vegetation Management Division were $173.1 million, a decrease of 9.0% compared to $190.1 million in the third quarter of 2024. Adjusted EBITDA in the Vegetation Management Division for the third quarter of 2025 was $16.8 million, or 9.7% of net sales, compared to $21.8 million, or 11.5% of net sales, for the third quarter of 2024.(1)

Robert Hureau, Alamo Group's President and Chief Executive Officer commented, “The Company’s third quarter results were mixed. The Industrial Equipment Division continued to perform exceptionally well, delivering strong year-over-year double digit net sales growth for the seventh consecutive quarter. While Industrial Equipment orders fluctuate from quarter to quarter, year-to-date bookings in the division reflect modest growth and backlog levels remain healthy. In contrast, the Vegetation Management Division continued to experience softness in its end markets, however, bookings in the division slightly improved. Operationally, in the Vegetation Management Division we have consolidated facilities in an effort to reduce fixed costs and improve manufacturing throughput and materials management. To date, we have realized the fixed cost savings. While productivity improvements are tracking more slowly than anticipated, we are advancing our operational initiatives and expect further benefits in the coming quarters.”

Operating cash flow for the nine months ended September 30, 2025 was $102.4 million.

At September 30, 2025, total debt was $209.4 million, total cash was $244.8 million and the Company had $397.2 million of availability under its Revolving Facility.

Mr. Hureau added, “With continued strong operating cash flows, ample cash on hand and significant availability under our Revolving Facility, we are well positioned to invest in both organic growth and operating initiatives as well as to deliver on our acquisition strategy. Regarding our acquisition strategy, we are excited about our growing pipeline of opportunities that have a strong strategic fit and attractive financial profiles. We look forward to a further discussion regarding our results and operating strategy during our upcoming Earnings Conference Call.”

Earnings Conference Call
The Company will host a conference call to discuss the second quarter results on Friday, November 7th, 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 (833) 816-1163 (domestic) or (412) 317-1898 (international). For interested individuals unable to join the call, a replay will be available until Friday, November 14, 2025 by dialing (877) 344-7529 (domestic) or (412) 317-0088 (internationally), passcode 5234040.



ALAMO GROUP ANNOUNCES 2025 THIRD QUARTER SALES AND EARNINGS Page 3

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, November 7, 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.


About Alamo Group
Alamo Group is a leader in the manufacture and sale of high-quality, purpose built industrial and vegetation management equipment. We serve end-markets such as infrastructure building and maintenance, industrial construction, public works, land maintenance, agriculture and tree care. Our products are sold to independent equipment dealers and directly to contractors and municipalities. Product categories include vocational products (vacuum trucks, street sweepers, roadside safety equipment, excavators, and snow removal equipment) and light machinery (tractor mounted mowing equipment, land maintenance and recycling equipment) and related after-market parts and services. The Company operates two divisions: the Industrial Equipment Division and the Vegetation Management Division. Founded in 1969, the Company has approximately 3,800 employees and operates 27 manufacturing facilities in North America, Canada, Europe, Brazil and Australia. The corporate offices of Alamo Group Inc. are located in Seguin, Texas.
Forward Looking Statements
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 and operational disruptions, labor constraints, increasing costs due to inflation, disease outbreaks, geopolitical risks, including tariffs, trade wars, and the effects of the wars 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.

(Tables Follow)
# # #
(1) This is a non-GAAP financial measure 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 non-GAAP financial measures to the most directly comparable GAAP measures, refer to the “Non-GAAP Financial Measures Reconciliation” below and the Attachments thereto.


Page 4
Alamo Group Inc. and Subsidiaries 
Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
(Unaudited)
Three Months EndedNine Months Ended
9/30/20259/30/20249/30/20259/30/2024
Net sales:
  Vegetation Management$173,059 $190,115 $515,307 $625,397 
  Industrial Equipment246,983 211,186 714,758 617,793 
Total net sales420,042 401,301 1,230,065 1,243,190 
Cost of sales318,359 300,414 917,249 922,490 
Gross profit101,683 100,887 312,816 320,700 
Selling, general and administration expense59,931 56,747 171,397 178,158 
Amortization expense4,210 4,061 12,337 12,175 
Income from operations37,542 40,079 129,082 130,367 
Interest expense(3,897)(4,886)(10,775)(17,075)
Interest income1,522 562 3,955 1,877 
Other income (expense)(210)(32)(4,056)1 
Income before income taxes34,957 35,723 118,206 115,170 
Provision for income taxes9,574 8,318 29,917 27,321 
Net Income$25,383 $27,405 $88,289 $87,849 
Net income per common share:
Basic$2.11 $2.29 $7.35 $7.34 
Diluted$2.10 $2.28 $7.31 $7.30 
Average common shares:
Basic12,029 11,977 12,013 11,965 
Diluted12,094 12,041 12,075 12,035 



Page 5
Alamo Group Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited) 
September 30,
2025		September 30,
2024
ASSETS
Current assets:
Cash and cash equivalents$244,806 $140,038 
Accounts receivable, net335,210 356,617 
Inventories378,166 371,999 
Other current assets21,211 10,950 
Total current assets979,393 879,604 
Rental equipment, net61,558 47,260 
Property, plant and equipment165,887 163,374 
Goodwill214,429 206,458 
Intangible assets147,322 156,399 
Other non-current assets26,390 28,246 
Total assets$1,594,979 $1,481,341 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Trade accounts payable$129,297 $97,259 
Income taxes payable— 15,687 
Accrued liabilities76,770 84,061 
Current maturities of long-term debt and finance lease obligations15,000 15,009 
Total current liabilities221,067 212,016 
Long-term debt, net of current maturities194,430 209,157 
Long-term tax liability471 708 
Other long-term liabilities24,423 28,886 
Deferred income taxes21,982 12,854 
Total liabilities462,373 463,621 
Total stockholders’ equity1,132,606 1,017,720 
Total liabilities and stockholders’ equity$1,594,979 $1,481,341 

                                                                       




Page 6
Alamo Group Inc. and Subsidiaries
Interim Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
Nine Months Ended
September 30,
(in thousands)20252024
Operating Activities
Net income$88,289 $87,849 
Adjustment to reconcile net income to net cash provided by operating activities:
Provision for doubtful accounts
(46)1,234 
Depreciation - Property, plant and equipment
20,144 20,027 
Depreciation - Rental equipment
8,719 7,257 
Amortization of intangibles
12,337 12,175 
Amortization of debt issuance
527 527 
Stock-based compensation expense
8,363 7,185 
Provision for deferred income tax8,681 (2,406)
Gain on sale of property, plant and equipment
(489)(789)
Changes in operating assets and liabilities:
Accounts receivable
(18,815)4,847 
Inventories
(24,382)5,451 
Rental equipment
(17,235)(15,259)
Prepaid expenses and other assets
6,200 (1,583)
Trade accounts payable and accrued liabilities
37,156 (804)
Income taxes payable
(24,860)3,172 
Long-term tax payable(156)(1,925)
Other long-term liabilities, net
(2,009)3,684 
Net cash provided by operating activities102,424 130,642 
Investing Activities
Acquisitions, net of cash acquired(17,582)— 
Purchase of property, plant and equipment(25,400)(18,988)
Proceeds from sale of property, plant and equipment1,064 2,906 
Net cash used in investing activities(41,918)(16,082)
Financing Activities
Borrowings on bank revolving credit facility50,000 187,000 
Repayments on bank revolving credit facility(50,000)(187,000)
Principal payments on long-term debt and finance leases(11,257)(11,317)
Contingent consideration payment from acquisition — (4,402)
Dividends paid(10,805)(9,329)
Proceeds from exercise of stock options1,502 1,589 
Common stock repurchased(3,022)(1,944)
Net cash used in financing activities(23,582)(25,403)
Effect of exchange rate changes on cash and cash equivalents10,608 (1,038)
Net change in cash and cash equivalents47,532 88,119 
Cash and cash equivalents at beginning of the year197,274 51,919 
Cash and cash equivalents at end of the period$244,806 $140,038 
Cash paid during the period for:
Interest
$10,742 $17,349 
Income taxes
45,939 29,004 


Page 7
Alamo Group Inc.
Non-GAAP Financial Measures Reconciliation

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 non-GAAP measures such as Adjusted Operating Income, Adjusted Net Income and Adjusted Fully Diluted EPS, related to certain items that the management believes are not indicative of underlying performance. Adjusted Operating Income and Adjusted EBITDA accounts for these impacts on a pre-tax basis and Adjusted Fully Diluted EPS is calculated on a after-tax basis. Management believes isolating certain items from the core operating performance improves comparability across periods, and reflects how management plans and assesses the business. These metrics are supplements to GAAP, not substitutes; reconciliations to GAAP are provided.

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, earnings before interest, taxes, depreciation and amortization ("EBITDA") and Adjusted EBITDA which are non-GAAP financial measures.

Attachment 4 reflects Division performance inclusive of non-GAAP financial measures such as backlog, earnings before interest, tax, depreciation and amortization ("EBITDA") and Adjusted EBITDA. The Company considers this information useful to investors to allow better comparability of period-to-period operating performance.


Page 8
Attachment 1

Alamo Group Inc.
Non-GAAP Financial Reconciliation
(in thousands, except per share numbers)
(Unaudited)


Adjusted Operating Income, Net Income, and Diluted EPS
Three Months EndedNine Months Ended
September 30,September 30,
2025202420252024
Operating Income - GAAP$37,542 $40,079 $129,082 $130,367 
add: CEO Transition(1)
1,859 — 2,310 — 
       add: Acquisition and Integration Expenses(2)
1,392 — 1,627 — 
       add: Restructuring Expenses(3)
572 1,607 1,939 3,226 
add: Gradall Strike(4)
— — — 3,556 
Adjusted Operating Income - non-GAAP
$41,365 $41,686 $134,958 $137,149 
Net Income - GAAP$25,383 $27,405 $88,289 $87,849 
add: CEO Transition(1), net of tax benefit $470 and $585, respectively
1,389 — 1,725 — 
add: Acquisition and Integration Expenses(2), net of tax benefit $352 and $412, respectively
1,040 — 1,215 — 
add: Restructuring Expenses(3), net of tax benefit $145 and $381, $491, and $765, respectively
427 1,226 1,448 2,461 
add: Gradall Strike(4), net of tax benefit $ - and $851, respectively
— — — 2,705 
Adjusted Net Income - non-GAAP
$28,239 $28,631 $92,677 $93,015 
Fully Diluted EPS - GAAP$2.10 $2.28 $7.31 $7.30 
add: CEO Transition(1)
0.11 — 0.14 — 
       add: Acquisition and Integration Expenses(2)
0.09 — 0.10 — 
       add: Restructuring Expenses(3)
0.04 0.10 0.12 0.20 
add: Gradall Strike(4)
— — — 0.22 
              Adjusted Fully Diluted EPS - non-GAAP$2.34 $2.38 $7.67 $7.72 

Notes:
1.CEO Transition includes accelerated stock compensation, recruiting expenses, and sign-on bonus
2.Acquisition and integration expenses include advisory fees for both unsuccessful and successful deals
3.Restructuring expenses include severance cost, moving and set up cost
4.Gradall strike represents lost profitability during the 5-week labor strike in Q2 2024



Page 9
Attachment 2

Alamo Group Inc.
Non-GAAP Financial Reconciliation
(in thousands)
(Unaudited)


Impact of Currency Translation on Net Sales by Division
Three Months Ended
September 30,		Change due to currency translation
20252024% change from 2024$%
Vegetation Management$173,059 $190,115 (9.0)%$2,166 1.1 %
Industrial Equipment246,983 211,186 17.0 %448 0.2 %
Total net sales
$420,042 $401,301 4.7 %$2,614 0.7 %
Nine Months Ended
September 30,		Change due to currency translation
20252024% change from 2024$%
Vegetation Management$515,307 $625,397 (17.6)%$324 0.1 %
Industrial Equipment714,758 617,793 15.7 %(1,996)(0.3)%
Total net sales
$1,230,065 $1,243,190 (1.1)%$(1,672)(0.1)%
















Page 10
Attachment 3

Alamo Group Inc.
Non-GAAP Financial Reconciliation
(in thousands)
(Unaudited)

Consolidated Net Change of Total Debt, Net of Cash
September 30, 2025September 30, 2024Net Change
Current maturities$15,000 $15,009 
Long-term debt,net of current194,430 209,157 
Total debt$209,430 $224,166 
Total cash244,806 140,038 
     Total Debt Net of Cash$(35,376)$84,128 $(119,504)

EBITDA
Three Months EndedNine Months Ended
September 30, 2025September 30, 2024September 30, 2025September 30, 2024
Net Income$25,383$27,405$88,289$87,849
Interest, net2,3754,3246,82015,198
Provision for income taxes9,5748,31829,91727,321
Depreciation9,6469,19128,86327,284
Amortization 4,2104,06112,33712,175
     EBITDA$51,188$53,299$166,226$169,827
     EBITDA % net sales12.2%13.3%13.5%13.7%
Adjustments:
add: CEO Transition(1)
$1,859$—$2,310$—
add: Acquisition and Integration Expenses(2)
1,392—1,627—
add: Restructuring Expenses(3)
5721,6071,9393,226
add: Gradall Strike(4)
———3,556
     Adjusted EBITDA$55,011$54,906$172,102$176,609
     Adjusted EBITDA % net sales13.1%13.7%14.0%14.2%

Notes:
1.CEO Transition includes accelerated stock compensation, recruiting expenses, and sign-on bonus
2.Acquisition and integration expenses include advisory fees for both unsuccessful and successful deals
3.Restructuring expenses include severance cost, moving and set up cost
4.Gradall strike represents lost profitability during the 5-week labor strike in Q2 2024










Page 11
Attachment 4

Alamo Group Inc.
Non-GAAP Financial Reconciliation
(in thousands)
(Unaudited)


Vegetation Management Division Performance
Three Months Ended
September 30,		Nine Months Ended
September 30,
2025202420252024
Backlog$180,232 $185,353 
Net Sales$173,059 $190,115 515,307 625,397 
Income from Operations7,478 12,404 33,541 50,089 
Income from Operations % net sales4.3%6.5%6.5%8.0%
Depreciation4,096 4,457 12,401 13,224 
Amortization2,955 2,934 8,821 8,793 
Other (income) expense185 371 (2,406)645 
EBITDA$14,714 $20,166 $52,357 $72,751 
EBITDA % net Sales8.5%10.6%10.2%11.6%
Adjustments:
add: CEO Transition(1)
$893 $— $1,104 $— 
add: Acquisition and Integration Expenses(2)
668 — 778 — 
add: Restructuring Expenses(3)
572 1,607 1,939 3,226 
Adjusted EBITDA$16,847 $21,773 $56,178 $75,977 
Adjusted EBITDA % net sales9.7%11.5%10.9%12.1%

Notes:
1.CEO Transition includes accelerated stock compensation, recruiting expenses, and sign-on bonus
2.Acquisition and integration expenses include advisory fees for both unsuccessful and successful deals
3.Restructuring expenses include severance cost, moving and set up cost






















Page 12


Attachment 4 (Continued)

Alamo Group Inc.
Non-GAAP Financial Reconciliation
(in thousands)
(Unaudited)

Industrial Equipment Division Performance
Three Months Ended
September 30,		Nine Months Ended
September 30,
2025202420252024
Backlog$438,106 $543,425 
Net Sales$246,983 $211,186 714,758 617,793 
Income from Operations30,064 27,675 95,541 80,278 
Income from Operations % net sales12.2%13.1%13.4%13.0%
Depreciation5,550 4,734 16,462 14,060 
Amortization1,255 1,127 3,516 3,382 
Other (income) expense(395)(403)(1,650)(644)
EBITDA$36,474 $33,133 $113,869 $97,076 
EBITDA % net Sales14.8%15.7%15.9%15.7%
Adjustments:
add: CEO Transition(1)
$966 $— $1,206 $— 
add: Acquisition and Integration Expenses(2)
724 — 849 — 
add: Gradall Strike(3)
— — — 3,556 
Adjusted EBITDA$38,164 $33,133 $115,924 $100,632 
Adjusted EBITDA % net sales15.5%15.7%16.2%16.3%

Notes:
1.CEO Transition includes accelerated stock compensation, recruiting expenses, and sign-on bonus
2.Acquisition and integration expenses include advisory fees for both unsuccessful and successful deals
3.Gradall strike represents lost profitability during the 5-week labor strike in Q2 2024