Alamo Group Inc

Alamo Group, based in Seguin, Texas, builds heavy-duty equipment for maintaining roads, roadsides, farmland and public spaces. Its products include vacuum trucks, street sweepers, snow removal equipment, roadside safety gear, telescopic excavators and tractor-mounted mowers. It sells them under brands such as Bush Hog, Gradall, Schwarze, Tiger and McConnel. It sells through independent equipment dealers and directly to contractors and municipalities.

In the fiscal year ended December 31, 2025, revenue was $1.60 billion. Complete machines, which the company calls "wholegoods," made up 79.6% of that. Replacement parts were 16.3% and other sales 4.1%. Parts matter because machines need them for years after the sale. The Industrial Equipment division, home to heavier machines such as excavators, vacuum trucks and sweepers, brought in 59.2% of revenue. The Vegetation Management division, which makes mowers and other equipment for farms, roadsides and land maintenance, brought in 40.8%.

The United States produced 71.5% of fiscal 2025 revenue. Canada followed at 9.3%, France at 5.4% and the United Kingdom at 5.2%. Since its founding in 1969, Alamo has added many brands by buying other companies, including Gradall in 2006 and Bush Hog in 2009. Its fiscal 2025 annual report listed about 3,800 employees and 27 factories in North America, Europe, Brazil and Australia.

• In Q2 FY2026 (ended Jun 30, 2026), revenue was $450.7M, up 7.6% from a year earlier, and net income was $30.9M (-0.5%).
• For fiscal 2025, revenue was $1.60B (-1.5% year over year; +6.6% a year from FY2020 to FY2025) with a 6.5% net margin.

• Over FY2021–FY2025: $8.8M in buybacks and $52.5M in dividends.
• At least 9 consecutive annual increases: every fiscal year in the SEC data (FY2016–FY2025) shows an increase; the true streak may be longer.
• Regular dividends per share grew +18.2% a year over 5 years (FY2020–FY2025).
• Dividends took 13.9% of earnings and 9.8% of free cash flow in the latest fiscal year.
• Shares outstanding changed +2.0% from Jul 30, 2021 to Jul 24, 2026.

Rank among 1514 US companies

Market value at each year end

Alamo Group’s market value went from $876.0M at the end of 2016 to $1.76B on Oct 28, 2026, about 2.0 times as much; since the end of 2025 it is down 14%.

Form 4 filings from 2025-11-03 to 2026-11-03 (25 read): 2 open-market purchases ($116K) and 4 sales ($1.1M).

Large shareholders (13G filings)

ETFs with the most weight in ALG

1. Government budgets drive many orders. Municipalities and other government agencies are important buyers, and the company lists its dependence on government sales as a risk. Budget limits or revenue shortfalls at these customers could reduce orders.
2. Steel, truck chassis and engine supply. It buys steel, truck chassis, engines, hydraulics and other parts. Shortages, inflation and tariffs have already hurt profits, and the company says its price increases may not fully cover higher costs.
3. Weather, seasons and farm incomes. Demand for snow equipment and farm mowers depends partly on weather. Droughts, floods, snowstorms, weak farm incomes or low crop and cattle prices can shift sales, and the seasons make quarterly results uneven.
4. Acquisitions may not pay off. Alamo has grown by buying companies, and those businesses may underperform. If they do, it may have to write down goodwill (the premium paid above an acquired company's asset values), which cuts reported earnings.
5. Restructuring may fall short of savings goals. Two filings in September 2026 reported restructuring costs and asset write-downs. The company warns that restructuring may not deliver the expected savings, and that selling or closing operations can hurt results.
6. Tariffs, trade wars and currency swings. Alamo makes and sources products in several countries and sells widely outside the US. Broad tariffs, trade wars and currency swings can raise costs, hurt sales abroad and shrink results when converted to dollars.

• Nov 2, 2026 Quarterly results released
• Oct 27, 2026 Major agreement signed; Acquisition or sale of assets completed; Investor presentation or announcement
• Sep 30, 2026 Restructuring or exit costs; Asset impairment
• Sep 8, 2026 Restructuring or exit costs; Asset impairment
• Aug 11, 2026 Executive or board change
• Aug 3, 2026 Quarterly results released; Bylaws or fiscal year changed
• Jul 8, 2026 Executive or board change
• May 28, 2026 Major agreement signed; New debt or financial obligation
• May 19, 2026 Executive or board change
• May 4, 2026 Quarterly results released

Alamo's dividend is small but rising quickly. The regular dividend rose each year from fiscal 2016 to fiscal 2025, at least nine straight increases. It went from $0.52 a share in fiscal 2020 to $1.20 in fiscal 2025. The fiscal 2025 dividend used only 13.9% of earnings and 9.8% of free cash flow (cash left after running and reinvesting in the business). Still, the yield (yearly dividends divided by share price) was 0.94% as of October 28, 2026, so the stock provides little income on its own. Buybacks have been minor, and the share count rose about 2% between July 2021 and July 2026.

The shares have fallen hard in downturns. They lost 62.9% from June 2008 to March 2009 and did not get back to that peak until May 2010. They fell 41.7% in the 2020 COVID crash and 31.1% in the first half of 2022, recovering about eight months after each low. A single stock carries more risk than a diversified fund.