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Alamo Group Inc

Alamo Group Inc

ALG
$162.43USD↓-1.98%-3.28 today

MARKET CAP

2.0B

P/E (TTM)

19.8x

FWD P/E

14.7x

DAY RANGE

$162 – $168

52W RANGE

$146
$233

AI Summary

Stalk
Buy NowMedium

ALG is in an early Stage 1 consolidation following a downtrend, with price stabilizing in a sideways range and an active Bullish Pivot Point signaling failed downside control and structural repair. The 9 EMA and 21 EMA have turned positive and now support price, underpinning an upward mean-reversion bias. Execution favors buying pullbacks into the 9/21 EMA support zone, while a breakdown below these EMAs or lack of volatility expansion would invalidate the setup.

  • ↑Q1 sales $417.1M (+6.7% YoY), with industrial equipment up 18%
  • ↑Quarterly dividend $0.34/share (+13%) underlines cash flow strength
  • ↓Q1 operating cash flow -$23.5M, raising liquidity concerns
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

Alamo Group Inc. (NYSE: ALG) is a leading manufacturer of equipment for the infrastructure maintenance and agricultural sectors. The company specializes in products for vegetation management and industrial equipment, focusing on enhancing operational efficiencies and expanding its market presence through strategic acquisitions. Alamo Group is positioned to capture growing demands in end markets related to public works and utility management.

Bull says

  • ↑Q1 sales $417.1M (+6.7% YoY), with industrial equipment up 18%
  • ↑Quarterly dividend $0.34/share (+13%) underlines cash flow strength
  • ↑Peterson Industries acquisition expected to boost margins and synergies
  • ↑LTM operating cash flow $139.8M supports growth funding
  • ↑Analysts rate Moderate Buy with 24–34% projected upside
  • ↑High earnings yield, strong book-to-price and earnings revision factors

Bear says

  • ↓Q1 operating cash flow -$23.5M, raising liquidity concerns
  • ↓Gross margin 25.1% down 180bps YoY under inflation pressure
  • ↓Vegetation management division facing profitability headwinds
  • ↓Negative momentum and low institutional ownership dampen support
  • ↓Seasonal volatility in vegetation and snow segments risks swings
  • ↓Inflation and tariffs threaten margin stability without pricing power

Investment themes with ALG

Agriculture↑ +0.85%

Farming, crop production, and global food supply

DE · CTVA · ADM

Earnings Call · Q1 2026 · Mgmt. Guidance

Updated 05-09-2026neutral

Transcript signals

Bull points

  • Net sales for the first quarter of 2026 were $417.1 million, an increase of 6.7% compared to the first quarter of 2025.
  • Adjusted EBITDA for the first quarter of 2026 was $59.3 million or 14.2% of net sales compared to $58.3 million, or 14.9% of net sales, in the first quarter of 2025. On a sequential basis, adjusted EBITDA improved significantly from the fourth quarter of 2025 when it totaled $44.8 million, or 12% of net sales.
  • The operating cash flow on the last 12 month basis was $139.8 million, or 138.2% of net income.

Bear points

  • Growth margin for the first quarter of 2026 was 25.1% down 118 basis points compared to the first quarter of 2025. The year-over-year decline was primarily driven by vegetation management division reflecting lower net sales in our municipal mowing business and certain manufacturing facilities which are continuing to ramp up in terms of efficient throughput.
  • Net orders for the Industrial Equipment Division during the first quarter of 2026 were down 11% compared to the prior year.
  • net sales in this division and its end markets have declined over the past few years, rolling over a period of significant growth that occurred between 2021 and 2023.
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