Loading...
•
Mar 31, 2024
Alamo Group Q1 2024 Earnings Report
Alamo Group reported first quarter results, with record net sales and strong performance in the Industrial Equipment division offsetting headwinds in Vegetation Management.
Key Takeaways
Alamo Group Inc. reported a 3.4% increase in net sales to $425.6 million for the first quarter of 2024. The Industrial Equipment division saw a significant increase in sales, while the Vegetation Management division faced market headwinds. Net income was $32.1 million, or $2.67 per diluted share.
Record net sales of $425.6 million, a 3.4% increase year-over-year.
Industrial Equipment net sales increased by 29.9% to $201.8 million.
Vegetation Management net sales decreased by 12.7% to $223.7 million.
Net income was $32.1 million, with EPS of $2.67 per share.
Alamo Group
Alamo Group
Alamo Group Revenue by Segment
Revenue by Segment
Industrial Equipment Division Revenue
CapyFin.comVegetation Management Division Revenue
CapyFin.com Forward Guidance
The outlook for the balance of 2024 is somewhat more cautious than it was when the company reported results for the fourth quarter of 2023, given the uncertain interest rate environment.
Positive Outlook
- Industrial Equipment Division has strong momentum and record backlog.
- Governmental markets continue to display significant strength.
- Ongoing investment in renewal of governmental maintenance equipment fleets resulted in brisk quoting and increased ordering activity.
- Governmental markets for Vegetation Management Division were strong, especially in North America.
- Prices for purchased components stabilized and purchased material cost variances moderated.
Challenges Ahead
- Non-governmental markets for Vegetation Management Division remained under pressure.
- Elevated interest rates continued to negatively impact dealer retail sales and kept channel inventory stubbornly high in North American Forestry/Tree Care and Hobby Farm/Ranch groups.
- Supply chain challenges persisted in a few areas such as truck chassis frames, transmissions, other truck components and certain types of hydraulic equipment.
- Uncertain interest rate environment may prolong headwinds in Vegetation Management.
- Anticipated correction in channel inventory may be delayed.
Revenue & Expenses
Visualization of income flow from segment revenue to net income