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Jun 30, 2022
Alamo Group Q2 2022 Earnings Report
Alamo Group achieved record sales and earnings, driven by effective price management and improved manufacturing efficiencies.
Key Takeaways
Alamo Group reported record second-quarter sales of $396.2 million, a 14.0% increase year-over-year, and net income of $28.5 million, or $2.39 per diluted share, up 9.4%. The company's backlog reached $894.0 million, a 77.5% increase compared to the prior year.
Net sales increased by 14.0% to $396.2 million.
Income from operations rose by 21.8% to $40.9 million.
Net income grew by 9.4% to $28.5 million, or $2.39 per diluted share.
Backlog increased by 77.5% to $894.0 million.
Alamo Group
Alamo Group
Forward Guidance
Alamo Group anticipates continued strong performance for the remainder of 2022 and into early 2023, supported by an improving supply chain, healthy backlog, and effective margin management.
Positive Outlook
- Truck chassis delivery reliability improved in the second quarter.
- Gradual improvement in chassis supply will support improved sales and profitability in the Industrial Equipment Division.
- Modest improvement in overall supply chain performance is expected to continue for the next few months.
- Backlog remains close to the historic high set at the end of the first quarter of 2022.
- Margin in backlog is increasingly healthy.
Challenges Ahead
- Shortages of certain components are expected to extend into next year.
- Orders received during the quarter declined modestly compared to the second quarter of 2021.
- Gradually softening demand in the North American agriculture market.
- Persistent cost inflation pressures.
- Turbulent and challenging business environment.