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Dec 31, 2023
Alamo Group Q4 2023 Earnings Report
Alamo Group achieved record sales and earnings for the ninth consecutive quarter in Q4 2023.
Key Takeaways
Alamo Group Inc. reported an 8% increase in net sales, reaching $417.5 million, and a 5% increase in operating income, amounting to $44.8 million, for the fourth quarter of 2023. Net income for the quarter rose by 8% to $31.5 million, or $2.63 per diluted share. The company's backlog at the end of 2023 stood at $860 million.
Net sales increased by 8% to $417.5 million.
Operating income increased by 5% to $44.8 million.
Net income increased by 8% to $31.5 million, or $2.63 per diluted share.
Year-end backlog was $860 million.
Revenue by Segment
Forward Guidance
Alamo Group anticipates continued strength in the Industrial Equipment Division due to governmental agency sales, expects softness in Vegetation Management to persist through Q1, but anticipates relief later in the year with modestly lower interest rates.
Positive Outlook
- Company backlog remains at a healthy level.
- Quality of backlog remains excellent.
- Anticipated relief in the form of modestly lower interest rates should help clear inventory overhang and invigorate dealer demand.
- Industrial Equipment Division will continue to display strength in 2024 driven by its sales to governmental agencies.
- Company remains confident regarding its performance in 2024 and believes it will be another excellent year.
Challenges Ahead
- Softness in Vegetation Management may persist through the first quarter.
- Forestry and Tree Care activity remained constrained by the combined effects of price pressure for domestic wood pellets.
- Slowing demand for land clearing equipment and sluggish housing starts.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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