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Dec 31, 2024
Alamo Group Q4 2024 Earnings Report
Alamo Group reported a decrease in net sales and net income for the fourth quarter of 2024, with mixed performance across its divisions.
Key Takeaways
Alamo Group Inc. reported fourth quarter 2024 net sales of $385.3 million, a 7.7% decrease compared to the prior year. Net income for the quarter was $28.1 million, or $2.33 per diluted share. The Industrial Equipment Division saw an increase in net sales, while the Vegetation Management Division experienced a significant decline.
Net Sales for Q4 2024 were $385.3 million, down 7.7% year-over-year.
Industrial Equipment Division net sales increased by 11.0% to $225.5 million in Q4 2024.
Vegetation Management Division net sales decreased by 25.5% to $159.8 million in Q4 2024.
Net income for Q4 2024 was $28.1 million, with diluted EPS of $2.33 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
Alamo Group's outlook for 2025 is cautiously optimistic, expecting continued strength in governmental and industrial contractor markets, and a modest recovery in Vegetation Management in the second half of the year.
Positive Outlook
- U.S. national elections completed, expecting elevated activity in governmental and industrial contractor markets.
- Order bookings for forestry, tree care, and agricultural equipment improved sequentially every quarter during 2024, expected to continue in 2025.
- Vegetation Management equipment sales in Europe were modestly higher than in Q4 2023, with orders up nicely.
- Company remains strong and well-positioned with a solid foundation for continued success.
- Anticipate an improved operating environment and increasing acquisition activity in the sector in the second half of 2025.
Challenges Ahead
- Significant recovery in Vegetation Management markets is unlikely in the first half of 2025.
- Closely monitoring potential impact of tariffs and renewed inflation.
- Broad-based reciprocal international tariffs could increase costs on a wide range of industrial components.
- Will not hesitate to adjust prices to account for cost increases if necessary.
- Continued softness in Vegetation Management due to higher interest rates, weakness in housing, lower commodity prices, and excess channel inventories.
Revenue & Expenses
Visualization of income flow from segment revenue to net income