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What changed in ALAMO GROUP INC's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of ALAMO GROUP INC's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+137 added−134 removedSource: 10-K (2026-03-02) vs 10-K (2025-02-27)

Top changes in ALAMO GROUP INC's 2025 10-K

137 paragraphs added · 134 removed · 107 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

54 edited+11 added−10 removed113 unchanged
Biggest change(" Denis Cimaf "). Morbark is a leading manufacturer of equipment and aftermarket parts for forestry, tree care, biomass, land management and recycling markets. This acquisition expanded the Company's product line and complemented its range of vegetation maintenance equipment in an adjacent market. Morbark is based in Winn, Michigan.
Biggest changeIn 2019, the Company acquired 100% of the outstanding capital shares of Morbark, LLC (" Morbark" ) which included its subsidiaries Rayco Manufacturing LLC (" Rayco ") and Denis Cimaf Inc. (" Denis Cimaf "). Morbark is a leading manufacturer of equipment and aftermarket parts for forestry, tree care, biomass, land management and recycling markets.
Certain particular risks and uncertainties that continually face us include the following: • budget constraints and revenue shortfalls which could affect the purchases of our type of equipment by governmental customers and related contractors in both domestic and international markets; 14 • market acceptance of new and existing products; • our ability to hire suitable employees for our business and maintain good relations with employees; • our ability to develop and manufacture new and existing products profitably; • the inability of our suppliers, creditors, public utility providers and financial and other service organizations to deliver or provide their products or services to us; • legal actions and litigation; • impairment in the carrying value of goodwill; • our ability to successfully integrate acquisitions and operate acquired businesses or assets; • current and changing tax laws in the U.S. and internationally; • our ability to hire and retain quality skilled employees; and • changes in the prices of agricultural commodities, which could affect our customers’ income levels.
Certain particular risks and uncertainties that continually face us include the following: • budget constraints and revenue shortfalls which could affect the purchases of our type of equipment by governmental customers and related contractors in both domestic and international markets; • market acceptance of new and existing products; • our ability to hire suitable employees for our business and maintain good relations with employees; • our ability to develop and manufacture new and existing products profitably; • the inability of our suppliers, creditors, public utility providers and financial and other service organizations to deliver or provide their products or services to us; • legal actions and litigation; • impairment in the carrying value of goodwill; • our ability to successfully integrate acquisitions and operate acquired businesses or assets; • current and changing tax laws in the U.S. and internationally; • our ability to hire and retain quality skilled employees; and • changes in the prices of agricultural commodities, which could affect our customers’ income levels.
The acquisition broadened the Company’s product offering to our customers in Europe and other markets we serve. In 2009, the Company acquired substantially all the assets of Bush Hog, LLC (“Bush Hog”) , a leading manufacturer of rotary cutters, finishing mowers, zero turn radius mowers, front-end loaders, backhoes, landscape equipment and a variety of other implements.
The acquisition broadened the Company’s product offering to our customers in Europe and other markets we serve. 5 In 2009, the Company acquired substantially all the assets of Bush Hog, LLC (“Bush Hog”) , a leading manufacturer of rotary cutters, finishing mowers, zero turn radius mowers, front-end loaders, backhoes, landscape equipment and a variety of other implements.
This acquisition provided new and complementary products to our existing range of infrastructure maintenance equipment and parts. In 2017, the Company acquired R.P.M. Tech Inc. (" RPM "), a manufacturer of heavy duty snow removal equipment and associated parts. RPM primarily sells to governmental agencies, related contractors, airports and 6 other industrial users.
This acquisition provided new and complementary products to our existing range of infrastructure maintenance equipment and parts. In 2017, the Company acquired R.P.M. Tech Inc. (" RPM "), a manufacturer of heavy duty snow removal equipment and associated parts. RPM primarily sells to governmental agencies, related contractors, airports and other industrial users.
In 2022, the Henke manufacturing operations were consolidated into our Wausau snow equipment facility in New Berlin, Wisconsin. In 2023, the Henke Leavenworth, Kansas facility was sold. 5 In 2008, the Company acquired Rivard Developpement S.A.S. (“Rivard”) , a leading French manufacturer of vacuum trucks, high pressure cleaning systems and trenchers.
In 2022, the Henke manufacturing operations were consolidated into our Wausau snow equipment facility in New Berlin, Wisconsin. In 2023, the Henke Leavenworth, Kansas facility was sold. In 2008, the Company acquired Rivard Developpement S.A.S. (“Rivard”) , a leading French manufacturer of vacuum trucks, high pressure cleaning systems and trenchers.
The foregoing statements are not exclusive and further information concerning us and our businesses, including factors that could potentially materially affect our financial results, may emerge from time to time. It is not possible for management to predict all risk factors or to assess the impact of such risk factors on the Company’s businesses.
The foregoing statements are not 15 exclusive and further information concerning us and our businesses, including factors that could potentially materially affect our financial results, may emerge from time to time. It is not possible for management to predict all risk factors or to assess the impact of such risk factors on the Company’s businesses.
SMA manufactures and sells principally a line of heavy-duty, tractor-mounted grass and hedge mowing-equipment and associated replacement parts primarily to departments of the French government. This acquisition, along with the acquisitions of Forges Gorce (" Forges Gorce "), a flail blade manufacturer in France, in 1996 and Rousseau 4 Holdings S.A.
SMA manufactures and sells principally a line of heavy-duty, tractor-mounted grass and hedge mowing-equipment and associated replacement parts primarily to departments of the French government. This acquisition, along with the acquisitions of Forges Gorce (" Forges Gorce "), a flail blade manufacturer in France, in 1996 and Rousseau Holdings S.A.
Kamps served in various accounting management capacities with several Siemens companies and with United Technologies. Edward T. Rizzuti was appointed Vice President, General Counsel of Alamo Group Inc. in July of 2015, assumed the Secretary role in May of 2018, and was promoted to Executive Vice President in November of 2021. Mr.
Kamps served in various finance and accounting management capacities with several Siemens companies and with United Technologies. Edward T. Rizzuti was appointed Vice President, General Counsel of Alamo Group Inc. in July of 2015, assumed the Secretary role in May of 2018, and was promoted to Executive Vice President in November of 2021. Mr.
No single customer or group of customers is responsible for 10% or more of the aggregate revenue of the Company or of a segment of the Company. Sources of Supply The principal raw materials used by the Company include steel, other metal components, hydraulic hoses, paint and tires.
No single customer or group of customers is responsible for 10% or more of the aggregate revenue of the Company or of a segment of the Company. 11 Sources of Supply The principal raw materials used by the Company include steel, other metal components, hydraulic hoses, paint and tires.
Raborn joined the Company in 2015 and served as Executive Vice-President of the Company's former Agricultural Division from 2015 to 2021. Prior to joining the Company, Mr. Raborn was Vice President and General Manager of the Powertrain Metal Division for Illinois Tool Works (ITW) from 2009 to 2015.
Raborn joined the Company in 2015 and served as Executive Vice-President of the Company's 16 former Agricultural Division from 2015 to 2021. Prior to joining the Company, Mr. Raborn was Vice President and General Manager of the Powertrain Metal Division for Illinois Tool Works (ITW) from 2009 to 2015.
Any forward-looking statements made by or on behalf of the Company speak only to the date they are made and we do not undertake to 15 update forward-looking statements to reflect the impact of circumstances or events that arise after the forward-looking statements were made.
Any forward-looking statements made by or on behalf of the Company speak only to the date they are made and we do not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the forward-looking statements were made.
These uncertainties include factors that affect all businesses operating in a global market, as well as matters specific to the Company and the markets we serve.
These uncertainties include factors that affect all 14 businesses operating in a global market, as well as matters specific to the Company and the markets we serve.
During 2024, the raw materials needed by the Company were available from a variety of sources in adequate quantities and at prevailing market prices. While supply chain issues have improved compared to prior years, we remain affected by inflationary impacts for many of the raw materials we purchase.
During 2025, the raw materials needed by the Company were available from a variety of sources in adequate quantities and at prevailing market prices. While supply chain issues have improved compared to prior years, we remain affected by inflationary impacts for many of the raw materials we purchase.
We expect pricing to remain elevated in 2024 but anticipate a slowing of the rate of inflation. 11 While the Company manufactures many of the parts for its products, a significant percentage of parts, including most drivelines, gearboxes, industrial engines, and hydraulic components, are purchased from outside suppliers which manufacture to the Company’s specifications.
We expect pricing to remain elevated in 2026 but anticipate a slowing of the rate of inflation. While the Company manufactures many of the parts for its products, a significant percentage of parts, including most drivelines, gearboxes, industrial engines, and hydraulic components, are purchased from outside suppliers which manufacture to the Company’s specifications.
Our CEO and SVP-CHR regularly update our Board of Directors regarding the status of our human resources strategic initiatives, which include: Focus on Health and Safety : Maintaining a safe and healthy workplace in each of our locations is a priority, and we focus on continuous improvement by embedding proactive and preventative safety into every level of the organization as one of our core values.
Our CEO and VP-HR regularly update our Board of Directors regarding the status of our human resources strategic initiatives, which include: Focus on Health and Safety : Maintaining a safe and healthy workplace in each of our locations is a priority, and we focus on continuous improvement by embedding proactive and preventative safety into every level of the organization as one of our core values.
Tech™, Morbark®, Rayco®, Denis Cimaf®, Boxer®, Bush Hog®, Rhino®, RhinoAg®, M&W®, Dixie Chopper®, Herschel®, Schulte®, Fieldquip®, Santa Izabel™, McConnel®, Bomford®, Spearhead™, Twose™, SMA®, Forges Gorce™, Rousseau®, Royal Truck & Equipment™, Timberwolf™, and Wolftrack™ trademarks (some with related designs) as well as other trademarks and trade names. 7 Products and Distribution Channels At the beginning of the fourth quarter of 2021, the Company began reporting operating results on the basis of two new segments, namely, the Vegetation Management Division and the Industrial Equipment Division.
Tech™, Morbark®, Rayco®, Denis Cimaf®, Boxer®, Bush Hog®, Rhino®, RhinoAg®, Dixie Chopper®, Schulte®, Fieldquip®, Santa Izabel™, McConnel®, Bomford®, Spearhead™, Twose™, SMA®, Forges Gorce™, Rousseau®, Royal Truck & Equipment™, Timberwolf™, Wolftrack™, Ring-O-Matic®, GreenMech®, and Petersen™ trademarks (some with related designs) as well as other trademarks and trade names. 7 Products and Distribution Channels At the beginning of the fourth quarter of 2021, the Company began reporting operating results on the basis of two new segments, namely, the Vegetation Management Division and the Industrial Equipment Division.
Royal Truck is based in Shoemakersville, Pennsylvania. Sales and Marketing Strategy The Company believes that within the U.S. it is a leading supplier to governmental markets, a leading supplier in the U.S. agricultural market, and one of the largest suppliers in the European market for its key niche product offerings.
Sales and Marketing Strategy The Company believes that within the U.S. it is a leading supplier to governmental markets, a leading supplier in the U.S. agricultural market, and one of the largest suppliers in the European market for its key niche product offerings.
While the Company considers its patents, trademarks and trade names to be advantageous to its business, it is not dependent on any single patent, trademark, trade name or group of patents, trademarks, or trade names. The net book value of patents, trademarks and trade names was $70.8 million and $77.1 million as of December 31, 2024 and 2023, respectively.
While the Company considers its patents, trademarks and trade names to be advantageous to its business, it is not dependent on any single patent, trademark, trade name or group of patents, trademarks, or trade names. The net book value of patents, trademarks and trade names was $71.7 million and $70.8 million as of December 31, 2025 and 2024, respectively.
The Industrial Equipment Division includes the Company’s vocational truck business and other industrial operations such as excavators, vacuum trucks, street sweepers, snow removal equipment, and the recently acquired Royal Truck business. We believe the realignment of our two divisions provides greater potential to capture synergies in cross-branding, distribution, product development, supply chain management and logistics.
The Industrial Equipment Division includes the Company’s vocational truck business and other industrial operations such as excavators, vacuum trucks, street sweepers, snow removal equipment, truck mounted attenuators, and grapple trucks and loaders. We believe the realignment of our two divisions provides greater potential to capture synergies in cross-branding, distribution, product development, supply chain management and logistics.
Our compensation programs vary by country and region, and may include annual bonus and incentive plans, profit sharing, stock-based compensation awards, company-sponsored retirement savings plans with employee matching opportunities (or similar local retirement benefits), healthcare and insurance benefits, dependent care and flexible savings accounts, paid time off such as vacation and holidays, sick pay, disability pay and family leave, flexible work schedules, wellness and employee assistance programs for mental health, self-improvement, legal and financial services, service anniversary awards, tuition assistance and dependent college scholarships, and discounts on products and services. 13 Labor Agreements: As of December 31, 2024, we employed approximately 3,750 employees.
Our compensation programs vary by country and region, and may include annual bonus and incentive plans, profit sharing, stock-based compensation awards, company-sponsored retirement savings plans with employee matching opportunities (or similar local retirement benefits), healthcare and insurance benefits, dependent care and flexible savings accounts, paid time off such as vacation and holidays, sick 13 pay, disability pay and family leave, flexible work schedules, wellness and employee assistance programs for mental health, self-improvement, legal and financial services, service anniversary awards, tuition assistance and dependent college scholarships, and discounts on products and services.
Unfilled Orders As of December 31, 2024, the Company had unfilled customer orders of $668.6 million compared to $859.8 million at December 31, 2023. Management expects that substantially all of the Company’s unfilled orders as of December 31, 2024 will be shipped during fiscal year 2025.
Unfilled Orders As of December 31, 2025, the Company had unfilled customer orders of $599.7 million compared to $668.6 million at December 31, 2024. Management expects that substantially all of the Company’s unfilled orders as of December 31, 2025 will be shipped during fiscal year 2026.
Information About our Executive Officers Certain information is set forth below concerning the executive officers of the Company (the "Executives"), each of whom has been appointed to serve until the 2025 annual meeting of directors or until their successor is duly appointed and qualified. Name Age Position Jeffery A. Leonard 65 President and Chief Executive Officer Agnieszka K.
Information About our Executive Officers Certain information is set forth below concerning the executive officers of the Company (the "Executives"), each of whom has been appointed to serve until the 2026 annual meeting of directors or until their successor is duly appointed and qualified. Name Age Position Robert P. Hureau 58 President and Chief Executive Officer Agnieszka K.
Sullivan has held audit positions within various industries including research and development, public utilities, and public accounting prior to joining Alamo Group in July of 2011.
Operations and Director of Internal Audit for Alamo Group Inc. Ms. Sullivan has held audit positions within various industries including research and development, public utilities, and public accounting prior to joining Alamo Group in July of 2011.
Usage of this equipment is typically lower in harsh weather. The Company utilizes an annual twelve-month sales forecast provided by the Company’s marketing departments which is updated quarterly in order to develop a production plan for its manufacturing facilities.
The Company utilizes an annual twelve-month sales forecast provided by the Company’s marketing departments which is updated quarterly in order to develop a production plan for its manufacturing facilities.
Our Senior Vice-President of Corporate Human Resources ("SVP-CHR") is responsible for developing and executing our human resources strategy together with our President and Chief Executive Officer ("CEO") and the other members of the Company's management team.
Our Vice-President of Global Human Resources ("VP-HR") is responsible for developing and executing our human resources strategy together with our President and Chief Executive Officer ("CEO") and the other members of the Company's management team.
Item 1. Business Unless the context otherwise requires, the terms “the Company,” "Alamo Group," “we,” “our” and “us” refer to Alamo Group Inc. and its subsidiaries on a consolidated basis. General The Company is a leader in the design, manufacture and servicing of high quality vegetation management and infrastructure maintenance equipment for governmental, industrial and agricultural use.
Item 1. Business Unless the context otherwise requires, the terms “the Company,” "Alamo Group," “we,” “our” and “us” refer to Alamo Group Inc. and its subsidiaries on a consolidated basis. General The Company is a leader in the manufacture and sale of high-quality, purpose-built industrial and vegetation management equipment.
In addition, the Company, through its subsidiaries, purchases tractors and truck chassis as a number of the Company’s products are mounted and shipped with a tractor or truck chassis.
In addition, the Company, through its subsidiaries, purchases tractors and truck chassis as a number of the Company’s products are mounted and shipped with a tractor or truck chassis. The Company sources its purchased goods from international and domestic suppliers.
This product line was merged into the Schwarze operation and, in 2023, the product line assets were sold. In 2000, the Company purchased the product line and associated assets of Twose of Tiverton Ltd. (“Twose”) a small regional manufacturer of power arm flail mowers and parts, as well as harrows and rollers, in the U.K.
In 2000, the Company purchased the product line and associated assets of Twose of Tiverton Ltd. (“Twose”) a small regional manufacturer of power arm flail mowers and parts, as well as harrows and rollers, in the U.K.
McConnel, Bomford, Spearhead, AMS-UK, SMA, Faucheux, Forges Gorce, Rousseau, Rivard, and Alamo Group The Netherlands have various collective bargaining agreements covering approximately 852 employees. In addition, 214 employees in Brazil are covered by a collective bargaining agreement, which is renegotiated every calendar year. The Company considers its employee relations to be satisfactory.
In the Company’s European locations, all employees are covered by the European Works Council agreements. McConnel, Bomford, Spearhead, AMS-UK, SMA, Faucheux, Forges Gorce, Rousseau, Rivard, and Alamo Group The Netherlands have various collective bargaining agreements covering approximately 852 employees. In addition, 214 employees in Brazil are covered by a collective bargaining agreement, which is renegotiated every calendar year.
In Canada, the Tenco bargaining agreement covers 130 employees and expires on December 31, 2025; RPM has an agreement covering 2 employees which expires on February 1, 2025; and Everest has a collective bargaining agreement covering 83 employees which expires on November 30, 2029. In the Company’s European locations, all employees are covered by the European Works Council agreements.
In Canada, the Tenco bargaining agreement covers 130 employees and expired on December 31, 2025; RPM has an agreement covering 2 employees which expired on February 1, 2025; and Everest has a collective bargaining agreement covering 83 employees which expires on November 30, 2029. The expired agreements are currently being renegotiated.
In 2021, the Company acquired 100% of the outstanding capital shares of Timberwolf Limited ( "Timberwolf" ) in the U.K. Timberwolf is a leading manufacturer of a broad range of commercial wood chippers primarily serving markets in the U.K. and the European Union.
In 2024, the Rayco manufacturing operations were consolidated into the Morbark facility in Winn, Michigan. In 2021, the Company acquired 100% of the outstanding capital shares of Timberwolf Limited ( "Timberwolf" ) in the U.K. Timberwolf is a leading manufacturer of a broad range of commercial wood chippers primarily serving markets in the U.K. and the European Union.
Available Information The Company files annual, quarterly and current reports, proxy statements and other information with the Securities and Exchange Commission (the “SEC”). The SEC maintains a website that contains annual, quarterly and current reports, proxy and information statements, and other information that issuers (including the Company) file electronically with the SEC. The SEC’s website is www.sec.gov.
The SEC maintains a website that contains annual, quarterly and current reports, proxy and information statements, and other information that issuers (including the Company) file electronically with the SEC. The SEC’s website is www.sec.gov. The Company’s website is www.alamo-group.com.
Seasonality The Company’s unit sales are fairly constant quarter to quarter. However, replacement part sales are generally higher in the second and third quarters of the year, because a substantial number of the Company’s products are used for maintenance activities such as vegetation maintenance, highway right-of-way maintenance, construction, and street and parking lot sweeping.
However, replacement part sales are generally higher in the second and third quarters of the year, because a substantial number of the Company’s products are used for maintenance activities such as vegetation maintenance, highway right-of-way maintenance, construction, and street and parking lot sweeping. Usage of this equipment is typically lower in harsh weather.
(“ Rousseau ”), a leading French manufacturer of hedge and verge mowers, in 2004, when combined with McConnel and Bomford, has made the Company one of the largest manufacturers in the European market for the kind of vegetation management equipment sold by the Company.
(“ Rousseau ”), a leading French manufacturer of hedge and verge mowers, in 2004, when combined with McConnel and Bomford, has made the Company one of the largest manufacturers in the European market for the kind of vegetation management equipment sold by the Company. 4 In 1995, the Company expanded its business in the agricultural market with the acquisition of Herschel Corporation (“Herschel”) , a manufacturer and distributor of aftermarket farm equipment replacement and wear parts.
In the U.S., the Company has a collective bargaining agreement at its Gradall plant which covers 240 employees and will expire on April 22, 2029.
Labor Agreements: As of December 31, 2025, we employed approximately 3,800 employees. In the U.S., the Company has a collective bargaining agreement at its Gradall plant which covers 240 employees and will expire on April 22, 2029.
Rizzuti served as Vice President, General Counsel and Secretary for Erickson Incorporated, a publicly traded aircraft manufacturing and operating company based in Portland, Oregon. Dan E. Malone was appointed Executive Vice President, Chief Sustainability Officer in July of 2021. Mr. Malone joined the Company in 2007 and served as Executive Vice President, Chief Financial Officer from 2007 to 2021.
Rizzuti served as Vice President, General Counsel and Secretary for Erickson Incorporated, a publicly traded aircraft manufacturing and operating company based in Portland, Oregon. Richard H. Raborn was appointed Executive Vice President of the Company's Vegetation Management Division in July of 2021. Mr.
At the end of 2020, the Denis Cimaf manufacturing operations based in Roxton Falls were consolidated into the Rayco facility in Wooster, Ohio. In 2023, the Morbark Roxton Falls, Quebec location was sold. In 2024, the Rayco manufacturing operations were consolidated into the Morbark facility in Winn, Michigan.
This acquisition expanded the Company's product line and complemented its range of vegetation maintenance equipment in an adjacent market. Morbark is based in Winn, Michigan. At the end of 2020, the Denis Cimaf manufacturing operations based in Roxton Falls were consolidated into the Rayco facility in Wooster, Ohio. In 2023, the Morbark Roxton Falls, Quebec location was sold.
Schwarze is a manufacturer of a broad range of street sweeping equipment which is sold to governmental agencies and contractors. The Company believes the Schwarze sweeper products fit the Company’s strategy of identifying product offerings with brand recognition in the industrial markets the Company serves. In 2004, the Company purchased the pothole patcher product line from Wildcat Manufacturing, Inc.
The Company believes the Schwarze sweeper products fit the Company’s strategy of identifying product offerings with brand recognition in the industrial markets the Company serves. In 2004, the Company purchased the pothole patcher product line from Wildcat Manufacturing, Inc. This product line was merged into the Schwarze operation and, in 2023, the product line assets were sold.
Kamps 48 Executive Vice President and Chief Financial Officer Edward T. Rizzuti 55 Executive Vice President, Corporate Development and Investor Relations and Secretary Dan E. Malone 64 Executive Vice President, Chief Sustainability Officer Richard H. Raborn 59 Executive Vice President, Alamo Vegetation Management Division Kevin J. Thomas 60 Executive Vice President, Alamo Industrial Equipment Division Janet S.
Kamps 49 Executive Vice President and Chief Financial Officer and Treasurer Edward T. Rizzuti 56 Executive Vice President, Corporate Development and Investor Relations and Secretary Richard H. Raborn 60 Executive Vice President, Alamo Vegetation Management Division Kevin J. Thomas 61 Executive Vice President, Alamo Industrial Equipment Division Reuben P. Srinivasan 62 Vice President, Global Human Resources Lori L.
Securities and Exchange Commission ("SEC"), which require specific procedures for the determination and disclosure of the use of certain minerals, known as "conflict minerals," which are mined from the Democratic Republic of the Congo and adjoining countries; and (v) supply chain transparency laws and regulations addressing modern slavery and human trafficking. 12 The Company is also subject to various other federal, state, and local laws affecting its business, as well as a variety of regulations relating to such matters as working conditions, equal employment opportunities, and product safety, including National Highway Traffic Safety Administration reporting.
Securities and Exchange Commission ("SEC"), 12 which require specific procedures for the determination and disclosure of the use of certain minerals, known as "conflict minerals," which are mined from the Democratic Republic of the Congo and adjoining countries; and (v) supply chain transparency laws and regulations addressing modern slavery and human trafficking.
This acquisition complemented our existing range of snow removal products with RPM's range of heavy duty snow removal equipment, including their line of mechanical snow blowers. In 2020, RPM's operations were consolidated into the Company's nearby Tenco facility and the former RPM facility in Drummondville was sold.
This acquisition complemented our existing range of snow removal products with RPM's range of heavy duty snow removal equipment, including their line of mechanical snow blowers.
Thomas held roles with General Dynamics Land Systems Divisioin and General Motors Truck Group prior to joining Navistar. Janet S. Pollock was appointed Senior Vice President, Corporate Human Resources of Alamo Group Inc. in April of 2024, and previously served as Vice President, Human Resources of Alamo Group since May of 2018. Ms.
Thomas held roles with General Dynamics Land Systems Division and General Motors Truck Group prior to joining Navistar. Reuben P. Srinivasan was appointed Vice President of Global Human Resources of Alamo Group Inc. in November of 2024. Prior to his appointment, Mr. Srinivasan was Vice President of Human Resources at AdeptAg since 2022. Mr.
Dutch Power changed its legal name to Alamo Group The Netherlands in 2021. In 2019, the Company acquired substantially all of the assets of the Dixie Chopper ("Dixie Chopper" ) business. Dixie Chopper manufactures a wide range of commercial and high end residential Zero Turn ("ZT") mowers.
This acquisition expanded our existing platform and increased our capabilities in the European market. Dutch Power changed its legal name to Alamo Group The Netherlands in 2021. In 2019, the Company acquired substantially all of the assets of the Dixie Chopper ("Dixie Chopper" ) business.
(" Royal Truck "), a leading manufacturer of truck mounted highway attenuator trucks and other specialty trucks and equipment for the highway infrastructure and traffic control market. The primary reason for the Royal Truck acquisition was to acquire business operations in an adjacent market, highway safety and equipment, where the Company sees compelling future opportunities.
The primary reason for the Royal Truck acquisition was to acquire business operations in an adjacent market, highway safety and equipment, where the Company sees compelling future opportunities. Royal Truck is based in Shoemakersville, Pennsylvania. In 2025, the Company acquired 100% of the outstanding equity capital of Ring-O-Matic, Inc. (" ROM ").
Amounts expended on research and development activities were approximately $13.5 million in 2024, $13.4 million in 2023 and $14.3 million in 2022. As a percentage of sales, research & development was approximately 0.8% in 2024, 0.8% in 2023 and 0.9% in 2022, and is expected to continue at similar levels in 2025.
As a percentage of sales, research & development was approximately 0.7% in 2025, 0.8% in 2024 and 0.8% in 2023, and is expected to continue at similar levels in 2026. Seasonality The Company’s unit sales are fairly constant quarter to quarter.
In 2019, the Company acquired 100% of the outstanding capital shares of Dutch Power B.V. ("Dutch Power") in the Netherlands. Dutch Power designs and manufactures a variety of landscape and vegetation management machines and attachments. This acquisition expanded our existing platform and increased our capabilities in the European market.
In 2020, RPM's operations were consolidated into the Company's nearby Tenco facility and the former RPM facility in Drummondville was sold. 6 In 2019, the Company acquired 100% of the outstanding capital shares of Dutch Power B.V. ("Dutch Power") in the Netherlands. Dutch Power designs and manufactures a variety of landscape and vegetation management machines and attachments.
Sullivan was appointed Vice President, Internal Audit of Alamo Group Inc. in May of 2019. Prior to this appointment, Ms. Sullivan was Vice President of Internal Audit for U.S. Operations and Director of Internal Audit for Alamo Group Inc. Ms.
Srinivasan has also previously held several senior human resources roles at industrial companies, including Astec Industries, Lindsay Corporation, Trimble, and Volkswagen Group. Lori L. Sullivan was appointed Vice President, Internal Audit of Alamo Group Inc. in May of 2019. Prior to this appointment, Ms. Sullivan was Vice President of Internal Audit for U.S.
The Company continually conducts research and development activities in an effort to improve existing products and develop new products. As of December 31, 2024, the Company employed 245 people in its various engineering departments, 152 of whom are degreed engineers and the balance of whom are support staff.
As of December 31, 2025, the Company employed 233 people in its various engineering departments, 147 of whom are degreed engineers and the balance of whom are support staff. Amounts expended on research and development activities were approximately $11.2 million in 2025, $13.5 million in 2024 and $13.4 million in 2023.
In 1995, the Company expanded its business in the agricultural market with the acquisition of Herschel Corporation (“Herschel”) , a manufacturer and distributor of aftermarket farm equipment replacement and wear parts. In 2024, the Company sold substantially all of the assets of its Herschel business. In 2000, the Company acquired Schwarze Industries, Inc . (“Schwarze”) .
In 2024, the Company sold substantially all of the assets of its Herschel business. In 2000, the Company acquired Schwarze Industries, Inc . (“Schwarze”) . Schwarze is a manufacturer of a broad range of street sweeping equipment which is sold to governmental agencies and contractors.
This acquisition complemented the Company's existing range of tree care products and strengthened the Company's presence in the U.K. and European forestry and tree care markets. In 2023, the Company acquired 100% of the outstanding equity capital of Royal Truck & Equipment, Inc.
This acquisition complemented the Company's existing range of tree care products and strengthened the Company's presence in the U.K. and European forestry and tree care markets. Timberwolf acquired the GreenMech brand and intellectual property in 2025. GreenMech was based in the U.K. and sold wood chippers throughout the world.
This acquisition provided a new channel and increased the Company's exposure in the outdoor power equipment market. Dixie Chopper was consolidated into our Rhino business operations. In 2019, the Company acquired 100% of the outstanding capital shares of Morbark, LLC (" Morbark" ) which included its subsidiaries Rayco Manufacturing LLC (" Rayco ") and Denis Cimaf Inc.
Dixie Chopper manufactures a wide range of commercial and high end residential Zero Turn ("ZT") mowers. This acquisition provided a new channel and increased the Company's exposure in the outdoor power equipment market. Dixie Chopper was consolidated into our Rhino business operations.
Replacement parts represented approximately 17%, 17% and 19% of the Company’s total sales for the years ended December 31, 2024, 2023 and 2022, respectively. 10 Product Development The Company’s ability to provide innovative responses to customer needs, to develop and manufacture new products, and to enhance existing product lines is important to its success.
Product Development The Company’s ability to provide innovative responses to customer needs, to develop and manufacture new products, and to enhance existing product lines is important to its success. The Company continually conducts research and development activities in an effort to improve existing products and develop new products.
Pollock 66 Senior Vice President, Corporate Human Resources Lori L. Sullivan 55 Vice President, Internal Audit Jeffery A. Leonard was appointed President and Chief Executive Officer of the Company in May of 2021. Mr. Leonard was also appointed as a director of the Company in June of 2021. Mr.
Sullivan 56 Vice President, Internal Audit Robert P. Hureau joined the Company in September of 2025 when he was appointed President and Chief Executive Officer. Mr. Hureau was also appointed as a director of the Company in September 2025. From April 2019 to March 2025, Mr.
Replacement Parts The Company derives a significant portion of its revenues from sales of replacement parts for each of its wholegoods lines.
ROM primarily sells its products through its independent dealer network. 10 Replacement Parts The Company derives a significant portion of its revenues from sales of replacement parts for each of its wholegoods lines. Replacement parts represented approximately 16%, 17% and 17% of the Company’s total sales for the years ended December 31, 2025, 2024 and 2023, respectively.
Removed
The Company’s products include tractor mounted and self-propelled mowers, zero-turn mowers, agricultural implements, tree and branch chippers, forestry/wood recycling equipment, street and parking lot sweepers, leaf and debris collection equipment, truck mounted highway attenuator trucks, vacuum trucks, hydro-excavation equipment, telescopic boom excavators, and snow removal equipment .
Added
We serve end-markets such as infrastructure building and maintenance, industrial construction, public works, land maintenance, agriculture and tree care. Our products are sold to independent equipment dealers and directly to contractors and municipalities.
Removed
The Company emphasizes high quality, cost-effective products for its customers and strives to develop and market innovative products while constantly monitoring and controlling its manufacturing and overhead costs.
Added
Product categories include vocational products (vacuum trucks, street sweepers, roadside safety equipment, excavators, and snow removal equipment) and light machinery (tractor mounted mowing equipment, land maintenance and recycling equipment) as well as related after-market parts and services. The Company operates two divisions: the Industrial Equipment Division and the Vegetation Management Division.
Removed
The Company has a long-standing strategy of supplementing its internal growth through acquisitions of businesses or product lines that currently complement, command, or have the potential to achieve a meaningful share of their niche markets. The Company has approximately 3,750 employees and manages a total of 27 plants with business operations in North America, South America, Europe, and Australia.
Added
Founded in 1969, the Company has approximately 3,800 employees and operates 27 manufacturing facilities in North America, Canada, Europe, Brazil and Australia. The corporate offices of Alamo Group Inc. are located in Seguin, Texas.
Removed
The Company sells its products primarily through a network of independent dealers and distributors to governmental end-users and related independent contractors, as well as to other commercial customers. The primary markets for our products are North America, South America, Europe and Australia.
Added
Timberwolf also acquired GreenMech's subsidiaries in France and Germany as part of the acquisition. In 2023, the Company acquired 100% of the outstanding equity capital of Royal Truck & Equipment, Inc. (" Royal Truck "), a leading manufacturer of truck mounted highway attenuator trucks and other specialty trucks and equipment for the highway infrastructure and traffic control market.
Removed
Tractors and truck chassis are generally available, but during 2023 we experienced delays in receiving truck chassis which caused us to delay shipments of some of our products and created operational inefficiencies in some of our facilities, particularly within our Industrial Equipment Division. The Company sources its purchased goods from international and domestic suppliers.
Added
ROM is a leading provider of industrial vacuum excavation equipment, including high-quality trailer-mounted and custom truck-mounted excavation and vacuum units that perform essential tasks such as hydro excavation, safe digging near and around utility infrastructure, trenching, sewer jetting, storm drain cleaning, and other tasks. This acquisition complemented the Company's existing range of excavation and vacuum products.
Removed
Leonard joined the Company in 2011, and served as Executive Vice President of the Company's former Industrial Division from 2011 to 2021. Mr. Leonard previously was Senior Vice President of Metso Minerals Industries Inc., a supplier of technology and services for mining, construction, power generation, automation, recycling, and pulp and paper industries. On December 20, 2024, Mr.
Added
ROM manufactures and sells a full line of industrial vacuum excavation machines, vacuum only machines, and car wash pit cleaners. ROM manufactures and sells trailer mounted and custom truck mounted units. ROM serves the underground utility construction, water and sewer, municipal, and car wash markets.
Removed
Leonard notified the Board of his intention to retire as President and CEO by mid-year and upon the appointment of his successor. Mr. Leonard's intention to retire as President and CEO is due to personal reasons and is not the result of any disagreement with the Company. Agnieszka K.
Added
The Company is also subject to various other federal, state, and local laws affecting its business, as well as a variety of regulations relating to such matters as working conditions, equal employment opportunities, and product safety, including National Highway Traffic Safety Administration reporting.
Removed
Prior to joining the Company, Mr. Malone held the position of Executive Vice President, Chief Financial Officer & Corporate Secretary at Igloo Products Corporation, a manufacturer of insulated consumer goods, from 2002 to January 2007. Mr.
Added
The Company considers its employee relations to be satisfactory. Available Information The Company files annual, quarterly and current reports, proxy statements and other information with the Securities and Exchange Commission (the “SEC”).
Removed
Malone was Vice President and Chief Financial Officer of The York Group, Inc. from 2000 to 2002, and held various financial positions from 1987 to 2000 with Cooper Industries, Inc. and its various subsidiaries. 16 Richard H. Raborn was appointed Executive Vice President of the Company's Vegetation Management Division in July of 2021. Mr.
Added
Hureau served as Chief Executive Officer and as a director of American Trailer World (“ATW”), an industrial manufacturer and retailer of trailers, truck equipment and after-market parts. Mr. Hureau served as Chairman of the Board of ATW from March 2025 to February 2026. From January 2018 to April 2019, he served as ATW’s EVP and Chief Financial Officer.
Removed
Pollock joined Alamo Group in June of 2013 as Vice President of Human Resources for U.S. Operations. Prior to joining the Company, Ms. Pollock was Vice President of Human Resources with CPS Energy in San Antonio, Texas and Vice President of Strategic Initiatives for Coca-Cola Enterprises, Inc. Lori L.
Added
From September 2014 to January 2018, Mr. Hureau served as the EVP and Chief Financial Officer for Pharmaceutical Product Development (“PPD”), a global clinical research organization. From April 2013 to September 2014, Mr. Hureau served as the EVP and Chief Financial Officer of Acelity, a global medical technology company focused on advanced wound care and regenerative medicine.
Added
From February 2007 to April 2013, Mr. Hureau held several executive level positions at Sensata Technologies, including SVP and Chief Financial Officer from 2011 to April 2013. Sensata Technologies is a publicly traded, global industrial manufacturer of sensors and controls. Agnieszka K.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeWe may not be able to realize the potential or strategic benefits of the acquisitions we complete, and the businesses we have acquired, or may acquire in the future, may not perform as expected. 21 Acquisitions are an important part of our growth strategy and we have completed a number of acquisitions over the past several years.
Biggest changeThese and other acquisition-related factors may adversely impact our business, results of operations and financial condition. 21 We may not be able to realize the potential or strategic benefits of the acquisitions we complete, and the businesses we have acquired, or may acquire in the future, may not perform as expected.
These factors include the following: • weakness in the worldwide economy; • the price and availability of raw materials, purchased components and energy; • budget constraints and revenue shortfalls for our governmental customers; 17 • changes in domestic and foreign governmental policies and laws, including increased levels of governmental regulation and associated liabilities; • the levels of interest rates; • the value of the U.S. dollar relative to the foreign currencies in countries where we sell our products but don’t have a manufacturing presence; • impact of tighter credit markets on the Company, its dealers and end-users; • impairment in the carrying value of goodwill; and • increase in unfunded pension plan liability due to financial market deterioration.
These factors include the following: • weakness in the worldwide economy; • the price and availability of raw materials, purchased components and energy; • budget constraints and revenue shortfalls for our governmental customers; • changes in domestic and foreign governmental policies and laws, including increased levels of governmental regulation and associated liabilities; • the levels of interest rates; 17 • the value of the U.S. dollar relative to the foreign currencies in countries where we sell our products but don’t have a manufacturing presence; • impact of tighter credit markets on the Company, its dealers and end-users; • impairment in the carrying value of goodwill; and • increase in unfunded pension plan liability due to financial market deterioration.
Sensitive information is also stored by our vendors and on the 19 platforms and networks of third-party providers. Cyber-attacks on the Company, our vendors, or our third-party providers could result in inappropriate access to our intellectual property, Company data, or personally identifiable information of our global workforce, suppliers, or customers.
Sensitive information is also stored by our vendors and on the platforms and networks of third-party providers. Cyber-attacks on the Company, our vendors, or our third-party 19 providers could result in inappropriate access to our intellectual property, Company data, or personally identifiable information of our global workforce, suppliers, or customers.
We may not be successful in 20 identifying, developing and marketing new products and applications or we may experience difficulties that could delay or prevent the successful development, introduction and marketing of such new products and applications, which could have a material adverse impact on our business and results of operations.
We may not be successful in identifying, developing and marketing new products and applications or we may experience difficulties that could 20 delay or prevent the successful development, introduction and marketing of such new products and applications, which could have a material adverse impact on our business and results of operations.
This would further dilute the interests of our existing stockholders. 25 There is no assurance that we will continue declaring dividends or have the available cash to make dividend payments. On January 2, 2025, the Board of Directors of the Company increased its quarterly dividend from $0.26 per share to $0.30 per share.
This would further dilute the interests of our existing stockholders. 25 There is no assurance that we will continue declaring dividends or have the available cash to make dividend payments. On January 2, 2026, the Board of Directors of the Company increased its quarterly dividend from $0.30 per share to $0.34 per share.
The Company also utilizes market valuation models and other financial ratios, which require the Company to make certain assumptions and estimates regarding the applicability of those models to its assets and businesses. As of December 31, 2024, goodwill was $203.0 million, which represents approximately 14% of total assets. The Company recognized no goodwill impairment in 2024, 2023 or 2022.
The Company also utilizes market valuation models and other financial ratios, which require the Company to make certain assumptions and estimates regarding the applicability of those models to its assets and businesses. As of December 31, 2025, goodwill was $214.6 million, which represents approximately 13% of total assets. The Company recognized no goodwill impairment in 2025, 2024 or 2023.
On December 31, 2024, 12,062,868 shares of our common stock were issued and outstanding, and there were outstanding options and restricted stock awards totaling an additional 162,820 shares of our common stock. We also have additional shares available for grant under our 2015 Incentive Stock Option Plan and our 2019 Equity Incentive Plan.
On December 31, 2025, 12,115,774 shares of our common stock were issued and outstanding, and there were outstanding options and restricted stock awards totaling an additional 148,679 shares of our common stock. We also have additional shares available for grant under our 2025 Incentive Stock Option Plan and our 2019 Equity Incentive Plan.
The closing prices of our common stock on the New York Stock Exchange during 2024 ranged from $164.50 to $228.33 per share, and during 2023 from $140.27 to $213.25 per share.
The closing prices of our common stock on the New York Stock Exchange during 2025 ranged from $157.80 to $232.42 per share, and during 2024 from $164.50 to $228.33 per share.
As of December 31, 2024, four investors - Henry Crown and Company, BlackRock, Inc., The Vanguard Group, and Allspring Global Investments, LLC - beneficially owned approximately 38% of our outstanding common stock.
As of December 31, 2025, six investors - Henry Crown and Company, BlackRock, Inc., Allspring Global Investments, LLC, The Vanguard Group, Dimensional Fund Advisors LP, and Victory Capital Management Inc. - beneficially owned approximately 52% of our outstanding common stock.
Removed
These and other acquisition-related factors may adversely impact our business, results of operations and financial condition.
Added
Acquisitions are an important part of our growth strategy and we have completed a number of acquisitions over the past several years. We acquired Royal Truck in 2023, Ring-O-Matic in 2025, and Petersen Industries in 2026.
Removed
We acquired Timberwolf in 2021 and Royal Truck in 2023.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeMembers of our IT team have undergraduate and graduate degrees in relevant fields, including information systems, information assurance, and information technology with a concentration in cybersecurity. Members of our IT team have also obtained relevant certifications, including the Director of Network and Information Systems being a Certified Information Systems Security Professional. 28
Biggest changeMembers of our IT team have undergraduate and graduate degrees in relevant fields, including information systems, information assurance, and information technology with a concentration in cybersecurity. Members of our IT team have also obtained relevant certifications, including multiple Certified Information Systems Security Professional (CISSP) certification holders. 28
Our IT team, led by the Vice President of IT and the Director of Network and Information Systems, is responsible for day-to-day assessment and management of cybersecurity risks, including the monitoring and detecting of cybersecurity incidents and executing our cybersecurity incident response plans.
Our IT team, led by the Vice President of IT and Digital Transformation and the Director of Network and Information Systems, is responsible for day-to-day assessment and management of cybersecurity risks, including the monitoring and detecting of cybersecurity incidents and executing our cybersecurity incident response plans.
We have an Information Technology Steering Committee ("ITSC"), comprised of the Company President and Chief Executive Officer, the Executive Vice Presidents of our Vegetation Management and Industrial Equipment Divisions, the Chief 27 Financial Officer, and the Chief Sustainability Officer, that assesses and manages material risks from cybersecurity threats and determines the priority of cybersecurity initiatives.
We have an Information Technology Steering Committee ("ITSC"), comprised of the Company President and Chief Executive 27 Officer, the Executive Vice Presidents of our Vegetation Management and Industrial Equipment Divisions, the Chief Financial Officer, and the Vice President of Global Human Resources, that assesses and manages material risks from cybersecurity threats and determines the priority of cybersecurity initiatives.
We maintain consulting relationships that provide guidance for responding to evolving cybersecurity risks. We require employees to undertake data protection, cybersecurity training, and compliance programs annually. Internal and external auditors also review our adherence to established IT and cybersecurity controls.
We maintain consulting relationships that provide guidance for responding to evolving cybersecurity risks. We require employees to undertake data protection, cybersecurity training, and compliance programs annually. Internal and external auditors also review our adherence to established IT and cybersecurity controls. We also periodically engage in simulations, table-top exercises, and response readiness initiatives.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeThe facilities are listed below: Facility Square Footage Owned Principal Types of Products Manufactured And Assembled Winn, Michigan* 1,110,000 Owned Tree chippers, Grinders, Brush Cutters, and Debarkers for Morbark and Stump Cutters, Aerial Rimmers, Mulchers, Crawler Trucks for Rayco and Denis Cimaf Selma, Alabama* 744,000 Owned Mechanical Rotary Mowers, Finishing Mowers, Backhoes, Front-End Loaders for Bush Hog New Philadelphia, Ohio* 430,000 Owned Telescopic Excavators for Gradall and Vacuum Trucks for VacAll Wooster, Ohio* 400,000 Leased Fabrication and assembly of products for various product lines Gibson City, Illinois 275,000 Owned Mechanical Mowers, Blades, Deep Tillage Equipment, and other implements for Rhino , Bush Hog and OEMs Seguin, Texas* 230,000 Owned Hydraulic and Mechanical Rotary and Flail Mowers, Sickle-Bar Mowers, and Boom-Mounted Equipment for Alamo Industrial Neuville, France* 195,000 Owned Hydraulic and Mechanical Boom-Mounted Hedge and Grass Cutters for Rousseau and SMA Sao Joao da Boa Vista, Brazil* 183,000 Owned Mowing Equipment, Sugar Cane Trailers and other equipment for Santa Izabel Mukwonago, Wisconsin* 171,000 Owned Truck-Mounted Vacuum Trucks for Super Products Salford Priors, England* 168,000 Owned Tractor-Mounted Power Arm Flails and other Equipment for Bomford and Twose and Spearhead Ludlow, England* 167,000 Owned Hydraulic Boom-Mounted Hedge and Grass Cutters and other Equipment for McConnel and Twose Richmond, Virginia* 157,000 Leased Leaf Collection Equipment and Street Sweeper Replacement Brooms for ODB Huntsville, Alabama* 135,000 Owned Air and Mechanical Street Sweeping Equipment for Schwarze Daumeray, France* 125,000 Owned Vacuum Trucks, High Pressure Cleaning Systems and Trenchers for Rivard New Berlin, Wisconsin* 120,000 Owned Municipal Snow Removal and Ice Control Equipment for Wausau Coatesville, Indiana* 115,000 Owned Zero Turn Radius Mowers for Dixie Chopper Middelburg, the Netherlands* 110,000 Owned Boom Mowers, Flail Mowers and Stump Grinders for Dutch Power Englefeld, Saskatchewan, Canada* 105,000 Owned Mechanical Rotary Mowers, Snow Blowers, and Rock Removal Equipment for Schulte St.
Biggest changeThe facilities are listed below: Facility Square Footage Owned Principal Types of Products Manufactured And Assembled Winn, Michigan* 1,110,000 Owned Tree chippers, Grinders, Brush Cutters, and Debarkers for Morbark and Stump Cutters, Aerial Rimmers, Mulchers, Crawler Trucks for Rayco and Denis Cimaf Selma, Alabama* 744,000 Owned Mechanical Rotary Mowers, Finishing Mowers, Backhoes, Front-End Loaders for Bush Hog New Philadelphia, Ohio* 430,000 Owned Telescopic Excavators for Gradall and Vacuum Trucks for VacAll Wooster, Ohio* 400,000 Leased Fabrication and assembly of products for various product lines Seguin, Texas* 230,000 Owned Hydraulic and Mechanical Rotary and Flail Mowers, Sickle-Bar Mowers, and Boom-Mounted Equipment for Alamo Industrial Neuville, France* 195,000 Owned Hydraulic and Mechanical Boom-Mounted Hedge and Grass Cutters for Rousseau and SMA Sao Joao da Boa Vista, Brazil* 183,000 Owned Mowing Equipment, Sugar Cane Trailers and other equipment for Santa Izabel Mukwonago, Wisconsin* 171,000 Owned Truck-Mounted Vacuum Trucks for Super Products Salford Priors, England* 168,000 Owned Tractor-Mounted Power Arm Flails and other Equipment for Bomford and Twose and Spearhead Ludlow, England* 167,000 Owned Hydraulic Boom-Mounted Hedge and Grass Cutters and other Equipment for McConnel and Twose Richmond, Virginia* 157,000 Leased Leaf Collection Equipment and Street Sweeper Replacement Brooms for ODB Huntsville, Alabama* 135,000 Owned Air and Mechanical Street Sweeping Equipment for Schwarze Daumeray, France* 125,000 Owned Vacuum Trucks, High Pressure Cleaning Systems and Trenchers for Rivard Coatesville, Indiana* 115,000 Owned Zero Turn Radius Mowers for Dixie Chopper Middelburg, the Netherlands* 110,000 Owned Boom Mowers, Flail Mowers and Stump Grinders for Dutch Power Englefeld, Saskatchewan, Canada* 105,000 Owned Mechanical Rotary Mowers, Snow Blowers, and Rock Removal Equipment for Schulte St.
Fairfield Ayer's Cliff, Quebec, Canada* 41,000 Owned Municipal Snow Removal and Ice Control Equipment for Everest Suffolk, England* 35,000 Leased Commercial wood chippers and other forestry equipment for Timberwolf Kent, Washington* 25,000 Leased Truck-Mounted Sweeping Equipment for the contractor market branded NiteHawk Peschadoires, France* 22,000 Owned Replacement Parts for Blades, Knives and Shackles for Forges Gorce Oakey, Australia 18,000 Leased Agriculture Mowing Equipment and other Attachments for Fieldquip Installation & Rental Facilities, Warehouses & Sales 540,000 Leased / Owned Services Parts Distribution, Installation Facilities and Sales and After Market Office Offices, Seguin & New Braunfels, Texas 29,000 Leased /Owned Corporate Office Total 6,059,000 81% * Principal manufacturing plants 29 Approximately 81% of the manufacturing, warehouse and office space is owned.
Fairfield Ayer's Cliff, Quebec, Canada* 41,000 Owned Municipal Snow Removal and Ice Control Equipment for Everest Suffolk, England* 35,000 Leased Commercial wood chippers and other forestry equipment for Timberwolf Kent, Washington* 25,000 Leased Truck-Mounted Sweeping Equipment for the contractor market branded NiteHawk Peschadoires, France* 22,000 Owned Replacement Parts for Blades, Knives and Shackles for Forges Gorce Oakey, Australia 18,000 Leased Agriculture Mowing Equipment and other Attachments for Fieldquip Installation & Rental Facilities, Warehouses & Sales 570,000 Leased / Owned Services Parts Distribution, Installation Facilities and Sales and After Market Office Offices, Seguin & New Braunfels, Texas 29,000 Leased /Owned Corporate Office Total 5,754,000 79% * Principal manufacturing plants 29 Approximately 79% of the manufacturing, warehouse and office space is owned.
Item 2. Properties As of February 21, 2025, the Company utilized twenty-seven principal manufacturing plants with fifteen located in the United States, eight in Europe, three in Canada, and one in Brazil.
Item 2. Properties As of December 31, 2025, the Company utilized twenty-seven principal manufacturing plants with fifteen located in the United States, eight in Europe, three in Canada, and one in Brazil.
Valerien, Quebec, Canada* 104,000 Owned Snow and Ice Removal Equipment for Tenco Giessen, the Netherlands* 72,000 Owned Aquatic Harvesting Boats and Remote Control Mowing Equipment for Alamo Group The Netherlands Sioux Falls, South Dakota* 66,000 Owned Hydraulic and Mechanical Mowing Equipment for Tiger Shoemakersville, Pennsylvania* 65,000 Leased Truck Mounted Highway Attenuator Trucks and Other Specialty Trucks and Equipment for Royal Truck and Equipment Hopkinton, New Hampshire* 55,000 Owned Distributor of Public Works and Runway Maintenance Products for H.P.
Valerien, Quebec, Canada* 104,000 Owned Snow and Ice Removal Equipment for Tenco Giessen, the Netherlands* 72,000 Owned Aquatic Harvesting Boats and Remote Control Mowing Equipment for Alamo Group The Netherlands Sioux Falls, South Dakota* 66,000 Owned Hydraulic and Mechanical Mowing Equipment for Tiger Shoemakersville, Pennsylvania* 65,000 Leased Truck Mounted Highway Attenuator Trucks and Other Specialty Trucks and Equipment for Royal Truck and Equipment Pella, Iowa* 60,000 Leased Trailer Mounted and Custom Truck Mounted Excavation and Vacuum Equipment for Ring-O-Matic Hopkinton, New Hampshire* 55,000 Owned Distributor of Public Works and Runway Maintenance Products for H.P.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeAll rights reserved. 12/19 12/20 12/21 12/22 12/23 12/24 Alamo Group Inc. 100.00 110.41 118.24 114.36 170.62 151.71 S&P SmallCap 600 100.00 111.29 141.13 118.41 137.42 149.37 S&P 500 Industrials 100.00 111.06 134.52 127.15 150.20 176.44 Purchase of Equity Securities On October 31 2024, the Company announced that its Board of Directors approved a share repurchase program under which the Company is authorized to repurchase in the aggregate up to $50.0 million of its outstanding stock over 5 years, through October 30, 2029.
Biggest changeAll rights reserved. 12/20 12/21 12/22 12/23 12/24 12/25 Alamo Group Inc. 100.00 107.09 103.58 154.53 137.41 124.88 S&P SmallCap 600 100.00 126.82 106.40 123.48 134.22 142.30 S&P 500 Industrials 100.00 121.12 114.48 135.24 158.87 189.72 Purchase of Equity Securities On October 31 2024, the Company announced that its Board of Directors approved a share repurchase program under which the Company is authorized to repurchase in the aggregate up to $50.0 million of its outstanding stock over 5 years, through October 30, 2029.
The following graph and table set forth the cumulative total return to the Company's stockholders of our Common Stock during a five-year period ended December 31, 2024, as well as the performance of an overall stock market index (the S&P SmallCap 600 Index) and a published industry or line-of-business index (the S&P 500 Industrials Index) for the same period. *$100 invested on 12/31/19 in stock or index, including reinvestment of dividends.
The following graph and table set forth the cumulative total return to the Company's stockholders of our Common Stock during a five-year period ended December 31, 2025, as well as the performance of an overall stock market index (the S&P SmallCap 600 Index) and a published industry or line-of-business index (the S&P 500 Industrials Index) for the same period. *$100 invested on 12/31/20 in stock or index, including reinvestment of dividends.
On January 2, 2025, the Board of Directors of the Company declared a quarterly dividend of $0.30 per share which was paid on January 29, 2025 to holders of record as of January 16, 2025.
On January 2, 2026, the Board of Directors of the Company declared a quarterly dividend of $0.34 per share which was paid on January 29, 2026 to holders of record as of January 16, 2026.
On February 21, 2025, there were 12,063,468 shares of common stock outstanding, held by approximately 68 holders of record, but the total number of beneficial owners of the Company’s common stock exceeds this number. On February 21, 2025, the closing price of the common stock on the New York Stock Exchange was $188.90 per share.
On February 20, 2026, there were 12,121,294 shares of common stock outstanding, held by approximately 68 holders of record, but the total number of beneficial owners of the Company’s common stock exceeds this number. On February 20, 2026, the closing price of the common stock on the New York Stock Exchange was $213.46 per share.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

26 edited+18 added−15 removed32 unchanged
Biggest changeIncome from operations for 2024 rose 43% versus 2023, driven by increased demand, greater operational efficiencies, and an improvement in supply chain performance and truck chassis availability. Consolidated income from operations was $165 million for the full year of 2024 compared to $198 million for the full year of 2023, a decrease of 17%.
Biggest changeSales growth was strong in all product lines, led by excavators, vacuum trucks and snow, followed by sweepers & safety. Income from operations for 2025 rose 19% versus 2024, driven by increased demand, greater operational efficiencies, and an improvement in supply chain performance.
Assigning estimated fair values to the assets acquired and liabilities assumed requires the use of significant estimates, judgments, inputs, and assumptions regarding the fair value of intangible assets that are separately identifiable from goodwill, inventory step-up, and property, plant, and equipment, and are based on available 36 historical information, future expectations, and assumptions determined to be reasonable but are inherently uncertain with respect to future events, including economic conditions, competition, the useful life of the acquired assets and other factors.
Assigning estimated fair values to the assets acquired and liabilities assumed requires the use of significant estimates, judgments, inputs, and assumptions regarding the fair value of intangible assets that are separately identifiable from goodwill, inventory step-up, and property, plant, and equipment, and are based on available historical information, future expectations, and assumptions determined to be reasonable but are inherently 36 uncertain with respect to future events, including economic conditions, competition, the useful life of the acquired assets and other factors.
The decrease in gross profit was primarily attributable to the decline in Vegetation Management market demand, resulting in production inefficiencies, and the impact of costs to reduce capacity and separation expenses as the Division adjusted to market conditions. In addition, profitability was also impacted by the five-week strike at Gradall in Ohio, which negatively affected the Industrial Equipment Division.
The decrease in gross profit was primarily attributable to the decline in Vegetation Management market demand, production inefficiencies, and the impact of costs to reduce capacity and separation expenses as the Division adjusted to market conditions. In addition, profitability was also impacted by the five-week strike at Gradall in Ohio, which negatively affected the Industrial Equipment Division.
However, cost inflation continues to be an ongoing challenge that could have a material impact on the Company's business and financial results, particularly if there are unexpected shifts in political policy changes (including the imposition of tariffs), global economic environment or supply chain dynamics.
However, cost inflation continues to be an ongoing challenge that could have a material impact on the Company's business and financial results, particularly if there are unexpected shifts in political policy changes (including the continued imposition of tariffs), global economic environment or supply chain dynamics.
The decrease in interest expense in 2024 was primarily due to debt reduction. 33 Interest income for 2024 was $2.6 million compared to $1.5 million in 2023, an increase of $1.1 million or 77.6%. The increase in 2024 was primarily due to higher cash on hand.
The decrease in interest expense in 2024 was primarily due to debt reduction. Interest income for 2024 was $2.6 million compared to $1.5 million in 2023, an increase of $1.1 million or 77.6%. The increase in 2024 was primarily due to higher cash on hand.
New Accounting Pronouncements As discussed in Note 2 of Notes to Consolidated Financial Statements, certain new financial accounting pronouncements became effective January 1, 2024, or will become effective in the future. The effect on our financial statements upon adoption of these pronouncements is discussed in the above-referenced note.
New Accounting Pronouncements As discussed in Note 2 of Notes to Consolidated Financial Statements, certain new financial accounting pronouncements became effective January 1, 2025, or will become effective in the future. The effect on our financial statements upon adoption of these pronouncements is discussed in the above-referenced note.
Net income for 2023 was $136.2 million compared to $101.9 million in 2022, with the increase in 2023 net income resulting from the factors described above. 34 Liquidity and Capital Resources In addition to normal operating expenses, the Company has ongoing cash requirements which are necessary to conduct the Company’s business, including inventory purchases and capital expenditures.
Net income for 2024 was $115.9 million compared to $136.2 million in 2023, with the decrease in 2024 net income resulting from the factors described above. 34 Liquidity and Capital Resources In addition to normal operating expenses, the Company has ongoing cash requirements which are necessary to conduct the Company’s business, including inventory purchases and capital expenditures.
The Agreement also contains other customary covenants, representations and events of defaults. The expiration date of the 2022 Credit Agreement, including the Term Facility and the Revolver Facility, is October 28, 2027. As of December 31, 2024, $220.5 million was outstanding under the Credit Agreement, $220.5 million on the Term Facility and zero on the Revolver Facility.
The Agreement also contains other customary covenants, representations and events of defaults. The expiration date of the 2022 Credit Agreement, including the Term Facility and the Revolver Facility, is October 28, 2027. As of December 31, 2025, $205.7 million was outstanding under the Credit Agreement, $205.7 million on the Term Facility and zero on the Revolver Facility.
The following tables set forth, for the periods indicated, certain financial data: Fiscal Year Ended December 31, Net sales (data in thousands): 2024 2023 2022 Vegetation Management $ 785,199 $ 979,040 $ 937,065 Industrial Equipment 843,314 710,611 576,551 Total net sales $ 1,628,513 $ 1,689,651 $ 1,513,616 Cost and profit margins, as percentages of net sales: Cost of sales 74.7 % 73.2 % 75.1 % Gross profit 25.3 % 26.8 % 24.9 % Selling, general, administrative, and amortization expenses 15.2 % 15.1 % 15.1 % Income from operations 10.1 % 11.7 % 9.8 % Income before income taxes 9.2 % 10.4 % 8.9 % Net income 7.1 % 8.1 % 6.7 % Results of Operations Fiscal 2024 compared to Fiscal 2023 The Company’s net sales in the fiscal year ended December 31, 2024 (“2024”) were $1,628.5 million, a decrease of $61.2 million or 3.6% compared to $1,689.7 million for the fiscal year ended December 31, 2023 (“2023”).
The following tables set forth, for the periods indicated, certain financial data: Fiscal Year Ended December 31, Net sales (data in thousands): 2025 2024 2023 Vegetation Management $ 654,053 $ 785,199 $ 979,040 Industrial Equipment 949,662 843,314 710,611 Total net sales $ 1,603,715 $ 1,628,513 $ 1,689,651 Cost and profit margins, as percentages of net sales: Cost of sales 75.2 % 74.7 % 73.2 % Gross profit 24.8 % 25.3 % 26.8 % Selling, general, administrative, and amortization expenses 15.4 % 15.2 % 15.1 % Income from operations 9.5 % 10.1 % 11.7 % Income before income taxes 8.7 % 9.2 % 10.4 % Net income 6.5 % 7.1 % 8.1 % Results of Operations Fiscal 2025 compared to Fiscal 2024 The Company’s net sales in the fiscal year ended December 31, 2025 (“2025”) were $1,603.7 million, a decrease of $24.8 million or 1.5% compared to $1,628.5 million for the fiscal year ended December 31, 2024 (“2024”).
As of December 31, 2024, the Company had working capital of $667.2 million, which represents an increase of $77.2 million from working capital of $590.0 million as of December 31, 2023. The increase in working capital was primarily a result of higher cash and cash equivalents. Capital expenditures were $25.0 million for 2024, compared to $37.7 million for 2023.
As of December 31, 2025, the Company had working capital of $779.7 million, which represents an increase of $112.5 million from working capital of $667.2 million as of December 31, 2024. The increase in working capital was primarily a result of higher cash and cash equivalents. Capital expenditures were $30.6 million for 2025, compared to $25.0 million for 2024.
Actual results in future periods may differ materially from those expressed or implied because of a number of risks and uncertainties which are discussed below and in the Forward-Looking Information section beginning on page 14 . We experienced strong demand for industrial equipment products in 2024 while demand for forestry, tree care, and agricultural mowing products weakened.
Actual results in future periods may differ materially from those expressed or implied because of a number of risks and uncertainties which are discussed below and in the Forward-Looking Information section beginning on page 14 . We continued to experienced strong demand for industrial equipment products in 2025, while demand for vegetation products was mixed.
This reduction in cash used by financing activities is due to repayment of revolving credit. The Company had $147.2 million in cash and cash equivalents held by its foreign subsidiaries as of December 31, 2024. The majority of these funds are held at our European and Canadian facilities.
This reduction in cash used by financing activities is due to payment of contingent consideration in 2024 offset by higher dividend payments in 2025. The Company had $174.5 million in cash and cash equivalents held by its foreign subsidiaries as of December 31, 2025. The majority of these funds are held at our European and Canadian facilities.
On December 31, 2024, $2.7 million of the revolver capacity was committed to irrevocable standby letters of credit issued in the ordinary course of business as required by vendors' contracts resulting in $397.3 million in available borrowings.
On December 31, 2025, $2.8 million of the revolver capacity was committed to irrevocable standby letters of credit issued in the ordinary course of business as required by vendors' 35 contracts resulting in $397.2 million in available borrowings. The Company is in compliance with the covenants under the Agreement.
The Company will fund any future expenditures from operating cash flows or through our revolving credit facility, described below. Net cash provided by operating activities was $209.8 million for 2024, compared to $131.2 million for 2023. The increase of cash from operating activities is primarily the result of improved receivables and inventory compared to 2023.
The Company will fund any future expenditures from operating cash flows or through our revolving credit facility, described below. Net cash provided by operating activities was $177.5 million for 2025, compared to $209.8 million for 2024.
Provision for income taxes was $39.0 million (22.2% of income before income taxes) for 2023 compared to $32.4 million (24.1% of income before income taxes) in 2022.
Provision for income taxes was $33.7 million (22.5% of income before income taxes) for 2024 compared to $39.0 million (22.2% of income before income taxes) in 2023.
Fiscal 2023 compared to Fiscal 2022 The Company’s net sales in the fiscal year ended December 31, 2023 (“2023”) were $1,689.7 million, an increase of $176.1 million or 11.6% compared to $1,513.6 million for the fiscal year ended December 31, 2022 (“2022”).
Fiscal 2024 compared to Fiscal 2023 The Company’s net sales in the fiscal year ended December 31, 2024 (“2024”) were $1,628.5 million, a decrease of $61.2 million or 3.6% compared to $1,689.7 million for the fiscal year ended December 31, 2023 (“2023”).
The decrease in net sales was primarily driven by weak forestry, tree care, and agricultural mowing markets, leading to lower demand in the Vegetation Management Division. Additionally, the sale of Herschel Parts on August 16, 2024, had a negative impact on year-over-year sales, though it was immaterial on a full-year basis.
The decrease in net sales was primarily driven by the ongoing lower demand in tree care and recycling markets and operational challenges in the Vegetation Management Division related to consolidation of certain operations. Additionally, the sale of Herschel Parts on August 16, 2024, had an unfavorable impact on year-over-year sales, though immaterial for total Company results for the year.
Net cash used in investing activities was $22.2 million for 2024, compared to $52.6 million for 2023. The decrease in investing activities was in part driven by the acquisition of Royal Truck in 2023. Net cash used by financing activities was $32.0 million for 2024, compared to net cash used of $76.9 million for 2023.
The increase in investing activities was in part driven by the acquisition of Ring-O-Matic in 2025. Net cash used by financing activities was $30.8 million for 2025, compared to net cash used of $32.0 million for 2024.
Provision for income taxes was $33.7 million (22.5% of income before income taxes) for 2024 compared to $39.0 million (22.2% of income before income taxes) in 2023. Net income for 2024 was $115.9 million compared to $136.2 million in 2023, with the decrease in 2024 net income resulting from the factors described above.
Net income for 2025 was $103.8 million compared to $115.9 million in 2024, with the decrease in 2025 net income resulting from the factors described above.
The Company's backlog decreased 22% to $669 million at the end of 2024 versus the backlog of $860 million at the end of 2023. 32 The following discussion should be read in conjunction with the consolidated financial statements of the Company and the notes thereto included elsewhere in this Annual Report on Form 10-K.
The anticipated timing, costs and benefits are forward-looking and subject to the risks and uncertainties described under “Forward- Looking Information.” 32 The following discussion should be read in conjunction with the consolidated financial statements of the Company and the notes thereto included elsewhere in this Annual Report on Form 10-K.
If this occurs, the Company’s results of operations would be adversely impacted. In 2024, while inflation moderated compared to prior years, the cost of commodities, components, parts, and accessories remained elevated relative to historical levels. Throughout 2024, we continued to implement strategic pricing actions and operational efficiency measures to help offset these sustained cost pressures.
In 2025, the cost of commodities, components, parts, and accessories somewhat normalized relative to historical levels. Throughout 2025, we continued to implement strategic pricing actions and operational efficiency measures to help offset tariffs and other supply chain cost pressures.
While the rate of inflation decreased during 2024, prices for many key inputs remained higher than pre-pandemic levels. Looking ahead to 2025, we expect the cost environment to remain challenging, though with less volatility than in recent years. We anticipate modest increases in the average cost of commodities, components, parts, and accessories compared to 2024 levels.
Looking ahead to 2026, we expect the cost environment to return to more historically normal levels than we have seen in recent years. We anticipate modest increases in the average cost of commodities, components, parts, and accessories compared to 2025 levels.
The Company is in compliance with the covenants under the Agreement. 35 Management believes the Agreement and the Company’s ability to internally generate funds from operations should be sufficient to meet the Company’s cash requirements for the foreseeable future.
Management believes the Agreement and the Company’s ability to internally generate funds from operations should be sufficient to meet the Company’s cash requirements for the foreseeable future. However, future challenges affecting the banking industry and credit markets in general could potentially cause changes to credit availability, which creates a level of uncertainty.
However, future challenges affecting the banking industry and credit markets in general could potentially cause changes to credit availability, which creates a level of uncertainty. Inflation The Company is exposed to the risk that the price of energy, steel and other purchased components may increase and the Company may not be able to increase the price of its products correspondingly.
Inflation The Company is exposed to the risk that the price of energy, steel and other purchased components may increase and the Company may not be able to increase the price of its products correspondingly. If this occurs, the Company’s results of operations would be adversely impacted.
Net Industrial Equipment sales were $710.6 million in 2023 compared to $576.6 million in 2022, representing an increase of $134.0 million or 23.3%. The increase was a result of strong performance in all product lines including excavator and vacuum trucks, sweepers and debris collection, and snow removal equipment further supported by the acquisition of Royal Truck.
Industrial Equipment net sales were $949.7 million in 2025 compared to $843.3 million in 2024, representing an increase of $106.4 million or 12.6%. The increase was driven by the strong ongoing demand across the division in excavators, vacuum trucks, sweepers, and snow removal equipment.
Market conditions are mixed; governmental and industrial product demand is robust while vegetation product demand has been hampered mainly by higher interest rates and elevated channel inventories. 2024 Performance In 2024, the Company's net sales decreased by 4% and net income decreased by 15% compared to 2023.
Demand for governmental and industrial products is healthy and vegetation product demand remains weak by soft commodity pricing, elevated interest rates, and reduced housing construction activity. 2025 Performance In 2025, the Company's net sales decreased by 2% and net income decreased by 10% compared to 2024.
Removed
Gross profit margins declined slightly due to weaker Vegetation Management Division sales that slowed our production cadence and adversely impacted production efficiency.
Added
Agricultural, tree care and recycling markets remained weak. Operating margins declined as strong performance in the Industrial Equipment Division only partially offset lower margins in the Vegetation Management Division. Market conditions continue to be mixed.
Removed
These challenges were nearly offset by strong sales growth in the Industrial Equipment Division. The decline in net income was due to lower product demand in the Vegetation Management Division, which affected production efficiency, along with associated separation costs incurred to reduce division capacity.
Added
These challenges were only partially offset by strong sales growth in the Industrial Equipment Division. Net income was impacted by the CEO transition costs, acquisition and integration expenses, and ongoing restructuring efforts. Additional pressure on net income resulted from market-driven revenue declines and production inefficiencies in the Vegetation Management Division.
Removed
In the Industrial Equipment Division, nonrecurring costs related to the five-week labor strike at Gradall Industries negatively impacted second-quarter results. The Company reached a new five-year collective bargaining agreement at its Gradall plant in May 2024.
Added
Strong demand and solid margins in the Industrial Equipment Division only partially offset these challenges. The Company's Vegetation Management Division experienced a 17% decrease in net sales and a 59% decline in income from operations for the full year of 2025 compared to 2024.
Removed
The Company's Vegetation Management Division experienced a 20% decrease in net sales for the full year of 2024 compared to 2023 due to a steep decline in forestry, tree care and agricultural mowing markets. The Division’s backlog has declined 47% year-over-year and is now at pre-Covid levels.
Added
While continued market weakness and operational challenges led to lower revenue, the Division’s backlog increased 6% reflecting potential market stabilization. The Company continues to implement cost-saving initiatives and enhancement of operational efficiencies in an effort to improve operating margins. The Company's Industrial Equipment Division reported a 13% increase in net sales for the full year of 2025 compared to 2024.
Removed
Income from operations for 2024 decreased by 54% compared to 2023, reflecting market downturn and costs associated with separation and reduction of capacity. The Company continues to implement cost-saving initiatives and enhance operational efficiency, with the goal of improving operating margins.
Added
Consolidated income from operations was $152 million for the full year of 2025 compared to $165 million for the full year of 2024, a decrease of 8%, impacted by CEO transition costs, acquisition and integration expenses, and ongoing restructuring efforts.
Removed
The Company's Industrial Equipment Division reported a 19% increase in net sales for the full year of 2024 compared to 2023. Sales growth was strong in all product lines, with excavators, vacuum trucks, sweepers & safety, and snow removal contributing to year-over-year growth.
Added
As part of our ongoing efforts to optimize operations in both of our Divisions, we have relocated applicable product families, sold the Gibson City, IL facility, repurposed one facility to support other brands, and completed initial set-ups for portions of the production lines.
Removed
The increase in sales was attributable to continued strong customer demand for our products in both the Vegetation Management and Industrial Equipment Divisions, improved pricing, and higher throughput due to gradually improving supply chain conditions. Supply chain disruptions and a shortage of skilled labor negatively impacted net sales, especially in the first half of the year earlier.
Added
Over the next approximately one to two quarters, we plan to finish the remaining line installations and increase production. During this transition, we expect temporary production inefficiencies, duplicate costs, and shipment-timing effects that may pressure revenue and gross margin, along with potentially one-time expenses related to relocation and facility exit.
Removed
Net Vegetation Management sales were $979.0 million in 2023 compared to $937.1 million in 2022, an increase of $41.9 million or 4.5%, coming from a strong performance in European agricultural and governmental mowing, forestry and tree care, and North American governmental mowing equipment. Skilled labor shortages and certain supplier issues constrained this division during 2023.
Added
Following completion, we expect improved capacity utilization, service levels and structural cost reductions.
Removed
This division was negatively impacted by a shortage of skilled labor and disruptions in parts of its supply chain, predominantly causing delays in receiving truck chassis. Gross profit for 2023 was $453.6 million (26.8% of net sales) compared to $376.5 million (24.9% of net sales) in 2022, an increase of $77.1 million.
Added
The decrease in sales was attributable to continued weaknesses in tree care and recycling markets and operational challenges related to consolidating certain operations, partially offset by sustained strong demand for industrial equipment. Vegetation Management net sales were $654.1 million in 2025 compared to $785.2 million in 2024, a decrease of $131.1 million or 16.7%.
Removed
The increase in gross profit was mainly attributable to higher sales volume and better operational performance during 2023 compared to 2022 as well as improved pricing which led to higher profitability as a percentage of sales in 2023 compared to 2022, though these results were partially offset by the negative impacts of supply chain disruptions and material inflation previously mentioned.
Added
The decline was attributable to sustained weakness in the tree care and recycling markets as well as operational challenges in consolidating certain operations. The sale of Herschel Parts on August 16, 2024 also impacted results compared to 2024, though it was immaterial to the year-over-year sales decrease.
Removed
Selling, general and administrative expenses (“SG&A”) were $240.2 million (14.2% of net sales) in 2023 compared to $212.6 million (14.0% of net sales) in 2022, an increase of $27.6 million.
Added
Gross profit for 2025 was $397.8 million (24.8% of net sales) compared to $412.5 million (25.3% of net sales) in 2024, a decrease of $14.7 million. The decrease in gross profit was driven by lower revenue and production inefficiencies in the Vegetation Management Division, partially offset by the healthy demand in Industrial Equipment Division.
Removed
The increase in SG&A expenses in 2023 was largely attributable to higher marketing expenses related to trade shows, sales promotions and commissions and to a lesser extent, sales volume-driven administration expense. Amortization expense in 2023 was $15.5 million compared to $15.3 million in 2022, an increase of $0.2 million.
Added
Selling, general and administrative expenses (“SG&A”) were $229.7 million (14.3% of net sales) in 2025 compared to $231.5 million (14.2% of net sales) in 2024, a decrease of $1.8 million attributable to labor cost savings actions taken in Vegetation Management, offsetting the additional costs related to the CEO succession, and acquisition and integration expenses.
Removed
Interest expense for 2023 was $26.1 million compared to $14.4 million in 2022, an increase of $11.7 million or 81.7%. The increase in interest expense in 2023 primarily came from higher interest rates compared to 2022. Other income (expense), net was income of $1.8 million during 2023 compared to expense of $0.7 million in 2022.
Added
Amortization expense in 2025 was $16.5 million compared to $16.2 million in 2024, an increase of $0.3 million due to the acquisition of Ring-O-Matic.
Removed
The increase in 2023 was primarily the result of a gain on fixed assets relating to the sale of a manufacturing facility located in Kent, Washington partially offset by loss on currency exchange. The expense in 2022 was primarily the result of an excise tax audit and to a lesser extent, changes in exchange rates.
Added
Interest expense for 2025 was $14.9 million compared to $20.5 million in 2024, a decrease of $5.6 million or 27.6% primarily related to debt reduction. 33 Interest income for 2025 was $5.6 million compared to $2.6 million in 2024, an increase of $3.0 million or 111.2%, related to higher cash on hand.
Removed
Management believes the following critical accounting policy reflects its more significant estimates and assumptions used in the preparation of the Consolidated Financial Statements. For further information on the critical accounting policies, see Note 1 of our Notes to Consolidated Financial Statements.
Added
Other income (expense), was a net expense of $2.8 million during 2025 compared to income of $2.7 million in 2024. The expense increase was primarily driven by foreign exchange transaction losses, offset by gains related to the sale of former Rhino Ag facility in Gibson City, IL.
Added
Provision for income taxes was $35.7 million (25.6% of income before income taxes) for 2025 compared to $33.7 million (22.5% of income before income taxes) in 2024. The tax rate was impacted by stock compensation related to the CEO transition, lower R&D credit, and a large release of a valuation allowance in 2024.
Added
The decrease of cash from operating activities is a result of lower net income as well as higher inventory, which was partially offset by lower accounts receivable and improved accounts payable. Net cash used in investing activities was $46.2 million for 2025, compared to $22.2 million for 2024.
Added
Management believes there are currently no critical accounting policies.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

6 edited+0 added−0 removed9 unchanged
Biggest changeOn December 31, 2024, the British pound closed at 0.7991 relative to the U.S. dollar, and the Euro closed at 0.9657 relative to the U.S. dollar. By comparison, on December 31, 2023, the British pound closed at 0.7854 relative to the U.S. dollar, and the Euro closed at 0.9060 relative to the U.S. dollar.
Biggest changeOn December 31, 2025, the British pound closed at 0.7421 relative to the U.S. dollar, and the Euro closed at 0.8511 relative to the U.S. dollar. By comparison, on December 31, 2024, the British pound closed at 0.7991 relative to the U.S. dollar, and the Euro closed at 0.9657 relative to the U.S. dollar.
Long-Term Debt, effective August 30, 2024, the Company put in place an interest rate swap that converted the variable interest rate on the Term Facility to a fixed rate of 3.7855% plus an interest margin percentage for the full amount of the outstanding long-term debt for three years.
Long-Term Debt, effective August 30, 2024, the Company put in place an interest rate swap that economically converted the variable interest rate on the Term Facility to a fixed rate of 3.7855% plus an interest margin percentage for the full amount of the outstanding long-term debt for three years.
Accordingly, the Company’s net income was affected by changes in interest rates for part of 2024. Assuming the average level of borrowings at variable rates and a two hundred basis point change in the 2024 average interest rate under these borrowings, the Company’s 2024 interest expense would have changed by approximately $5.6 million.
Accordingly, the Company’s net income was affected by changes in interest rates for part of 2024. Assuming the average level of borrowings at variable rates and a two hundred basis point change in the 2025 average interest rate under these borrowings, the Company’s 2025 interest expense would have changed by approximately $4.3 million.
Foreign currency forward exchange contracts in the U.K. are used to offset the earnings effects of such fluctuations. On December 31, 2024, the result of a uniform 10% 37 strengthening in the value of the U.S. dollar relative to the currencies in which the Company’s sales are denominated would have been a decrease in gross profit of $13.1 million.
Foreign currency forward exchange contracts in the U.K. are used to offset the earnings effects of such fluctuations. On December 31, 2025, the result of a uniform 10% strengthening in the value of the U.S. dollar relative to the currencies in which the Company’s sales are 37 denominated would have been a decrease in gross profit of $12.5 million.
Comparatively, on December 31, 2023, the result of a uniform 10% strengthening in the value of the dollar relative to the currencies in which the Company’s sales are denominated would have been a decrease in gross profit of approximately $12.5 million. This calculation assumes that each exchange rate would change in the same direction relative to the U.S. dollar.
Comparatively, on December 31, 2024, the result of a uniform 10% strengthening in the value of the dollar relative to the currencies in which the Company’s sales are denominated would have been a decrease in gross profit of approximately $13.1 million. This calculation assumes that each exchange rate would change in the same direction relative to the U.S. dollar.
The Company’s sensitivity analysis of the effects of changes in foreign currency exchange rates does not factor in a potential change in sales levels or local currency prices. The translation adjustment during 2024 was a loss of $29.0 million.
The Company’s sensitivity analysis of the effects of changes in foreign currency exchange rates does not factor in a potential change in sales levels or local currency prices. The translation adjustment during 2025 was an unrealized gain of $34.4 million.

Other ALG 10-K year-over-year comparisons