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

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Paragraph-level year-over-year comparison of ALLIENT 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.

+129 added−146 removedSource: 10-K (2026-03-05) vs 10-K (2025-03-05)

Top changes in ALLIENT INC's 2025 10-K

129 paragraphs added · 146 removed · 113 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeThese advancements required us to refine our strategy to leverage the value opportunity that exists in three technology pillars – Motion, Controls and Power. In addition, we are structuring our organization with focused market selling and support teams to increase solution sales opportunities under our new brand -Allient.
Biggest changeIn addition, we are structuring our organization with focused market selling and support teams to increase solution sales opportunities under our new brand - Allient. This refined strategy is reflected in the 2023 change of our corporate name from Allied Motion Technologies Inc. to Allient Inc., short for Allied Nexus Technologies.
A copy of both Codes is also available in print to any stockholder upon written request addressed to Allient Inc., 495 Commerce Drive, Amherst, NY 14228-2313, Attention: Secretary. Recent Events Simplify to Accelerate NOW: During 2024, the Company commenced the Simplify to Accelerate NOW program.
A copy of both Codes is also available in print to any stockholder upon written request addressed to Allient Inc., 495 Commerce Drive, Amherst, NY 14228-2313, Attention: Secretary. Recent Events During 2024, the Company commenced the Simplify to Accelerate NOW program.
While gross domestic products began to rebound in 2023 from the widespread impacts of inflation, increasing interest rates, and other restrictive financial conditions in 2022, the factors contributing to supply chain disruptions, labor shortages, and global inflation remained persistent through 2023 and 2024, along with continued elevated geopolitical instability.
While gross domestic products began to rebound in 2023 from the widespread impacts of inflation, increasing interest rates, and other restrictive financial conditions in 2022, the factors contributing to supply chain disruptions, labor shortages, and global inflation remained persistent, along with continued elevated geopolitical instability.
Of those, approximately 63% are located in North America, 29% are located in Europe and the remainder are located in Asia-Pacific. As of December 31, 2024, 14% of our total workforce were employed in engineering functions, demonstrating our commitment to invest significantly in engineering resources.
Of those, approximately 63% are located in North America, 29% are located in Europe and the remainder are located in Asia-Pacific. As of December 31, 2025, 14% of our total workforce were employed in engineering functions, demonstrating our commitment to invest significantly in engineering resources.
Our competitors include Ametek, Inc., Parker Hannifin Corporation, Regal Rexnord, and other smaller competitors. 7 Table of Contents Availability and Prices of Parts and Raw Materials We purchase critical raw materials from a limited number of suppliers due to the technically challenging requirements of the supplied product and/or the lengthy process required to qualify these materials both internally and with our customers.
Our competitors include Ametek, Inc., Parker Hannifin Corporation, Regal Rexnord, and other smaller competitors. Availability and Prices of Parts and Raw Materials We purchase critical raw materials from a limited number of suppliers due to the technically challenging requirements of the supplied product and/or the lengthy process required to qualify these materials both internally and with our customers.
Unlike many of our competitors, we are unique in our ability to provide custom-engineered controlled motion solutions that integrate the products we manufacture such as embedded or external electrical control solutions with our motors. We compete on technological capabilities, quality, reliability, service responsiveness, delivery speed and price.
Unlike many of our competitors, we are unique in our ability to provide custom-engineered controlled motion solutions that integrate the products we manufacture such as embedded or external electrical control solutions with our motors. We compete on 7 Table of Contents technological capabilities, quality, reliability, service responsiveness, delivery speed and price.
The Company will transfer current assembly operations from Dothan and merge these capabilities into its facilities in Tulsa, Oklahoma and Reynosa, Mexico where Final Assembly, Integration and Test capabilities are the core competencies. ​ 4 Table of Contents The realignment will improve business focus and better leverage the Company’s footprint to deliver high-precision system solutions for demanding applications in various served markets including Aerospace and Defense, Medical and Electronic Test and Assembly Equipment.
The Company transferred current assembly operations from Dothan and merged these capabilities into its facilities in Tulsa, Oklahoma and Reynosa, Mexico where Final Assembly, Integration and Test capabilities are the core competencies. ​ 4 Table of Contents The realignment will improve business focus and better leverage the Company’s footprint to deliver high-precision system solutions for demanding applications in various served markets including Aerospace and Defense, Medical and Electronic Test and Assembly Equipment.
As discussed herein, because of the supply chain disruptions, we have experienced increased costs and have purposely increased certain inventories to manage global supply chain issues.
As discussed herein, because of the supply chain disruptions, we have experienced increased costs and have, at times, purposely increased certain inventories to manage global supply chain issues.
We may face additional economic and 8 Table of Contents operational impacts from ESG regulations as well as impacts from our suppliers and customers as they adhere to the laws and regulations. International Operations Our operations outside the United States are conducted through wholly-owned foreign subsidiaries and are located in North America, Europe, and Asia-Pacific.
We may face additional economic and operational impacts from ESG regulations as well as impacts from our suppliers and customers as they adhere to the laws and regulations. International Operations Our operations outside the United States are conducted through wholly-owned foreign subsidiaries and are located in North America, Europe, and Asia-Pacific.
The information required by this item is set forth in Note 14, Segment Information, of the notes to consolidated financial statements contained in Item 8 of this report. Human Capital Employment At December 31, 2024, we employed 2,525 full-time employees worldwide.
The information required by this item is set forth in Note 14, Segment Information, of the notes to consolidated financial statements contained in Item 8 of this report. Human Capital Employment At December 31, 2025, we employed 2,478 full-time employees worldwide.
In addition to providing sales and applications support, the solution center function may include final assembly, integration and tests as required to support customers within their geographic region. Sales Backlog: Backlog as of December 31, 2024 was $230,788 compared with $276,093 as of December 31, 2023.
In addition to providing sales and applications support, the solution center function may include final assembly, integration and tests as required to support customers within their geographic region. Sales Backlog: Backlog as of December 31, 2025 was $232,925 compared with $230,788 as of December 31, 2024.
Our engineering and development expenditures for the years ended December 31, 2024 and 2023 were $39,761 and $41,665, respectively, or 7% of sales in both 2024 and 2023. We believe E&D is critical to our ongoing success and expect to continue to invest at similar levels in the future.
Our engineering and development expenditures for the years ended December 31, 2025 and 2024 were $38,836 and $39,761, respectively, or 7% and 8% of sales in 2025 and 2024, respectively. We believe E&D is critical to our ongoing success and expect to continue to invest at similar levels in the future.
Of these expenditures, no material amounts were charged directly to customers, although we record non-recurring engineering charges to certain customers for custom engineering required to develop products that meet the customer’s specifications. Sustainability On December 6, 2024, Allient published its second annual Sustainability Report covering the Company’s fiscal year 2023.
Of these expenditures, no material amounts were charged directly to customers, although we record non-recurring engineering charges to certain customers for custom engineering required to develop products that meet the customer’s specifications. Sustainability In February 2026, Allient published its third annual Sustainability Report covering the Company’s fiscal year 2024.
We also operate Allient Solution Centers that evaluate and focus all Allient products to create integrated controlled motion solutions for our 6 Table of Contents customers. We sell our products and solutions globally to a broad spectrum of customers through our own direct sales force and authorized manufacturers’ representatives and distributors.
We also operate Allient Solution Centers that evaluate and focus all Allient products to create integrated controlled motion solutions for our customers. We sell our products and solutions globally to a broad spectrum of customers through our own direct sales force and authorized manufacturers’ representatives and distributors. Our customers include end users and original equipment manufacturers (“OEMs”).
One-time costs required to implement the changes are estimated to be approximately $4 to $5 million, primarily related to employee severance and other personnel related expenses, and are expected to be substantially incurred during 2025. The initiative is expected to support our goal of driving an additional $6 to $7 million in annualized cost savings.
One-time costs required to implement the changes in 2025 were approximately $4 million, primarily related to employee severance and other personnel related expenses, and have been substantially incurred and paid during 2025. The initiative supported our goal in driving over $6 million in additional annualized cost savings.
Through the One Team approach for providing products and controlled motion solutions that best address customers’ needs, the Company has broadened the knowledge and skills of its direct sales force, while creating sales and service support in its Solution Centers. This enables the entire sales organization to be capable of selling all products designed, developed and produced by Allient globally.
Allient Organization: The Company’s sales organization is focused on becoming the best sales and service force in its industry. Through the One Team approach for providing products and controlled motion solutions that best address customers’ needs, the Company has broadened the knowledge and skills of its direct sales force, while creating sales and service support in its Solution Centers.
In recent years, inflation negatively impacted our input costs and pricing, primarily for labor and materials. We, our customers, and our suppliers also experienced the effect of a higher interest rate environment.
Allient captures the opportunity that exists at the nexus of these three technology pillars and recognizes the unique capabilities the combination offers. In recent years, inflation negatively impacted our input costs and pricing, primarily for labor and materials. We, our customers, and our suppliers also experienced the effect of a higher interest rate environment.
Allient Solution Centers : Allient has Solution Centers in China, Europe and North America that enable the design and sale of individual component products as well as integrated controlled motion systems that utilize multiple Allient products and technologies.
While most of the Company’s sales are directly to OEMs, it has expanded its market reach through Distribution channels. Allient Solution Centers : Allient has Solution Centers in China, Europe and North America that enable the design and sale of individual component products as well as integrated controlled motion systems that utilize multiple Allient products and technologies.
The current geopolitical conflicts are creating higher levels of economic uncertainty and increased volatility with respect to energy prices, interest rates, our supply chain (in particular, with respect to proposed changes to tariffs and trade policies), and certain customer ordering patterns.
U.S. government tariffs and trade policies, as well as court rulings and their implications, continue to be closely monitored and our operations remain agile in making adjustments to minimize potential impacts to our business. ​ The current geopolitical conflicts are creating higher levels of economic uncertainty and increased volatility with respect to energy prices, interest rates, our supply chain (in particular, with respect to proposed changes to tariffs and trade policies), and certain customer ordering patterns.
We monitor existing and pending climate legislation, regulation, and international treaties and accords to evaluate any potential impact on our future results of operations, capital expenditures or financial position. The Board of Directors provides oversight as part of their environmental, social and governance (“ESG”) initiatives and we will continue to monitor emerging developments and assess our performance in this area.
We monitor existing and pending climate legislation, regulation, and international treaties and accords to evaluate any potential impact on our future results of operations, capital expenditures or financial position.
Given the short product lead times, we do not believe that the amount of our backlog of orders is a reliable indication of our future sales. We may on occasion receive multi-year orders from customers for product to be delivered on demand over that time frame.
The time to convert the majority of backlog to sales is approximately three to nine months. Given the short product lead times, we do not believe that the amount of our backlog of orders is a reliable indication of our future sales.
Sierramotion has experience and know-how designing and applying products in electro-mechanical systems with moving magnets or moving coils for rotary, linear, and arc shaped applications. They provide customized design and integration capabilities, testing, performance simulations, prototype development, and low volume production for a variety of high precision and custom critical applications.
They provide customized design and integration capabilities, testing, performance simulations, prototype development, and low volume production for a variety of high precision and custom critical applications.
Official government policies and agreements will be monitored for potential impacts to our business. In 2024 we continued to refine our strategy to expand our vertical market focus to accelerate our growth. Throughout its history, the Company has expanded our capabilities to be a leading global provider of motion solutions.
Throughout 2024 and into 2025, we continue to refine our strategy to expand our vertical market focus to accelerate our growth. Throughout its history, the Company has expanded our capabilities to be a leading global provider of motion solutions. More recently, we have been building our controls and power technologies, both organically and through acquisitions.
The Company’s primary channels to market include the direct sales force and external authorized Sales Representatives, Agents and Distributors that provide field coverage in Asia-Pacific, Europe, Canada, Israel and the Americas. While most of the Company’s sales are directly to OEMs, it has expanded its market reach through Distribution channels.
This enables the entire sales organization to be capable of selling all products designed, developed and produced by Allient globally. The Company’s primary channels to market include the direct sales force and external authorized Sales Representatives, Agents and Distributors that provide field coverage in Asia-Pacific, Europe, Canada, Israel and the Americas.
More recently, we have been building our controls and power technologies, both organically and through acquisitions. The evolution of these additional pillars of our business enhances our overall value proposition, expands our addressable markets and is aligned with mega technology trends.
The evolution of these additional pillars of our business enhances our overall value proposition, expands our addressable markets and is aligned with mega technology trends. These advancements required us to refine our strategy to leverage the value opportunity that exists in three technology pillars – Motion, Controls and Power.
(“SNC”), a privately-owned premier designer and global manufacturer of electrical transformers serving blue-chip customers in defense, industrial automation, alternative power generation and energy, including electric utilities and renewable energy. SNC has experience in industrial automation, defense, medical, and alternative energy markets, and their offerings are complementary to existing power quality capabilities and provide additional low-cost manufacturing capacity.
RECENT ACQUISITIONS SNC: On January 11, 2024, the Company acquired 100% of the interest in SNC Manufacturing Co., Inc. (“SNC”), a privately-owned premier designer and global manufacturer of electrical transformers serving blue-chip customers in defense, industrial automation, alternative power generation and energy, including electric utilities and renewable energy.
Sierramotion: On September 22, 2023, the Company acquired 100% of the interest in Sierramotion Inc. (“Sierramotion”), a privately-owned company specializing in designing and engineering turn-key motion components and mechatronic (mechanical, electrical, and control) solutions for robotic, medical, industrial, defense, semiconductor, 5 Table of Contents and other precision applications.
(“Sierramotion”), a privately-owned company specializing in designing and engineering turn-key motion components and mechatronic (mechanical, electrical, and control) solutions for robotic, medical, industrial, defense, semiconductor, and other precision applications. Sierramotion has experience and know-how designing and applying products in electro-mechanical systems with moving magnets or moving coils for rotary, linear, and arc shaped applications.
There is no assurance that the Company’s backlog from these customers will be converted into revenue. Major Customers No customers exceed 10% of total sales in 2024. Sales to one customer (Customer A) were 10% of total sales in 2023 and to another customer (Customer B) were 12% of total sales in 2023.
We may on occasion receive multi-year orders from customers for product to be delivered on demand over that time frame. There is no assurance that the Company’s backlog from these customers will be converted into revenue. ​ Major Customers No customers exceed 10% of total sales in 2025 or 2024.
Aerospace & Defense : inertial guided missiles, mid-range smart munitions systems, weapons systems on armed personnel carriers, unmanned vehicles, security and access control, camera systems, door access control, airport screening scanning devices, and light-weighting vehicle technologies.
Aerospace & Defense : inertial guided missiles, mid-range smart munitions systems, weapons systems on armed personnel carriers, unmanned vehicles, security and access control, camera systems, door access control, airport screening scanning devices, and light-weighting vehicle technologies. ​ ​ 6 Table of Contents OTHER FACTORS IMPACTING OUR OPERATIONS Sales and Marketing We design and develop our products within our Technology Centers and can manufacture these products and solutions in various facilities located in the United States, Canada, Mexico, Europe and Asia-Pacific.
In addition, aerospace and defense customers ordering patterns continue to change quickly based on the geopolitical conflicts and sovereign governments priorities and budgets to address those conflicts. RECENT ACQUISITIONS SNC: On January 11, 2024, the Company acquired 100% of the interest in SNC Manufacturing Co., Inc.
Changing order patterns, supply chain disruptions, and the evolution of our business required us to carry larger inventories in recent years to meet the needs of our customers. In addition, aerospace and defense customers ordering patterns continue to change quickly based on the geopolitical conflicts and sovereign governments priorities and budgets to address those conflicts.
The U.S. government has proposed updating existing trade policies with Mexico, China, and other countries. These updates include potential tariffs on a wide range of products and good imported to the U.S. We have significant manufacturing in Mexico and China as well as globally throughout the world.
These updates include new and increased tariffs, or potential tariffs, on a wide range of products and goods imported to the U.S., and certain countries have responded with reciprocal tariffs and/or trade restrictions.
There are varying degrees of impact on our customers, and thus our business around the world, with Europe experiencing the greatest amount of stress in 2023 and 2024.
There are varying degrees of impact on our customers, and thus our business around the world. The U.S government has proposed and implemented certain updates to existing foreign trade policies.
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This refined strategy is reflected in the 2023 change of our corporate name from Allied Motion Technologies Inc. to Allient Inc, short for Allied Nexus Technologies. Allient captures the opportunity that exists at the nexus of these three technology pillars and recognizes the unique capabilities the combination offers.
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We have manufacturing operations in Mexico, China, and Europe, amongst other locations globally throughout the world, and source certain components from locations that may be impacted by these policy changes.
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Changing order patterns, supply chain disruptions, and the evolution of our business required us to carry larger inventories in 2024 and 2023 to meet the needs of our customers, especially as they return to a new normal after the disruptions caused by the COVID-19 pandemic.
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SNC has experience in industrial automation, defense, medical, and alternative energy markets, and their offerings are complementary to existing power quality capabilities and provide additional low-cost manufacturing capacity. 5 Table of Contents Sierramotion: On September 22, 2023, the Company acquired 100% of the interest in Sierramotion Inc.
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OTHER FACTORS IMPACTING OUR OPERATIONS Sales and Marketing We design and develop our products within our Technology Centers and can manufacture these products and solutions in various facilities located in the United States, Canada, Mexico, Europe and Asia-Pacific.
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The increase in our backlog year over year reflects increases within certain target markets, most significantly in Industrial and Aerospace and Defense. Strong results in the Industrial market was driven by increased demand in power quality solutions supporting data center infrastructure. This is partially offset by decreases in Vehicle due to reduced demand in power sports and truck applications.
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Our customers include end users and original equipment manufacturers (“OEMs”). Allient Organization: The Company’s sales organization is focused on becoming the best sales and service force in its industry.
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The Board of Directors 8 Table of Contents provides oversight as part of their environmental, social and governance (“ESG”) initiatives and we will continue to monitor emerging developments and assess our performance in this area.
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Included in backlog as of December 31, 2024 is $7,353 from the acquisition completed in 2024. The decrease in our backlog year over year reflects decreases within each of the target markets, most significantly in Vehicle.
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Decreases in revenues compared to the prior year period are largely impacted by elevated shipments during the prior year period as supply chains normalized, combined with elevated inventory levels and slowing demand at our customers . The time to convert the majority of backlog to sales is approximately three to nine months.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeAdditionally, cybersecurity incidents related to export control technology information of our Aerospace & Defense customers could subject us to additional reporting requirements, could disrupt our ability to sell products to those customers and could subject us to additional costs, penalties, and fines all of which may be material to our operating results. ​ The Board of Directors and Audit Committee are responsible for information security oversight and the Audit Committee is comprised entirely of independent directors.
Biggest changeAdditionally, cybersecurity incidents related to export control technology information of our Aerospace & Defense customers could subject us to additional reporting requirements, could disrupt our ability to sell products to those customers and could subject us to additional costs, penalties, and fines all of which may be material to our operating results. ​ We rely on suppliers to provide equipment, components and services, which creates certain risks and uncertainties that may adversely affect our business. ​ Our business requires that we buy equipment, components and services from third parties.
Our effective tax rate may be affected by shifts in our mix of earnings in countries with varying statutory tax rates, changes in reinvested foreign earnings, alterations to tax rates, regulations or interpretations and outcomes of any audits performed on previous tax returns. ​ 16 Table of Contents Our operating results could fluctuate significantly. ​ Our quarterly and annual operating results are affected by a wide variety of factors that could materially adversely affect revenues and profitability, including: the timing of customer orders and the deferral or cancellation of orders previously received, the level of orders received which can be shipped in a quarter, fulfilling backlog on a timely basis, competitive pressures on selling prices, changes in the mix of products sold, the unavailability or delays in the receipt of critical inventories, the timing of investments in engineering and development, development of and response to new technologies, and delays in new product qualifications. ​ As a result of the foregoing and other factors, we may experience material fluctuations in future operating results on a quarterly or annual basis which could materially and adversely affect our business, financial condition, operating results and stock price. ​ We may never realize the full value of our substantial intangible assets. ​ These intangible assets consist primarily of goodwill, customer lists, trade names and technology arising from our acquisitions.
Our effective tax rate may be affected by shifts in our mix of earnings in countries with varying statutory tax rates, changes in reinvested foreign earnings, alterations to tax rates, regulations or interpretations and outcomes of any audits performed on previous tax returns. ​ Our operating results could fluctuate significantly. ​ Our quarterly and annual operating results are affected by a wide variety of factors that could materially adversely affect revenues and profitability, including: the timing of customer orders and the deferral or cancellation of orders previously received, the level of orders received which can be shipped in a quarter, fulfilling backlog on a timely basis, competitive pressures on selling prices, changes in the mix of products sold, the unavailability or delays in the receipt of critical inventories, the timing of investments in engineering and development, development of and response to new technologies, and delays in new product qualifications. ​ As a result of the foregoing and other factors, we may experience material fluctuations in future operating results on a quarterly or annual basis which could materially and adversely affect our business, financial condition, operating results and stock price. ​ ​ ​ 16 Table of Contents We may never realize the full value of our substantial intangible assets. ​ These intangible assets consist primarily of goodwill, customer lists, trade names and technology arising from our acquisitions.
This litigation could result in significant costs and divert our management’s focus away from operations. ​ We are subject to a variety of litigation and other legal and regulatory proceedings in the normal course of our business that could adversely affect our financial results. ​ We are subject to a variety of litigation and other legal and regulatory proceedings incidental to our business, including claims for damages arising out of the use of products or services and claims relating to intellectual property, employment, tax, commercial disputes, competition, sales and trading practices, environmental, personal injury, 18 Table of Contents insurance coverage, acquisition, as well as regulatory investigations or enforcement.
This litigation could result in significant costs and divert our management’s focus away from operations. ​ We are subject to a variety of litigation and other legal and regulatory proceedings in the normal course of our business that could adversely affect our financial results. ​ We are subject to a variety of litigation and other legal and regulatory proceedings incidental to our business, including claims for damages arising out of the use of products or services and claims relating to intellectual property, employment, tax, commercial disputes, competition, sales and trading practices, environmental, personal injury, insurance coverage, acquisition, as well as regulatory investigations or enforcement.
However, these reserves may not be adequate to cover future warranty claims and additional warranty costs or inventory write-offs may be incurred which could harm our operating results. ​ If we are unable to attract and retain qualified personnel, our ability to operate and grow our company will be in jeopardy. ​ We are required to hire and retain skilled employees at all levels of our operations in a market where such qualified employees are in high demand and are subject to receiving competing offers.
However, these reserves may not be adequate to cover future warranty claims and additional warranty costs or inventory write-offs may be incurred which could harm our operating results. ​ 12 Table of Contents If we are unable to attract and retain qualified personnel, our ability to operate and grow our company will be in jeopardy. ​ We are required to hire and retain skilled employees at all levels of our operations in a market where such qualified employees are in high demand and are subject to receiving competing offers.
If our senior management is not able to effectively manage the integration process, or if any significant business activities are interrupted because of the integration process, our business could be adversely affected. ​ The indemnification provisions of acquisition agreements by which we have acquired companies may not fully protect us and as a result we may face unexpected liabilities. ​ Certain of the acquisition agreements by which we have acquired companies require the former owners to indemnify us against certain liabilities related to the operation of the company before we acquire it.
If our senior management is not able to effectively manage the integration process, or if any significant business activities are interrupted because of the integration process, our business could be adversely affected. ​ 14 Table of Contents The indemnification provisions of acquisition agreements by which we have acquired companies may not fully protect us and as a result we may face unexpected liabilities. ​ Certain of the acquisition agreements by which we have acquired companies require the former owners to indemnify us against certain liabilities related to the operation of the company before we acquire it.
Our reliance on suppliers involves certain risks, including poor quality or an insecure supply chain, which could adversely affect the reliability and reputation of our products and solutions; changes in the cost of these purchases due to inflation, exchange rates, tariffs, or other factors; shortages of components, commodities or other materials, which could adversely affect our manufacturing efficiencies and ability to make timely delivery. ​ Any of these uncertainties could adversely affect our profitability and ability to compete.
Our reliance on suppliers involves certain risks, including poor quality or an insecure supply chain, which could adversely affect the reliability and reputation of our products and solutions; changes in the cost of these purchases due to inflation, exchange rates, tariffs, or other factors; shortages of components, commodities or other materials, which could adversely affect our manufacturing efficiencies and ability to make timely delivery. ​ ​ 11 Table of Contents Any of these uncertainties could adversely affect our profitability and ability to compete.
These actions may lead to reduced revenues, lower margins and/or a decline in market share, any of which may adversely affect our business, financial condition and results of operations. ​ 12 Table of Contents Quality problems with our products and solutions could harm our reputation, erode our competitive advantage and could result in warranty claims and additional costs. ​ Quality is important to us and our customers, and our products and solutions are held to high quality and performance standards.
These actions may lead to reduced revenues, lower margins and/or a decline in market share, any of which may adversely affect our business, financial condition and results of operations. ​ Quality problems with our products and solutions could harm our reputation, erode our competitive advantage and could result in warranty claims and additional costs. ​ Quality is important to us and our customers, and our products and solutions are held to high quality and performance standards.
While the failure of any single cost containment effort by itself would most likely not significantly impact our results, we cannot give any assurances that we will be successful in controlling material and labor costs to 17 Table of Contents maintain a competitive cost structure. ​ There is substantial price competition in our industry, and our success and profitability will depend on our ability to maintain a competitive cost and price structure.
While the failure of any single cost containment effort by itself would most likely not significantly impact our results, we cannot give any assurances that we will be successful in controlling material and labor costs to maintain a competitive cost structure. ​ There is substantial price competition in our industry, and our success and profitability will depend on our ability to maintain a competitive cost and price structure.
Our inability, for technological or other reasons, to successfully develop and introduce new and innovative products and solutions could result in a loss of customers and lower revenues. 13 Table of Contents We face the challenge of accurately aligning our capacity with our demand. ​ We have experienced capacity constraints and longer lead times for certain products and solutions in times of growing demand and have also experienced idle capacity as economies slow or demand for certain products decline.
Our inability, for technological or other reasons, to successfully develop and introduce new and innovative products and solutions could result in a loss of customers and lower revenues. ​ We face the challenge of accurately aligning our capacity with our demand. ​ We have experienced capacity constraints and longer lead times for certain products and solutions in times of growing demand and have also experienced idle capacity as economies slow or demand for certain products decline.
If we do not accurately align our manufacturing capabilities with demand it could have a material adverse effect on our results of operations. ​ The manufacture of many of our products and solutions is a highly exacting and complex process, and if we directly or indirectly encounter problems manufacturing products, our reputation, business and financial results could suffer. ​ The manufacture of many of our products and solutions is an exacting and complex process.
If we do not accurately align our manufacturing capabilities with demand it could have a material adverse effect on our results of operations. 13 Table of Contents The manufacture of many of our products and solutions is a highly exacting and complex process, and if we directly or indirectly encounter problems manufacturing products, our reputation, business and financial results could suffer. ​ The manufacture of many of our products and solutions is an exacting and complex process.
The Company also faces exchange rate risk from its investments in subsidiaries owned and operated in foreign countries. ​ Economic and credit market uncertainty could interrupt our access to capital markets, borrowings, or financial transactions to hedge certain risks, which could adversely affect our financial condition. ​ To date, we have been able to access debt and equity financing that has allowed us to make investments in growth opportunities and fund working capital requirements.
The Company also faces exchange rate risk from its investments in subsidiaries owned and operated in foreign countries. ​ 15 Table of Contents Economic and credit market uncertainty could interrupt our access to capital markets, borrowings, or financial transactions to hedge certain risks, which could adversely affect our financial condition. ​ To date, we have been able to access debt and equity financing that has allowed us to make investments in growth opportunities and fund working capital requirements.
Our inability to maintain a competitive cost structure could have a material adverse effect on our business, financial condition and results of operations. ​ LEGAL AND REGULATORY RISKS ​ Our international operations expose us to legal and regulatory risks, which could have a material effect on our business. ​ Our profitability and international operations are, and will continue to be, subject to risks relating to changes in foreign legal and regulatory requirements.
Our inability to maintain a competitive cost structure could have a material adverse effect on our business, financial condition and results of operations. ​ ​ ​ ​ ​ 17 Table of Contents LEGAL AND REGULATORY RISKS ​ Our international operations expose us to legal and regulatory risks, which could have a material effect on our business. ​ Our profitability and international operations are, and will continue to be, subject to risks relating to changes in foreign legal and regulatory requirements.
Moreover, any insurance or indemnification rights that we may have may be insufficient or unavailable to protect us against such losses. We estimate loss contingencies and establish reserves based on our assessment where liability is deemed probable and reasonably estimable given the facts and circumstances known to us at a particular point in time.
Moreover, any insurance or indemnification rights that we may have may be insufficient or unavailable to protect us against such losses. We estimate loss contingencies and establish reserves based on our assessment where liability is deemed probable and reasonably estimable given the facts and circumstances known to us at a particular point 18 Table of Contents in time.
These activities expose us to risks, including those related to political and economic uncertainties, transportation delays, labor market disruptions and challenges to protect our intellectual property. ​ ​ ​ 15 Table of Contents FINANCIAL RISKS ​ Foreign currency exchange rates may adversely affect our financial results. ​ Sales and purchases in currencies other than the U.S. dollar expose us to fluctuations in foreign currencies relative to the U.S. dollar and may adversely affect our financial results.
These activities expose us to risks, including those related to political and economic uncertainties, transportation delays, labor market disruptions and challenges to protect our intellectual property. ​ FINANCIAL RISKS ​ Foreign currency exchange rates may adversely affect our financial results. ​ Sales and purchases in currencies other than the U.S. dollar expose us to fluctuations in foreign currencies relative to the U.S. dollar and may adversely affect our financial results.
We may have difficulty finding these opportunities, or if we do identify these opportunities, we may not be able to complete the transactions for various reasons including the inability 14 Table of Contents to secure financing. ​ As we complete acquisitions, we face the operational and financial risks commonly encountered with an acquisition strategy.
We may have difficulty finding these opportunities, or if we do identify these opportunities, we may not be able to complete the transactions for various reasons including the inability to secure financing. ​ As we complete acquisitions, we face the operational and financial risks commonly encountered with an acquisition strategy.
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Additionally, two members of the Company’s Board of Directors have relevant information security and cybersecurity experience. As part of their oversight, senior leadership meets with the Audit Committee at least annually to discuss information security and cybersecurity matters. ​ Over the last three years, the Company has experienced no known information security breaches.
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However, as cybersecurity incidents continue to increase in scope, complexity, and frequency, we may be unable to prevent a significant incident in the future which may materially impact our results of operations.
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The Company regularly undertakes audits and evaluations (including to the National Institute of Standards and Technology (NIST) SP 800-171 standards) and enhances its security framework based upon the results of those audits and evaluations.
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For new 11 Table of Contents associates, and on an annual basis therefore the Company requires associates to take security awareness training and has an on-going phishing recognition training and testing programs. ​ We rely on suppliers to provide equipment, components and services, which creates certain risks and uncertainties that may adversely affect our business. ​ Our business requires that we buy equipment, components and services from third parties.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeIn the past, we have had cybersecurity incidents and we have made, and continue to make investments, seeking to address these threats, including monitoring of networks and systems, hiring of experts to evaluate and test our systems, employee training and security policies for employees and third-party providers.
Biggest changeWe continue to make investments to mitigate evolving cybersecurity threats, seeking to address these threats, including monitoring of networks and systems, hiring of experts 19 Table of Contents to evaluate and test our systems, employee training and security policies for employees and third-party providers.
In addition, we rely on networks and services, including internet sites, data hosting and processing facilities and tools and other hardware, software and technical applications and platforms, some of which are managed, hosted, provided and/or used by third-parties or their vendors, to assist in conducting our business. ​ Numerous and evolving cybersecurity threats pose potential risks to the security of our IT systems, networks and services, as well as the confidentiality, availability and integrity of our technology systems and data.
In addition, we rely on networks and services, including internet sites, data hosting and processing facilities and tools and other hardware, software and technical applications and platforms, some of which are managed, hosted, provided and/or used by third-parties or their vendors, to assist in conducting our business. ​ Numerous and evolving cybersecurity threats, including artificial intelligence technologies, pose potential risks to the security of our IT systems, networks and services, as well as the confidentiality, availability and integrity of our technology systems and data.
As such, controls from the third-party vendors have been deemed to be adequate prior to any goods or services having been provided. ​ Cybersecurity Governance ​ Management is responsible for the development of all cybersecurity programs, including the monitoring, prevention, detection, mitigation, and remediation of cybersecurity incidents. Our Board receives quarterly reports regarding the overall cybersecurity risk management process.
As such, controls from the third-party vendors have been deemed to be adequate prior to any goods or services having been provided. ​ ​ Cybersecurity Governance ​ Management is responsible for the development of all cybersecurity programs, including the monitoring, prevention, detection, mitigation, and remediation of cybersecurity incidents.
The Board and Audit Committee are responsible for information security oversight. Two members of the Company’s Board have relevant information security and cybersecurity experience.
Our Board receives quarterly updates, and annually reviews , the overall cybersecurity risk management process. The Board and Audit Committee are responsible for information security oversight. Two members of the Company’s Board have relevant information security and cybersecurity experience.
In addition, the laws and regulations governing security of data on IT systems is evolving and adding another layer of complexity in the form of new requirements. 19 Table of Contents ​ Over the last three years, we have experienced no known information security breaches.
In addition, the laws and regulations governing security of data on IT systems is evolving and adding another layer of complexity in the form of new requirements. ​ Over the last three years, we have experienced no known cybersecurity breaches that had any impact on our business strategy, operational results, or financial condition.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeAs of December 31, 2024, the Company occupies facilities as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Approximate ​ ​ ​ ​ ​ Square ​ Owned Description / Use ​ Location ​ Footage ​ Or Leased Corporate headquarters and manufacturing facility Amherst, New York 21,300 Leased Office and manufacturing facility ​ Acuna, Mexico ​ 10,500 ​ Leased Office and manufacturing facility ​ Arvada, Colorado ​ 15,000 ​ Leased Office and manufacturing facility ​ Bellevue, Washington ​ 30,000 ​ Leased Office and manufacturing facility ​ Camarillo, California ​ 14,500 ​ Leased Office and manufacturing facility Changzhou, China 40,000 Leased Office and manufacturing facility ​ Changzhou, China ​ 22,800 ​ Leased Office Christchurch, New Zealand 27,000 Leased Office Dayton, Ohio 29,000 Owned Office and manufacturing facility Dayton, Ohio 25,000 Leased Warehouse ​ Del Rio, TX ​ 10,000 ​ Leased Office and manufacturing facility Dordrecht, The Netherlands 32,000 Leased Office and manufacturing facility Dothan, Alabama 88,000 Owned Office and manufacturing facility Germantown, Wisconsin 99,000 Leased Office and manufacturing facilities Kelheim, Germany 154,000 Leased Office Kidderminster, Great Britain 6,200 Leased Office and manufacturing facility ​ London, Ontario, Canada ​ 48,500 ​ Leased Office and manufacturing facility ​ Loomis, California ​ 3,600 ​ Leased Office and manufacturing facility Mrakov, Czech Republic 42,000 Leased Office Oakville, Ontario, Canada 3,500 Leased Office and manufacturing facility ​ Oshkosh, WI ​ 14,400 ​ Leased Office and manufacturing facility Owosso, Michigan 85,000 Owned Office and manufacturing facility Porto, Portugal 53,000 Owned Office and manufacturing facility Reynosa, Mexico 50,000 Leased Office and manufacturing facility ​ Rochester, New York ​ 26,500 ​ Leased Office ​ Roseville, Michigan ​ 5,300 ​ Leased Office and manufacturing facility Stockholm, Sweden 25,000 Leased Office and manufacturing facility Suzhou, China 41,000 Leased Office and manufacturing facility Tulsa, Oklahoma 172,000 Leased Office and manufacturing facility Watertown, New York 107,000 Owned ​ The Company’s management believes the above-described facilities are adequate to meet the Company’s current and foreseeable needs.
Biggest changeAs of December 31, 2025, the Company occupies facilities as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Approximate ​ ​ ​ ​ ​ ​ ​ ​ Square ​ Owned Description / Use ​ Location ​ Footage ​ Or Leased Corporate headquarters and manufacturing facility Amherst, New York 21,300 Leased Office and manufacturing facility ​ Acuna, Mexico ​ 42,000 ​ Leased Office and manufacturing facility ​ Arvada, Colorado ​ 15,000 ​ Leased Office and manufacturing facility ​ Bellevue, Washington ​ 30,000 ​ Leased Office and manufacturing facility ​ Camarillo, California ​ 14,500 ​ Leased Office and manufacturing facility Changzhou, China 40,000 Leased Office and manufacturing facility ​ Changzhou, China ​ 22,800 ​ Leased Office Christchurch, New Zealand 27,000 Leased Office Dayton, Ohio 29,000 Owned Warehouse ​ Del Rio, Texas ​ 10,000 ​ Leased Office and manufacturing facility Dordrecht, The Netherlands 32,000 Leased Office and manufacturing facility Dothan, Alabama 88,000 Owned Office and manufacturing facility Germantown, Wisconsin 99,000 Leased Office and manufacturing facilities Kelheim, Germany 154,000 Leased Office Kidderminster, Great Britain 6,200 Leased Office and manufacturing facility ​ London, Ontario, Canada ​ 48,500 ​ Leased Office and manufacturing facility ​ Loomis, California ​ 3,600 ​ Leased Office and manufacturing facility Mrakov, Czechia 42,000 Leased Office Oakville, Ontario, Canada 3,500 Leased Office and manufacturing facility ​ Oshkosh, Wisconsin ​ 74,000 ​ Owned Office and manufacturing facility Owosso, Michigan 85,000 Owned Office and manufacturing facility Porto, Portugal 53,000 Owned Office and manufacturing facility Reynosa, Mexico 50,000 Leased Office and manufacturing facility ​ Rochester, New York ​ 26,500 ​ Leased Office ​ Sterling Heights, Michigan ​ 650 ​ Leased Office and manufacturing facility Stockholm, Sweden 25,000 Leased Office and manufacturing facility Suzhou, China 41,000 Leased Office and manufacturing facility Tulsa, Oklahoma 172,000 Leased Office and manufacturing facility Watertown, New York 107,000 Owned ​ The Company’s management believes the above-described facilities are adequate to meet the Company’s current and foreseeable needs.
Operating leases for the Company’s properties expire at various times through 2033. Upon the expiration of the Company’s current leases, management believes that the Company will be able to secure renewal terms or enter into leases for alterative locations at market terms. ​
Operating leases for the Company’s properties expire at various times through 2034. Upon the expiration of the Company’s current leases, management believes that the Company will be able to secure renewal terms or enter into leases for alterative locations at market terms. ​

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changePerformance Graph The following performance graph and tables reflect the five year change in the Company’s cumulative total stockholder return on Common Stock as compared with the cumulative total return of the NASDAQ Stock Market Index and our custom Peer Group for a $100 investment made on December 31, 2019, including reinvestment of any dividends. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 Allient Inc. ​ $ 100.00 ​ $ 105.71 ​ $ 113.52 ​ $ 108.64 ​ $ 94.61 ​ $ 76.38 NASDAQ (U.S.) ​ $ 100.00 ​ $ 144.92 ​ $ 177.06 ​ $ 119.45 ​ $ 172.77 ​ $ 223.87 Peer Group ​ $ 100.00 ​ $ 122.09 ​ $ 141.78 ​ $ 119.82 ​ $ 167.88 ​ $ 178.73 ​ The Peer Group in the above graph includes the following stocks: LSI Industries, Moog, Inc., Onto Innovation, Preformed Line, Proto Labs, Inc., Helios Tech Inc., Thermon Group, Altra Industrial Motion, Astronics Corporation, Aeroenvironment, Columbus McKinnon, Franklin Electric, and Novanta, Inc. ​ 22 Table of Contents Issuer Purchases of Equity Securities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Number of Shares Maximum Number of Shares ​ ​ Number of Shares ​ Average Price Paid ​ Purchased as Part of Publicly ​ that May Yet Be Purchased Period ​ Purchased (1) ​ per Share ​ Announced Plans or Programs ​ Under the Plans or Programs 10/01/24 to 10/31/24 — ​ $ — — — 11/01/24 to 11/30/24 1,035 ​ 18.21 — — 12/01/24 to 12/31/24 4,511 ​ 24.01 — — Total 5,546 ​ $ 22.93 — — (1) As permitted under the Company’s equity compensation plan, these shares were withheld by the Company to satisfy tax withholding obligations for employees in connection with the vesting of stock.
Biggest changePerformance Graph The following performance graph and tables reflect the five year change in the Company’s cumulative total stockholder return on Common Stock as compared with the cumulative total return of the NASDAQ Stock Market Index and our custom Peer Group for a $100 investment made on December 31, 2020, including reinvestment of any dividends. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 12/31/2020 ​ ​ ​ 12/31/2021 ​ ​ ​ 12/31/2022 ​ ​ ​ 12/31/2023 ​ ​ ​ 12/31/2024 ​ ​ ​ 12/31/2025 Allient Inc. ​ $ 100.00 ​ $ 107.39 ​ $ 102.77 ​ $ 89.50 ​ $ 72.26 ​ $ 160.50 NASDAQ (U.S.) ​ $ 100.00 ​ $ 122.18 ​ $ 82.43 ​ $ 119.22 ​ $ 154.48 ​ $ 187.14 Peer Group ​ $ 100.00 ​ $ 116.13 ​ $ 98.14 ​ $ 137.51 ​ $ 148.41 ​ $ 166.84 ​ The Peer Group in the above graph includes the following stocks: LSI Industries, Moog, Inc., Onto Innovation, Preformed Line, Proto Labs, Inc., Helios Tech Inc., Thermon Group, Altra Industrial Motion, Astronics Corporation, AeroVironment, Inc., Columbus McKinnon, Franklin Electric, and Novanta, Inc. ​ 22 Table of Contents Issuer Purchases of Equity Securities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Number of Shares ​ ​ ​ Maximum Number of Shares ​ ​ Number of Shares ​ Average Price Paid ​ Purchased as Part of Publicly ​ that May Yet Be Purchased Period ​ Purchased (1) ​ per Share ​ Announced Plans or Programs ​ Under the Plans or Programs 10/01/25 to 10/31/25 — ​ $ — — — 11/01/25 to 11/30/25 294 ​ 52.39 — — 12/01/25 to 12/31/25 4,745 ​ 53.94 — — Total 5,039 ​ $ 53.85 — — (1) As permitted under the Company’s equity compensation plan, these shares were withheld by the Company to satisfy tax withholding obligations for employees in connection with the vesting of stock.
Shares withheld for tax withholding obligations do not affect the total number of shares available for repurchase under any approved common stock repurchase plan. At December 31, 2024, the Company did not have an authorized stock repurchase plan in place . ​ Item 6. [Reserved] ​ 23 Table of Contents
Shares withheld for tax withholding obligations do not affect the total number of shares available for repurchase under any approved common stock repurchase plan. At December 31, 2025, the Company did not have an authorized stock repurchase plan in place . ​ Item 6. [Reserved] ​ 23 Table of Contents
The number of holders of record as reported by the Company’s transfer agent of the Company’s common stock as of the close of business on March 5, 2025 was 196. Dividends During 2024 and 2023, we declared regular quarterly cash dividends on our common stock.
The number of holders of record as reported by the Company’s transfer agent of the Company’s common stock as of the close of business on March 5, 2026 was 173. Dividends During 2025 and 2024, we declared regular quarterly cash dividends on our common stock. We paid $0.03 in each quarter of 2025 and 2024.
Removed
We paid $0.03 in each quarter of 2024, and well as $0.025 in the first quarter of 2023 and $0.03 in the second, third, and fourth quarter of 2023.

Item 7. Management's Discussion & Analysis

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

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Biggest changeOrganic growth is reported revenues adjusted for the impact of foreign currency and the revenue contribution from acquisitions. ​ ​ 31 Table of Contents The Company’s calculation of Revenue excluding foreign currency exchange impacts for the years ending December 31, 2024 and 2023 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ For the year ended December 31, ​ 2024 2023 Revenue as reported ​ $ 529,968 ​ $ 578,634 Currency impact unfavorable ​ 139 ​ 258 Revenue excluding foreign currency exchange impacts ​ $ 530,107 ​ $ 578,892 ​ ​ ​ ​ ​ ​ ​ The Company’s calculation of organic growth for 2024 is as follows: ​ ​ ​ ​ ​ Year ended ​ December 31, 2024 Revenue change over prior year ​ (8.4) % Less: Impact of acquisitions and foreign currency ​ 7.0 ​ Organic growth ​ (15.4) % ​ The Company’s calculation of EBITDA and Adjusted EBITDA for 2024 and 2023 is as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ Year ended ​ ​ December 31, ​ 2024 2023 Net income as reported ​ $ 13,166 ​ $ 24,097 Interest expense ​ 13,296 ​ 12,383 Provision for income tax ​ 3,692 ​ 5,603 Depreciation and amortization ​ 25,891 ​ 25,068 EBITDA ​ 56,045 ​ 67,151 Stock-based compensation expense ​ 4,147 ​ 5,477 Acquisition and integration-related costs ​ ​ 445 ​ ​ 2,959 Restructuring and business realignment costs ​ 1,971 ​ 1,316 Foreign currency (gain)/loss ​ ​ (83) ​ ​ 281 Adjusted EBITDA ​ $ 62,525 ​ $ 77,184 ​ The Company’s calculation of Adjusted net income and Adjusted diluted earnings per share for years ended December 31, 2024 and 2023 is as follows (in thousands, except per share data): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the year ended ​ ​ December 31, ​ ​ ​ Per diluted ​ ​ Per diluted ​ ​ 2024 ​ share ​ 2023 ​ share Net income as reported ​ $ 13,166 ​ $ 0.79 ​ $ 24,097 ​ $ 1.48 Non-GAAP adjustments, net of tax (1) ​ ​ ​ ​ Amortization of intangible assets – net ​ 9,726 ​ 0.59 ​ 9,752 ​ 0.60 Foreign currency (gain) / loss – net ​ (64) ​ — ​ 223 ​ 0.01 Acquisition and integration-related costs – net ​ ​ 341 ​ ​ 0.02 ​ ​ 2,344 ​ ​ 0.14 Restructuring and business realignment costs – net ​ 1,510 ​ 0.09 ​ 1,042 ​ 0.06 Non-GAAP adjusted net income and adjusted diluted earnings per share ​ $ 24,679 ​ $ 1.49 ​ $ 37,458 ​ $ 2.30 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Applies a blended federal, state, and foreign tax rate of approximately 23% in 2024 and 21% in 2023 applicable to the non-GAAP adjustments. ​ 32 Table of Contents Liquidity and Capital Resources The Company’s liquidity position as measured by cash and cash equivalents increased by $4,201 to a balance of $36,102 at December 31, 2024 from 2023. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2024 vs. ​ ​ Year Ended ​ 2023 ​ ​ ​ December 31, ​ Variance ​ (in thousands): 2024 2023 $ Net cash provided by operating activities ​ $ 41,850 ​ $ 45,038 ​ $ (3,188) ​ Net cash used in investing activities ​ ​ (34,914) ​ (22,607) ​ (12,307) ​ Net cash used in financing activities ​ ​ (843) ​ (21,317) ​ 20,474 ​ Effect of foreign exchange rates on cash ​ ​ (1,892) ​ 173 ​ (2,065) ​ Net increase in cash and cash equivalents ​ $ 4,201 ​ $ 1,287 ​ $ 2,914 ​ ​ Of the $36,102 cash and cash equivalents on hand at December 31, 2024, $30,020 was located at our foreign subsidiaries and may be subject to withholding tax if repatriated to the U.S.
Biggest changeOrganic growth is reported revenues adjusted for the impact of foreign currency and the revenue contribution from acquisitions. ​ ​ 30 Table of Contents The Company’s calculation of revenue excluding foreign currency exchange impacts for the year ended December 31, 2025 is as follows: ​ ​ ​ ​ ​ ​ Year ended ​ ​ ​ ​ December 31, 2025 Revenue as reported ​ $ 554,478 Foreign currency impact - (favorable) / unfavorable ​ ​ (6,481) Revenue excluding foreign currency exchange impacts ​ $ 547,997 ​ ​ ​ ​ The Company’s calculation of organic growth for 2025 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ Year ended ​ ​ ​ ​ December 31, 2025 Revenue change over prior year ​ 4.6 % Less: Impact of acquisitions and foreign currency ​ (1.4) ​ Organic growth ​ 3.2 % ​ The Company’s calculation of EBITDA and Adjusted EBITDA for 2025 and 2024 is as follows (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year ended ​ ​ December 31, ​ ​ ​ ​ 2025 ​ ​ ​ 2024 Net income as reported ​ $ 22,034 ​ $ 13,166 Interest expense ​ 13,175 ​ 13,296 Provision for income tax ​ 6,700 ​ 3,692 Depreciation and amortization ​ 25,407 ​ 25,891 EBITDA ​ 67,316 ​ 56,045 Stock-based compensation expense ​ 3,430 ​ 4,147 Acquisition and integration-related costs ​ ​ 47 ​ ​ 445 Restructuring and business realignment costs ​ 3,993 ​ 1,971 Foreign currency loss (gain) ​ ​ 2,079 ​ ​ (83) Adjusted EBITDA ​ $ 76,865 ​ $ 62,525 ​ The Company’s calculation of Adjusted net income and Adjusted diluted earnings per share for years ended December 31, 2025 and 2024 is as follows (in thousands, except per share data): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the year ended ​ ​ December 31, ​ ​ ​ ​ ​ ​ ​ ​ ​ Per diluted ​ ​ ​ ​ ​ ​ ​ ​ Per diluted ​ ​ 2025 ​ share ​ 2024 ​ share Net income as reported ​ $ 22,034 ​ $ 1.32 ​ $ 13,166 ​ $ 0.79 Non-GAAP adjustments, net of tax (1) ​ ​ ​ ​ ​ ​ ​ ​ Amortization of intangible assets – net ​ 9,553 ​ 0.57 ​ 9,726 ​ 0.59 Foreign currency loss (gain) – net ​ 1,592 ​ 0.10 ​ (64) ​ — Acquisition and integration-related costs – net ​ ​ 36 ​ ​ — ​ ​ 340 ​ ​ 0.02 Restructuring and business realignment costs – net ​ 3,059 ​ 0.18 ​ 1,511 ​ 0.09 Non-GAAP adjusted net income and adjusted diluted earnings per share ​ $ 36,274 ​ $ 2.17 ​ $ 24,679 ​ $ 1.49 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (1) Applies a blended federal, state, and foreign tax rate of approximately 23% in 2025 and 2024 applicable to the non-GAAP adjustments. ​ 31 Table of Contents Liquidity and Capital Resources The Company’s liquidity position as measured by cash and cash equivalents increased by $4,603 to a balance of $40,705 at December 31, 2025 from 2024. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended December 31, ​ 2025 vs. 2024 (in thousands): ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ $ Net cash provided by operating activities ​ $ 56,675 ​ $ 41,850 ​ $ 14,825 Net cash used in investing activities ​ ​ (6,989) ​ (34,914) ​ 27,925 Net cash used in financing activities ​ ​ (47,696) ​ (843) ​ (46,853) Effect of foreign exchange rates on cash ​ ​ 2,613 ​ (1,892) ​ 4,505 Net increase in cash and cash equivalents ​ $ 4,603 ​ $ 4,201 ​ $ 402 ​ Of the $40,705 cash and cash equivalents on hand at December 31, 2025, $36,662 was located at our foreign subsidiaries and may be subject to withholding tax if repatriated to the U.S.
These covenants, which are described more fully in the 2024 Credit and Note Payable Agreements, to which reference is made for a complete statement of the covenants, are subject to certain exceptions. The Company was in compliance with all covenants at December 31, 2024 as well as at each quarter end during 2024.
These covenants, which are described more fully in the 2024 Credit and Note Payable Agreements, to which reference is made for a complete statement of the covenants, are subject to certain exceptions. The Company was in compliance with all covenants at December 31, 2025 as well as at each quarter end during 2025.
For a discussion of our results of operations for the year ended December 31, 2023 compared to the year ended December 31, 2022, please refer to Item 7 of Part II, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, which was filed with the SEC on March 5, 2024.
For a discussion of our results of operations for the year ended December 31, 2024 compared to the year ended December 31, 2023, please refer to Item 7 of Part II, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, which was filed with the SEC on March 5, 2025.
See Note 1, Business and Summary of Significant Accounting Policies of the notes to consolidated financial statements contained in Item 8 of this report for additional information about these recently issued accounting standards and their potential impact on our financial condition or results of operations. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 28 Table of Contents Operating Results The following discussion is a comparison between fiscal year 2024 and fiscal year 2023 results.
See Note 1, Business and Summary of Significant Accounting Policies of the notes to consolidated financial statements contained in Item 8 of this report for additional information about these recently issued accounting standards and their potential impact on our financial condition or results of operations. ​ ​ ​ ​ ​ ​ ​ ​ ​ 27 Table of Contents Operating Results The following discussion is a comparison between fiscal year 2025 and fiscal year 2024 results.
Evaluation of Goodwill for impairment We test the reporting unit’s goodwill for impairment as of October 31 st of each fiscal year and between annual tests if an event occurs or circumstances change that may indicate that the fair value of the reporting unit is below its carrying value.
Evaluation of Goodwill for impairment We test the reporting unit’s goodwill for impairment as of October 31st of each fiscal year and between annual tests if an event occurs or circumstances change that may indicate that the fair value of the reporting unit is below its carrying value.
The Company considers the customer’s purchase order, and the Company’s corresponding sales order acknowledgment as the contract with the customer. In the normal course of business, the Company does not accept product returns unless the item is defective as manufactured. The 26 Table of Contents Company establishes provisions for estimated returns and warranties.
The Company considers the customer’s purchase order, and the Company’s corresponding sales order acknowledgment as the contract with the customer. In the normal course of business, the Company does not accept product returns unless the item is defective as manufactured. The Company establishes provisions for estimated returns and warranties.
From January 1, 2025 through September 30, 2025, borrowings under the Revolving Facility will bear interest at Term SOFR plus a margin of 2.50% and a commitment fee of 0.325% on the unused portion of the Revolving Facility.
From January 1, 2025 through September 30, 2025, borrowings under the Revolving Facility bore interest at Term SOFR plus a margin of 2.50% and a commitment fee of 0.325% on the unused portion of the Revolving Facility.
The effective tax rate for 2024 was higher than the effective tax rate for 2023 primarily due to increases due to impacts of section 162(m) compensation and withholding taxes on foreign distributions, partially offset by increases in certain credits and incentives, the realization of certain deferred income tax assets that had been reserved in prior years, as well as the impact of the mix of foreign and domestic income.
The effective tax rate for 2025 was higher than the effective tax rate for 2024 primarily due to increases due to impacts of section 162(m) compensation limits, withholding taxes on foreign distributions, and the impact of the mix of foreign and domestic income, partially offset by increases in certain credits and incentives and the realization of certain deferred income tax assets that had been reserved in prior years.
As a percentage of revenues, general and administrative expenses were 11% and 10% in 2024 and 2023, respectively. ENGINEERING AND DEVELOPMENT EXPENSES: Engineering and development expenses decreased by 5% in 2024 compared to 2023. The decrease reflects the cost reduction actions taken as part of our Simplify to Accelerate NOW strategy .
As a percentage of revenues, general and administrative expenses were 10% and 11% in 2025 and 2024, respectively. ENGINEERING AND DEVELOPMENT EXPENSES: Engineering and development expenses decreased by 2% in 2025 compared to 2024. The decrease reflects the cost reduction actions taken as part of our Simplify to Accelerate NOW strategy .
Adjusted diluted earnings per share for 2024 and 2023 were $1.49 and $2.30, respectively. Adjusted net income and adjusted diluted earnings per share are non-GAAP measures. See information included in “Non–GAAP Measures” below for a discussion of the non-GAAP measure and reconciliation of net income to Adjusted net income and diluted earnings per share to Adjusted diluted earnings per share.
Adjusted diluted earnings per share for 2025 and 2024 were $2.17 and $1.49, respectively. Adjusted net income and adjusted diluted earnings per share are non-GAAP measures. See information included in “Non–GAAP Measures” below for a discussion of the non-GAAP measure and reconciliation of net income to Adjusted net income and diluted earnings per share to Adjusted diluted earnings per share.
The Amended Credit Agreement matures in March 2029. ​ On October 22, 2024, the Company entered into a Second Amendment to the Third Amended and Restated Credit Agreement and a Second Amendment to the Note Purchase and Private Shelf Agreement (collectively, the “October 2024 Credit and Note Payable Amendments”).
The Amended Credit Agreement matures in March 2029. ​ 32 Table of Contents On October 22, 2024, the Company entered into a Second Amendment to the Third Amended and Restated Credit Agreement and a Second Amendment to the Note Purchase and Private Shelf Agreement (collectively, the “October 2024 Credit and Note Payable Amendments”).
As of December 31, 2024, we have $111,517 of inventory recorded on our consolidated balance sheet, representing approximately 19% of total assets. A 1% write-down of our inventory would decrease our 2024 net income by approximately $850, or $0.05 per diluted share.
As of December 31, 2025, we have $109,198 of inventory recorded on our consolidated balance sheet, representing approximately 19% of total assets. A 1% write-down of our inventory would decrease our 2025 net income by approximately $850, or $0.05 per diluted share.
Changes to the factors considered above could affect the estimated fair value of our reporting unit and could result in a goodwill impairment charge in a future period. As of December 31, 2024, we have $131,789 of goodwill recorded on our consolidated balance sheet, representing approximately 23% of total assets.
However, changes to the factors considered above could affect the estimated fair value of our reporting unit and could result in a goodwill impairment charge in a future period. As of December 31, 2025, we have $134,332 of goodwill recorded on our consolidated balance sheet, representing approximately 23% of total assets.
Refer to information included in “Non-GAAP Measures” below for a discussion of the non-GAAP measure and a reconciliation of net income to EBITDA and Adjusted EBITDA. 30 Table of Contents Non-GAAP Measures Revenue excluding foreign currency exchange, Organic growth, EBITDA, Adjusted EBITDA, Adjusted net income and Adjusted diluted earnings per share are provided for information purposes only and are not measures of financial performance under GAAP.
Refer to information included in “Non-GAAP Measures” below for a discussion of the non-GAAP measure and a reconciliation of net income to EBITDA and Adjusted EBITDA. 29 Table of Contents Non-GAAP Measures Organic growth, EBITDA, Adjusted EBITDA, Adjusted net income and Adjusted diluted earnings per share are provided for information purposes only and are not measures of financial performance under GAAP.
If the carrying amount of the reporting unit exceeds its fair value, an impairment loss is recognized equal to the excess, limited to the amount of goodwill allocated to that reporting unit. We elected to bypass the qualitative assessment and performed a quantitative assessment of our single reporting unit as of October 31, 2024.
If the carrying amount of the reporting unit exceeds its fair value, an impairment loss is recognized equal to the excess, limited to the amount of goodwill allocated to that reporting unit. We performed a qualitative assessment of our single reporting unit as of October 31, 2025.
Adjusted EBITDA excludes stock-based compensation expense, as well as business development costs, foreign currency gains/losses on short-term assets and liabilities, and other items that are not indicative of the Company’s core operating performance.
Adjusted EBITDA excludes stock-based compensation expense, as well as acquisition and integration-related costs, restructuring and business realignment costs, foreign currency gains/losses on short-term assets and liabilities, and other items that are not indicative of the Company’s core operating performance.
Changes in estimates or assumptions could result in a material adjustment to the consolidated financial statements. We have identified several critical accounting estimates.
Changes in estimates or assumptions could result in a material adjustment to the consolidated financial statements. 25 Table of Contents We have identified several critical accounting estimates.
Debt repayments, excluding the pay down on the Revolving Facility of $50,000 from the Notes issuance, of $18,433 and $28,395 were made during 2024 and 2023, respectively. At December 31, 2024, the Company had $168,962 of obligations under the Amended Revolving Facility, excluding deferred financing costs and $50,000 for the Notes issued in March 2024 .
Debt repayments, excluding the pay down on the Revolving Facility of $50,000 from the Notes issuance, of $44,448 and $18,433 were made during 2025 and 2024, respectively. At December 31, 2025, the Company had $124,962 of obligations under the Amended Revolving Facility, excluding deferred financing costs and $50,000 for the Notes issued in March 2024 .
Also, from October 1, 2024 through September 30, 2025, the Series A Notes will bear interest at 6.46%. ​ The Company declared dividends, in total, of $0.12 and $0.115 per share during 2024 and 2023, respectively.
Also, from October 1, 2024 through September 30, 2025, the Series A Notes bore interest at 6.46%. ​ The Company declared dividends, in total, of $0.12 per share during 2025 and 2024.
Also, we continue to build a pipeline of exciting market-based application opportunities. Sales cycles are long and the time from being selected for the solution development to full rate production can be longer, yet we believe we continue to build a scalable foundation which can deliver strong returns on those investments.
Sales cycles are long and the time from being selected for the solution development to full rate production can be longer, yet we believe we continue to build a scalable foundation which can deliver strong returns on those investments.
During 2024, the cash provided by operating activities decreased from 2023 primarily due to decreases in cash due to changes in accounts payable and accrued liabilities, as well as a decrease in net income, offset partially by increases in cash due to changes in accounts receivable and inventory.
During 2025, the cash provided by operating activities increased from 2024 primarily due to increases in cash due to an increase in net income, as well as changes in accounts payable, and accrued liabilities, offset partially by decreases in cash due to changes in accounts receivable and inventory.
EBITDA AND ADJUSTED EBITDA: EBITDA was $56,045 for 2024 compared to $67,151 for 2023. Adjusted EBITDA was $62,525 and $77,184 for 2024 and 2023, respectively. EBITDA and Adjusted EBITDA are non-GAAP measures. EBITDA consists of income before interest expense, provision for income taxes, and depreciation and amortization.
EBITDA AND ADJUSTED EBITDA: EBITDA was $67,316 for 2025 compared to $56,045 for 2024. Adjusted EBITDA was $76,865 and $62,525 for 2025 and 2024, respectively. EBITDA and Adjusted EBITDA are non-GAAP measures. EBITDA consists of income before interest expense, provision for income taxes, and depreciation and amortization.
Selling expenses as a percentage of revenues were 5% and 4% during 2024 and 2023, respectively. GENERAL AND ADMINISTRATIVE EXPENSES: General and administrative expenses decreased by 5% during 2024 compared to 2023 due to l ower incentive compensation as well as cost reduction actions taken reflecting our Simplify to Accelerate NOW strategy .
Selling expenses as a percentage of revenues were 4% and 5% during 2025 and 2024, respectively. GENERAL AND ADMINISTRATIVE EXPENSES: General and administrative expenses increased by 4% during 2025 compared to 2024 due to high er incentive compensation, offset partially by cost reduction actions taken reflecting our Simplify to Accelerate NOW strategy .
Sales to U.S. customers were 55% of total sales for 2024 and 59% for 2023, with the balance of sales to customers primarily in Europe, Canada and Asia-Pacific. ● Gross profit was $165,691 for 2024, a 10% decrease from $183,683 in 2023.
Sales to U.S. customers were 55% of total sales for each of 2025 and 2024, with the balance of sales to customers primarily in Europe, Canada and Asia-Pacific. ● Gross profit was $181,709 for 2025, a 10% increase from $165,691 in 2024.
The cash used in investing activities in 2024 increased as compared with 2023 due to $20,000 in cash paid for the acquisition of SNC, offset by $5,129 of cash paid in 2023 for the acquisition of Sierramotion, as well as by a decrease in capital expenditures of $1,920. The Company expects 2025 capital expenditures to be approximately $10,000 to $12,000.
The cash used in investing activities in 2025 decreased as compared with 2024 due to $20,000 in cash paid for the acquisition of SNC in 2024, as well as a decrease in capital expenditures of $2,496. The Company expects 2026 capital expenditures to be approximately $10,000 to $12,000.
The Company excludes the effect of currency translation from revenue for this measure because currency translation is not under management’s control, is subject to volatility and can obscure underlying business trends.
The Company believes that revenue excluding foreign currency exchange impacts is a useful measure in analyzing sales results. The Company excludes the effect of currency translation from revenue for this measure because currency translation is not under management’s control, is subject to volatility and can obscure underlying business trends.
NET INCOME AND ADJUSTED NET INCOME: Net income decreased during 2024 compared to 2023, primarily due to operating income decreases, reflecting decreased revenues and lower gross margin, partially offset by a decrease in operating expenses. Adjusted net income for the years ended December 31, 2024 and 2023 was $24,679 and $37,458, respectively.
NET INCOME AND ADJUSTED NET INCOME: Net income increased during 2025 compared to 2024, primarily due to operating income increases, reflecting increased revenues and higher gross margin, offset partially by increases in operating expenses. Adjusted net income for the years ended December 31, 2025 and 2024 was $36,274 and $24,679, respectively.
Our strong financial condition, along with AST continuous improvement initiatives in quality, delivery, and cost allow us to have a positive outlook for the continued long-term growth of our Company.
We believe this approach will allow us to provide increased value to our customers and improved margins for our Company and are demonstrated in our acquisitions completed in previous years. Our strong financial condition, along with AST continuous improvement initiatives in quality, delivery, and cost allow us to have a positive outlook for the continued long-term growth of our Company.
Cash used in financing activities in 2024 as compared to cash used in financing activities in 2023 reflects the borrowings of $20,000 from the Amended Revolving Facility to fund the SNC acquisition and the $50,000 of fixed-rate Notes issued in March 2024 that were used to pay down the Revolving Facility, as compared to the $11,000 borrowed in 2023, primarily to fund the business acquisition activity in the third quarter of 2023 and, to a lesser extent, inventory requirements during uncertain supply chain environments in 2023.
Cash used in financing activities in 2025 as compared to cash used in financing activities in 2024 reflects the borrowings of $20,000 from the Amended Revolving Facility to fund the SNC acquisition and the $50,000 of fixed-rate Notes issued in March 2024 that were used to pay down the Revolving Facility.
A 1% write-down of our goodwill would decrease our 2024 net income by approximately $1,000, or $0.06 per diluted share. 27 Table of Contents Business Combinations The Company allocates the purchase price of an acquired company, including when applicable, the acquisition date fair value of contingent consideration between tangible and intangible assets acquired and liabilities assumed from the acquired business based on their estimated fair values, with the residual of the purchase price recorded as goodwill.
Business Combinations The Company allocates the purchase price of an acquired company, including when applicable, the acquisition date fair value of contingent consideration between tangible and intangible assets acquired and liabilities assumed from the acquired business based on their estimated fair values, with the residual of the purchase price recorded as goodwill.
As a percentage of revenue, gross margin decreased 40 basis points to 31.3% in 2024 from 31.7% in 2023.
As a percentage of revenue, gross margin increased 150 basis points to 32.8% in 2025 from 31.3% in 2024.
In addition, supplemental presentation should not be construed as an inference that the Company’s future results will be unaffected by similar adjustments to net income determined in accordance with GAAP. The Company believes that revenue excluding foreign currency exchange impacts is a useful measure in analyzing sales results.
In addition, the supplemental presentation should not be construed as an inference that the Company’s future results will be unaffected by similar adjustments to net income determined in accordance with GAAP. Organic revenue is reported revenues adjusted for the impact of foreign currency and the revenue contribution from acquisitions.
As of December 31, 2024, the unused Amended Revolving Facility was $111,038. The amount available to borrow may be lower and may vary from period to period based upon our debt and EBITDA levels, which impacts our covenant 33 Table of Contents calculations.
As of December 31, 2025, the unused Amended Revolving Facility was $155,038. Additionally, the Company has a $150,000 fixed-rate private shelf facility, under which $50,000 of borrowings are outstanding at December 31, 2025. The amount available to borrow may be lower and may vary from period to period based upon our debt and EBITDA levels, which impacts our covenant calculations.
See information included in “Non – GAAP Measures” below for a discussion of the non-GAAP measure and reconciliation of revenue to revenue excluding foreign currency impacts. ORDER BOOKINGS AND BACKLOG: The 8% decrease in orders in 2024 compared to 2023 is due to an 8% decrease in volume with minimal foreign currency impact.
The overall increase in revenue was primarily due to a 3.5% volume increase and a favorable 1.2% foreign currency impact. See information included in “Non – GAAP Measures” below for a discussion of the non-GAAP measure and reconciliation of revenue to revenue excluding foreign currency impacts.
As a percentage of revenues, engineering and development expenses were 7% for each of the years ended December 31, 2024 and 2023.
As a percentage of revenues, engineering and development expenses were 7% and 8% for the years ended December 31, 2025 and 2024, respectively. ACQUISITION AND INTEGRATION-RELATED COSTS: Acquisition and integration-related costs were not significant in the current and prior year period.
Year 2024 compared to 2023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the year ended 2024 vs. 2023 ​ ​ ​ December 31, ​ Variance (Dollars in thousands, except per share data) 2024 2023 ​ $ % ​ Revenues ​ $ 529,968 ​ $ 578,634 ​ $ (48,666) ​ (8) % Cost of goods sold ​ 364,277 ​ 394,951 ​ (30,674) ​ (8) % Gross profit ​ 165,691 ​ 183,683 ​ (17,992) ​ (10) % Gross margin percentage ​ 31.3 % 31.7 % ​ ​ Operating costs and expenses: ​ ​ ​ ​ ​ Selling ​ 25,310 ​ 24,713 ​ 597 ​ 2 % General and administrative ​ 55,669 ​ 58,403 ​ (2,734) ​ (5) % Engineering and development ​ 39,761 ​ 41,665 ​ (1,904) ​ (5) % Business development ​ 2,416 ​ 4,275 ​ (1,859) ​ (43) % Amortization of intangible assets ​ 12,497 ​ 12,313 ​ 184 ​ 1 % Total operating costs and expenses ​ 135,653 ​ 141,369 ​ (5,716) ​ (4) % Operating income ​ 30,038 ​ 42,314 ​ (12,276) ​ (29) % Interest expense ​ 13,296 ​ 12,383 ​ 913 ​ 7 % Other (income) expense, net ​ (116) ​ 231 ​ (347) ​ (150) % Total other expense, net ​ 13,180 ​ 12,614 ​ 566 ​ 4 % Income before income taxes ​ 16,858 ​ 29,700 ​ (12,842) ​ (43) % Income tax provision ​ (3,692) ​ (5,603) ​ 1,911 ​ (34) % Net income ​ $ 13,166 ​ $ 24,097 ​ $ (10,931) ​ (45) % ​ ​ ​ ​ ​ ​ Effective tax rate ​ 21.9 % 18.9 % ​ ​ ​ ​ ​ Diluted earnings per share ​ $ 0.79 ​ $ 1.48 ​ $ (0.69) ​ (47) % Bookings ​ $ 480,031 ​ $ 520,275 ​ $ (40,244) ​ (8) % Backlog ​ $ 230,788 ​ $ 276,093 ​ $ (45,305) ​ (16) % ​ ​ REVENUES: The decrease in revenues for 2024 reflects decreases within each of the target markets, most significantly in Vehicle.
Year 2025 compared to 2024 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the year ended ​ ​ ​ 2025 vs. 2024 ​ ​ ​ December 31, ​ Variance (Dollars in thousands, except per share data) ​ ​ ​ 2025 ​ ​ ​ 2024 ​ $ ​ ​ ​ % ​ Revenues ​ $ 554,478 ​ $ 529,968 ​ $ 24,510 ​ 5 % Cost of goods sold ​ 372,769 ​ 364,277 ​ 8,492 ​ 2 % Gross profit ​ 181,709 ​ 165,691 ​ 16,018 ​ 10 % Gross margin percentage ​ 32.8 % 31.3 % ​ ​ ​ ​ Operating costs and expenses: ​ ​ ​ ​ ​ ​ ​ ​ ​ Selling ​ 24,524 ​ 25,310 ​ (786) ​ (3) % General and administrative ​ 57,853 ​ 55,669 ​ 2,184 ​ 4 % Engineering and development ​ 38,836 ​ 39,761 ​ (925) ​ (2) % Acquisition and integration-related costs ​ ​ 47 ​ ​ 445 ​ ​ (398) ​ (89) % Restructuring and business realignment costs ​ 3,993 ​ 1,971 ​ 2,022 ​ 103 % Amortization of intangible assets ​ 12,471 ​ 12,497 ​ (26) ​ — % Total operating costs and expenses ​ 137,724 ​ 135,653 ​ 2,071 ​ 2 % Operating income ​ 43,985 ​ 30,038 ​ 13,947 ​ 46 % Interest expense ​ 13,175 ​ 13,296 ​ (121) ​ (1) % Other expense (income), net ​ 2,076 ​ (116) ​ 2,192 ​ NM % Total other expense, net ​ 15,251 ​ 13,180 ​ 2,071 ​ 16 % Income before income taxes ​ 28,734 ​ 16,858 ​ 11,876 ​ 70 % Income tax provision ​ (6,700) ​ (3,692) ​ (3,008) ​ 81 % Net income ​ $ 22,034 ​ $ 13,166 ​ $ 8,868 ​ 67 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Effective tax rate ​ 23.3 % 21.9 % ​ ​ ​ ​ ​ Diluted earnings per share ​ $ 1.32 ​ $ 0.79 ​ $ 0.53 ​ 67 % Bookings ​ $ 550,864 ​ $ 480,031 ​ $ 70,833 ​ 15 % Backlog ​ $ 232,925 ​ $ 230,788 ​ $ 2,137 ​ 1 % ​ ​ REVENUES: The increase in revenues for 2025 reflects increases within certain target markets, most significantly in Industrial and Aerospace and Defense.
We remain focused on executing our strategy for growth while streamlining the organization and emphasizing continuous improvement in quality, delivery, cost and innovation as we drive the One Allient approach and expand our value proposition for our customers. Solid strides continue to be made with our multi-product, fully integrated solutions that are leading to increased business.
The dividend payout ratio was 9% and 15% for 2025 and 2024, respectively when compared with the diluted earnings per share of $1.32 and $0.79, respectively. 24 Table of Contents We remain focused on executing our strategy for growth while streamlining the organization and emphasizing continuous improvement in quality, delivery, cost and innovation as we drive the One Allient approach and expand our value proposition for our customers.
Net income was 45% lower in 2024 compared to 2023, and earnings per diluted share decreased by 46% as compared to 2023. ● Bookings were $480,031 for 2024 compared with $520,275 for 2023, a decrease of 8%. Decreases in bookings are primarily due to a slowing demand at certain customers beginning in the second quarter of 2024.
Net income was 70% higher in 2025 compared to 2024, and earnings per diluted share increased by 70% as compared to 2024. ● Bookings were $550,864 for 2025 compared with $480,031 for 2024, an increase of 15%. Increases in bookings are primarily due to increasing demand at certain customers, primarily power quality solutions supporting data center infrastructure throughout 2025.
Included in backlog as of December 31, 2024 is $7,353 contributed by the 2024 business acquisition. ● Debt of $224,177, net of cash of $36,102, increased by $1,574 to $188,075 at December 31, 2024 from debt of $218,402, net of cash of $31,901 of $186,501 at December 31, 2023, primarily as a result of borrowings to fund acquisition activities and capital expenditures, offset in part by payments made on debt from cash flows generated by operations. ● We declared and paid a dividend of $0.03 in each quarter of 2024, as well as declaring and paying $0.025 in the first quarter of 2023 and $0.03 in each of the second, third, and fourth quarters of 2023 pursuant to 24 Table of Contents our quarterly dividend program.
Backlog as of December 31, 2025 was $232,925, an increase of 1% from $230,788 at year end 2024. ● Debt of $180,389, net of cash of $40,705, decreased by $48,391 to $139,684 at December 31, 2025 from debt of $224,177, net of cash of $36,102 of $188,075 at December 31, 2024, primarily as a result of payments made on debt from cash flows generated by operations. ● We declared and paid a dividend of $0.03 in each quarter of 2025 and 2024, pursuant to our quarterly dividend program.
INTEREST EXPENSE: Interest expense increased by 7% in 2024 compared to 2023 primarily due to higher average debt balances and higher interest rates, offset in part by the impact of interest rate swaps. INCOME TAXES: For 2024 and 2023, the effective income tax rate was 21.9% and 18.9%, respectively.
AMORTIZATION OF INTANGIBLE ASSETS: Amortization of intangible assets remained flat in 2025 compared to 2024. INTEREST EXPENSE: Interest expense decreased by 1% in 2025 compared to 2024 primarily due to lower average debt balances, offset partially by higher interest rates, which are mitigated in part by the impact of interest rate swaps.
The gross margin decrease was largely driven by lower fixed cost absorption on lower sales volumes, as well as the gross margin impact of our most recent acquisition. ● Operating income was $30,038 for 2024 compared with $42,314 for 2023, or 5.7% and 7.3% of revenue in 2024 and 2023, respectively. ● Net income was $13,166 for 2024, or $0.79 per diluted share, compared with $24,097, or $1.48 per diluted share, for 2023.
G ross profit and gross margin percentage were impacted favorably by higher sales volume, improved product mix, and operational improvements driven by our Simplify to Accelerate NOW strategy. ● Operating income was $43,985 for 2025 compared with $30,038 for 2024, or 7.9% and 5.7% of revenue in 2025 and 2024, respectively. ● Net income was $22,034 for 2025, or $1.32 per diluted share, compared with $13,166, or $0.79 per diluted share, for 2024.
As the fair value of our reporting unit exceeds its carrying value, Allient does not believe that our reporting unit is at risk for impairment. Fair value is calculated based on estimated discounted future cash flows and comparable publicly traded companies.
The assessment indicated that it was more-likely-than-not that the fair value of our reporting unit exceeded its carrying amount, and as such, a quantitative assessment was not performed. We do not believe that our reporting unit is at risk for impairment.
Financial Overview Highlights for our fiscal year ended December 31, 2024, include: ● Revenue was $529,968 for 2024 compared with $578,634 in 2023.
Financial Overview Highlights for our fiscal year ended December 31, 2025, include: ● Revenue was $554,478 for 2025 compared with $529,968 in 2024. Strong results in the Industrial market was driven by increased demand in power quality solutions supporting data center infrastructure. This is partially offset by decreases in Vehicle due to reduced demand in power sports and truck applications.
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Certain markets, primarily Industrial and Vehicle, experienced decreases in revenue and our Industrial market was impacted by elevated shipments in 2023 as supply chains normalized, combined with slowing demand at certain customers beginning in the second quarter of 2024. The acquisitions completed in 2023 and 2024 contributed an incremental $40,856 of revenues in 2024.
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Dividends to shareholders for 2025 and 2024 were each $0.12 per share.
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Backlog as of December 31, 2024 was $230,788, a decrease of 17% from $276,093 at year end 2023.
Added
Solid strides continue to be made with our multi-product, fully integrated solutions that are leading to increased business. Also, we continue to build a pipeline of exciting market-based application opportunities.
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Dividends to shareholders for 2024 and 2023 were $0.12 and $0.115 per share, respectively. The dividend payout ratio was 15% and 8% for 2024 and 2023, respectively when compared with the diluted earnings per share of $0.79 and $1.48, respectively.
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Outlook for 2026 In 2025, we successfully executed on our strategic initiatives, delivering improved margins, stronger cash flow, and enhanced balance sheet flexibility.
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We believe this approach will allow us to provide increased value to our customers and improved margins for our Company and are demonstrated in our acquisitions completed in 2024 and 2023.
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Strength in industrial automation and power quality solutions supporting data center infrastructure, combined with the disciplined execution of structural cost and margin improvements from our Simplify to Accelerate NOW program, have yielded durable margin expansion. ​ Allient is an applied technology/know-how company, and to grow, we will continue to invest in the technical resources to ensure we can execute on our mantra to “ create game changing solutions that adds tangible value for our customers ”. ​ As we look into 2026, while we remain mindful of macroeconomics variability in certain end markets, our diversified portfolio, improved cost structure and enhanced financial flexibility support disciplined growth and long-term value creation. ​ Critical Accounting Policies and Estimates Management’s discussion and analysis of financial condition and results of operations are based upon our consolidated financial statements which have been prepared in accordance with Generally Accepted Accounting Principles (“GAAP”).
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Outlook for 2025 We experienced a significant demand shift starting in the late second quarter of 2024, with notable declines in our Industrial Automation sector prompted by extended capital expenditure cycles, delayed factory expansions and budget constraints on automation upgrades as well as market softness in the recreational vehicle marketplace driven by increased financing costs and tightening of household budgets.
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As part of this analysis, we evaluated factors including, but not limited to, our market capitalization and stock price performance, macro-economic conditions, market and industry conditions, cost factors, the competitive environment, and the operational stability and 26 Table of Contents overall financial performance of our reporting unit.
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These factors combined with intermittent uneven order flow in other served markets, spurred a slowdown in demand. The declines were in large part due to significant inventory rebalancing at some of our larger customers surfacing as the supply chain returned to more normal conditions and macroeconomic pressures shifting customer priorities.
Added
A 1% write-down of our goodwill would decrease our 2025 net income by approximately $1,000, or $0.06 per diluted share.
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These market conditions substantially persisted through the second half of 2024. ​ Our Simplify to Accelerate NOW program continues to generate tangible results while enhancing our agility and competitiveness. ​ ● Annualized Savings: To date, Allient has implemented $10 million in total annualized cost savings. ● Operational Efficiencies: The program’s focus on refining the organizational structure, eliminating redundancies, and optimizing production processes has led to initial margin improvements, bolstering overall profitability. 25 Table of Contents ● Enhanced Agility: By simplifying its operations, Allient aims to improve its speed to market, enhance customer service, and strengthen its competitive positioning across targeted industries. ● Future Cost Rationalization: Beyond the current $10 million in savings, Allient is actively identifying further opportunities to rationalize its cost structure in 2025, ensuring continued alignment with evolving market conditions and customer demands.
Added
Increases in revenues compared to the prior year period are largely impacted by increased demand in power quality solutions supporting data center infrastructure . Our sales for 2025 were comprised of 55% to U.S. customers and 45% to customers primarily in Europe, Canada and Asia-Pacific.
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Our goal is to drive $6 million to $7 million in annual savings. In early February 2025, we announced plans to expand machining capabilities at our Dothan, Alabama facility, an initiative expected to help support our goal. While this transition presents complexities and requires focused execution, we are confident in the long-term efficiencies it will create.
Added
ORDER BOOKINGS AND BACKLOG: The 15% increase in orders in 2025 compared to 2024 is due to an 13.4% increase in volume and a favorable 1.3% foreign currency impact. Increases in bookings are primarily due to increasing demand at certain customers, primarily power quality solutions supporting data center infrastructure throughout 2025.
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One-time implementation costs are expected to be equivalent to the annualized savings, resulting in a one-year pay back on the investment.
Added
GROSS PROFIT AND GROSS MARGIN: Gross margins increased to 32.8% for 2025, compared to 31.3% for 2024.
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We anticipate realizing the initial benefits of this initiative toward the end of 2025. ​ Allient is an applied technology/know-how motion company, and to grow, we will continue to invest in the technical resources to ensure we can move forward with our mantra to “ create controlled motion solutions that change the game ” and to meet the emerging needs of our customers in our served market segments.
Added
Gross profit and gross margin percentage were impacted favorably by higher sales volume, improved product mix, and operational improvements driven by our Simplify to Accelerate NOW strategy. 28 Table of Contents SELLING EXPENSES: Selling expenses decreased 3% during 2025 compared to 2024 primarily due to the mix of sales with commissions.
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We anticipate that our investment in these key resources will continue to drive our growth now and in the future.
Added
RESTRUCTURING AND BUSINESS REALIGNMENT COSTS: Restructuring and business realignment costs increased in the year ended December 31, 2025 compared to 2024 reflecting costs primarily associated with the transfer of assembly operations from our Dothan, Alabama facility in 2025 and timing of other Simplify to Accelerate NOW actions as compared with the prior year.
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We expect to continue the shift from being a component supplier to a more complete solutions provider, along with the application of AST, to drive cost reduction. ​ Our global production footprint provides us with the opportunity to be a value added supplier for global companies who require support around the world.
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INCOME TAXES: For 2025 and 2024, the effective income tax rate was 23.3% and 21.9%, respectively.
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We will continue to evaluate and find areas to leverage our current manufacturing and sales capabilities to drive sales and improve efficiencies. ​ While near-term order patterns remain fluid, the fundamental drivers of our business remain strong.
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Overall, our strategic initiatives position Allient for stronger financial performance, greater operational flexibility, and enhanced earnings power in the years ahead. ​ Critical Accounting Policies and Estimates Management’s discussion and analysis of financial condition and results of operations are based upon our consolidated financial statements which have been prepared in accordance with Generally Accepted Accounting Principles (“GAAP”).
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Fair value of the reporting unit is estimating using a weighted methodology that utilizes the income and market approaches. The income approach incorporates significant assumptions and estimates, including discounted cash flow modeling to forecast cash flows, revenue growth, operating income margin, and discount rate.
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Decreases in revenues compared to the prior year period are largely impacted by elevated shipments during the prior year period as supply chains normalized, combined with elevated inventory levels and slowing demand at our customers in the current period, partially offset by revenue contributed from the 2023 and 2024 acquisitions .
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Our sales for 2024 were comprised of 55% to U.S. customers and 45% to customers primarily in Europe, Canada and Asia-Pacific. The overall decrease in revenue was primarily due to an 8% volume decrease and a minimal foreign currency impact. The acquisitions completed in 2023 and 2024 contributed an incremental $40,856 of revenues in 2024.
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Decreases in bookings are primarily due to a slowing demand at certain customers beginning in the second quarter of 2024. The acquisitions completed in 2023 and 2024 contributed an incremental $39,993 of orders in 2024.
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The decrease in backlog as of December 31, 2024, compared to December 31, 2023 includes an incremental backlog of $7,353 from the acquisition that was completed during 2024. 29 Table of Contents GROSS PROFIT AND GROSS MARGIN: Gross margins decreased to 31.3% for 2024, compared to 31.7% for 2023.
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The gross margin decrease was largely driven by lower fixed cost absorption on lower sales volumes, as well as the gross margin impact of our most recent acquisition. SELLING EXPENSES: Selling expenses increased 2% during 2024 compared to 2023 primarily due to increased costs in connection with our acquisitions and the mix of sales with commissions.
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BUSINESS DEVELOPMENT COSTS: The decrease in business development costs in 2024 compared to 2023 is largely due to the fair value changes of contingent consideration of $1.9 million related to acquisitions incurred in 2023, compared to the $300 contra expense recognized in 2024, offset in part by restructuring expenses recognized in 2024.
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AMORTIZATION OF INTANGIBLE ASSETS: Amortization of intangible assets increased 1% in 2024 compared to 2023, due to the inclusion of the full year of intangible asset amortization of the 2023 acquisition and the intangible asset amortization from the 2024 acquisition.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

13 edited+0 added−0 removed6 unchanged
Biggest changeDuring the years ended December 31, 2024 and 2023, we recorded losses of $1,749 and $115, respectively, which is included in other (income) expense, net and generally offset 34 Table of Contents the gains or losses from the foreign currency adjustments on the intercompany balances that are also included in other (income) expense, net.
Biggest changeDuring the years ended December 31, 2025 and 2024, we recorded a gain of $481 and a loss of $1,749, respectively, which is included in other expense (income), net and generally offset the gains or losses from the foreign currency adjustments on the intercompany balances that are also 33 Table of Contents included in other expense (income), net.
We translate all assets and liabilities of our foreign operations, where the U.S. dollar is not the functional currency, at the period-end exchange rate and translate sales and expenses at the average exchange rates in effect during the period. The net effect of these translation adjustments is recorded in the consolidated financial statements as comprehensive (loss) income.
We translate all assets and liabilities of our foreign operations, where the U.S. dollar is not the functional currency, at the period-end exchange rate and translate sales and expenses at the average exchange rates in effect during the period. The net effect of these translation adjustments is recorded in the consolidated financial statements as comprehensive income (loss).
Interest on the Notes will be payable quarterly on the 21st day of March, June, September and December in each year, commencing on June 21, 2024. As amended on October 22, 2024, the Series A Notes will bear interest at 6.46% from October 1, 2024 through September 30, 2025.
Interest on the Notes will be payable quarterly on the 21st day of March, June, September and December in each year, commencing on June 21, 2024. As amended on October 22, 2024, the Series A Notes bore interest at 6.46% from October 1, 2024 through September 30, 2025.
In September 2024, the Company entered into an additional interest rate swap with a notional amount of $50,000 that matures in September 2027. ​ As of December 31, 2024, we had $168,962 outstanding under the Amended Revolving Facility (excluding deferred financing fees), of which $90,000 is currently being hedged.
In September 2024, the Company entered into an additional interest rate swap with a notional amount of $50,000 that matures in September 2027. ​ As of December 31, 2025, we had $124,962 outstanding under the Amended Revolving Facility (excluding deferred financing fees), of which $90,000 is currently being hedged.
As amended on October 22, 2024, borrowings under the Credit Facility will bear interest at Term SOFR plus a margin of 2.50% from January 1, 2025 through September 30, 2025. We use interest rate derivatives to add stability to interest expense and to manage our exposure to interest rate movements.
As amended on October 22, 2024, borrowings under the Credit Facility bore interest at Term SOFR plus a margin of 2.50% from January 1, 2025 through September 30, 2025. We use interest rate derivatives to add stability to interest expense and to manage our exposure to interest rate movements.
Interest will be computed on the basis of a 360-day year composed of twelve 30-day months. ​ Interest rates on our Credit Facility are based on Term SOFR plus a margin of 1.25% to 2.50% (2.125% at December 31, 2024), depending on the Company’s ratio of total funded indebtedness to consolidated EBITDA.
Interest will be computed on the basis of a 360-day year composed of twelve 30-day months. ​ Interest rates on our Credit Facility are based on Term SOFR plus a margin of 1.25% to 2.50% (1.75% at December 31, 2025), depending on the Company’s ratio of total funded indebtedness to consolidated EBITDA.
Net foreign currency transaction gains and losses included in total other (income) expense, net amounted to a gain of $85 and a loss of $281 in 2024 and 2023, respectively. Interest Rates The Series A Notes under our 2024 Note Payable Agreement will bear interest at a fixed rate 5.96% and will mature on March 21, 2031.
Net foreign currency transaction gains and losses included in total other expense (income), net amounted to a loss of $2,078 and a gain of $85 in 2025 and 2024, respectively. Interest Rates The Series A Notes under our 2024 Note Payable Agreement will bear interest at a fixed rate 5.96% and will mature on March 21, 2031.
A hypothetical 10% change in the value of the U.S. dollar in relation to our most significant foreign currency net assets would have had an impact of approximately $16,105 on our foreign net assets as of December 31, 2024.
A hypothetical 10% change in the value of the U.S. dollar in relation to our most significant foreign currency net assets would have had an impact of approximately $16,373 on our foreign net assets as of December 31, 2025.
We continuously evaluate our foreign currency risk and we take action from time to time in order to best mitigate these risks. A hypothetical 10% change in the value of the U.S. dollar in relation to our most significant foreign currency exposures would have had an impact of approximately $4,493 on our 2024 sales.
We continuously evaluate our foreign currency risk and we take action from time to time in order to best mitigate these risks. A hypothetical 10% change in the value of the U.S. dollar in relation to our most significant foreign currency exposures would have had an impact of approximately $24,126 on our 2025 sales.
The resulting gains or losses are recorded in other (income) expense, net in the consolidated statements of income and comprehensive income. To minimize foreign currency exposure, the Company had foreign currency contracts with notional amounts of $30,945 and $22,193 at December 31, 2024 and 2023, respectively.
The resulting gains or losses are recorded in other expense (income), net in the consolidated statements of income and comprehensive income. To minimize foreign currency exposure, the Company had foreign currency contracts with notional amounts of $26,033 and $30,945 at December 31, 2025 and 2024, respectively.
The translation adjustment was a loss of $12,033 and a gain of $3,669 for the years ended December 31, 2024 and 2023, respectively. Translation adjustments are not adjusted for income taxes as they relate to permanent investments in our foreign subsidiaries.
The translation adjustment was a gain of $14,759 and a loss of $12,033 for the years ended December 31, 2025 and 2024, respectively. Translation adjustments are not adjusted for income taxes as they relate to permanent investments in our foreign subsidiaries.
This amount is not indicative of the hypothetical net earnings impact due to partially offsetting impacts on cost of sales and operating expenses in those currencies. We estimate that foreign currency exchange rate fluctuations decreased sales in 2024 compared to 2023 by approximately $139.
This amount is not indicative of the hypothetical net earnings impact due to partially offsetting impacts on cost of sales and operating expenses in those currencies. We estimate that foreign currency exchange rate fluctuations increased sales in 2025 compared to 2024 by approximately $6,481.
A hypothetical one percentage point (100 basis points) change in the Base Rate on the $78,962 of unhedged floating rate debt outstanding at December 31, 2024 would have an impact of approximately $790 on our interest expense for 2024. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 35 Table of Contents
A hypothetical one percentage point (100 basis points) change in the Base Rate on the $34,962 of unhedged floating rate debt outstanding at December 31, 2025 would have an impact of approximately $350 on our interest expense for 2025. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 34 Table of Contents

Other ALNT 10-K year-over-year comparisons