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ALG · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Alamo Group, Inc. (ALG) stock moving?
Alamo Group's Q3 2026 report was weak on the headline numbers: adjusted EPS of $2.06 missed the $2.62 estimate, sales of $403.1M fell 4.0% year over year and missed the $437.2M estimate, and GAAP net income was only $2.0M after $33.3M of pre-tax charges tied to exiting Dixie Chopper and Boxer. Adjusted EBITDA was $52.4M, a 13.0% margin, and the company ended the quarter with $230.7M cash against $232.3M debt. The Econ Engineering purchase for about $158.7M adds a UK road-maintenance business with roughly $88M of sales and $38.5M of adjusted EBITDA, a multiple of about 4.1x, and is funded through the revolver. Price action reflects the miss: the stock rose to a $154.29 intraday high and a $152.73 close on Nov 2, then swung from a $153.29 high to a $133.32 low on Nov 3. It closed at $133.70 on Nov 6, the lowest close in the 30-day window, and has rebounded to $139.73 on Nov 10, still about 5% below the $147.76 pre-earnings close on Oct 30. Volume ran above 200K shares a day from Nov 2 to Nov 5, then fell to 107K on Nov 6, and the recovery since has been on lighter volume. The $133–134 zone has held as a floor, while the pre-earnings $145–148 area is now overhead.
News behind the analysis
- Alamo Group Q3 2026 Earnings Call TranscriptBenzinga published the transcript of Alamo Group's third-quarter 2026 earnings call, held on Tuesday, Nov 3.
- Alamo Group Inc. Reports Q3 2026 Financial Results and Acquisition of EconAlamo Group reported Q3 2026 net income of $2.0M and completed the acquisition of Econ Engineering, a U.K. road-maintenance truck maker, for about $158.7M.
- Alamo Group Q3 Adj. EPS $2.06 Misses $2.62 Estimate, Sales $403.137M Miss $437.168M EstimateAdjusted EPS of $2.06 and sales of $403.1M both fell short of consensus estimates of $2.62 and $437.2M.
About Alamo Group, Inc.
Alamo Group is a Texas-based company that makes specialised equipment for keeping roads, rights-of-way, farms and municipal spaces maintained. Examples include mowers, street sweepers, snowplows, vacuum trucks and excavators. Its sales grow mainly through buying other companies: recent purchases include Petersen Industries in early 2026 and the UK's Econ Engineering for about $159 million. It has also sold or shut down weaker units such as Dixie Chopper.
How it makes money
It sells equipment and replacement parts through two segments of roughly similar size. Industrial Equipment covers street sweepers, snow-removal gear, vacuum and excavator trucks, and roadway-maintenance machines, sold mostly to governments and contractors. Vegetation Management covers mowers, brush cutters and farm implements, sold through dealers to farmers, governments and landscapers. Yearly sales are roughly $1.6–1.7 billion, and North America and Europe are its main markets.
What usually moves ALG
- Municipal and government infrastructure budgets
- Farm income and agricultural equipment demand
- Snow-season severity and orders for snow equipment
- Acquisitions, divestitures and how well acquired businesses are integrated
- Steel and input-cost inflation affecting margins