Alamo Group (NYSE:ALG) Stock Price Down 16.7% After Earnings Miss

Shares of Alamo Group, Inc. (NYSE:ALG) were down 16.7% on Tuesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $179.92 and last traded at $181.9250. Approximately 45,622 shares traded hands during mid-day trading, a decline of 58% from the average daily volume of 108,955 shares. The stock had previously closed at $218.47.

The industrial products company reported $1.70 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.06 by ($0.36). The company had revenue of $373.65 million during the quarter, compared to analyst estimates of $405.18 million. Alamo Group had a return on equity of 10.15% and a net margin of 6.47%.

Alamo Group Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, January 29th. Investors of record on Friday, January 16th were paid a dividend of $0.34 per share. This is a positive change from Alamo Group’s previous quarterly dividend of $0.30. This represents a $1.36 annualized dividend and a yield of 0.7%. The ex-dividend date was Friday, January 16th. Alamo Group’s dividend payout ratio is presently 14.11%.

Key Alamo Group News

Here are the key news stories impacting Alamo Group this week:

• Positive Sentiment: Closed acquisition and strong cash position — Alamo completed the purchase of Petersen Industries (grapple equipment for bulky-waste) in January and reported cash of ~$309.7M versus total debt of $205.7M, giving it a net cash position that supports M&A and operational flexibility. ALAMO GROUP ANNOUNCES FINANCIAL RESULTS
• Neutral Sentiment: Operational actions and full-year context — Management says 2025 was a transition year, highlighting manufacturing footprint optimization and a focus on long-term margin improvement; FY2025 sales were roughly flat vs. 2024 and adjusted EBITDA conversion to cash was strong. These are long-cycle positives but not immediate upside drivers. Q4 2025 Earnings Call Transcript
• Negative Sentiment: Q4 results missed consensus — Q4 adjusted EPS came in at $1.70 vs. the $2.06 consensus and revenue was $373.7M vs. ~$405M expected. The topline and EPS shortfalls are the primary reason investors sold the stock. Alamo Group posts disappointing Q4 results
• Negative Sentiment: Year-over-year contraction in quarterly earnings and margin pressure — EPS declined vs. prior year ($2.39 a year ago) and adjusted EBITDA margin for the quarter was 12.0% of sales, signaling margin compression that investors dislike in a capital goods company. Alamo Group Q4 Earnings and Revenues Miss Estimates
• Negative Sentiment: Market reaction and technicals: heavier trading and downside vs. near-term moving averages — News outlets report the stock traded with higher volume after the print and moved below the 50-day average, amplifying the selloff as short-term technicals turned negative. Alamo Group earnings & market reaction

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on ALG. Wall Street Zen cut Alamo Group from a “buy” rating to a “hold” rating in a research report on Saturday, November 8th. DA Davidson lowered their price target on shares of Alamo Group from $225.00 to $190.00 and set a “neutral” rating on the stock in a report on Tuesday, November 11th. Weiss Ratings restated a “hold (c)” rating on shares of Alamo Group in a research note on Monday, December 29th. Zacks Research upgraded shares of Alamo Group from a “strong sell” rating to a “hold” rating in a research report on Monday, January 12th. Finally, CJS Securities raised shares of Alamo Group to a “strong-buy” rating in a research note on Thursday, December 11th. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $225.00.

Institutional Trading of Alamo Group

Several hedge funds have recently modified their holdings of the company. Global Retirement Partners LLC boosted its holdings in shares of Alamo Group by 136.2% in the 4th quarter. Global Retirement Partners LLC now owns 307 shares of the industrial products company’s stock worth $52,000 after acquiring an additional 177 shares in the last quarter. Jones Financial Companies Lllp boosted its stake in Alamo Group by 3,140.0% in the first quarter. Jones Financial Companies Lllp now owns 324 shares of the industrial products company’s stock worth $58,000 after purchasing an additional 314 shares in the last quarter. MAI Capital Management bought a new stake in shares of Alamo Group during the third quarter worth $73,000. DZ BANK AG Deutsche Zentral Genossenschafts Bank Frankfurt am Main acquired a new stake in shares of Alamo Group in the second quarter valued at $87,000. Finally, Kestra Advisory Services LLC bought a new position in shares of Alamo Group in the fourth quarter valued at about $76,000. Institutional investors and hedge funds own 92.36% of the company’s stock.

Alamo Group Trading Down 15.4%

The company’s 50-day moving average is $194.79 and its 200-day moving average is $188.85. The company has a debt-to-equity ratio of 0.17, a quick ratio of 2.72 and a current ratio of 4.43. The firm has a market cap of $2.24 billion, a price-to-earnings ratio of 21.52, a P/E/G ratio of 1.22 and a beta of 1.11.

Alamo Group Company Profile

Alamo Group, Inc engages in the design, manufacture and marketing of equipment for vegetation management, roadside maintenance, agricultural harvesting and industrial applications. The company offers a broad portfolio of products, including boom mowers, flail mowers, rotary cutters, snow removal equipment, slurry seal machines, railcar movers and tow tractors. These offerings are distributed under a variety of brand names and through a network of independent dealerships and distributors, meeting the needs of municipalities, highway departments, agricultural producers and industrial operators.

The company operates through two primary segments: Agricultural and Industrial.