Alamo Group Inc. today reported results for the third quarter ended Sept. 30, 2023.
Highlights for the Quarter
- Eighth consecutive quarterly record for sales and earnings
- Net sales of $419.6 million, up 13.8%
- Vegetation Management net sales of $246.9 million, up 8.0%
- Industrial Equipment net sales of $172.7 million, up 23.1%
- Income from operations of $49.8 million, (11.9% of net sales), up 38.8%
- Net income of $34.9 million, or $2.91 per diluted share, up 35.2%
- Trailing twelve-month EBITDA of $245.0 million, up 25.0% from full year 2022(1)
- Backlog of $890.9 million, down 2% compared to prior year third quarter-end
Record third quarter 2023 net sales were $419.6 million and increased 13.8% compared to $368.8 million in the third quarter of 2022.
Gross margin improved in the quarter vs. the third quarter of 2022 by $21.8 million or 23.6%. Third quarter net income improved 35.2% to $34.9 million, or $2.91 per diluted share, compared to net income of $25.8 million, or $2.16 per diluted share in the third quarter of 2022.
The Company's backlog at the end of the third quarter was $890.9 million, virtually unchanged from the end of the second quarter of 2023 but slightly down by 2% vs. the backlog at the end of the third quarter of 2022, and down 11.5% compared to the company's backlog at the end of calendar year 2022.
DA Davidson Analyst Michael Shlisky, CFA said in a note to investors:
We got the sense that the strong performance appears poised to continue through at least the first half of 2024. ALG's backlog affords it good visibility into at least 'the first several quarters of 2024,' mentioning double-digit growth rates and ongoing margin progress. While we would be interested in which end-markets will be leading the charge, this can only be seen as a good sign, and the closest we have heard to actual financial guidance in quite some time.
