UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 2, 2024

Alamo Group Inc.

(Exact name of registrant as specified in its charter)

State of Delaware	0-21220	74-1621248
(State or other jurisdiction of incorporation)	(Commission File No.)	(IRS Employer Identification No.)
1627 E. Walnut, Seguin, Texas	78155
---	---
(Address of Registrant’s principal executive offices)	(Zip Code)
	(830) 379-1480
---	---	---
Registrant's telephone number, including area code:
Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, par value<br><br>$.10 per share	ALG	New York Stock Exchange

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of

the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of

1934 (§240.12b-2 of this chapter).Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the

extended transition period for complying with any new or revised financial accounting standards provided

pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02    Results of Operations and Financial Condition

On May 2, 2024, Alamo Group Inc. issued a press release announcing, among other things, financial results for the quarter ended March 31, 2024.  A copy of the press release is filed as Exhibit 99.1 to this Current Report on Form 8-K. The foregoing description is qualified by reference to such exhibit.

The information furnished in this report, including the exhibit, shall not be deemed to be incorporated by reference into any of Alamo Group filings with the SEC under the Securities Act of 1933, except as shall be expressly set forth by specific reference in any such filing, and shall not be deemed to be "filed" with the SEC under the Securities Exchange Act of 1934.

Item 9.01    Financial Statements and Exhibits

Exhibit 99.1 - Press Release dated May 2, 2024.

Exhibit 104 - Cover Page Interactive Data File - Inline XBRL for the cover page of this Current Report on Form 8-K

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

May 2, 2024	By:  /s/ Edward T. Rizzuti
	Edward T. Rizzuti,
	General Counsel & Secretary

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press release
104	Cover Page Interactive Data File - Inline XBRL for the cover page of this Current Report on Form 8-K

Document

	For:		Alamo Group Inc.
Contact:		Agnes Kamps
		Executive Vice President & CFO
		830-372-9615
			Financial Relations Board
			Joe Calabrese
			212-827-3772

ALAMO GROUP ANNOUNCES FINANCIAL RESULTS

FOR THE FIRST QUARTER OF 2024

SEGUIN, Texas, May 2, 2024 -- Alamo Group Inc. (NYSE: ALG) today reported results for the first quarter ended March 31, 2024.

Highlights for the Quarter

•Record net sales of $425.6 million, up 3.4%

◦Industrial Equipment net sales of $201.8 million, up 29.9%

◦Vegetation Management net sales of $223.7 million, down 12.7%

•Income from operations of $47.0 million, 11.0% of net sales

•Net income of $32.1 million

•First quarter EPS of $2.67 per share

•Trailing twelve-month EBITDA of $246.2 million, stable versus record year-end 2023(1)

•Total debt net of cash improved $62.2 million or 23.8% compared to first quarter 2023(1)

•Backlog remained elevated at $831.3 million at the end of the first quarter 2024

Results for the Quarter

Record first quarter 2024 net sales of $425.6 million increased 3.4% compared to $411.8 million in the first quarter of 2023. Gross margin of $111.6 million or 26.2% of net sales softened by $0.9 million or 0.8% versus the first quarter of 2023. The reduction in gross margin was driven by a less favorable mix on higher new equipment sales in Industrial Equipment and lower efficiencies in Vegetation Management.

ALAMO GROUP ANNOUNCES 2024 FIRST QUARTER SALES AND EARNINGS Page 2

Net income was $32.1 million, or $2.67 per diluted share, compared to $33.3 million or $2.79 per diluted share in the first quarter of 2023. The Company's backlog at the end of the first quarter remained elevated at $831.3 million, although down slightly from the end of 2023.

Comments on Results

Jeff Leonard, Alamo Group’s President, and Chief Executive Officer commented, “Our first quarter results were broadly in line with expectations as governmental and industrial markets continued to display significant strength. Ongoing investment in renewal of governmental maintenance equipment fleets resulted in brisk quoting and increased ordering activity during the quarter. Governmental markets for our Vegetation Management Division were also strong during the first quarter, especially in North America. Non-governmental markets for our Vegetation Management Division remained under pressure continuing the pattern we experienced in the fourth quarter of 2023.

"We were very pleased that our Industrial Equipment Division had another outstanding quarter marked by sharply higher sales and improved efficiencies. This Division’s order bookings were 25% higher than the first quarter of 2023 and the increase was consistent across all the Division’s product lines. Industrial Equipment order backlog increased by 17% to nearly $560 million. Higher sales, combined with further improvement in supply chain performance, drove the Division’s operating efficiencies higher and produced a 440 basis-point expansion of operating margin. Given its strong momentum and record backlog, the outlook for this Division looks quite positive for the balance of this year at least.

"The Vegetation Management Division continued to confront market headwinds during the quarter. Reflecting the higher for longer rate environment in the U.S., sales declined in its North American Forestry/Tree Care and Hobby Farm/Ranch groups as elevated interest rates continued to negatively impact dealer retail sales and kept channel inventory stubbornly high. Notably, this Division’s sales to governmental agencies increased solidly in Europe and the UK and increased even more strongly in North America compared to the same period of 2023. The Division’s first quarter operating margin declined by 450 basis points primarily due to lower sales volume that slowed its production cadence and adversely impacted production efficiency. To protect operating margin, this Division initiated actions to reduce capacity at its largest facilities that produce forestry, tree care and agricultural equipment and announced its intention to discontinue operations at a facility that produces parts for classic agricultural products. The Division ended the quarter with a backlog of $271.8 million, still higher than pre-pandemic levels.

Supply chain performance broadly continued to improve during the quarter although challenges persisted in a few areas such as truck chassis frames, transmissions, other truck components and certain types of hydraulic equipment. More positively, prices for purchased components stabilized and purchased material

ALAMO GROUP ANNOUNCES 2024 FIRST QUARTER SALES AND EARNINGS Page 3

cost variances moderated during the first quarter. Prices for some of the specialty steels we use to produce our products have returned to levels last recorded in the first quarter of 2021.

"Given the mixed market conditions we experienced in the first quarter, we were pleased with the results reported today. As we expected, substantially improved performance in Industrial Equipment largely offset the impact of the headwinds in Vegetation Management. Our outlook for the balance of 2024 is, however, somewhat more cautious than it was when we reported results for the fourth quarter of 2023, given the uncertain interest rate environment. While this is not expected to impact the positive momentum and favorable results from our Industrial Equipment Division, it will likely prolong the current headwinds in Vegetation Management for the balance of the year and delay the anticipated correction in channel inventory. We will therefore continue to take determined actions to defend operating margin for the balance of 2024. We also believe that the Company’s results for the first quarter nicely highlight the strength of our brands, the resilience of our broad product portfolio and the diverse markets we serve. We remain focused on efficiently executing our long-term strategy, and therefore remain optimistic about the Company’s future prospects."

Earnings Conference Call

The Company will host a conference call to discuss the results on Friday, May 3, 2024 at 10:00 a.m. ET. Hosting the call will be members of senior management.

Individuals wishing to participate in the conference call should dial (877) 317-6789 (domestic) or

(412) 317-6789 (international). For interested individuals unable to join the call, a replay will be available until Friday, May 10, 2024, by dialing (877) 344-7529 (domestic) or (412) 317-0088 (internationally), passcode 9093220.

The live broadcast of Alamo Group Inc.’s quarterly conference call will be available online at the Company's website, www.alamo-group.com (under “Investor Relations/Events and Presentations”) on Friday, May 3, 2024 beginning at 10:00 a.m. ET. The online replay will follow shortly after the call ends and will be archived on the Company’s website for 60 days.

About Alamo Group

Alamo Group is a leader in the design, manufacture, distribution and service of high quality equipment for vegetation management, infrastructure maintenance and other applications. Our products include truck and tractor mounted mowing and other vegetation maintenance equipment, street sweepers, snow removal equipment, excavators, vacuum trucks, other industrial equipment, agricultural implements, forestry equipment and related after-market parts and services. The Company, founded in 1969, has

ALAMO GROUP ANNOUNCES 2024 FIRST QUARTER SALES AND EARNINGS Page 4

approximately 4,250 employees and operates 29 plants in North America, Europe, Australia and Brazil as of March 31, 2024. The corporate offices of Alamo Group Inc. are located in Seguin, Texas.

Forward Looking Statements

This release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company’s actual results in future periods to differ materially from forecasted results. Among those factors which could cause actual results to differ materially are the following: adverse economic conditions which could lead to a reduction in overall market demand, supply chain disruptions, labor constraints, increasing costs due to inflation, disease outbreaks, geopolitical risks, including effects of the war in the Ukraine and the Middle East, competition, weather, seasonality, currency-related issues, and other risk factors listed from time to time in the Company’s SEC reports. The Company does not undertake any obligation to update the information contained herein, which speaks only as of this date.

(Tables Follow)

#

(1) This is a non-GAAP financial measure or other information relating to our GAAP financial measures that we have provided to investors in order to allow greater transparency and a deeper understanding of our financial condition and operating results.  For a reconciliation of the non-GAAP financial measure or for a more detailed explanation of financial results, refer to “Non-GAAP Financial Measure Reconciliation” below and the Attachments thereto.

Page 5

Alamo Group Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(in thousands)

(Unaudited)

	March 31,<br>2024			March 31,<br>2023
ASSETS
Current assets:
Cash and cash equivalents		$	121,802		$	109,320
Accounts receivable, net		392,940			363,525
Inventories		384,488			362,593
Other current assets		16,301			9,978
Total current assets		915,531			845,416
Rental equipment, net		43,102			36,125
Property, plant and equipment		164,810			158,388
Goodwill		205,452			196,533
Intangible assets		163,909			167,832
Other non-current assets		26,616			24,918
Total assets		$	1,519,420		$	1,429,212
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Trade accounts payable		$	103,409		$	101,549
Income taxes payable		17,596			14,801
Accrued liabilities		77,349			72,890
Current maturities of long-term debt and finance lease obligations		15,008			15,008
Total current liabilities		213,362			204,248
Long-term debt, net of current maturities		306,525			356,259
Long-term tax liability		2,633			3,781
Other long-term liabilities		24,335			23,628
Deferred income taxes		16,009			18,948
Total stockholders’ equity		956,556			822,348
Total liabilities and stockholders’ equity		$	1,519,420		$	1,429,212

Page 6

Alamo Group Inc. and Subsidiaries

Condensed Consolidated Statements of Income

(in thousands, except per share amounts)

(Unaudited)

	Three Months Ended
	3/31/2024			3/31/2023
Net sales:
Vegetation Management	$	223,747		$	256,435
Industrial Equipment	201,839			155,336
Total net sales	425,586			411,771
Cost of sales	313,954			299,264
Gross margin	111,632			112,507
	26.2		%	27.3		%
Selling, general and administration expense	60,594			59,668
Amortization expense	4,059			3,815
Income from operations	46,979			49,024
	11.0		%	11.9		%
Interest expense	(6,091)			(5,940)
Interest income	801			383
Other income (expense)	98			1,002
Income before income taxes	41,787			44,469
Provision for income taxes	9,667			11,120
Net Income	$	32,120		$	33,349
Net income per common share:
Basic	$	2.69		$	2.80
Diluted	$	2.67		$	2.79
Average common shares:
Basic	11,944			11,899
Diluted	12,020			11,962

Page 7

Alamo Group Inc.

Non-GAAP Financial Measures Reconciliation

From time to time, Alamo Group Inc. may disclose certain “non-GAAP financial measures” in the course of its earnings releases, earnings conference calls, financial presentations and otherwise. For these purposes, “GAAP” refers to generally accepted accounting principles in the United States. The Securities and Exchange Commission (SEC) defines a “non-GAAP financial measure” as a numerical measure of historical or future financial performance, financial position, or cash flows that is subject to adjustments that effectively exclude or include amounts from the most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP financial measures disclosed by Alamo Group are provided as additional information to investors in order to provide them with greater transparency about, or an alternative method for assessing, our financial condition and operating results. These measures are not in accordance with, or a substitute for, GAAP and may be different from, or inconsistent with, non-GAAP financial measures used by other companies. Whenever we refer to a non-GAAP financial measure, we will also generally present the most directly comparable financial measure calculated and presented in accordance with GAAP, along with a reconciliation of the differences between the non-GAAP financial measure we reference and such comparable GAAP financial measure.

Attachment 1 discloses a non-GAAP financial presentation related to the impact of currency translation on net sales by division. Attachment 2 shows the net change in our total debt net of cash and earnings before interest, taxes, depreciation and amortization ("EBITDA") which is a non-GAAP financial measure. The Company considers this information useful to investors to allow better comparability of period-to-period operating performance. Attachment 3 reflects Division performance inclusive of non-GAAP financial measures such as backlog and earnings before interest, tax, depreciation and amortization ("EBITDA").

Page 8

Attachment 1

Alamo Group Inc.

Non-GAAP Financial Reconciliation

(in thousands)

(Unaudited)

Impact of Currency Translation on Net Sales by Division
	Three Months Ended <br>March 31,						Change due to currency translation
	2024		2023		% change from 2023			%
Vegetation Management	$	223,747	$	256,435	(12.7)	%		0.9	%
Industrial Equipment	201,839		155,336		29.9	%	269	0.2	%
Total net sales	$	425,586	$	411,771	3.4	%		0.6	%

All values are in US Dollars.

Page 9

Attachment 2

Alamo Group Inc.

Non-GAAP Financial Reconciliation

(in thousands)

(Unaudited)

Consolidated Net Change of Total Debt, Net of Cash
	March 31, 2024		March 31, 2023		Net Change
Current maturities	$	15,008	$	15,008
Long-term debt,net of current	306,525		356,259
Total debt	$	321,533	$	371,267
Total cash	121,802		109,320
Total Debt Net of Cash	$	199,731	$	261,947	$	(62,216)
EBITDA
---	---	---	---	---	---	---	---	---
	Three Months Ended				Trailing Twelve Months Ended
	March 31, 2024		March 31, 2023		March 31, 2024		December 31, 2023
Income from operations	$	46,979	$	49,024	$	195,922	$	197,967
Depreciation	8,935		7,626		33,763		32,454
Amortization	4,235		3,991		16,466		16,222
EBITDA	$	60,149	$	60,641	$	246,151	$	246,643

Page 10

Attachment 3

Alamo Group Inc.

Non-GAAP Financial Reconciliation

(in thousands)

(Unaudited)

Vegetation Management Division Performance
	Three Months Ended <br>March 31,
		2024			2023
Backlog		$	271,805		$	517,958
Net Sales		223,747			256,435
Income from Operations		21,679			36,508
		9.7		%	14.2		%
Depreciation		4,333			3,591
Amortization		3,043			3,039
EBITDA		29,055			43,138
		13.0		%	16.8		%
Industrial Equipment Division Performance
---	---
	Three Months Ended <br>March 31,
		2024			2023
Backlog		$	559,497		$	476,832
Net Sales		201,839			155,336
Income from Operations		25,300			12,516
		12.5		%	8.1		%
Depreciation		4,602			4,035
Amortization		1,192			952
EBITDA		31,094			17,503
		15.4		%	11.3		%