Allient Inc 10-Q for FY2025 Q3

Allient Inc (ALNT)

10-Q 2025-11-05 For: 2025-09-30

Added on April 12, 2026

About this 10-Q

Allient Inc filed this 10-Q on November 5, 2025, covering the quarter ended September 30, 2025 (FY2025 Q3).

Headline figures

Quarter ended September 30, 2025, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $138.74M; up 10.8% from $125.21M a year earlier
Net income: $6.48M; up 208.3% from net income of $2.1M a year earlier
Diluted EPS: $0.39; up 200.0% from $0.13 a year earlier

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Colorado		84-0518115
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

495 Commerce Drive, Amherst, New York (Address of principal executive offices)		14228 (Zip Code)

Title of each class		Trading Symbol		Name of each exchange on which registered
Common stock		ALNT		NASDAQ


PART I. FINANCIAL INFORMATION			Page No.

	Item 1.	Financial Statements

		Condensed Consolidated Balance Sheets – Unaudited	1

		Condensed Consolidated Statements of Income and Comprehensive Income – Unaudited	2

		Condensed Consolidated Statements of Stockholders’ Equity – Unaudited	3

		Condensed Consolidated Statements of Cash Flows – Unaudited	4

		Notes to Condensed Consolidated Financial Statements – Unaudited	5

	Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	20

	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	29

	Item 4.	Controls and Procedures	30

PART II. OTHER INFORMATION			30

	Item 1A.	Risk Factors	30

	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	30

	Item 5.	Other Information	31

	Item 6.	Exhibits	31


	September 30,		December 31,
	2025		2024
Assets
Current assets:
Cash and cash equivalents	$	39,476	$	36,102
Trade receivables, net of provision for credit losses of $1,177 and $1,628 at September 30, 2025 and December 31, 2024, respectively		91,718		78,774
Inventories		111,360		111,517
Prepaid expenses and other assets		15,502		11,187
Total current assets		258,056		237,580
Property, plant, and equipment, net		62,599		65,685
Deferred income taxes		8,277		9,116
Intangible assets, net		91,296		99,671
Goodwill		134,142		131,789
Operating lease assets		21,996		23,748
Other long-term assets		8,717		8,192
Total Assets	$	585,083	$	575,781
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	33,724	$	27,156
Accrued liabilities		39,302		30,221
Total current liabilities		73,026		57,377
Long-term debt		190,259		224,177
Deferred income taxes		3,338		3,642
Pension and post-retirement obligations		1,549		1,667
Operating lease liabilities		17,474		19,417
Other long-term liabilities		5,265		4,647
Total liabilities		290,911		310,927
Stockholders’ Equity:
Common stock, no par value, authorized 50,000 shares; 16,936 and 16,810 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively		113,325		111,024
Preferred stock, par value $1.00 per share, authorized 5,000 shares; no shares issued or outstanding		—		—
Retained earnings		191,163		177,013
Accumulated other comprehensive loss		(10,316)		(23,183)
Total stockholders’ equity		294,172		264,854
Total Liabilities and Stockholders’ Equity	$	585,083	$	575,781


	For the three months ended				For the nine months ended
	September 30,				September 30,
	2025		2024		2025		2024
Revenues	$	138,743	$	125,213	$	411,124	$	407,958
Cost of goods sold		92,562		85,949		275,835		280,641
Gross profit		46,181		39,264		135,289		127,317
Operating costs and expenses:
Selling		6,217		6,323		18,257		19,283
General and administrative		14,112		13,856		42,364		42,438
Engineering and development		9,687		9,056		29,185		30,416
Acquisition and integration-related costs		17		(201)		40		256
Restructuring and business realignment costs		836		479		3,457		1,948
Amortization of intangible assets		3,132		3,135		9,350		9,381
Total operating costs and expenses		34,001		32,648		102,653		103,722
Operating income		12,180		6,616		32,636		23,595
Other expense, net:
Interest expense		3,401		3,435		10,588		10,207
Other expense, net		457		468		1,964		405
Total other expense, net		3,858		3,903		12,552		10,612
Income before income taxes		8,322		2,713		20,084		12,983
Income tax provision		(1,845)		(612)		(4,433)		(2,830)
Net income	$	6,477	$	2,101	$	15,651	$	10,153
Basic earnings per share:
Earnings per share	$	0.39	$	0.13	$	0.94	$	0.61
Basic weighted average common shares		16,695		16,574		16,658		16,513
Diluted earnings per share:
Earnings per share	$	0.39	$	0.13	$	0.94	$	0.61
Diluted weighted average common shares		16,780		16,605		16,708		16,581
Net income	$	6,477	$	2,101	$	15,651	$	10,153
Other comprehensive income (loss):
Foreign currency translation adjustment		(1,385)		5,821		14,121		235
Loss on derivatives, net of tax		(219)		(1,379)		(1,254)		(1,968)
Comprehensive income	$	4,873	$	6,543	$	28,518	$	8,420


	Common Stock					Accumulated Other Comprehensive (Loss) Income
(In thousands except per share data)	Shares	Amount		Retained Earnings		Foreign Currency Translation Adjustments		Accumulated income (loss) on derivatives		Pension adjustments		Total Stockholders' Equity
Balances, December 31, 2024	16,810	$	111,024	$	177,013	$	(25,289)	$	1,975	$	131	$	264,854
Stock transactions under employee benefit stock plans	33		886										886
Issuance of restricted stock, net of forfeitures	135		(11)										(11)
Stock-based compensation expense			920										920
Shares withheld for payment of employee payroll taxes	(3)		(97)										(97)
Comprehensive income (loss)							3,862		(856)				3,006
Tax effect of derivative transactions									231				231
Net income					3,557								3,557
Dividends to stockholders - $0.03					(518)								(518)
Balances, March 31, 2025	16,975	$	112,722	$	180,052	$	(21,427)	$	1,350	$	131	$	272,828
Issuance of restricted stock, net of forfeitures	6		(43)										(43)
Stock-based compensation expense			835										835
Shares withheld for payment of employee payroll taxes	(43)		(927)										(927)
Comprehensive income (loss)							11,644		(540)				11,104
Tax effect of derivative transactions									130				130
Net income					5,617								5,617
Dividends to stockholders - $0.03					(482)								(482)
Balances, June 30, 2025	16,938	$	112,587	$	185,187	$	(9,783)	$	940	$	131	$	289,062
Issuance of restricted stock, net of forfeitures	—												—
Stock-based compensation expense			835										835
Shares withheld for payment of employee payroll taxes	(2)		(97)										(97)
Comprehensive loss							(1,385)		(288)				(1,673)
Tax effect of derivative transactions									69				69
Net income					6,477								6,477
Dividends to stockholders - $0.03					(501)								(501)
Balances, September 30, 2025	16,936	$	113,325	$	191,163	$	(11,168)	$	721	$	131	$	294,172


Cash and cash equivalents	$	881
Trade receivables		3,467
Inventories		8,600
Prepaid expenses and other assets		496
Property, plant, and equipment		4,258
Operating lease assets		378
Intangible assets		2,900
Goodwill		2,955
Other current liabilities		(3,188)
Deferred revenue		(55)
Operating lease liabilities		(378)
Net deferred income tax liabilities		(472)
Other noncurrent liabilities		(118)
Net purchase price	$	19,724


	Nine months ended
	September 30,
	2024
Revenues	$	409,252
Income before income taxes	$	13,702


	Three months ended				Nine months ended
	September 30,				September 30,
Target Market	2025		2024		2025		2024
Industrial	$	71,023	$	59,152	$	198,904	$	192,230
Vehicle		21,584		20,353		71,278		83,669
Medical		21,656		20,507		60,803		58,828
Aerospace & Defense		18,755		18,332		60,753		53,627
Distribution and Other		5,725		6,869		19,386		19,604
Total	$	138,743	$	125,213	$	411,124	$	407,958


		September 30,		December 31,
	Useful lives	2025		2024
Land		$	1,798	$	1,770
Building and improvements	5 - 39 years		29,923		29,161
Machinery, equipment, tools and dies	3 - 15 years		119,687		110,194
Construction in progress			2,511		2,856
Furniture, fixtures and other	3 - 10 years		26,293		25,270
			180,212		169,251
Less accumulated depreciation			(117,613)		(103,566)
Property, plant, and equipment, net		$	62,599	$	65,685


		September 30,
		2025
December 31, 2024	$	131,789
Effect of foreign currency translation		2,353
September 30, 2025	$	134,142


	Weighted Average	September 30, 2025						December 31, 2024
	Amortization	Gross		Accumulated		Net Book		Gross		Accumulated		Net Book
	Period	Amount		Amortization		Value		Amount		Amortization		Value
Customer lists	14.1 years	$	117,690	$	(56,883)	$	60,807	$	116,370	$	(50,098)	$	66,272
Trade name	13.7 years		16,100		(9,273)		6,827		15,890		(8,564)		7,326
Design and technologies	10.5 years		42,149		(18,487)		23,662		41,390		(15,317)		26,073
Total		$	175,939	$	(84,643)	$	91,296	$	173,650	$	(73,979)	$	99,671


Year ending December 31,	Total
	Estimated
	Amortization Expense
Remainder of 2025		3,124
2026		12,400
2027		11,958
2028		11,193
2029		9,554
Thereafter		43,067
Total estimated amortization expense	$	91,296


		Number of
		shares
Outstanding at beginning of period		236,340
Awarded		151,836
Vested		(129,857)
Forfeited		(8,544)
Outstanding at end of period		249,775



	Restructuring
	related accruals

December 31, 2024	$	—
Expenses incurred		1,499
Cash payments		(354)
March 31, 2025		1,145
Expenses incurred		1,122
Cash payments		(657)
June 30, 2025		1,610
Expenses incurred		836
Cash payments		(1,307)
September 30, 2025	$	1,139


	For the nine months ended
	September 30,
	2025		2024
Cash Flows From Operating Activities:
Net income	$	15,651	$	10,153
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization		19,105		19,248
Deferred income taxes		287		(45)
Stock-based compensation expense		2,590		3,382
Debt issue cost amortization recorded in interest expense		485		379
Other		3,729		3,248
Changes in operating assets and liabilities, net of acquisitions:
Trade receivables		(10,679)		6,012
Inventories		1,863		5,500
Prepaid expenses and other assets		(3,372)		142
Accounts payable		5,583		(12,259)
Accrued liabilities		7,874		(6,302)
Net cash provided by operating activities		43,116		29,458

Cash Flows From Investing Activities:
Consideration paid for acquisitions, net of cash acquired		—		(25,231)
Purchase of property and equipment		(5,090)		(6,903)
Net cash used in investing activities		(5,090)		(32,134)

Cash Flows From Financing Activities:
Proceeds from issuance of long-term debt		—		76,898
Principal payments of long-term debt and finance lease obligations		(34,334)		(61,333)
Payment of contingent consideration		—		(2,450)
Payment of debt issuance costs		(41)		(2,329)
Dividends paid to stockholders		(1,501)		(1,505)
Tax withholdings related to net share settlements of restricted stock		(1,121)		(1,596)
Net cash (used in) provided by financing activities		(36,997)		7,685
Effect of foreign exchange rate changes on cash		2,345		208
Net increase (decrease) in cash and cash equivalents		3,374		5,217
Cash and cash equivalents at beginning of period		36,102		31,901
Cash and cash equivalents at end of period	$	39,476	$	37,118

Supplemental disclosure of cash flow information:
Stock issued for acquisitions	$	—	$	6,250


	Three months ended				Nine months ended
	September 30,				September 30,
Geography	2025		2024		2025		2024
North America (primarily U.S.)	$	94,838	$	85,263	$	273,463	$	276,886
Europe		37,470		33,859		118,517		111,664
Asia-Pacific		6,435		6,091		19,144		19,408
Total	$	138,743	$	125,213	$	411,124	$	407,958


	September 30,		December 31,
	2025		2024
Parts and raw materials	$	82,504	$	78,725
Work-in-process		12,431		12,274
Finished goods		16,425		20,518
	$	111,360	$	111,517


		Asset Derivatives
		Fair value as of:
Derivatives designated as	Balance Sheet	September 30,		December 31,
hedging instruments	Location	2025		2024
Foreign currency contracts	Prepaid expenses and other assets	$	43	$	—
Interest rate swaps	Other long-term assets	$	848	$	2,575
		$	891	$	2,575

		Liability Derivatives
		Fair value as of:
Derivatives designated as	Balance Sheet	September 30,		December 31,
hedging instruments	Location	2025		2024
Foreign currency contracts	Accrued liabilities	$	—	$	137


	Amount of pre-tax (loss) gain recognized				Amount of pre-tax (loss) gain recognized
	in OCI on derivatives				in OCI on derivatives
Derivatives in cash flow hedging relationships	Three months ended September 30,				Nine months ended September 30,
	2025		2024		2025		2024
Interest rate swaps	$	(219)	$	(745)	$	(1,254)	$	566


	September 30, 2025
	Level 1		Level 2		Level 3
Assets (liabilities)
Pension plan assets	$	6,054	$	—	$	—
Deferred compensation plan assets		5,186		—		—
Foreign currency hedge contracts, net		—		43		—
Interest rate swaps, net		—		848		—


	Operating Leases		Finance Leases
Remainder of 2025		1,616		208
2026		6,111		848
2027		5,347		867
2028		4,003		866
2029		2,727		906
Thereafter		5,816		6,978
Total undiscounted cash flows	$	25,620	$	10,673
Less: present value discount		(2,786)		(2,400)
Total lease liabilities	$	22,834	$	8,273


							Foreign Currency
	Defined Benefit				Tax Effect of		Translation
	Plan Liability		Cash Flow Hedges		Cash Flow Hedges		Adjustment		Total
At June 30, 2025	$	131	$	1,126	$	(186)	$	(9,783)	$	(8,712)
Unrealized gain (loss) on cash flow hedges		—		97		(23)		—		74
Amounts reclassified from AOCI		—		(385)		92		—		(293)
Foreign currency translation gain		—		—		—		(1,385)		(1,385)
At September 30, 2025	$	131	$	838	$	(117)	$	(11,168)	$	(10,316)


	For the three months ended						2025 vs. 2024
	September 30,						Variance
(Dollars in thousands, except per share data)	2025			2024			$		%
Revenues	$	138,743		$	125,213		$	13,530	11	%
Cost of goods sold		92,562			85,949			6,613	8	%
Gross profit		46,181			39,264			6,917	18	%
Gross margin percentage		33.3	%		31.4	%
Operating costs and expenses:
Selling		6,217			6,323			(106)	(2)	%
General and administrative		14,112			13,856			256	2	%
Engineering and development		9,687			9,056			631	7	%
Acquisition and integration-related costs		17			(201)			218	(108)	%
Restructuring and business realignment costs		836			479			357	75	%
Amortization of intangible assets		3,132			3,135			(3)	—	%
Total operating costs and expenses		34,001			32,648			1,353	4	%
Operating income		12,180			6,616			5,564	84	%
Interest expense		3,401			3,435			(34)	(1)	%
Other expense, net		457			468			(11)	(2)	%
Total other expense		3,858			3,903			(45)	(1)	%
Income before income taxes		8,322			2,713			5,609	207	%
Income tax provision		(1,845)			(612)			(1,233)	201	%
Net income	$	6,477		$	2,101		$	4,376	208	%

Effective tax rate		22.2	%		22.6	%
Diluted earnings per share	$	0.39		$	0.13		$	0.26	206	%
Bookings	$	133,119		$	102,631		$	30,488	30	%
Backlog	$	230,984		$	238,492		$	(7,508)	(3)	%


	For the three months ended
	September 30,
			Per diluted				Per diluted
	2025		share		2024		share
Net income as reported	$	6,477	$	0.39	$	2,101	$	0.13
Non-GAAP adjustments, net of tax (1)
Amortization of intangible assets – net		2,399		0.14		2,401		0.14
Foreign currency loss – net		356		0.02		353		0.02
Acquisition and integration-related costs – net (2)		13		—		(154)		(0.01)
Restructuring and business realignment costs – net		640		0.04		367		0.02
Non-GAAP adjusted net income and adjusted diluted earnings per share	$	9,885	$	0.59	$	5,068	$	0.31


					2025 vs.
	Nine Months Ended				2024
	September 30,				Variance
(in thousands):	2025		2024		$
Net cash provided by operating activities	$	43,116	$	29,458	$	13,658
Net cash used in investing activities		(5,090)		(32,134)		27,044
Net cash (used in) provided by financing activities		(36,997)		7,685		(44,682)
Effect of foreign exchange rates on cash		2,345		208		2,137
Net increase (decrease) in cash and cash equivalents	$	3,374	$	5,217	$	(1,843)


				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
07/01/25 to 07/31/25	82	$	29.88	—	—
08/01/25 to 08/31/25	1,399		42.29	—	—
09/01/25 to 09/30/25	752		45.38	—	—
Total	2,233	$	42.87	—	—


(a)	Exhibits

	31.1	Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

	31.2	Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

	32.1	Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

	32.2	Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

	101.1 SCH	Inline XBRL Taxonomy Extension Schema Document (filed herewith).

	101.2 CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document (filed herewith).

	101.3 DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document (filed herewith).

	101.4 LAB	Inline XBRL Taxonomy Extension Label Linkbase Document (filed herewith).

	101.5 PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document (filed herewith).

	104	Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in exhibits 101.) (filed herewith).

DATE:	November 5, 2025	ALLIENT INC.
		By:	/s/ James A. Michaud
		James A. Michaud
		Senior Vice President & Chief Financial Officer


Date: November 5, 2025	/s/ Richard S. Warzala
	Richard S. Warzala
	Chief Executive Officer