Allient Inc 10-Q for FY2026 Q2

Allient Inc (ALNT)

10-Q 2026-08-05 For: 2026-06-30

Added on August 06, 2026

About this 10-Q

Allient Inc filed this 10-Q on August 5, 2026, covering the quarter ended June 30, 2026 (FY2026 Q2).

Headline figures

Quarter ended June 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $153.77M; up 10.2% from $139.58M a year earlier
Net income: $10.39M; up 85.0% from net income of $5.62M a year earlier
Diluted EPS: $0.61; up 79.4% from $0.34 a year earlier

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

6400 Main Street, suite 150, Williamsville, New York (Address of principal executive offices)		14221 (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	19

	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	28

	Item 4.	Controls and Procedures	29

PART II. OTHER INFORMATION			29

	Item 1A.	Risk Factors	29

	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	29

	Item 5.	Other Information	30

	Item 6.	Exhibits	30


		June 30,			December 31,
		2026			2025
Assets
Current assets:
Cash and cash equivalents		$	42,088		$	40,705
Trade receivables, net of provision for credit losses of $953 and $887 at June 30, 2026 and December 31, 2025, respectively			99,825			88,775
Inventories			117,908			109,198
Prepaid expenses and other assets			14,629			14,759
Total current assets			274,450			253,437
Property, plant, and equipment, net			62,347			61,771
Deferred income taxes			9,940			10,509
Intangible assets, net			81,475			88,391
Goodwill			133,169			134,332
Operating lease assets			23,598			21,030
Other long-term assets			8,942			8,125
Total Assets		$	593,921		$	577,595
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable		$	42,574		$	28,433
Accrued liabilities			37,608			40,890
Total current liabilities			80,182			69,323
Long-term debt			173,337			180,389
Deferred income taxes			2,985			3,241
Operating lease liabilities			18,316			16,431
Other long-term liabilities			6,807			6,756
Total liabilities			281,627			276,140
Stockholders’ Equity:
Common stock, no par value, authorized 50,000 shares; 16,992 and 16,936 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively			114,547			113,936
Preferred stock, par value $1.00 per share, authorized 5,000 shares; no shares issued or outstanding			—			—
Retained earnings			211,620			197,046
Accumulated other comprehensive loss			(13,873)			(9,527)
Total stockholders’ equity			312,294			301,455
Total Liabilities and Stockholders’ Equity		$	593,921		$	577,595


		For the three months ended						For the six months ended
		June 30,						June 30,
		2026			2025			2026			2025
Revenues		$	153,770		$	139,578		$	292,685		$	272,381
Cost of goods sold			100,178			93,222			193,718			183,273
Gross profit			53,592			46,356			98,967			89,108
Operating costs and expenses:
Selling			7,583			6,026			14,609			12,040
General and administrative			15,941			14,439			31,343			28,252
Engineering and development			10,684			9,944			20,325			19,498
Acquisition and integration-related costs			—			23			—			23
Restructuring and business realignment costs			641			1,122			1,503			2,621
Amortization of intangible assets			3,133			3,125			6,256			6,218
Total operating costs and expenses			37,982			34,679			74,036			68,652
Operating income			15,610			11,677			24,931			20,456
Other expense, net:
Interest expense			2,523			3,552			5,076			7,187
Other expense, net			68			823			53			1,507
Total other expense, net			2,591			4,375			5,129			8,694
Income before income taxes			13,019			7,302			19,802			11,762
Income tax provision			(2,628)			(1,685)			(4,054)			(2,588)
Net income		$	10,391		$	5,617		$	15,748		$	9,174
Basic earnings per share:
Earnings per share		$	0.62		$	0.34		$	0.94		$	0.55
Basic weighted average common shares			16,798			16,687			16,756			16,639
Diluted earnings per share:
Earnings per share		$	0.61		$	0.34		$	0.93		$	0.55
Diluted weighted average common shares			16,875			16,713			16,940			16,671
Net income		$	10,391		$	5,617		$	15,748		$	9,174
Other comprehensive income (loss):
Foreign currency translation adjustment			(1,691)			11,644			(4,517)			15,506
Change in accumulated loss on derivatives, net of tax			25			(410)			171			(1,036)
Comprehensive income		$	8,725		$	16,851		$	11,402		$	23,644


	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, 2025	16,936		$	113,936		$	197,046		$	(10,289)		$	503		$	259		$	301,455
Stock transactions under employee benefit stock plans	23			1,512															1,512
Issuance of restricted stock, net of forfeitures	76			(46)															(46)
Stock-based compensation expense				848															848
Shares withheld for payment of employee payroll taxes				(18)															(18)
Comprehensive (loss) income										(2,826)			191						(2,635)
Tax effect of derivative transactions													(45)						(45)
Net income							5,357												5,357
Dividends to stockholders - $0.03							(502)												(502)
Balances, March 31, 2026	17,035		$	116,232		$	201,901		$	(13,115)		$	649		$	259		$	305,926
Stock-based compensation expense				998															998
Shares withheld for payment of employee payroll taxes	(43)			(2,683)															(2,683)
Comprehensive income (loss)										(1,691)			32						(1,659)
Tax effect of derivative transactions													(7)						(7)
Net income							10,391												10,391
Dividends to stockholders - $0.04							(672)												(672)
Balances, June 30, 2026	16,992		$	114,547		$	211,620		$	(14,806)		$	674		$	259		$	312,294


		Three months ended						Six months ended
		June 30,						June 30,
Target Market		2026			2025			2026			2025
Industrial		$	76,458		$	65,455		$	144,036		$	127,881
Vehicle			24,958			26,721			49,589			49,694
Medical			21,834			20,045			41,305			39,147
Aerospace & Defense			24,231			20,961			44,706			41,997
Distribution and Other			6,289			6,396			13,049			13,662
Total		$	153,770		$	139,578		$	292,685		$	272,381


		June 30,
		2026
Beginning balance	$	134,332
Effect of foreign currency translation		(1,163)
Ending balance	$	133,169


		Weighted Average		June 30, 2026									December 31, 2025
		Amortization		Gross			Accumulated			Net Book			Gross			Accumulated			Net Book
		Period		Amount			Amortization			Value			Amount			Amortization			Value
Customer lists		14.1 years		$	117,084		$	(62,693)		$	54,391		$	117,927		$	(59,006)		$	58,921
Trade name		13.7 years			16,011			(9,856)			6,155			16,105			(9,471)			6,634
Design and technologies		10.5 years			41,847			(20,918)			20,929			42,232			(19,396)			22,836
Total				$	174,942		$	(93,467)		$	81,475		$	176,264		$	(87,873)		$	88,391


		Total
		Estimated
Year ending December 31,		Amortization Expense
Remainder of 2026			6,122
2027			11,888
2028			11,135
2029			9,496
2030			9,342
Thereafter			33,492
Total estimated amortization expense		$	81,475


		Number of
		shares
Outstanding at beginning of period		234,370
Awarded		93,638
Vested		(111,816)
Forfeited		(16,520)
Outstanding at end of period		199,672



		Restructuring
		related accruals

Restructuring liability at December 31, 2025		$	521
Expenses incurred			862
Cash payments			(1,172)
Restructuring liability at March 31, 2026		$	211
Expenses incurred			641
Cash payments			(623)
Restructuring liability at June 30, 2026		$	229


				Asset Derivatives
				Fair value as of:
Derivatives designated as		Balance Sheet		June 30,			December 31,
hedging instruments		Location		2026			2025
Foreign currency contracts		Prepaid expenses and other assets		$	47		$	7
Interest rate swaps		Prepaid expenses and other assets		$	402		$	619
Interest rate swaps		Other long-term assets		$	386		$	—
				$	835		$	626

				Liability Derivatives
				Fair value as of:
Derivatives designated as		Balance Sheet		June 30,			December 31,
hedging instruments		Location		2026			2025
Foreign currency contracts		Accrued liabilities		$	2		$	98
Interest rate products		Accrued liabilities			—			39
				$	2		$	137


		June 30, 2026
		Level 1			Level 2			Level 3
Assets (liabilities)
Deferred compensation plan assets		$	5,726		$	—		$	—
Foreign currency hedge contracts, net			—			45			—
Interest rate swaps, net			—			788			—


	Operating Leases		Finance Leases
Remainder of 2026		3,314		426
2027		6,319		873
2028		4,968		895
2029		3,361		917
2030		2,650		940
Thereafter		6,768		6,156
Total undiscounted cash flows	$	27,380	$	10,207
Less: present value discount		(3,572)		(2,335)
Total lease liabilities	$	23,808	$	7,872


		Three months ended						Six months ended
		June 30,						June 30,
Geography		2026			2025			2026			2025
North America (primarily U.S.)		$	102,195		$	92,352		$	191,266		$	178,625
Europe			45,271			40,983			89,149			81,047
Asia-Pacific			6,304			6,243			12,270			12,709
Total		$	153,770		$	139,578		$	292,685		$	272,381


	June 30,		December 31,
	2026		2025
Parts and raw materials	$	86,122	$	82,875
Work-in-process		12,899		10,602
Finished goods		18,887		15,721
	$	117,908	$	109,198


				June 30,			December 31,
		Useful lives		2026			2025
Land				$	1,790		$	1,798
Building and improvements		5 - 39 years			30,559			30,215
Machinery, equipment, tools and dies		3 - 15 years			122,875			121,774
Construction in progress					5,251			1,636
Furniture, fixtures and other		3 - 10 years			26,798			26,471
					187,273			181,894
Less accumulated depreciation					(124,926)			(120,123)
Property, plant, and equipment, net				$	62,347		$	61,771


		June 30,			December 31,
		2026			2025
Long-term Debt
Revolving Credit Facility, long-term (1)		$	117,962		$	124,962
Note Payable			50,000			50,000
Unamortized debt issuance costs			(2,014)			(2,339)
Finance lease obligations – noncurrent			7,389			7,766
Long-term debt		$	173,337		$	180,389


											Foreign Currency
		Defined Benefit						Tax Effect of			Translation
		Plan Liability			Cash Flow Hedges			Cash Flow Hedges			Adjustment			Total
At March 31, 2026		$	259		$	742		$	(93)		$	(13,115)		$	(12,207)
Unrealized gain (loss) on cash flow hedges			—			256			(61)			—			195
Amounts reclassified from AOCI			—			(224)			54			—			(170)
Foreign currency translation gain			—			—			—			(1,691)			(1,691)
At June 30, 2026		$	259		$	774		$	(100)		$	(14,806)		$	(13,873)


		For the three months ended						2026 vs. 2025
		June 30,						Variance
(Dollars in thousands, except per share data)		2026			2025			$			%
Revenues		$	153,770		$	139,578		$	14,192		10	%
Cost of goods sold			100,178			93,222			6,956		7	%
Gross profit			53,592			46,356			7,236		16	%
Gross margin percentage			34.9	%		33.2	%
Operating costs and expenses:
Selling			7,583			6,026			1,557		26	%
General and administrative			15,941			14,439			1,502		10	%
Engineering and development			10,684			9,944			740		7	%
Acquisition and integration-related costs			—			23			(23)		(100)	%
Restructuring and business realignment costs			641			1,122			(481)		(43)	%
Amortization of intangible assets			3,133			3,125			8		—	%
Total operating costs and expenses			37,982			34,679			3,303		10	%
Operating income			15,610			11,677			3,933		34	%
Interest expense			2,523			3,552			(1,029)		(29)	%
Other expense, net			68			823			(755)		(92)	%
Total other expense			2,591			4,375			(1,784)		(41)	%
Income before income taxes			13,019			7,302			5,717		78	%
Income tax provision			(2,628)			(1,685)			(943)		56	%
Net income		$	10,391		$	5,617		$	4,774		85	%

Effective tax rate			20.2	%		23.1	%
Diluted earnings per share		$	0.61		$	0.34		$	0.27		83	%
Bookings		$	201,302		$	135,032		$	66,270		49	%
Backlog		$	298,031		$	236,586		$	61,445		26	%


								2026 vs.
		Six Months Ended						2025
		June 30,						Variance
(in thousands):		2026			2025			$
Net cash provided by operating activities		$	20,127		$	38,435		$	(18,308)
Net cash used in investing activities			(7,070)			(3,189)			(3,881)
Net cash used in financing activities			(11,102)			(24,286)			13,184
Effect of foreign exchange rates on cash			(572)			2,853			(3,425)
Net increase in cash and cash equivalents		$	1,383		$	13,813		$	(12,430)


(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:	August 5, 2026	ALLIENT INC.
		By:	/s/ James A. Michaud
		James A. Michaud
		Senior Vice President & Chief Financial Officer


Date: August 5, 2026	/s/ Richard S. Warzala
	Richard S. Warzala
	Chief Executive Officer