Allient Inc 10-Q for FY2026 Q1

Allient Inc (ALNT)

10-Q 2026-05-06 For: 2026-03-31

Added on May 06, 2026

About this 10-Q

Allient Inc filed this 10-Q on May 6, 2026, covering the quarter ended March 31, 2026 (FY2026 Q1).

Headline figures

Quarter ended March 31, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $138.92M; up 4.6% from $132.8M a year earlier
Net income: $5.36M; up 50.6% from net income of $3.56M a year earlier
Diluted EPS: $0.32; up 52.4% from $0.21 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	19

	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	26

	Item 4.	Controls and Procedures	27

PART II. OTHER INFORMATION			27

	Item 1A.	Risk Factors	27

	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	27

	Item 5.	Other Information	27

	Item 6.	Exhibits	27


		March 31,			December 31,
		2026			2025
Assets
Current assets:
Cash and cash equivalents		$	41,175		$	40,705
Trade receivables, net of provision for credit losses of $956 and $887 at March 31, 2026 and December 31, 2025, respectively			91,722			88,775
Inventories			110,131			109,198
Prepaid expenses and other assets			16,502			14,759
Total current assets			259,530			253,437
Property, plant, and equipment, net			61,086			61,771
Deferred income taxes			10,545			10,509
Intangible assets, net			84,947			88,391
Goodwill			133,687			134,332
Operating lease assets			19,564			21,030
Other long-term assets			8,304			8,125
Total Assets		$	577,663		$	577,595
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable		$	33,078		$	28,433
Accrued liabilities			36,543			40,890
Total current liabilities			69,621			69,323
Long-term debt			177,301			180,389
Deferred income taxes			3,116			3,241
Operating lease liabilities			15,138			16,431
Other long-term liabilities			6,561			6,756
Total liabilities			271,737			276,140
Stockholders’ Equity:
Common stock, no par value, authorized 50,000 shares; 17,035 and 16,936 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively			116,232			113,936
Preferred stock, par value $1.00 per share, authorized 5,000 shares; no shares issued or outstanding			—			—
Retained earnings			201,901			197,046
Accumulated other comprehensive loss			(12,207)			(9,527)
Total stockholders’ equity			305,926			301,455
Total Liabilities and Stockholders’ Equity		$	577,663		$	577,595


		For the three months ended
		March 31,
		2026			2025
Revenues		$	138,915		$	132,803
Cost of goods sold			93,540			90,051
Gross profit			45,375			42,752
Operating costs and expenses:
Selling			7,026			6,014
General and administrative			15,402			13,813
Engineering and development			9,641			9,554
Restructuring and business realignment costs			862			1,499
Amortization of intangible assets			3,123			3,093
Total operating costs and expenses			36,054			33,973
Operating income			9,321			8,779
Other expense, net:
Interest expense			2,553			3,635
Other (income) expense, net			(15)			684
Total other expense, net			2,538			4,319
Income before income taxes			6,783			4,460
Income tax provision			(1,426)			(903)
Net income		$	5,357		$	3,557
Basic earnings per share:
Earnings per share		$	0.32		$	0.21
Basic weighted average common shares			16,714			16,599
Diluted earnings per share:
Earnings per share		$	0.32		$	0.21
Diluted weighted average common shares			16,879			16,638
Net income		$	5,357		$	3,557
Other comprehensive income (loss):
Foreign currency translation adjustment			(2,826)			3,862
Change in accumulated loss on derivatives, net of tax			146			(625)
Comprehensive income		$	2,677		$	6,794


	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


		Three months ended
		March 31,
Target Market		2026			2025
Industrial		$	67,249		$	62,426
Vehicle			24,630			22,973
Medical			19,471			19,102
Aerospace & Defense			20,475			21,037
Distribution and Other			7,090			7,265
Total		$	138,915		$	132,803


		Three months ended
		March 31,
Geography		2026			2025
North America (primarily U.S.)		$	89,071		$	86,272
Europe			43,878			40,064
Asia-Pacific			5,966			6,467
Total		$	138,915		$	132,803


		March 31,
		2026
At December 31, 2025	$	134,332
Effect of foreign currency translation		(645)
At March 31, 2026	$	133,687


		Weighted Average		March 31, 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		$	117,495		$	(60,842)		$	56,653		$	117,927		$	(59,006)		$	58,921
Trade name		13.7 years			16,055			(9,646)			6,409			16,105			(9,471)			6,634
Design and technologies		10.5 years			42,023			(20,138)			21,885			42,232			(19,396)			22,836
Total				$	175,573		$	(90,626)		$	84,947		$	176,264		$	(87,873)		$	88,391


		Total
		Estimated
Year ending December 31,		Amortization Expense
Remainder of 2026			9,272
2027			11,938
2028			11,181
2029			9,542
2030			9,388
Thereafter			33,626
Total estimated amortization expense		$	84,947


		Number of
		shares
Outstanding at beginning of period		234,370
Awarded		89,647
Vested		(2,760)
Forfeited		(8,473)
Outstanding at end of period		312,784



		Restructuring
		related accruals

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


				Asset Derivatives
				Fair value as of:
Derivatives designated as		Balance Sheet		March 31,			December 31,
hedging instruments		Location		2026			2025
Foreign currency contracts		Prepaid expenses and other assets		$	62		$	7
Interest rate swaps		Prepaid expenses and other assets		$	548		$	619
Interest rate swaps		Other long-term assets		$	208		$	—
				$	818		$	626

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


		Amount of pre-tax gain (loss) recognized
		in OCI on derivatives
Derivatives in cash flow hedging relationships		Three months ended March 31,
		2026			2025
Interest rate swaps		$	422		$	(480)


	March 31,		December 31,
	2026		2025
Parts and raw materials	$	81,654	$	82,875
Work-in-process		12,085		10,602
Finished goods		16,392		15,721
	$	110,131	$	109,198


				March 31,			December 31,
		Useful lives		2026			2025
Land				$	1,792		$	1,798
Building and improvements		5 - 39 years			30,222			30,215
Machinery, equipment, tools and dies		3 - 15 years			121,561			121,774
Construction in progress					3,055			1,636
Furniture, fixtures and other		3 - 10 years			26,660			26,471
					183,290			181,894
Less accumulated depreciation					(122,204)			(120,123)
Property, plant, and equipment, net				$	61,086		$	61,771


		March 31,			December 31,
		2026			2025
Long-term Debt
Revolving Credit Facility, long-term (1)		$	121,962		$	124,962
Note Payable			50,000			50,000
Unamortized debt issuance costs			(2,176)			(2,339)
Finance lease obligations – noncurrent			7,515			7,766
Long-term debt		$	177,301		$	180,389


	Operating Leases		Finance Leases
Remainder of 2026		4,594		639
2027		5,443		873
2028		4,086		895
2029		2,717		917
2030		2,153		940
Thereafter		3,617		6,156
Total undiscounted cash flows	$	22,610	$	10,420
Less: present value discount		(2,315)		(2,433)
Total lease liabilities	$	20,295	$	7,987


		Amount of pre-tax gain reclassified
		from accumulated OCI into income
Location of gain reclassified		Three months ended March 31,
from accumulated OCI into income		2026			2025

Interest expense		$	231		$	376


		Total amounts of income and expense
		line items presented that reflect the
		effects of cash flow hedges recorded
		Three months ended March 31,
Derivatives designated as hedging instruments	Income Statement Location	2026		2025
Interest rate swaps	Interest Expense	$	2,553	$	3,635


		March 31, 2026
		Level 1			Level 2			Level 3
Assets (liabilities)
Deferred compensation plan assets		$	5,297		$	—		$	—
Foreign currency hedge contracts, net			—			62			—
Interest rate swaps, net			—			756			—


											Foreign Currency
		Defined Benefit						Tax Effect of			Translation
		Plan Liability			Cash Flow Hedges			Cash Flow Hedges			Adjustment			Total
At December 31, 2025		$	259		$	551		$	(48)		$	(10,289)		$	(9,527)
Unrealized gain (loss) on cash flow hedges			—			422			(101)			—			321
Amounts reclassified from AOCI			—			(231)			56			—			(175)
Foreign currency translation gain			—			—			—			(2,826)			(2,826)
At March 31, 2026		$	259		$	742		$	(93)		$	(13,115)		$	(12,207)


		For the three months ended						2026 vs. 2025
		March 31,						Variance
(Dollars in thousands, except per share data)		2026			2025			$			%
Revenues		$	138,915		$	132,803		$	6,112		5	%
Cost of goods sold			93,540			90,051			3,489		4	%
Gross profit			45,375			42,752			2,623		6	%
Gross margin percentage			32.7	%		32.2	%
Operating costs and expenses:
Selling			7,026			6,014			1,012		17	%
General and administrative			15,402			13,813			1,589		12	%
Engineering and development			9,641			9,554			87		1	%
Restructuring and business realignment costs			862			1,499			(637)		(42)	%
Amortization of intangible assets			3,123			3,093			30		1	%
Total operating costs and expenses			36,054			33,973			2,081		6	%
Operating income			9,321			8,779			542		6	%
Interest expense			2,553			3,635			(1,082)		(30)	%
Other (income) expense, net			(15)			684			(699)		(102)	%
Total other expense			2,538			4,319			(1,781)		(41)	%
Income before income taxes			6,783			4,460			2,323		52	%
Income tax provision			(1,426)			(903)			(523)		58	%
Net income		$	5,357		$	3,557		$	1,800		51	%

Effective tax rate			21.0	%		20.2	%
Diluted earnings per share		$	0.32		$	0.21		$	0.10		49	%
Bookings		$	158,080		$	137,622		$	20,458		15	%
Backlog		$	250,991		$	237,323		$	13,668		6	%


								2026 vs.
		Three Months Ended						2025
		March 31,						Variance
(in thousands):		2026			2025			$
Net cash provided by operating activities		$	6,173		$	13,928		$	(7,755)
Net cash used in investing activities			(2,168)			(1,060)			(1,108)
Net cash used in financing activities			(3,131)			(2,190)			(941)
Effect of foreign exchange rates on cash			(404)			973			(1,377)
Net increase in cash and cash equivalents		$	470		$	11,651		$	(11,181)

		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:	May 6, 2026	ALLIENT INC.
		By:	/s/ James A. Michaud
		James A. Michaud
		Senior Vice President & Chief Financial Officer


Date: May 6, 2026	/s/ Richard S. Warzala
	Richard S. Warzala
	Chief Executive Officer