For the first quarter ended March 31, 2023, Alamo Group Inc. (NYSE: ALG) reported record net sales of $411.8 million increased 13.7% compared to $362.0 million in 1Q22. Gross margin improved in the quarter versus 1Q22 by $25.9 million or 29.9%. First quarter net income improved 80.6% to $33.3 million, or $2.79 per diluted share, compared to net income of $18.5 million, or $1.55 per diluted share in 1Q22. Alamo Group's backlog at the end of the first quarter was $994.8 million, an increase of $77.0 million, or 8.4%, from the backlog at the end of 1Q22, but was down slightly from the end of calendar year 2022. 

Highlights

  • Net sales of $411.8 million, up 13.7%
    • Vegetation Management net sales of $256.4 million, up 16.0%
    • Industrial Equipment net sales of $155.3 million, up 10.2%
  • Income from operations of $49.0 million, up 68.4%
  • Net income of $33.3 million, or $2.79 per diluted share, up 80.6%
  • Trailing twelve-month EBITDA of $216.3 million, up 10.4% from full year 2022
  • Backlog of $994.8 million, up 8.4% compared to prior year first quarter-end

Alamo Group said the positive results reported for the quarter were achieved through a combination of improved supply chain performance, higher manufacturing throughput and effective price management.

Vegation Management Division

The Vegetation Management Division’s first quarter net sales were $256.4 million, up 16.0% compared to $221.0 million for the same period in 2022. Alamo Group said the increase in net sales was driven by strong shipments of forestry, tree care, agricultural and governmental mowing products in both North America and Europe.

The division's income from operations for the first quarter 2023 was $36.5 million, up 99.1% compared to $18.3 million for the first quarter of 2022. According to Alamo Group, the division's performance benefited from improved pricing and effective cost controls, despite ongoing supply chain issues and continued labor shortages. Outstanding performance in the division's North American operations was complemented by strong results in the United Kingdom, France, Australia and to a lesser extent Brazil during the quarter, the company said.

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