Alamo Group 2024 Net Sales Drop 3.6%

Alamo Group announced its 2024 net sales of $1.6 billion, down 3.6% year–over-year.

Net sales for the year in the Vegetation Division — which includes brands like Bush Hog, Schulte, Dixie Chopper and others — came in at $785.2 million, down 19.8% for the year. 

For the fourth quarter, the division’s net sales were $159.8 million, down 25.5% year-over-year. 

During Alamo’s earnings call with investors, President and CEO Jeff Leonard said, “Dealers have remained cautious as they anticipated relief in interest rates has been further delayed by the Fed as it continues to battle inflation.”

Talking about the ag equipment market, Leonard went on to say, “Sales in this market also declined throughout 2024, including the fourth quarter. However, order bookings improved sequentially every quarter during 2024, and fourth quarter book-to-bill was the highest of the year. While dealer inventories remained elevated, they've continued to come down.”

Addressing the tariffs and plant capacities, Leonard said the company repurposed its plant in Wooster, Ohio, from forestry and tree care equipment manufacturing to snow removal, which was done partly to mitigate the potential risks related to tariffs. Because of that, Alamo can produce snow removal equipment for the U.S. market inside that facility and use its Canadian facilities to serve the Canadian market.

Watch the full version of this episode of On The Record