Alamo Group Inc. (NYSE: ALG) reported financial results for the third quarter of 2026, which included the completion of planned portfolio optimization initiatives and the acquisition of a U.K. manufacturer.

For the quarter ended September 30, 2026, the company reported net sales of $403.1 million, a decrease of 4.0% compared to the same period in 2025. Net income was $2.0 million, or $0.17 per diluted share, compared to $25.4 million, or $2.10 per diluted share, in the prior year. Adjusted net income was $24.9 million, or $2.06 per diluted share, down from $28.2 million, or $2.34 per diluted share, in the prior year.

The results included $33.3 million of net pre-tax charges related to the sale and wind-down of businesses and product lines, including Dixie Chopper and Boxer. These charges were allocated as follows: $7.3 million to a reduction in sales, $15.5 million to cost of sales, $9.0 million to selling, general and administrative expenses, and $1.5 million to other income and expense.

Adjusted EBITDA for the quarter was $52.4 million, or 13.0% of net sales. Gross profit was $76.1 million, and adjusted gross profit was $99.8 million, or 24.7% of net sales.

On October 27, 2026, Alamo Group acquired 100% of the outstanding equity of Econ Engineering Group Limited, a U.K. manufacturer of roadway maintenance vocational trucks. The company paid £120.0 million ($158.7 million) for the acquisition, which was funded using borrowings under its revolving credit facility.

At September 30, 2026, the company reported cash and cash equivalents of $230.7 million and total debt of $232.3 million. Net cash provided by operating activities over the last twelve months was $158.3 million, or 204% of net income for the same period.

For the first nine months of 2026, net sales increased 3.3% to $1.3 billion. Adjusted EBITDA increased 2.0% to $175.6 million, or 13.8% of net sales. Backlog at September 30, 2026, was $521.3 million, down from $618.3 million at the same time in 2025.

The company will host a conference call to discuss these results on Tuesday, November 3, 2026, at 10:00 a.m. ET.