NYSE$ALG

Alamo Group Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Alamo Group's Q2 2021 performance was marked by significant sales and net income growth, driven by recovering customer demand across both Industrial and Agricultural divisions, despite facing cost and supply headwinds.

Alamo Group reported a 29% increase in net sales and a 100% increase in net income compared to the COVID-impacted prior year second quarter. The company achieved record order bookings and backlog, with strong demand in both the Agricultural and Industrial divisions. However, the company faced challenges related to rising input costs, supply chain disruptions, and labor shortages.

  • Total company net sales increased by 29% to $347.6 million.
  • Net income rose by 100% to $26.0 million, or $2.19 per diluted share.
  • Industrial Division net sales increased by 27% to $231.2 million.
  • Agricultural Division net sales increased by 35% to $116.3 million.

Headline financials

Total Revenue

$348M

Previous: $269M+29.4%
EPS (adj)

$1.97

Previous: $1.06+85.8%
Total Backlog

$504M

Previous: $217M+132.5%
Net Debt

$229M

No prior period
Capital Expenditures

-$9.36M

Previous: -$12.5M+25.4%
Free Cash Flow

$16.7M

Previous: $444K+3656.8%
Net Income

$26M

Previous: $13M+100.5%
Operating Income

$33.6M

Previous: $22.7M+48.2%
Gross Profit

$88.1M

Previous: $67.8M+30.0%
Cash & Equivalents

$85.6M

Previous: $82M+4.4%
Total Assets

$1.21B

Previous: $1.19B+1.6%
Stock-Based Comp

$1.32M

Previous: $1.1M+19.3%

Revenue & EPS history

Alamo Group · Revenue · Quarterly

$348M

Q2 2021+29.4%vs Q2 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Alamo Group · $231M total across 1 segment · Q2 2021

  • Industrial Equipment
    $231M+26.9%

Forward guidance

Assuming the pandemic does not worsen, customer buying activity is expected to remain at a good level in both the Agricultural and Industrial segments through at least the remainder of 2021. However, headwinds experienced during the second quarter are expected to persist at least through the balance of 2021, with some issues potentially extending into early 2022.

Tailwinds

  • Customer buying activity expected to remain good in both Agricultural and Industrial segments.
  • Supported by a backlog of almost $504 million.
  • Company will continue to take appropriate price actions to address changes in cost structure.
  • Company will continue to work closely with suppliers to work through ongoing supply chain disruptions.
  • Company continues to invest in people, processes and equipment to expand capability to deliver the backlog as efficiently as possible.

Headwinds

  • Potential of a significant recurrence of coronavirus illness in communities remains an ongoing concern.
  • Headwinds experienced during the second quarter are expected to persist at least through the balance of 2021.
  • Ongoing shortage of computer chips can impact truck chassis and tractor deliveries and are now expected to persist into early 2022.
  • Input costs for raw materials and certain industrial components continued to rise at a pace that was higher than anticipated.
  • Supply chain disruptions and shipping delays adversely impacted operational efficiency.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+0.8%

Avg return

Earnings day

-0.1%

Avg return

5 days after

+0.8%

Avg return

30 days after

55%

36 / 65 earnings

Positive

+23.2%

Q3 2014

Best reaction

-16.2%

Q3 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.3%-4.4%-13.0%
Q4 2025-15.7%-23.0%-23.0%
Q3 2025+0.8%+0.2%-9.3%
Q1 2025+6.9%+12.3%+16.0%
Q4 2024-5.0%-3.3%-1.9%
Q3 2024+8.3%+7.9%+15.5%
Q2 2024-3.3%-9.4%-2.9%
Q1 2024+0.0%+0.1%-2.0%
Q4 2023-5.1%-5.8%-0.1%
Q3 2023+14.0%+14.5%+18.2%
Q2 2023-7.4%-7.4%-9.3%
Q1 2023+1.1%+1.7%+0.7%
Q4 2022+10.8%+13.3%+9.8%
Q3 2022-4.4%-0.9%+1.4%
Q2 2022+4.0%+5.6%+1.0%
Q1 2022-4.7%-9.8%-5.9%
Q4 2021+2.4%+2.7%+9.5%
Q3 2021-1.9%+1.9%-7.8%
Q2 2021+0.1%+2.0%+6.3%
Q1 2021+1.5%+0.4%-5.5%
Q4 2020-5.3%-4.1%-4.9%
Q3 2020+0.0%+3.9%+14.8%
Q2 2020+4.6%+5.6%+9.7%
Q1 2020+3.6%+2.5%+22.6%
Q4 2019-9.5%-6.6%-25.8%
Q3 2019-16.2%-14.4%-10.2%
Q2 2019+9.9%+7.8%+14.7%
Q1 2019-0.1%+1.9%-8.4%
Q4 2018+2.0%+2.5%+5.2%
Q3 2018+6.0%+1.7%-3.5%
Q2 2018+0.7%+1.7%+2.5%
Q1 2018-12.7%-14.6%-14.6%
Q4 2017-4.0%+0.7%-1.1%
Q3 2017+4.0%+4.9%+11.8%
Q2 2017-2.3%-0.9%-1.4%
Q1 2017+4.2%+6.8%+9.8%
Q4 2016-3.1%-3.7%-2.2%
Q3 2016+0.2%+4.3%+14.3%
Q2 2016-3.4%-1.4%-0.5%
Q1 2016+0.7%
Q4 2015+12.5%
Q3 2015+10.8%
Q2 2015-1.8%
Q1 2015-7.1%
Q4 2014+18.5%
Q3 2014+23.2%
Q2 2014+0.5%
Q1 2014-6.1%
Q4 2013+8.5%
Q3 2013+6.4%
Q2 2013+5.3%
Q1 2013+2.4%
Q4 2012+2.7%
Q3 2012-3.8%
Q2 2012-4.2%
Q1 2011-0.3%
Q1 2012+1.2%
Q4 2009+2.5%
Q4 2011+2.5%
Q3 2010-1.0%
Q3 2011-1.0%
Q2 2011-2.6%
Q2 2010-2.6%
Q4 2010-2.6%
Q1 2010+7.7%

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