Alamo Group reports $2.03 million net income for Q3 2026

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FOR THE QUARTERLY PERIOD ENDED JUNE SEPTEMBER 30, 2026

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Alamo Group Inc. and Subsidiaries

FINANCIAL INFORMATION

At July 24, November 3, 2026, 12,170,965 12,164,936 shares of common stock, $.10 $0.10 par value, of the registrant were outstanding.

PART I. FINANCIAL INFORMATION PAGE

Interim Condensed Consolidated Financial Statements (Unaudited) 5 changes

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Three and Six Nine Months Ended June September 30, 2026 and June September 30, 2025

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Three and Six Nine Months Ended June September 30, 2026 and June September 30, 2025

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June September 30, 2026 and December 31, 2025

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Three and Six Nine Months Ended June September 30, 2026 and June September 30, 2025

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Six Nine Months Ended June September 30, 2026 and June September 30, 2025

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Exhibits 321 changes

Alamo Group Inc. and Subsidiaries

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June 30, Six Months Ended

September 30, Nine Months Ended

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Total net sales 450,733 419,073 867,882 810,023

Cost of sales 339,877 310,781 652,221 598,890

Gross profit 110,856 108,292 215,661 211,133

Selling, general and administrative expenses 60,076 57,136 117,843 111,466

Amortization expense 5,015 4,078 9,894 8,127

Total net sales 403,137 420,042 1,271,019 1,230,065

Cost of sales 327,015 318,359 979,236 917,249

Gross profit 76,122 101,683 291,783 312,816

Selling, general and administrative expenses 67,610 59,931 185,453 171,397

Amortization expense 5,073 4,210 14,967 12,337

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Interest expense ( 4,792 ) ( 3,684 ) ( 9,416 ) ( 6,878 )

Interest income 1,239 1,195 2,720 2,433

Other income (expense), net ( 619 ) ( 3,183 ) ( 587 ) ( 3,846 )

Interest expense ( 3,854 ) ( 3,897 ) ( 13,270 ) ( 10,775 )

Interest income 1,421 1,522 4,141 3,955

Other income (expense), net 3,644 ( 210 ) 3,057 ( 4,056 )

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Provision for income taxes 10,653 10,300 20,517 20,343

Provision for income taxes 2,624 9,574 23,141 29,917

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See accompanying notes.

Alamo Group Inc. and Subsidiaries

Average Weighted-average common shares:

Dividends declared $ 0.34 $ 0.30 $ 0.68 1.02 $ 0.60 0.90

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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June 30, Six Months Ended

September 30, Nine Months Ended

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Net income $ 30,940 $ 31,106 $ 60,124 $ 62,906

Net income $ 2,026 $ 25,383 $ 62,150 $ 88,289

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Foreign currency translation adjustments, net of tax benefit and (expense) of $ 204 and $( 1,296 ), and $ 697 and $( 1,837 ), respectively ( 4,371 ) 28,062 ( 8,176 ) 38,883

Other comprehensive (loss) income, net of tax ( 4,069 ) 27,616 ( 6,402 ) 37,174

Comprehensive income $ 26,871 $ 58,722 $ 53,722 $ 100,080

See accompanying notes.

Alamo Group Inc. and Subsidiaries

Foreign currency translation adjustments, net of tax benefit and (expense) of $ 40 and $( 526 ), and $ 737 and $( 2,363 ), respectively ( 1,443 ) ( 7,328 ) ( 9,619 ) 31,555

Recognition of deferred pension and other post-retirement benefits, net of tax expense of $( 48 40 ) and $( 58 59 ), and $( 102 142 ) and $( 117 176 ), respectively

Unrealized income (loss) on derivative instruments, net of tax (expense) and benefit of $( 0 113 ) and $ 190 6 , and $( 442 555 ) and $ 618 624 , respectively

Other comprehensive (loss) income, net of tax ( 828 ) ( 7,149 ) ( 7,230 ) 30,025

Comprehensive income $ 1,198 $ 18,234 $ 54,920 $ 118,314

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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June September 30, 2026 December 31, 2025

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Trade accounts payable

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Common stock, $ 0.10 par value, 20,000,000 shares authorized; 12,108,752 12,111,787 and 12,073,713 outstanding at June September 30, 2026 and December 31, 2025, respectively

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Treasury stock, at cost; 144,532 and 82,600 shares at June September 30, 2026 and December 31, 2025, respectively ( 13,926 ) ( 4,566 )

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See accompanying notes.

Alamo Group Inc. and Subsidiaries

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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For six months ended June 30, 2026

For nine months ended September 30, 2026

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Other comprehensive income — — — — 30,940 ( 4,069 ) 26,871

Other comprehensive income (loss)

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Common stock repurchase repurchases ( 62 ) — — ( 9,360 ) — — ( 9,360 )

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See accompanying notes.

For six months ended June 30, 2025

Other comprehensive income (loss)

Stock-based compensation expense

Stock-based compensation transactions

Dividends paid ($ 0.34 per share)

Balance at September 30, 2026 11,967 $ 1,211 $ 159,795 $ ( 13,926 ) $ 1,095,594 $ ( 56,328 ) $ 1,186,346

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

For nine months ended September 30, 2025

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Other comprehensive income (loss) — — — — 31,106 27,616 58,722

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See accompanying notes.

Alamo Group Inc. and Subsidiaries

Other comprehensive income (loss) — — — — 25,383 ( 7,149 ) 18,234

Stock-based compensation expense

Stock-based compensation transactions

Dividends paid ($ 0.30 per share)

Balance at September 30, 2025 11,990 $ 1,207 $ 153,704 $ ( 4,566 ) $ 1,033,831 $ ( 51,570 ) $ 1,132,606

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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Net income $ 60,124 $ 62,906

Net income $ 62,150 $ 88,289

Adjustment Adjustments to reconcile net income to net cash provided by operating activities:

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Amortization of debt issuance costs

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Provision for Deferred income tax expense (benefit) 3,195 ( 2,179 683 ) 8,681

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Loss on assets held for sale 4,719 —

Loss on sale of business 220 —

Divestiture-related charges 28,023 —

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Trade Accounts payable and accrued liabilities

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and 241 more changes in the filing

MD&A 67 changes

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June 30, Six Months Ended

Vegetation Management 39.7 % 42.6 % 40.8 % 42.3 %

Industrial Equipment 60.3 % 57.4 % 59.2 % 57.7 %

September 30, Nine Months Ended

Vegetation Management 42.3 % 41.2 % 41.3 % 41.9 %

Industrial Equipment 57.7 % 58.8 % 58.7 % 58.1 %

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June 30, Six Months Ended

Gross profit 24.6 % 25.8 % 24.8 % 26.1 %

Income from operations 10.2 % 11.2 % 10.1 % 11.3 %

Income before income taxes 9.2 % 9.9 % 9.3 % 10.3 %

Net income 6.9 % 7.4 % 6.9 % 7.8 %

September 30, Nine Months Ended

Gross profit 18.9 % 24.2 % 23.0 % 25.4 %

Income from operations 0.9 % 8.9 % 7.2 % 10.5 %

Income before income taxes 1.2 % 8.3 % 6.7 % 9.6 %

Net income 0.5 % 6.0 % 4.9 % 7.2 %

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Net sales for the second quarter of 2026 were $450.7 million, an increase of 7.6% compared to $419.1 million in the second quarter of 2025. Revenue growth was driven primarily by the addition of Ring-O-Matic and Petersen Industries within the Industrial Equipment Division. Organic revenue growth in the second quarter of 2026 was approximately 1% compared to second quarter of 2025. The Company's backlog at June 30, 2026 was $549.3 million, a 20% decrease from $687.2 million in the prior-year period. The decrease primarily reflects improved lead times and the continued normalization of order patterns following the elevated demand environment experienced over the past several years within the Industrial Equipment Division. While backlog levels declined year over year, customer demand remained generally stable across most of our core markets during the quarter.

Consolidated income from operations in the second quarter of 2026 was $45.8 million, down 3% from $47.1 million in the same period 2025. Results were impacted by approximately $4.3 million of restructuring, acquisition-related and integration expenses incurred during the quarter. Of the $4.3 million, $3.5 million was recorded in SG&A. These costs were primarily associated with recent acquisitions and operational initiatives intended to support future growth and efficiency improvements. Excluding these costs operating performance benefited from contributions from recent acquisitions and operational improvement initiatives.

Net Sales in the Industrial Equipment Division increased by 13% (excluding acquisitions, growth was 3%) in the second quarter of 2026 compared to the same period in 2025. The Division's backlog declined by 28% as lead times improved and demand normalized following elevated order levels in prior periods. New orders decreased approximately 2% year over year (excluding acquisitions, new orders declined 12%). Income from operations rose 7% versus the prior-year period, reflecting contributions from recent acquisitions and continued improvements in operating efficiency.

Net Sales in the Vegetation Management Division were flat in the second quarter of 2026 compared to the same period in 2025 as growth in agricultural and tree care markets was offset by weakness in municipal markets. The Division's backlog increased 4% and new orders were flat year over year in the second quarter of 2026. Income from operations decreased 30% versus the prior year period primarily due to the impact from lower sales in the municipal mowing businesses.

Alamo Group is a leader in the manufacture and sale of high-quality, purpose-built industrial and vegetation management equipment. We serve end-markets such as infrastructure building and maintenance, industrial construction, public works, land maintenance, agriculture and tree care. Our products are sold to independent equipment dealers and directly to contractors and municipalities. Product categories include vocational products (vacuum trucks, street sweepers, roadside safety equipment, excavators, and snow removal equipment) and light machinery (tractor mounted mowing equipment, land maintenance and recycling equipment) as well as related after-market parts and services. The Company operates two divisions: the Industrial Equipment Division and the Vegetation Management Division. Founded in 1969, the Company has approximately 3,800 employees and operates 27 manufacturing facilities in the United States, Canada, Europe, Brazil and Australia. The corporate offices of Alamo Group Inc. are located in Seguin, Texas.

Beginning in 2025, as part of our ongoing efforts to optimize operations in both of our Divisions, we have relocated applicable product families, sold the Gibson City, IL facility, sold the New Berlin, WI facility, repurposed one facility to support other brands, and completed initial setups for portions of the production lines. As we continue our optimization efforts, throughout the rest of the year, we expect temporary production inefficiencies, duplicate costs, and shipment-timing effects that may pressure revenue and gross margin, along with potentially one-time expenses related to relocation and facility exit. Following completion, we expect improved capacity utilization, service levels and structural cost reductions. The anticipated timing, costs and benefits are forward-looking and subject to the risks and uncertainties described under "Forward- Looking Information."

During the third quarter of 2026, we continued to evaluate our portfolio of businesses and took actions to streamline our operations and focus resources on our core businesses. We completed the sales of our Conver and

Brooms businesses, initiated a process to sell another business, and initiated wind-down activities related to our Dixie Chopper®, Boxer® and other businesses.

In connection with these activities, we recognized approximately $33.3 million of net charges during the third quarter of 2026, almost entirely within our Vegetation Management Division. These charges included inventory valuation adjustments, impairment of certain intangible and other long-lived assets, losses associated with dispositions, as well as other wind-down-related costs. The impact of these activities on our results of operations is discussed further below in Results of Operations.

On October 27, 2026, the Company, through Alamo Group Europe Limited, a wholly-owned subsidiary, acquired 100% of the equity interests in Econ Engineering Group Limited ("Econ"), a leading United Kingdom manufacturer of roadway maintenance trucks and equipment that also operates an equipment rental fleet. The acquisition expands the Company's Industrial Equipment portfolio and strengthens its platform in the United Kingdom. The purchase price was £120.0 million, or approximately $158.7 million, subject to certain post-closing adjustments, and was funded through the Company's revolving credit facility. Following the acquisition, Econ became part of the Company's Industrial Equipment Division. For additional information regarding the acquisition, see Note 1 4 to the Consolidated Financial Statements included in this quarterly report on Form 10-Q.

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Net sales for the second quarter of 2026 were $450.7 million, an increase of $31.6 million or 8% compared to $419.1 million for the second quarter of 2025. Net sales during the second quarter of 2026 increased due to contributions from recent acquisitions in the Industrial Equipment Division and modest improvement in agricultural markets within the Vegetation Management Division. Our price/volume analysis indicates 0.4% of the 8% growth was due to currency movement.

Net sales in the Industrial Equipment Division were $271.6 million in the second quarter of 2026 compared to $240.7 million for the same period in 2025, an increase of $30.9 million or 13%. The increase was due to the addition of the Ring-O-Matic and Petersen Industries acquisitions. Organic net sales in the second quarter of 2026 increased 3% compared to the second quarter in 2025. Currency movement impacted sales favorably by 0.1%.

Net sales in the Vegetation Management Division increased by $0.7 million or 0% to $179.1 million for the second quarter of 2026 compared to $178.4 million during the same period in 2025. The increase was due to modest improvements in tree care and agricultural markets which offset lower municipal mowing activity. Currency movement was 0.8% in the second quarter of 2026.

Gross profit for the second quarter of 2026 was $110.9 million (25% of net sales) compared to $108.3 million (26% of net sales) during the same period in 2025, an increase of $2.6 million. Higher net sales in the Industrial Equipment Division supported the increase in gross profit. However, overall gross margin declined by 125 basis points due to lower municipal mowing volumes and temporary production inefficiencies associated with facility consolidation activities.

Provision for income taxes was $10.7 million (26% of income before income tax) in the second quarter of 2026 compared to $10.3 million (25% of income before income tax) during the same period in 2025. The slight increase in the tax rate in the second quarter of 2026 was due to a lower expected R&D credit for 2026.

The Company's net income after tax was $30.9 million or $2.55 per share on a diluted basis for the second quarter of 2026 compared to $31.1 million or $2.57 per share on a diluted basis for the second quarter of 2025, reflecting the factors discussed above, including restructuring, acquisition and integration expenses, lower municipal mowing volumes, and higher interest expense.

Gross profit for the first six months of 2026 was $215.7 million (25% of net sales) compared to $211.1 million (26% of net sales) during the same period in 2025, an increase of $4.6 million. The increase in gross profit was mainly attributable to higher sales coming from the acquisitions in the Industrial Equipment Division. However, gross margin declined 122 basis points due to weakness in municipal mowing markets and temporary production inefficiencies associated with facility consolidation activities.

Other income (expense), net was $0.6 million of expense during the first six months of 2026 compared to $3.8 million of expense in the first six months of 2025, primarily due to lower foreign currency transaction losses.

The Company's net income after tax was $60.1 million or $4.96 per share on a diluted basis for the first six months of 2026 compared to $62.9 million or $5.21 per share on a diluted basis for the first six months of 2025. The decrease of $2.8 million reflected restructuring, acquisition and integration expenses, lower municipal mowing volumes and higher interest expense associated with the financing of the Petersen Industries acquisition.

Three Months Ended June September 30, 2026 vs. Three Months Ended June September 30, 2025

Net sales for the third quarter of 2026 were $403.1 million, a decrease of $16.9 million or 4% compared to $420.0 million for the third quarter of 2025. The decrease is due to lower net sales in our Industrial Equipment Division due to softer end markets and the timing of certain orders throughout the year as well as the impact of divestiture activity in our Vegetation Management Division, partially offset by contributions from our acquisition of Petersen Industries and modest underlying growth in the Vegetation Management Division. Currency fluctuations impacted results unfavorably by 0.2%.

Net sales in the Industrial Equipment Division were $232.8 million in the third quarter of 2026 compared to $247.0 million for the same period in 2025, a decrease of $14.2 million or 6%. The decrease was primarily attributable to lower sales in our snow removal, sweeper and excavator businesses partially offset by contributions from our acquisition of Petersen Industries. Excluding Petersen Industries, net sales decreased approximately 13%.

Net sales in the Vegetation Management Division decreased by $2.7 million or 2% to $170.4 million for the third quarter of 2026 compared to $173.1 million during the same period in 2025. The decrease was primarily due to a $7.3 million unfavorable impact related to discounts and rebates associated with divestiture activity in the quarter. Excluding this impact, net sales increased approximately $4.6 million, or 3%, primarily reflecting higher volumes and favorable pricing as well as improved throughput. Our agricultural and tree care businesses improved comparatively while we experienced continued softness in the municipal mowing market.

Gross profit for the third quarter of 2026 was $76.1 million (19% of net sales) compared to $101.7 million (24% of net sales) during the same period in 2025, a decrease of $25.6 million. Comparatively lower net sales in the Industrial Equipment Division, coupled with divestiture-related charges of $7.3 million against revenue as described above and another $15.5 million against cost of sales (See Note 3 ) as well as elevated material and freight costs, led to the pronounced decrease in gross profit. Gross margin declined by approximately 530 basis points mainly as a result of the aforementioned charges in the quarter. Despite the divestiture-related charges, margin reflected better operating performance in the Vegetation Management Division, along with favorable pricing, procurement savings and a greater contribution from parts and service. These benefits were partially offset by material and freight inflation and lower volume in the Industrial Equipment Division.

Selling, general and administrative expenses ("SG&A") were $60.1 $67.6 million (13% (17% of net sales) during the second third quarter of 2026 compared to $57.1 $59.9 million (14% of net sales) during the same period of 2025, an increase of $3.0 $7.7 million attributable primarily to costs associated with dispositions of approximately $9.0 million as well as the impact from our recent acquisitions acquisition of Petersen Industries (See Note 3 and restructuring-related costs. Note 2 , respectively). Amortization expense in the second third quarter of 2026 was $5.0 $5.1 million compared to $4.1 $4.2 million in the same period in 2025, an increase due to addition of the Ring-O-Matic and acquisition of Petersen Industries. acquisitions.

Interest expense was $4.8 $3.9 million for the second third quarter of 2026 compared to $3.7 $3.9 million during the same period in 2025 due to increased weighted-average outstanding debt related to the Petersen Industries acquisition, offset by lower interest rates comparatively, and lower supplier financing related interest expense.

Other net income (expense) was $0.62 $3.6 million of expense income in the second third quarter of 2026 compared to $3.2 $0.2 million of expense during the same period in 2025, primarily due to lower foreign currency transaction losses. gains incurred from the sale of facilities, partly offset by costs associated with divestitures.

Provision for income taxes was $2.6 million (56% of Income before income taxes) in the third quarter of 2026 compared to $9.6 million (27% of Income before income taxes) during the same period in 2025. The marked increase in the effective tax rate in the third quarter of 2026 was due to the substantially lower pretax income as well as the impact of certain unfavorable, discrete items stemming from certain assets that were deemed held for sale and marked down to fair value as part of the Company's divestiture-related actions in the quarter (see Note 3 ).

The Company's net income after tax was $2.0 million for the third quarter of 2026 compared to $25.4 million for the third quarter of 2025, reflecting the factors discussed above, including the notable impact of divestiture-related charges that occurred in the quarter.

Six Nine Months Ended June September 30, 2026 vs. Six Nine Months Ended June September 30, 2025

Net sales for the first six nine months of 2026 were $867.9 $1,271.0 million, an increase of $57.9 $40.9 million or 7% 3% compared to $810.0 $1,230.1 million for the first six nine months of 2025. The increase in net sales during the first six months of 2026 was driven primarily by the acquisitions of Ring-O-Matic and Petersen Industries in the Industrial Equipment Division, along with improvement in agricultural and tree care markets within the Vegetation Management Division.

Net sales in the Industrial Equipment Division were $513.4 $746.1 million during the first six nine months of 2026 compared to $467.8 $714.8 million for the same period in 2025, an increase of $45.6 $31.3 million or 10%. 4%. The increase in net sales for the first six months of 2026 compared to the first six months of 2025 was mainly due to the acquisition acquisitions of Ring-O-Matic and Petersen Industries, partly offset by a decline in our snow and sweepers businesses.

Net sales in the Vegetation Management Division increased during the first six nine months by $12.3 $9.6 million or 4% 2% to $354.5 $524.9 million for 2026 compared to $342.2 $515.3 million during the same period in 2025. The increase was due to improvements in the agricultural and tree care businesses, partially offset by weakness in the municipal mowing markets. and impacts from disposition-related charges incurred in our third fiscal quarter.

Gross profit for the first nine months of 2026 was $291.8 million (23% of net sales) compared to $312.8 million (25% of net sales) during the same period in 2025, a decrease of $21.0 million. The decrease in gross profit was mainly attributable to disposition related charges of $7.3 million against revenue and another $15.5 million against cost of sales (See Note 3 ) as described above in our commentary on the three months ended September 30, 2026. Gross margin declined approximately 250 basis points primarily due to these divestiture related charges which impacted our Vegetation Management Division, particularly our agriculture business. Excluding these charges, gross margins were lower in our agriculture and tree care businesses, partially offset by improved margins in our municipal mowing business. Gross margins in our Industrial Equipment Division also decreased modestly compared to the prior-year period. Favorable pricing actions and procurement savings were unable to fully offset inflation impacts on input costs and lower volumes at certain facilities. That said, we continued to see improving margins at the consolidated facilities, although performance has not yet returned to normalized levels.

SG&A expenses were $117.8 $185.5 million (14% (15% of net sales) during the first six nine months of 2026 compared to $111.5 $171.4 million (14% of net sales) during the same period of 2025, an increase of $6.3 $14.1 million attributable primarily to recent acquisitions including Ring-O-Matic and Petersen Industries, (See Note 2 ), as well as divestiture-activity and restructuring-related costs. Amortization expense in the first six nine months of 2026 was $9.9 $15.0 million compared to $8.1 $12.3 million in the same period in 2025, an increase due to stemming from recent acquisitions ease of $0.0 million. .

Interest expense was $9.4 $13.3 million for the first six nine months of 2026 compared to $6.9 $10.8 million during the same period in 2025, an increase of $2.5 million following the acquisition of Petersen Industries in January 2026 which led to greater average outstanding debt balances comparatively.

Other income (expense), net was $3.1 million of income during the first nine months of 2026 compared to $4.1 million of expense in the first nine months of 2025. Other income (expense), net in 2026 was primarily associated with gains incurred from the sale of facilities and comparatively lower foreign currency transaction losses partly offset by disposition-related costs. Other income (expense), net in 2025 was impacted by unfavorable foreign currency transaction losses.

Provision for income taxes was $20.5 $23.1 million (25% (27% of Income before income taxes) during the first six nine months of 2026 compared to $20.3 $29.9 million (24% (25% of Income before income taxes) during the same period in 2025. The increase in the effective tax rate was primarily due to a lower expected R&D credit in 2026. the effect of several unfavorable rate items, including the impact from certain assets that were deemed held for sale and marked down to fair value (see Note 3 ).

The Company's net income after tax was $62.2 million for the first nine months of 2026 compared to $88.3 million for the first nine months of 2025, reflecting the factors discussed above, including the notable impact of disposition related charges that occurred in the third fiscal quarter.

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Management believes the 2026 Credit Agreement along with the Company's ability to internally generate funds from operations should be sufficient to allow the Company to meet its cash requirements for the foreseeable future. However, future challenges affecting the banking industry and credit markets in general could potentially cause changes to credit availability, which creates a level of uncertainty.

As of June September 30, 2026, the Company had working capital, defined as current assets less current liabilities, of $766.6 $751.6 million, a decrease of $13.1 $28.1 million from working capital of $779.7 million at December 31, 2025. The decrease was primarily due to the use of cash and cash equivalents to partially fund the Petersen Industries acquisition (see Note 2 ), partly offset by increases in accounts receivable and inventory.

Capital expenditures were $10.3 $16.1 million for the first six nine months of 2026, compared to $13.0 $25.4 million during the first six nine months of 2025. The Company expects a capital expenditure level of approximately $28.0 $22.0 million to $33.0 $27.0 million for the full year of 2026. The Company will fund any future expenditures from operating cash flows or through our revolving credit facility, described below.

Net cash used for investing activities was $171.6 $161.0 million during the first six nine months of 2026 compared to $29.7 $41.9 million during the first six nine months of 2025.

Net cash provided by financing activities was $37.3 $2.6 million during the first six nine months of 2026, compared to net cash used in financing activities of $15.1 $23.6 million during the six nine month period ended June September 30, 2025. Higher net cash provided by financing activities for the first six nine months of 2026 relates to additional borrowings on bank revolving credit facilities to partially fund the Petersen Industries acquisition.

The Company had $133.8 $154.8 million in cash and cash equivalents held by its foreign subsidiaries as of June September 30, 2026. The majority of these funds are at our European and Canadian facilities. The Company will repatriate European and Canadian cash and cash equivalents as needed to fund operating and investing activities, and will monitor exchange rates to determine the appropriate timing of such repatriation given the current prevailing relative value of the U.S. dollar. Generally, repatriated funds will be used to reduce debt levels, and to fund working capital, capital investments, and acquisitions company-wide.

On May 27, 2026, the Company, as Borrower, and each of its domestic subsidiaries as guarantors, entered into a Fourth Amended and Restated Credit Agreement (the "2026 Credit Agreement") with Bank of America, N.A., as Administrative Agent. The 2026 Credit Agreement provides Borrower with the ability to request loans and other financial obligations in an aggregate amount of up to $602.5 million. Under the 2026 Credit Agreement, the Company has borrowed $202.5 million pursuant to a Term Facility, while up to $400.0 million is available to the Company pursuant to a Revolver Facility which terminates in 2031. The Term Facility requires the Company to make equal quarterly principal payments of $1.27 million over the term of the loan, with the final payment of any outstanding principal amount, plus interest, due at the end of the five-year term. Borrowings under the 2026 Credit Agreement bear interest, at the Company's option, at a Term Secured Overnight Financing Rate ("SOFR") or a Base Rate (each as defined in the 2026 Credit Agreement), plus, in each case, an applicable margin. The applicable margin ranges from 1.25% to 2.25% for Term SOFR borrowings and from 0.25% to 1.25% for Base Rate borrowings with the margin percentage based upon the Company's consolidated leverage ratio. The Company must also pay a commitment fee to the lenders ranging between 0.125% to 0.30% on any unused portion of the $400.0 million Revolver Facility. The 2026 Credit Agreement requires the Company to maintain two financial covenants, namely, a maximum consolidated leverage ratio and a minimum consolidated fixed charge coverage ratio. The Agreement also contains various covenants relating to limitations on indebtedness, limitations on investments and acquisitions, limitations on the sale of properties and limitations on liens and capital expenditures. The Agreement also contains other customary covenants, representations and events of defaults. The expiration date of the 2026 Credit Agreement, including the Term Facility and the Revolver Facility, is May 27, 2031. As of June 30, 2026, $263.7 million was outstanding under the 2026 Credit Agreement, $201.2 million on the Term Facility and $62.5 million on the Revolver Facility. On June 30, 2026, $3.2 million of the revolver capacity was committed to irrevocable standby letters of credit issued in the ordinary course of business as required by vendors' contracts resulting in $334.3 million in available borrowings. The Company is in compliance with the covenants under the Agreement as of June 30, 2026.

Agreement bear interest, at the Company's option, at a Term Secured Overnight Financing Rate ("SOFR") or a Base Rate (each as defined in the 2026 Credit Agreement), plus, in each case, an applicable margin. The applicable margin ranges from 1.25% to 2.25% for Term SOFR borrowings and from 0.25% to 1.25% for Base Rate borrowings with the margin percentage based upon the Company's consolidated leverage ratio. The Company must also pay a commitment fee to the lenders ranging between 0.125% to 0.30% on any unused portion of the $400.0 million Revolver Facility. The 2026 Credit Agreement requires the Company to maintain two financial covenants, namely, a maximum consolidated leverage ratio and a minimum consolidated fixed charge coverage ratio. The Agreement also contains various covenants relating to limitations on indebtedness, limitations on investments and acquisitions, limitations on the sale of properties and limitations on liens and capital expenditures. The Agreement also contains other customary covenants, representations and events of defaults. The expiration date of the 2026 Credit Agreement, including the Term Facility and the Revolver Facility, is May 27, 2031. As of September 30, 2026, $233.1 million was outstanding under the 2026 Credit Agreement, $200.0 million on the Term Facility and $33.1 million on the Revolver Facility. On September 30, 2026, $3.3 million of the revolver capacity was committed to irrevocable standby letters of credit issued in the ordinary course of business as required by vendors' contracts resulting in $363.6 million in available borrowings. The Company is in compliance with the covenants under the Agreement as of September 30, 2026.

Subsequent to September 30, 2026, the Company used borrowings under its revolving credit facility to fund the acquisition of Econ Engineering Group Limited. See Note 14 , "Subsequent Events," to the Condensed Consolidated Financial Statements for additional information regarding the acquisition. Following the acquisition, management believes that the Company's remaining liquidity, together with cash flows from operations, remains sufficient to meet its anticipated operating and capital requirements.

As of June 30, 2026, We believe our financial position remains robust, supported by a strong balance sheet and healthy cash flow flows from operations. Our available liquidity, comprised of cash and cash equivalents, along with access to undrawn credit facilities, ensures that we are well equipped to meet our operating needs and explore strategic initiatives that could enhance shareholder value. We continuously evaluate our capital allocation strategy, including potentially repurchasing shares under the share repurchase program adopted by the Company and approved by the Board of Directors as announced on October 31, 2024, if it aligns with our strategic priorities and is deemed to be in the best interest of our shareholders. We believe that repurchasing our shares would be a prudent use of capital, provided appropriate market conditions exist.

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There are no off-balance sheet arrangements that have or are likely to have a current or future material effect on our financial condition.

The company does not have any off-balance sheet arrangements or any interest in entities commonly referred to as variable interest entities, which include special purpose entities and other structured finance entities, except as otherwise disclosed. See the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed on March 2, 2026 for further details.

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Market risk 3 changes

4 unchanged paragraphs

The Company translates the assets and liabilities of foreign-owned subsidiaries at rates in effect at the balance sheet date. Revenues and expenses are translated at average rates in effect during the reporting period. Translation adjustments are included in accumulated other comprehensive income within the statement of stockholders' equity. The total foreign currency translation adjustment for the current quarter decreased stockholders' equity by $4.4 $1.4 million.

The Company's earnings are affected by fluctuations in the value of the U.S. dollar as compared to foreign currencies, predominately in Europe and Canada, as a result of the sales of its products in international markets. Forward currency contracts are used to hedge against the earnings effects of such fluctuations. The result of a uniform 10% strengthening or 10% decrease in the value of the dollar relative to the currencies in which the Company's sales are denominated would result in a change in gross profit of $6.2 $8.5 million for the six nine month period ended June September 30, 2026. A stronger U.S. dollar would unfavorably impact gross profit while a weaker U.S. dollar would provide a favorable impact to gross profit. This calculation assumes that each exchange rate would change in the same direction relative to the U.S. dollar. In addition to the direct effects of changes in exchange rates, which include a changed dollar value of the resulting sales, changes in exchange rates may also affect the volume of sales or the foreign currency sales price as competitors' products become more or less attractive. The Company's sensitivity analysis of the effects of changes in foreign currency exchange rates does not factor in a potential change in sales levels or local currency prices.

The Company's long-term debt bears interest at variable rates. Accordingly, the Company's net income is affected by changes in interest rates. Assuming the current level of borrowings at variable rates and a two percentage point change for the second third quarter 2026 average interest rate under these borrowings, the Company's interest expense would have changed by approximately $1.3 $1.2 million. To protect the Company's long-term debt from fluctuations in interest rates, the Company may enter into interest rate swaps to mitigate exposure. However, this analysis assumes no such actions. Further this analysis does not consider the effects of the change in the level of overall economic activity that could exist in such an environment.

Controls and procedures 2 changes

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An evaluation was carried out under the supervision and with the participation of Alamo's the Company's management, including our President and Chief Executive Officer (Principal Executive Officer) and Executive Vice President and Chief Financial Officer (Principal Financial Officer) of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934). Based upon the evaluation, the President and Chief Executive Officer and Executive Vice President and Chief Financial Officer (Principal Financial Officer concluded that the Company's design and operation of these disclosure controls and procedures were effective at the end of the period covered by this report.

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There has been no change in our internal control over financial reporting that occurred during our last most recently completed fiscal year quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Unregistered sales of stock 6 changes

The following table provides a summary of the Company's repurchase activity for its common stock during the three months ended June September 30, 2026.

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April 1-30, 2026 — — — $50,000,000

May 1-31, 2026 26,589 $151.47 26,589 $45,967,028

July 1-31, 2026 — — — $40,641,621

August 1-31, 2026 — — — $40,641,621

June September 1-30, 2026 35,343 $150.61 35,343 — — — $40,641,621

1 unchanged paragraph