ALAMO GROUP INC 10-Q

alg-20260630 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2026 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ____ TO ____ Commission file number 0-21220 ALAMO GROUP INC. (Exact name of registrant as specified in its charter) Delaware 74-1621248 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number) 1627 East Walnut , Seguin , Texas 78155 (Address of principal executive offices, including zip code ) 830 - 379-1480 ( Registrant’s telephone number, including area code ) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading symbol(s) Name of each exchange on which registered Common Stock, par value $.10 per share ALG New York Stock Exchange Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐ Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒ At July 24, 2026, 12,170,965 shares of common stock, $.10 par value, of the registrant were outstanding. 1 Alamo Group Inc. and Subsidiaries INDEX PART I. FINANCIAL INFORMATION PAGE Item 1. Interim Condensed Consolidated Financial Statements (Unaudited) Interim Condensed Consolidated Statements of Income 3 Three and Six Months Ended June 30, 2026 and June 30, 2025 Interim Condensed Consolidated Statements of Comprehensive Income 4 Three and Six Months Ended June 30, 2026 and June 30, 2025 Interim Condensed Consolidated Balance Sheets 5 June 30, 2026 and December 31, 2025 Interim Condensed Consolidated Statements of Stockholders' Equity 6 Three and Six Months Ended June 30, 2026 and June 30, 2025 Interim Condensed Consolidated Statements of Cash Flows 7 Six Months Ended June 30, 2026 and June 30, 2025 Notes to Interim Condensed Consolidated Financial Statements 8 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 17 Item 3. Quantitative and Qualitative Disclosures About Market Risks 22 Item 4. Controls and Procedures 23 PART II. OTHER INFORMATION 24 Item 1. Legal Proceedings Item 1A. Risk Factors Item 2. Unregistered Sales of Equity Securities and Use of Proceeds Item 3. Defaults Upon Senior Securities Item 4. Mine Safety Disclosures Item 5. Other Information Item 6. Exhibits SIGNATURES 26 2 Alamo Group Inc. and Subsidiaries Interim Condensed Consolidated Statements of Income (Unaudited) Three Months Ended June 30, Six Months Ended June 30, (in thousands, except per share amounts) 2026 2025 2026 2025 Net sales: Vegetation Management $ 179,092 $ 178,358 $ 354,512 $ 342,248 Industrial Equipment 271,641 240,715 513,370 467,775 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 Income from operations 45,765 47,078 87,924 91,540 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 ) Income before income taxes 41,593 41,406 80,641 83,249 Provision for income taxes 10,653 10,300 20,517 20,343 Net Income $ 30,940 $ 31,106 $ 60,124 $ 62,906 Net income per common share: Basic $ 2.57 $ 2.59 $ 4.99 $ 5.24 Diluted $ 2.55 $ 2.57 $ 4.96 $ 5.21 Average common shares: Basic 12,068 12,020 12,060 12,005 Diluted 12,122 12,083 12,112 12,066 Dividends declared $ 0.34 $ 0.30 $ 0.68 $ 0.60 See accompanying notes. 3 Alamo Group Inc. and Subsidiaries Interim Condensed Consolidated Statements of Comprehensive Income (Unaudited) Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2026 2025 2026 2025 Net income $ 30,940 $ 31,106 $ 60,124 $ 62,906 Other comprehensive income (loss), net of tax: 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 Recognition of deferred pension and other post-retirement benefits, net of tax expense of $( 48 ) and $( 58 ), and $( 102 ) and $( 117 ), respectively 162 201 451 401 Unrealized income (loss) on derivative instruments, net of tax (expense) and benefit of $ 0 and $ 190 , and $( 442 ) and $ 618 , respectively 140 ( 647 ) 1,323 ( 2,110 ) 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. 4 Alamo Group Inc. and Subsidiaries Interim Condensed Consolidated Balance Sheets (Unaudited) (in thousands, except share amounts) June 30, 2026 December 31, 2025 ASSETS Current assets: Cash and cash equivalents $ 194,995 $ 309,659 Accounts receivable, net 343,326 276,866 Inventories, net 432,262 383,252 Prepaid expenses and other current assets 13,406 11,629 Income tax receivable 8,708 16,687 Total current assets 992,697 998,093 Rental equipment, net 56,033 61,102 Property, plant and equipment 389,561 392,029 Less: Accumulated depreciation ( 228,396 ) ( 226,052 ) Total property, plant and equipment, net 161,165 165,977 Goodwill 271,318 214,611 Intangible assets, net 212,999 144,932 Deferred income taxes 1,263 1,264 Other non-current assets 28,127 20,637 Total assets $ 1,723,602 $ 1,606,616 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Trade accounts payable $ 148,039 $ 125,130 Income taxes payable 3,685 2,332 Accrued liabilities 69,307 75,905 Current maturities of long-term debt 5,063 15,000 Total current liabilities 226,094 218,367 Long-term debt, net of current maturities 257,679 190,748 Long-term tax liability 470 470 Other long-term liabilities 24,127 24,113 Deferred income taxes 27,122 24,215 Total liabilities 535,492 457,913 Stockholders’ equity: Common stock, $ 0.10 par value, 20,000,000 shares authorized; 12,108,752 and 12,073,713 outstanding at June 30, 2026 and December 31, 2025, respectively 1,211 1,207 Additional paid-in-capital 158,669 155,427 Treasury stock, at cost; 144,532 and 82,600 shares at June 30, 2026 and December 31, 2025, respectively ( 13,926 ) ( 4,566 ) Retained earnings 1,097,656 1,045,733 Accumulated other comprehensive loss ( 55,500 ) ( 49,098 ) Total stockholders’ equity 1,188,110 1,148,703 Total liabilities and stockholders’ equity $ 1,723,602 $ 1,606,616 See accompanying notes. 5 Alamo Group Inc. and Subsidiaries Interim Condensed Consolidated Statements of Stockholders’ Equity (Unaudited) For six months ended June 30, 2026 Common Stock Additional Paid-in Capital Treasury Stock Retained Earnings Accumulated Other Comprehensive Loss Total Stock- holders’ Equity (in thousands) Shares Amount Balance at December 31, 2025 11,991 $ 1,207 $ 155,427 $ ( 4,566 ) $ 1,045,733 $ ( 49,098 ) $ 1,148,703 Other comprehensive income (loss) — — — — 29,184 ( 2,333 ) 26,851 Stock-based compensation expense — — 1,847 — — — 1,847 Stock-based compensation transactions 28 3 ( 387 ) — — — ( 384 ) Dividends paid ($ 0.34 per share) — — — — ( 4,093 ) — ( 4,093 ) Balance at March 31, 2026 12,019 $ 1,210 $ 156,887 $ ( 4,566 ) $ 1,070,824 $ ( 51,431 ) $ 1,172,924 Other comprehensive income — — — — 30,940 ( 4,069 ) 26,871 Stock-based compensation expense — — 1,766 — — — 1,766 Common stock repurchase ( 62 ) — — ( 9,360 ) — — ( 9,360 ) Stock-based compensation transactions 7 1 16 — — — 17 Dividends paid ($ 0.34 per share) — — — — ( 4,108 ) — ( 4,108 ) Balance at June 30, 2026 11,964 $ 1,211 $ 158,669 $ ( 13,926 ) $ 1,097,656 $ ( 55,500 ) $ 1,188,110 See accompanying notes. For six months ended June 30, 2025 Common Stock Additional Paid-in Capital Treasury Stock Retained Earnings Accumulated Other Comprehensive Loss Total Stock- holders’ Equity (in thousands) Shares Amount Balance at December 31, 2024 11,935 $ 1,202 $ 146,866 $ ( 4,566 ) $ 956,347 $ ( 81,595 ) $ 1,018,254 Other comprehensive income — — — — 31,800 9,558 41,358 Stock-based compensation expense — — 2,303 — — — 2,303 Stock-based compensation transactions 29 3 ( 1,262 ) — — — ( 1,259 ) Dividends paid ($ 0.30 per share) — — — — ( 3,595 ) — ( 3,595 ) Balance at March 31, 2025 11,964 $ 1,205 $ 147,907 $ ( 4,566 ) $ 984,552 $ ( 72,037 ) $ 1,057,061 Other comprehensive income (loss) — — — — 31,106 27,616 58,722 Stock-based compensation expense — — 2,367 — — — 2,367 Stock-based compensation transactions 16 1 846 — — — 847 Dividends paid ($ 0.30 per share) — — — — ( 3,601 ) — ( 3,601 ) Balance at June 30, 2025 11,980 $ 1,206 $ 151,120 $ ( 4,566 ) $ 1,012,057 $ ( 44,421 ) $ 1,115,396 See accompanying notes. 6 Alamo Group Inc. and Subsidiaries Interim Condensed Consolidated Statements of Cash Flows (Unaudited) Six Months Ended June 30, (in thousands) 2026 2025 Operating Activities Net income $ 60,124 $ 62,906 Adjustment to reconcile net income to net cash provided by operating activities: Provision for doubtful accounts ( 230 ) ( 11 ) Depreciation - Property, plant and equipment 13,240 13,398 Depreciation - Rental equipment 5,927 5,819 Amortization of intangibles 9,894 8,127 Amortization of debt issuance 343 351 Stock-based compensation expense 3,613 4,670 Provision for deferred income tax expense (benefit) 3,195 ( 2,179 ) Gain on sale of property, plant and equipment ( 682 ) ( 358 ) Changes in operating assets and liabilities: Accounts receivable ( 62,851 ) ( 37,267 ) Inventories ( 31,313 ) ( 16,593 ) Rental equipment ( 958 ) ( 12,263 ) Prepaid expenses and other assets 814 1,923 Trade accounts payable and accrued liabilities 14,453 18,494 Income taxes payable 9,427 ( 9,439 ) Other long-term liabilities, net ( 2,339 ) ( 667 ) Net cash provided by operating activities 22,657 36,911 Investing Activities Acquisitions, net of cash acquired ( 162,933 ) ( 17,571 ) Purchase of property, plant and equipment ( 10,319 ) ( 12,971 ) Proceeds from sale of property, plant and equipment 1,621 812 Net cash used in investing activities ( 171,631 ) ( 29,730 ) Financing Activities Borrowings on bank revolving credit facility 120,000 50,000 Repayments on bank revolving credit facility ( 57,500 ) ( 50,000 ) Principal payments on long-term debt and finance leases ( 5,016 ) ( 7,504 ) Debt issuance cost ( 2,286 ) — Dividends paid ( 8,201 ) ( 7,196 ) Proceeds from exercise of stock options 1,032 1,227 Common stock repurchased ( 10,759 ) ( 1,639 ) Net cash provided by (used) in financing activities 37,270 ( 15,112 ) Effect of exchange rate changes on cash and cash equivalents ( 2,960 ) 12,480 Net change in cash and cash equivalents ( 114,664 ) 4,549 Cash and cash equivalents at beginning of the year 309,659 197,274 Cash and cash equivalents at end of the period $ 194,995 $ 201,823 Cash paid during the period for: Interest $ 9,569 $ 6,861 Income taxes 9,080 32,074 See accompanying notes. 7 Alamo Group Inc. and Subsidiaries Notes to Interim Condensed Consolidated Financial Statements - (Unaudited) June 30, 2026 1. Basis of Financial Statement Presentation General The accompanying unaudited interim condensed consolidated financial statements of Alamo Group Inc. and its subsidiaries (the “Company”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulations S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2026. The balance sheet at December 31, 2025 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2025 (the "2025 10-K"). Accounting Pronouncements Not Yet Adopted In November 2024, the FASB issued ASU No. 2024-03, Expense Disaggregation Disclosures (Subtopic 220-40). The ASU requires disaggregated Income Statement Expenses. The ASU is effective for annual periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is also permitted. This ASU will result in the required additional disclosures being included in our consolidated financial statements, once adopted. 2. Business Combinations On January 26, 2026, the Company acquired 100 % of the outstanding membership interest in Petersen Industries, LLC (“Petersen”) for approximately $ 163.8 million. The purchase price, which is subject to customary post-closing adjustments, was financed with a combination of cash on hand and availability under the Company's credit facility. The Company has engaged valuation specialists to use the income approach to value intangibles. However, the valuation estimates used are still preliminary. Petersen is a manufacturer and market leader in providing high-quality and innovative truck-mounted grapple loader equipment to end-customers for the handling of bulky waste collection. The purpose of the acquisition was to acquire business operations in an adjacent market, truck-mounted grapple loader equipment, where the Company sees compelling future opportunities. Accounts receivable $ 5,713 Inventory 20,309 Prepaid and other assets 4,481 Property, plant and equipment 3,877 Intangible assets 78,300 Other liabilities assumed ( 7,347 ) Net assets assumed $ 105,333 Goodwill 57,600 Total Acquisition Price net cash 162,933 Plus: Cash 930 Total Consideration $ 163,863 On October 31, 2025, the Company acquired certain UK assets of GreenMech Ltd. (GreenMech), and 100 % of the issued and outstanding equity capital of GreenMech subsidiaries in France and Germany. GreenMech is a manufacturer of woodchippers and tree care equipment. The acquisition price was approximately £ 2.6 million (about USD $ 3.6 million). The Company completed its review of the valuation of the purchase price allocation for 8 GreenMech during the fourth quarter of 2025. The Company has included the operating results of GreenMech in its consolidated financial statements since the date of acquisition; these results are considered immaterial. On June 30, 2025, the Company acquired 100 % of the issued and outstanding equity capital of Ring-O-Matic, LLC. (“Ring-O-Matic”). Ring-O-Matic is a leading manufacturer of trailer-mounted and truck-mounted vacuum excavators and excavation systems. The primary reason for the Ring-O-Matic acquisition was to acquire business operations in an adjacent market, trailer-mounted vacuum excavators, where the Company sees compelling future opportunities. The acquisition price was approximately $ 17.5 million. The Company completed its review of the valuation of the purchase price allocation for Ring-O-Matic during the fourth quarter of 2025. The Company has included the operating results of Ring-O-Matic in its consolidated financial statements since the date of acquisition; these results are considered immaterial. 3. Accounts Receivable Accounts receivable is shown net of sales discounts and the allowance for credit losses. At June 30, 2026 the Company had $ 11.8 million in reserves for sales discounts compared to $ 10.7 million at December 31, 2025 related to products shipped to our customers under various promotional programs. 4. Inventories Inventories are stated at the lower of cost or net realizable value. Net inventories consist of the following: (in thousands) June 30, 2026 December 31, 2025 Finished goods $ 396,916 $ 353,939 Work in process 27,208 24,007 Raw materials 8,138 5,306 Inventories, net $ 432,262 $ 383,252 Inventory obsolescence reserves were $ 18.4 million at June 30, 2026 and $ 19.8 million at December 31, 2025. 5. Rental Equipment Rental equipment is shown net of accumulated depreciation of $ 24.0 million and $ 24.5 million at June 30, 2026 and December 31, 2025, respectively. The Company recognized depreciation expense of $ 2.9 million and $ 2.9 million for the three months ended June 30, 2026 and 2025, and $ 5.9 million and $ 5.8 million for the six months ended June 30, 2026 and 2025, respectively. 6. Fair Value Measurements The carrying values of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses, approximate their fair value because of the short-term nature of these items. The carrying value of our debt approximates the fair value as of June 30, 2026 and December 31, 2025. This conclusion was made based on Level 2 inputs. Fair values determined by Level 2 utilize inputs that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Derivative Instruments and Hedging Activities The Company records all derivatives in accordance with ASC 815, Derivatives and Hedging, which requires derivative instruments to be reported on the condensed consolidated balance sheets at fair value and establishes criteria for designation and effectiveness of hedging relationships. The Company is exposed to market risk such as changes in foreign currencies and interest rates. The Company does not hold or issue derivative financial instruments for trading purposes. The Company may periodically utilize derivative instruments such as foreign currency or interest rate swaps in the normal course of business to partially offset exposure. The related gains and losses are reported as a component of accumulated other comprehensive loss ("AOCL") in the condensed consolidated balance sheets. 9 7. Goodwill and Intangible Assets The following is the summary of changes to the Company's Goodwill for the six months ended June 30, 2026: (in thousands) Vegetation Management Industrial Equipment Consolidated Balance at December 31, 2025 $ 129,773 $ 84,838 $ 214,611 Translation adjustment ( 352 ) ( 541 ) ( 893 ) Goodwill acquired — 57,600 57,600 Balance at June 30, 2026 $ 129,421 $ 141,897 $ 271,318 The following is a summary of the Company's definite and indefinite-lived intangible assets net of the accumulated amortization: (in thousands) Estimated Useful Lives June 30, 2026 December 31, 2025 Definite: Trade names and trademarks 15 - 25 years $ 78,925 $ 79,224 Customer and dealer relationships 8 - 15 years 192,920 140,566 Patents and drawings 4 - 25 years 28,953 29,078 Favorable leasehold interests 7 years 4,200 4,200 Noncompetition agreements 5 years 200 200 Total at cost 305,198 253,268 Less accumulated amortization ( 123,399 ) ( 113,836 ) Total net 181,799 139,432 Indefinite: Trade names and trademarks 31,200 5,500 Total Intangible Assets $ 212,999 $ 144,932 The Company recognized amortization expense of $ 5.0 million and $ 4.1 million for the three months ended June 30, 2026 and 2025, respectively, and $ 9.9 million and $ 8.1 million for the six months ended June 30, 2026 and 2025, respectively. 8. Leases The Company leases office space and equipment under various operating and finance leases, which generally are expected to be renewed or replaced by other leases. The finance leases currently held are considered immaterial. The components of lease cost were as follows: Components of Lease Cost Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2026 2025 2026 2025 Finance lease cost: Amortization of right-of-use assets $ — $ 2 $ — $ 4 Operating lease cost 1,861 1,948 3,675 3,827 Short-term lease cost 1,548 295 2,951 976 Variable lease cost 51 54 103 108 Total lease cost $ 3,460 $ 2,299 $ 6,729 $ 4,915 10 Maturities of operating lease liabilities were as follows: Future Minimum Lease Payments (in thousands) June 30, 2026 December 31, 2025 2026 $ 3,209 * $ 6,630 2027 5,008 4,302 2028 2,724 2,068 2029 1,899 1,418 2030 1,312 837 Thereafter 4,621 310 Total minimum lease payments $ 18,773 $ 15,565 Less imputed interest ( 2,657 ) ( 1,023 ) Total operating lease liabilities $ 16,116 $ 14,542 *Period ended June 30, 2026 represents the remaining six months of 2026. Future Lease Commencements As of June 30, 2026, there are additional operating leases, primarily for buildings, that have not yet commenced in the amount of $ 5.5 million. These operating leases will commence in fiscal year 2026 with lease terms of 2 to 8 years. Supplemental balance sheet information related to leases was as follows: Operating Leases (in thousands) June 30, 2026 December 31, 2025 Other non-current assets $ 15,613 $ 14,234 Accrued liabilities 5,802 6,146 Other long-term liabilities 10,314 8,396 Total operating lease liabilities $ 16,116 $ 14,542 Weighted Average Remaining Lease Term 5.87 years 3.11 years Weighted Average Discount Rate 4.90 % 4.61 % Supplemental cash flow information related to leases was as follows: Six Months Ended June 30, (in thousands) 2026 2025 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,384 $ 3,454 11 9. Debt The components of long-term debt are as follows: (in thousands) June 30, 2026 December 31, 2025 Bank revolving credit facility $ 62,500 $ — Term debt 200,242 205,748 Finance lease obligations — — Total debt 262,742 205,748 Less current maturities 5,063 15,000 Total long-term debt $ 257,679 $ 190,748 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. As of 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. 10. Common Stock and Dividends Dividends declared and paid on a per share basis were as follows: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Dividends declared $ 0.34 $ 0.30 $ 0.68 $ 0.60 Dividends paid $ 0.34 $ 0.30 $ 0.68 $ 0.60 On July 1, 2026, the Company announced that its Board of Directors had declared a quarterly cash dividend of $ 0.34 per share, which was paid on July 29, 2026, to shareholders of record at the close of business on July 16, 2026. The Company also has a share repurchase program under which the Company is authorized to repurchase, in the aggregate, up to $ 50 million of its outstanding common stock. During 2026, the Company purchased 61,932 shares. 12 11. Earnings Per Share The following table sets forth the reconciliation from basic to diluted average common shares and the calculations of net income per common share. Net income for basic and diluted calculations do not differ. Three Months Ended June 30, Six Months Ended June 30, (In thousands, except per share) 2026 2025 2026 2025 Net Income $ 30,940 $ 31,106 $ 60,124 $ 62,906 Average Common Shares: Basic (weighted-average outstanding shares) 12,068 12,020 12,060 12,005 Dilutive potential common shares from stock options 54 63 52 61 Diluted (weighted-average outstanding shares) 12,122 12,083 12,112 12,066 Basic earnings per share $ 2.57 $ 2.59 $ 4.99 $ 5.24 Diluted earnings per share $ 2.55 $ 2.57 $ 4.96 $ 5.21 12. Revenue and Segment Information Revenues from Contracts with Customers Disaggregation of revenue is presented in the tables below by product type and by geographical location. Management has determined that this level of disaggregation would be beneficial to users of the financial statements. Revenue by Product Type Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2026 2025 2026 2025 Net Sales Wholegoods $ 358,514 $ 339,095 $ 690,192 $ 652,235 Parts 70,577 63,044 140,049 124,420 Other 21,642 16,934 37,641 33,368 Consolidated $ 450,733 $ 419,073 $ 867,882 $ 810,023 Other includes rental sales, extended warranty sales and service sales as they are considered immaterial. Revenue by Geographical Location Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2026 2025 2026 2025 Net Sales United States $ 334,070 $ 307,347 $ 631,784 $ 582,820 Canada 34,176 32,823 65,474 71,922 France 20,805 22,214 46,865 43,962 United Kingdom 25,403 21,226 48,449 42,701 Brazil 6,545 10,512 14,560 19,892 Netherlands 6,604 5,278 13,112 10,962 Australia 2,861 3,276 7,390 8,951 Germany 2,463 2,070 5,391 3,502 Other 17,806 14,327 34,857 25,311 Consolidated $ 450,733 $ 419,073 $ 867,882 $ 810,023 Net sales are attributed to countries based on the location of the customer. 13 Segment Information The Company’s Chief Operating Decision Maker (CODM) is the Chief Executive Officer. The CODM is responsible for evaluating the performance of the Company’s operating segments. This evaluation of operating segments supports the allocation of resources, both financial and human, to optimize income from operations as the measure of segment profit and loss. Our reportable segments are our two Divisions: Vegetation Management and Industrial Equipment. The CODM focuses heavily on operating performance and reviews mainly non-GAAP measures, such as bookings and backlog, absorption, and headcount. The CODM does not utilize asset metrics to evaluate the segment performance. The GAAP measures used are: • Division Net Sales • Division Cost of Sales • Division Operating Expenses • Division Income from Operations The following includes a summary of the unaudited financial information by reporting segment at June 30, 2026: Three Months Ended June 30, 2026 Vegetation Industrial (in thousands) Management Equipment Consolidated Net Sales $ 179,092 $ 271,641 $ 450,733 Less: Cost of Sales ( 139,461 ) ( 200,416 ) ( 339,877 ) Operating Expenses ( 30,726 ) ( 34,365 ) ( 65,091 ) Income from Operations 8,905 36,860 45,765 Interest Income 1,239 Other Income (Expense) ( 619 ) Interest Expense ( 4,792 ) Income Before Taxes 41,593 Taxes 10,653 Net Income $ 30,940 14 Three Months Ended June 30, 2025 Vegetation Industrial (in thousands) Management Equipment Consolidated Net Sales $ 178,358 $ 240,715 $ 419,073 Less: Cost of Sales ( 134,193 ) ( 176,588 ) ( 310,781 ) Operating Expenses ( 31,414 ) ( 29,800 ) ( 61,214 ) Income from Operations 12,751 34,327 47,078 Interest Income 1,195 Other Income (Expense) ( 3,183 ) Interest Expense ( 3,684 ) Income Before Taxes 41,406 Taxes 10,300 Net Income $ 31,106 Six Months Ended June 30, 2026 Vegetation Industrial (in thousands) Management Equipment Consolidated Net Sales $ 354,512 $ 513,370 $ 867,882 Less: Cost of Sales ( 273,951 ) ( 378,270 ) ( 652,221 ) Operating Expenses ( 61,143 ) ( 66,594 ) ( 127,737 ) Income from Operations 19,418 68,506 87,924 Interest Income 2,720 Other Income (Expense) ( 587 ) Interest Expense ( 9,416 ) Income Before Taxes 80,641 Taxes 20,517 Net Income $ 60,124 Six Months Ended June 30, 2025 Vegetation Industrial (in thousands) Management Equipment Consolidated Net Sales $ 342,248 $ 467,775 $ 810,023 Less: Cost of Sales ( 255,706 ) ( 343,184 ) ( 598,890 ) Operating Expenses ( 60,479 ) ( 59,114 ) ( 119,593 ) Income from Operations 26,063 65,477 91,540 Interest Income 2,433 Other Income (Expense) ( 3,846 ) Interest Expense ( 6,878 ) Income Before Taxes 83,249 Taxes 20,343 Net Income $ 62,906 15 (in thousands) June 30, 2026 December 31, 2025 Goodwill Vegetation Management $ 129,421 $ 129,773 Industrial Equipment 141,897 84,838 Consolidated $ 271,318 $ 214,611 Total Identifiable Assets Vegetation Management $ 860,341 $ 920,814 Industrial Equipment 863,261 685,802 Consolidated $ 1,723,602 $ 1,606,616 13. Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss by component, net of tax, were as follows: Three Months Ended June 30, 2026 2025 (in thousands) Foreign Currency Translation Adjustment Defined Benefit Plans Items Gains (Losses) on Cash Flow Hedges Total Foreign Currency Translation Adjustment Defined Benefit Plans Items Gains (Losses) on Cash Flow Hedges Total Balance as of beginning of period $ ( 50,241 ) $ ( 894 ) $ ( 296 ) $ ( 51,431 ) $ ( 70,011 ) $ ( 1,190 ) $ ( 836 ) $ ( 72,037 ) Other comprehensive income (loss) before reclassifications ( 4,371 ) — — ( 4,371 ) 28,062 — ( 910 ) 27,152 Amounts reclassified from accumulated other comprehensive (income) loss — 162 140 302 — 201 263 464 Other comprehensive income (loss) ( 4,371 ) 162 140 ( 4,069 ) 28,062 201 ( 647 ) 27,616 Balance as of end of period $ ( 54,612 ) $ ( 732 ) $ ( 156 ) $ ( 55,500 ) $ ( 41,949 ) $ ( 989 ) $ ( 1,483 ) $ ( 44,421 ) Six Months Ended June 30, 2026 2025 (in thousands) Foreign Currency Translation Adjustment Defined Benefit Plans Items Gains (Losses) on Cash Flow Hedges Total Foreign Currency Translation Adjustment Defined Benefit Plans Items Gains (Losses) on Cash Flow Hedges Total Balance as of beginning of period $ ( 46,436 ) $ ( 1,183 ) $ ( 1,479 ) $ ( 49,098 ) $ ( 80,832 ) $ ( 1,390 ) $ 627 $ ( 81,595 ) Other comprehensive income (loss) before reclassifications ( 8,176 ) — 1,035 ( 7,141 ) 38,883 — ( 2,643 ) 36,240 Amounts reclassified from accumulated other comprehensive (income) loss — 451 288 739 — 401 533 934 Other comprehensive income (loss) ( 8,176 ) 451 1,323 ( 6,402 ) 38,883 401 ( 2,110 ) 37,174 Balance as of end of period $ ( 54,612 ) $ ( 732 ) $ ( 156 ) $ ( 55,500 ) $ ( 41,949 ) $ ( 989 ) $ ( 1,483 ) $ ( 44,421 ) 16 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations The following tables set forth, for the periods indicated, certain financial data: As a Percent of Net Sales Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Vegetation Management 39.7 % 42.6 % 40.8 % 42.3 % Industrial Equipment 60.3 % 57.4 % 59.2 % 57.7 % Total sales, net 100.0 % 100.0 % 100.0 % 100.0 % Cost Trends and Profit Margin, as Percentages of Net Sales Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 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 % Overview This report contains forward-looking statements that are based on Alamo Group’s current expectations. Actual results in future periods may differ materially from those expressed or implied because of a number of risks and uncertainties which are discussed below and in the Forward-Looking Information section. Unless the context otherwise requires, the terms "the Company", "we", "our" and "us" means Alamo Group Inc. 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. 17 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, 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.” Results of Operations Three Months Ended June 30, 2026 vs. Three Months Ended June 30, 2025 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. Selling, general and administrative expenses (“SG&A”) were $60.1 million (13% of net sales) during the second quarter of 2026 compared to $57.1 million (14% of net sales) during the same period of 2025, an increase of $3.0 million attributable primarily to recent acquisitions and restructuring-related costs. Amortization expense in the second quarter of 2026 was $5.0 million compared to $4.1 million in the same period in 2025, an increase due to addition of the Ring-O-Matic and Petersen Industries acquisitions. Interest expense was $4.8 million for the second quarter of 2026 compared to $3.7 million during the same period in 2025 due to increased debt related to the Petersen Industries acquisition. Other net income (expense) was $0.62 million of expense in the second quarter of 2026 compared to $3.2 million of expense during the same period in 2025, primarily due to lower foreign currency transaction losses. 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. 18 Six Months Ended June 30, 2026 vs. Six Months Ended June 30, 2025 Net sales for the first six months of 2026 were $867.9 million, an increase of $57.9 million or 7% compared to $810.0 million for the first six 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 million during the first six months of 2026 compared to $467.8 million for the same period in 2025, an increase of $45.6 million or 10%. The increase in net sales for the first six months of 2026 compared to the first six months of 2025 was mainly due the acquisition of Ring-O-Matic and Petersen Industries. Net sales in the Vegetation Management Division increased during the first six months by $12.3 million or 4% to $354.5 million for 2026 compared to $342.2 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. 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. SG&A expenses were $117.8 million (14% of net sales) during the first six months of 2026 compared to $111.5 million (14% of net sales) during the same period of 2025, an increase of $6.3 million attributable primarily to recent acquisitions, including Ring-O-Matic and Petersen Industries, as well as restructuring-related costs. Amortization expense in the first six months of 2026 was $9.9 million compared to $8.1 million in the same period in 2025, an increase due to acquisitions. ease of $0.0 million. Interest expense was $9.4 million for the first six months of 2026 compared to $6.9 million during the same period in 2025, an increase of $2.5 million following acquisition of Petersen Industries in January 2026. 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. Provision for income taxes was $20.5 million (25% of income before income taxes) during the first six months of 2026 compared to $20.3 million (24% 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 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. Liquidity and Capital Resources In addition to normal operating expenses, the Company has ongoing cash requirements which are necessary to operate the business, including inventory purchases and capital expenditures. The Company’s accounts receivable, inventory and accounts payable levels, particularly in its Vegetation Management Division, historically build in the first quarter and early spring and, to a lesser extent, in the fourth quarter in anticipation of the spring and fall selling seasons. Accounts receivable historically build in the first and fourth quarters of each year as a result of pre-season sales and year-round sales programs. These sales, primarily in the Vegetation Management Division, help balance the Company’s production during the first and fourth quarters. As of June 30, 2026, the Company had working capital of $766.6 million, a decrease of $13.1 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, partly offset by increases in accounts receivable and inventory. 19 Capital expenditures were $10.3 million for the first six months of 2026, compared to $13.0 million during the first six months of 2025. The Company expects a capital expenditure level of approximately $28.0 million to $33.0 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 million during the first six months of 2026 compared to $29.7 million during the first six months of 2025. Net cash provided by financing activities was $37.3 million during the first six months of 2026, compared to net cash used in financing activities of $15.1 million during the six month period ended June 30, 2025. Higher net cash provided by financing activities for the first six months of 2026 relates to additional borrowings on bank revolving credit facilities to partially fund the Petersen Industries acquisition. The Company had $133.8 million in cash and cash equivalents held by its foreign subsidiaries as of June 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 relative value of the U.S. dollar. 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. 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 30, 2026, we believe our financial position remains robust, supported by a strong balance sheet and healthy cash flow 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. 20 Critical Accounting Estimates Management’s Discussion and Analysis of Financial Condition and Results of Operations are based upon our Consolidated Financial Statements, which have been prepared in accordance with GAAP. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Critical Accounting Policies An accounting policy is deemed to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made, and if different estimates that reasonably could have been used, or changes in the accounting estimates that are reasonably likely to occur periodically, could materially impact the financial statements. Management believes that of the Company's significant accounting policies, which are set forth in Note 1 of the Notes to Consolidated Financial Statements in the 2025 Form 10-K, the policies relating to the business combinations involve a higher degree of judgment and complexity. There have been no material changes to the nature of estimates, assumptions and levels of subjectivity and judgment related to critical accounting estimates disclosed in Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" of the 2025 Form 10-K. Off-Balance Sheet Arrangements There are no off-balance sheet arrangements that have or are likely to have a current or future material effect on our financial condition. Forward-Looking Information Part I of this Quarterly Report on Form 10-Q and the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in Item 2 of this Quarterly Report contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. In addition, forward-looking statements may be made orally or in press releases, conferences, reports or otherwise, in the future by or on behalf of the Company. Generally, forward-looking statements are not based on historical facts but instead represent the Company's and its management's belief regarding future events. Statements that are not historical are forward-looking. When used by us or on our behalf, the words "expect," “will,” “estimate,” “believe,” “intend,” "would," “could,” "predict," “should,” “anticipate,” "continue," “project,” “forecast,” “plan,” “may” and similar expressions generally identify forward-looking statements made by us or on our behalf. Forward-looking statements involve risks and uncertainties. These uncertainties include factors that affect all businesses operating in a global market, as well as matters specific to the Company and the markets we serve. Certain particular risks and uncertainties that continually face us include the following: • budget constraints and revenue shortfalls which could affect the purchases of our type of equipment by governmental customers and related contractors in both domestic and international markets; • market acceptance of new and existing products; • our ability to hire suitable employees for our business and maintain good relations with employees; • our ability to develop and manufacture new and existing products profitably; • the inability of our suppliers, creditors, public utility providers and financial and other service organizations to deliver or provide their products or services to us; • legal actions and litigation; • impairment in the carrying value of goodwill; • our ability to successfully integrate acquisitions and operate acquired businesses or assets; • our ability to achieve anticipated cost savings and synergies associated with restructuring some of our business operations; • current and changing tax laws in the U.S. and internationally; • our ability to hire and retain quality skilled employees; and 21 • changes in the prices of agricultural commodities, which could affect our customers’ income levels. In addition, we are subject to risks and uncertainties facing the industry in general, including the following: • changes in business and political conditions and the economy in general in both domestic and international markets; • uncertainty due to future direction of federal fiscal policy following national elections may slow the growth in governmental market revenue; • the price and availability of energy and critical raw materials, particularly steel and steel products; • increased competition; • increases in input costs on items we use in the manufacturing of our products; • adverse weather conditions such as droughts, floods, snowstorms, etc., which can affect the buying patterns of our customers and end-users; • increased costs of complying with governmental regulations which affect corporations including related fines and penalties (such as the European General Data Protection Regulation (GDPR) and the California Consumer Privacy Act); • an increase in unfunded pension plan liability due to financial market deterioration; • the potential effects on the buying habits of our customers due to animal disease outbreaks and other epidemics; • adverse market conditions and credit constraints which could affect our customers and end-users, such as cutbacks on dealer stocking levels; • changes in market demand; • climate related incidents and other sustainability risks, global pandemics, acts of war or aggression and terrorist activities or military actions; • cyber security risks including the potential loss of proprietary data or data security breaches and related fines, penalties and other liabilities; • financial market changes including changes in interest rates and fluctuations in foreign exchange rates; • abnormal seasonal factors in our industry; • changes in domestic and foreign governmental policies and laws, including increased levels of government regulation and changes in agricultural policies, including the amount of farm subsidies and farm payments as well as changes in trade policy that may have an adverse impact on our business; • changes to global trade policies, tariffs, trade sanctions, and investment restrictions; • government actions, including but not limited to budget levels, and changes in laws, regulations and legislation, relating to tax, environment, commerce, infrastructure spending, health and safety; and • risk of governmental defaults and resulting impact on the global economy and particularly financial institutions. The Company wishes to caution readers not to place undue reliance on any forward-looking statements and to recognize that the statements are not predictions of actual future results. Actual results could differ materially from those anticipated in the forward-looking statements and from historical results, due to the risks and uncertainties described above, as well as others not now anticipated. The foregoing statements are not exclusive and further information concerning us and our businesses, including factors that could potentially materially affect our financial results, may emerge from time to time. It is not possible for management to predict all risk factors or to assess the impact of such risk factors on the Company’s businesses. Any forward-looking statements made by or on behalf of the Company speak only to the date they are made and we do not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the forward-looking statements were made. Item 3. Quantitative and Qualitative Disclosures About Market Risks The Company is exposed to various market risks. Market risks are the potential losses arising from adverse changes in market prices and rates. The Company does not enter into derivative or other financial instruments for trading or speculative purposes. 22 Foreign Currency Risk International Sales A portion of the Company’s operations consists of manufacturing and sales activities in international jurisdictions. The Company primarily manufactures its products in the U.S., U.K., France, Canada, Brazil, and the Netherlands. The Company sells its products primarily in the functional currency within the markets where the products are produced, but certain sales from the Company's U.K. and Canadian operations are denominated in other foreign currencies. As a result, the Company’s financials, specifically the value of its foreign assets, could be affected by factors such as changes in foreign currency exchange rates or weak economic conditions in the other markets in which the subsidiaries of the Company distribute their products. Exposure to Exchange Rates 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 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 million for the six month period ended June 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. Interest Rate Risk 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 quarter 2026 average interest rate under these borrowings, the Company’s interest expense would have changed by approximately $1.3 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. Item 4. Controls and Procedures Disclosure Controls and Procedures An evaluation was carried out under the supervision and with the participation of Alamo’s management, including our President and Chief 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. 23 Changes in internal control over financial reporting There has been no change in our internal control over financial reporting that occurred during our last fiscal year that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. PART II. OTHER INFORMATION Item 1. Legal Proceedings For a description of legal proceedings, refer to the consolidated financial statements and footnotes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2025 (the "2025 10-K"). Item 1A. Risk Factors There have not been any material changes from the risk factors previously disclosed in the 2025 Form 10-K for the year ended December 31, 2025. Item 2. Unregistered Sales of Equity Securities and Use of Proceeds The following table provides a summary of the Company's repurchase activity for its common stock during the three months ended June 30, 2026. Issuer Purchases of Equity Securities Period Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly announced Plans or Programs Maximum Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (a) April 1-30, 2026 — — — $50,000,000 May 1-31, 2026 26,589 $151.47 26,589 $45,967,028 June 1-30, 2026 35,343 $150.61 35,343 $40,641,621 (a) On October 31, 2024, the Board authorized a stock repurchase program of up to $50.0 million of the Company's common stock. The program has a term of five (5) years, terminating on October 30, 2029. Item 3. Defaults Upon Senior Securities None. Item 4. Mine Safety Disclosures Not Applicable Item 5. Other Information (a) Reports on Form 8-K None. (b) Other Information None. (c) During the period covered by this report, none of the Company’s directors or executive officers has adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5–1 trading arrangement (each as defined in Item 408 of Regulation S-K under the Securities Exchange Act of 1934, as amended). 24 Item 6. Exhibits (a) Exhibits Exhibits Exhibit Title Incorporated by Reference From the Following Documents 10.1 — Separation agreement Filed as Exhibit 10.1 to Form 8-K, May 19, 2026 10.2 — Fourth amended and restated credit agreement Filed as Exhibit 10.1 to Form 8-K, May 28, 2026 31.1 — Certification by Robert P. Hureau under Section 302 of the Sarbanes-Oxley Act of 2002 Filed Herewith 31.2 — Certification by Agnieszka K. Kamps under Section 302 of the Sarbanes-Oxley Act of 2002 Filed Herewith 32.1 — Certification by Robert P. Hureau under Section 906 of the Sarbanes-Oxley Act of 2002 Filed Herewith 32.2 — Certification by Agnieszka K. Kamps under Section 906 of the Sarbanes-Oxley Act of 2002 Filed Herewith 101.INS — XBRL Instance Document - the instance document does not appear in the Interactive Data Files because its XBRL tags are embedded within the Inline XBRL document Filed Herewith 101.SCH — XBRL Taxonomy Extension Schema Document Filed Herewith 101.CAL — XBRL Taxonomy Extension Calculation Linkbase Document Filed Herewith 101.DEF — XBRL Taxonomy Extension Definition Linkbase Document Filed Herewith 101.LAB — XBRL Taxonomy Extension Label Linkbase Document Filed Herewith 101.PRE — XBRL Taxonomy Extension Presentation Linkbase Document Filed Herewith 104 — Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) Filed Herewith 25 Alamo Group Inc. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. August 3, 2026 Alamo Group Inc. (Registrant) /s/ Robert P. Hureau Robert P. Hureau President & Chief Executive Officer (Principal Executive Officer) /s/ Agnieszka K. Kamps Agnieszka K. Kamps Executive Vice President & Chief Financial Officer (Principal Financial Officer) 26