Why Is Margin Pressure Persisting at Alamo Group (ALG) Despite Surpassing Revenue Expectations?

Simply Wall St.11-09

Alamo Group Inc. recently reported its third-quarter 2025 results, with sales of US$420.04 million surpassing analyst expectations but net income and earnings per share falling short of forecasts. The...

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The...</p>\n\n<a href=\"https://simplywall.st/stocks/us/capital-goods/nyse-alg/alamo-group/news/why-is-margin-pressure-persisting-at-alamo-group-alg-despite\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Is Margin Pressure Persisting at Alamo Group (ALG) Despite Surpassing Revenue Expectations?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy Is Margin Pressure Persisting at Alamo Group (ALG) Despite Surpassing Revenue Expectations?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-11-09 09:39 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/capital-goods/nyse-alg/alamo-group/news/why-is-margin-pressure-persisting-at-alamo-group-alg-despite><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Alamo Group Inc. recently reported its third-quarter 2025 results, with sales of US$420.04 million surpassing analyst expectations but net income and earnings per share falling short of forecasts. The...</p>\n\n<a href=\"https://simplywall.st/stocks/us/capital-goods/nyse-alg/alamo-group/news/why-is-margin-pressure-persisting-at-alamo-group-alg-despite\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"ALG","symbol_name":"阿拉莫集团股份有限公司","start_time":0,"source_url":"https://simplywall.st/stocks/us/capital-goods/nyse-alg/alamo-group/news/why-is-margin-pressure-persisting-at-alamo-group-alg-despite","article_id":"2582860183","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/3071000-choice1-main-header/1585186812179"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/capital-goods/nyse-alg/alamo-group/news/why-is-margin-pressure-persisting-at-alamo-group-alg-despite","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2582860183","pubTimestamp":1762652371,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Alamo Group Inc. recently reported its third-quarter 2025 results, with sales of US$420.04 million surpassing analyst expectations but net income and earnings per share falling short of forecasts.\nThe company achieved strong growth in its Industrial Equipment Division, while continued weakness in the Vegetation Management segment contributed to a decline in profitability despite higher revenues.\nWe will explore how ongoing margin pressure, particularly in Vegetation Management, influences...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"ALG":"阿拉莫集团股份有限公司"},"translate_title":"尽管收入超出预期，为什么阿拉莫集团(ALG)的利润压力依然存在？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ALG":1.5},"content_text":"Alamo Group Inc. recently reported its third-quarter 2025 results, with sales of US$420.04 million surpassing analyst expectations but net income and earnings per share falling short of forecasts. The company achieved strong growth in its Industrial Equipment Division, while continued weakness in the Vegetation Management segment contributed to a decline in profitability despite higher revenues. We will explore how ongoing margin pressure, particularly in Vegetation Management, influences the company’s investment narrative going forward. Find companies with promising cash flow potential yet trading below their fair value.AdvertisementAlamo Group Investment Narrative Recap To be a shareholder in Alamo Group, you have to believe in the company’s ability to drive sustained growth through its Industrial Equipment division while trusting that management can successfully address weakness in Vegetation Management and maintain operational discipline. The latest results reinforced the biggest near-term catalyst, robust industrial sales and backlog growth, while also highlighting persistent margin pressures as the main risk; the impact of margin compression is material and could weigh on future earnings if not resolved.\n  Among recent announcements, the completion of the CEO transition in September stands out as an event relevant to upcoming quarters. Leadership change introduces execution and strategic risks, especially as Alamo Group pushes forward on cost efficiency initiatives and an active acquisition pipeline, tying directly into the catalysts that investors are watching for continued operating improvements.\n  In contrast, what many investors may not fully appreciate is the degree to which prolonged weakness in Vegetation Management could still impact overall profitability and cash flow if…\n Read the full narrative on Alamo Group (it's free!)Alamo Group's outlook anticipates $1.9 billion in revenue and $179.9 million in earnings by 2028. This is based on a projected annual revenue growth rate of 5.3% and an earnings increase of $61.5 million from the current $118.4 million.Uncover how Alamo Group's forecasts yield a $244.25 fair value, a 46% upside to its current price.Exploring Other PerspectivesALG Earnings & Revenue Growth as at Nov 2025  Simply Wall St Community members have set fair value estimates for Alamo Group ranging from US$164.78 to US$358.30, with three unique viewpoints shaping that wide span. With ongoing margin pressure in Vegetation Management affecting short-term earnings, you can see why opinions differ so widely on underlying value and future performance.\nExplore 3 other fair value estimates on Alamo Group - why the stock might be worth over 2x more than the current price!Build Your Own Alamo Group NarrativeDisagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.A great starting point for your Alamo Group research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.Our free Alamo Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Alamo Group's overall financial health at a glance.Ready For A Different Approach?These stocks are moving-our analysis flagged them today. Act fast before the price catches up:Uncover the next big thing with financially sound penny stocks that balance risk and reward.The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 24 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement.Trump's oil boom is here - pipelines are primed to profit. Discover the 22 US stocks riding the wave.  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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