-- Revenue increased 5% to $138.9 million, with gross margin expanding 50
basis points to 32.7% and operating income improving 6% to $9.3 million,
or 6.7% of revenue
-- Net income increased 51% to $5.4 million, or $0.32 per diluted share;
adjusted net income increased to $8.4 million, with adjusted diluted
earnings per share of $0.50
-- Orders were up 15% year-over-year to $158.1 million, resulting in a
book-to-bill ratio of 1.14x; backlog was $251.0 million at quarter end
-- Cash and cash equivalents were $41.2 million at quarter end; total debt
reduced $3.1 million during the quarter to $177.3 million, with the
leverage ratio improving to 1.78x, as described in the reconciliation of
non-GAAP financial measures
BUFFALO, N.Y.--(BUSINESS WIRE)--May 06, 2026--
Allient Inc. (Nasdaq: ALNT) ("Allient" or the "Company"), a global designer and manufacturer of precision and specialty Motion, Controls and Power products and solutions for targeted industries and applications, today reported financial results for its first quarter ended March 31, 2026.
Dick Warzala, Chairman and CEO, commented, "The strong uptick in our Bookings is a good indicator of our positive organic growth prospects for this year and beyond. Also, our first quarter results reflect continued progress in executing our strategy, with year-over-year growth in revenue, gross profit, operating income and earnings. We entered 2026 with a stronger balance sheet, a more efficient cost structure and a portfolio aligned with long-term trends in electrification, automation, energy efficiency, digital infrastructure and precision control.
"Our focus remains on deepening our role as a solutions partner, delivering higher value engineered systems and platforms for OEMs and end users across our targeted verticals. We continue to prioritize programs and technologies that offer attractive margin potential, scalable platforms and strong strategic alignment, while actively managing exposure to more cyclical or structurally challenged niches.
"Operationally, we are building on our Simplify to Accelerate NOW initiatives and structural business optimization efforts to improve quality, delivery and cost. The move of our Dothan facility has extended beyond its planned original year-end date, resulting in higher-than-expected operating costs in the quarter, which will continue in the second quarter as well. Financially, we remain focused on margin expansion, cash generation and continued deleveraging, supported by disciplined capital deployment. We are also closely monitoring the external environment, including evolving trade policy, tariff dynamics and customer demand patterns, and remain committed to agility and resilience across our global operations."
First Quarter 2026 Results (Narrative compares with prior-year period unless otherwise noted)
Revenue increased 5%, or $6.1 million, to $138.9 million, compared with $132.8 million in the first quarter of 2025. Foreign currency translation provided a favorable impact of $5.1 million; on a constant currency basis, revenue grew approximately 1% organically. See the attached table for a description of non-GAAP financial measures and reconciliation of revenue excluding foreign currency exchange rate fluctuations.
Sales to U.S. customers were 50% of total revenue, compared with 52% in the first quarter of 2025, with the balance of sales to customers primarily in Europe, Canada and Asia-Pacific. The Company continues to benefit from its diversified geographic footprint and balanced exposure across end markets.
Market Performance:
-- Industrial market revenue increased 8%, reflecting continued strength
in industrial automation and power quality solutions supporting data
center infrastructure.
-- Vehicle market revenue was up 7%, primarily due to higher demand in
commercial automotive.
-- Medical market revenue increased 2%, as higher demand in surgical
robotics and related precision motion applications was partially offset
by softness in medical mobility.
-- Aerospace & Defense revenue decreased 3%, reflecting program timing
rather than underlying demand, and the previously announced M10 Booker
Tank program cancellation.
-- Distribution channel sales, while representing a smaller portion of
total revenue, decreased 9%, reflecting normal variability in channel
ordering patterns.
Gross margin expanded 50 basis points to 32.7% from the prior-year period and benefited from higher sales volume, improved product mix and operational improvements driven by the Company's Simplify to Accelerate NOW strategy.
Operating costs and expenses were $36.1 million compared with $34.0 million in the first quarter of 2025. Selling expense increased primarily due to higher commissions driven by higher sales volumes, as well as higher marketing and sales-generating costs. Engineering and development expense was up modestly year-over-year, reflecting higher incentive compensation, partially offset by cost reduction actions taken as part of the Company's Simplify to Accelerate NOW strategy. Restructuring and business realignment costs declined year-over-year but remained elevated due to additional carryover costs associated with the Dothan transition, as the Company continued executing the transfer of assembly operations and related optimization actions into 2026.
Operating income increased to $9.3 million, or 6.7% of revenue, compared with $8.8 million, or 6.6% of revenue, in the prior-year period.
Interest expense decreased to $2.6 million from $3.6 million in the first quarter of 2025, primarily due to lower average debt balances.
The effective income tax rate was 21.0% for the first quarter of 2026 compared with 20.2% in the prior-year period. The Company expects its income tax rate for the full year 2026 to be approximately 21% to 23%.
Net income increased 51% to $5.4 million, or $0.32 per diluted share, compared with $3.6 million, or $0.21 per diluted share, in the prior-year period. Adjusted net income, which excludes amortization of intangible assets related to acquisitions, acquisition and integration-related costs, restructuring and business realignment costs, and other non-recurring items, was $8.4 million, or $0.50 per diluted share, up from $7.6 million, or $0.46 per diluted share, in the first quarter of 2025. See the attached tables for a description of non-GAAP financial measures and reconciliation table for Adjusted Net Income and Diluted Earnings per Share.
Earnings before interest, taxes, depreciation, amortization, stock-based compensation expense, acquisition and integration-related costs, restructuring and business realignment costs, and foreign currency gains/losses ("Adjusted EBITDA") was $17.3 million, or 12.4% of revenue, compared with $17.5 million, or 13.2% of revenue, in the prior-year period. The Company believes that, when used in conjunction with measures prepared in accordance with U.S. generally accepted accounting principles, Adjusted EBITDA, which is a non-GAAP measure, helps in the understanding of its operating performance. See the attached table for a description of non-GAAP financial measures and reconciliation table for Adjusted EBITDA.
Balance Sheet and Cash Flow Review
Cash and cash equivalents were $41.2 million at March 31, 2026, compared with $40.7 million at December 31, 2025. Cash from operations was approximately $8 million lower year-over-year primarily due to timing differences and larger incentive payouts rather than underlying business performance. Specifically, certain customer payments that typically would have been received prior to quarter end were collected shortly after the period close.
Capital expenditures were $2.2 million in the quarter, compared with $1.1 million in the first quarter of 2025. The Company expects full-year 2026 capital expenditures to be approximately $12.0 million to $15.0 million.
Total debt was $177.3 million at March 31, 2026, down from $180.4 million at December 31, 2025. Debt, net of cash, decreased to $136.1 million, resulting in a net debt-to-capitalization ratio of 30.8%. As of March 31, 2026, the Company had $158.0 million of unused capacity under its revolving credit facility.
The Company's leverage ratio, defined as total net debt divided by trailing twelve months Adjusted EBITDA, was 1.78x at March 31, 2026. The bank leverage ratio, as defined under the Company's credit agreement and excluding foreign cash and certain other adjustments, was 2.24x at quarter-end, well within covenant requirements. See the attached table for a description of non-GAAP financial measures and reconciliation table for Total Net Debt and Leverage Ratio.
Orders and Backlog Summary ($ in thousands)
Q1 2026 Q4 2025 Q3 2025 Q2 2025 Q1 2025
-------- -------- -------- -------- --------
Orders $158,080 $145,088 $133,119 $135,032 $137,622
Backlog $250,991 $232,925 $230,984 $236,586 $237,323
First quarter orders of $158.1 million increased 9% sequentially, resulting in a book-to-bill ratio of 1.14x. The increase reflects improvements in customer demand levels across certain target markets, primarily within Industrial and Vehicle. On a year-over-year basis, orders rose 15%, driven by broad-based demand across end markets. Foreign currency translation provided a favorable impact of $5.1 million compared with the prior-year period.
The majority of the backlog is expected to convert to revenue within three to nine months, consistent with the Company's historical conversion patterns.
Conference Call and Webcast
The Company will host a conference call and webcast on Thursday, May 7, 2026, at 10:00 am ET. During the conference call, management will review the financial and operating results and discuss Allient's corporate strategy and outlook. A question-and-answer session will follow.
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