About Alamo Group

Alamo Group Inc. is a leader in the design, manufacture, and servicing of high quality vegetation management and infrastructure maintenance equipment for governmental, industrial and agricultural use. The company's products include tractor mounted and self-propelled mowers, zero-turn mowers, agricultural implements, tree and branch chippers, forestry/wood recycling equipment, street and parking lot sweepers, leaf and debris collection equipment, truck mounted highway attenuator trucks, vacuum trucks, hydro-excavation equipment, telescopic boom excavators, and snow removal equipment. The company emphasizes products for its customers and strives to develop and market innovative products. The company has a long-standing strategy of supplementing its internal growth through acquisitions of businesses or product lines that complement, command, or have the potential to achieve a meaningful share of their niche markets. The company manages a total of 29 plants with business operations in North America, South America, Europe, and Australia. The company sells its products primarily through a network of independent dealers and distributors to governmental end-users and related independent contractors, as well as to other commercial customers. The primary markets for the company's products are North America, South America, Europe and Australia. In 2023, the company acquired 100% of the outstanding equity capital of Royal Truck & Equipment, Inc. (Royal Truck), a leading manufacturer of truck mounted highway attenuator trucks and other specialty trucks and equipment for the highway infrastructure and traffic control market. The primary reason for the Royal Truck acquisition was to acquire business operations in an adjacent market, highway safety and equipment, where the company sees compelling future opportunities. Royal Truck is based in Shoemakersville, Pennsylvania. Sales and Marketing Strategy The company is a leading supplier to governmental markets, a leading supplier in the U.S. agricultural market, and one of the largest suppliers in the European market for its key niche product offerings. The company's products are sold through its various marketing organizations and extensive worldwide dealer and distributor networks under the Gradall, VacAll, Super Products, Rivard, Alamo Industrial, Terrain King, Tiger, Herder, Conver, Roberine, Votex, Schwarze, NiteHawk, ODB, Henke, Tenco, Wausau, Everest, H.P. Fairfield, R.P.M. Tech, Morbark, Rayco, Denis Cimaf, Boxer, Bush Hog, Rhino, RhinoAg, M&W, Dixie Chopper, Herschel, Schulte, Fieldquip, Santa Izabel, McConnel, Bomford, Spearhead, Twose, SMA, Forges Gorce, Rousseau, Royal Truck & Equipment, Timberwolf, and Wolftrack trademarks (some with related designs), as well as other trademarks and trade names. Products and Distribution Channels At the beginning of the fourth quarter of 2021, the company began reporting operating results on the basis of two new segments, namely, the Vegetation Management Division and the Industrial Equipment Division. The Vegetation Management Division includes all of the operations of the Agricultural Division plus the mowing and forestry/tree care operations. The Industrial Equipment Division includes the company's vocational truck business and other industrial operations, such as excavators, vacuum trucks, street sweepers, snow removal equipment, and the recently acquired Royal Truck business. Vegetation Management Bush Hog and Rhino equipment is generally sold to farmers, ranchers and other end-users to clear brush, mow grass, maintain pastures and unused farmland, shred crops, till fields, and for haymaking and other applications. Bush Hog and Rhino equipment consists principally of a comprehensive line of tractor-powered equipment, including rotary mowers, finishing mowers, flail mowers, disc mowers, front-end loaders, backhoes, rotary tillers, posthole diggers, scraper blades and replacement parts. Dixie Chopper produces a wide range of commercial and high end residential zero turn (ZT) mowers. It sells its products through its independent dealers in the outdoor power equipment channel throughout the U.S. Schulte equipment includes heavy-duty mechanical rotary mowers, snow blowers, rock removal equipment and related replacement parts. Schulte (Schulte Industries Ltd. and its related entities) serves both the agricultural and governmental markets primarily in Canada and the U.S. It also sells some of the company's other product lines in its markets and some of its products through independent distributors throughout the world. McConnel Ltd. (McConnel) equipment principally includes a broad line of hydraulic, boom-mounted hedge and grass cutters, remote control mowers as well as other tractor attachments and implements, such as cultivators, subsoilers and other implements and related replacement parts. McConnel equipment is sold primarily in the U.K., Ireland, France and in other parts of Europe through independent dealers and distributors. McConnel also sells a range of self-propelled sprayers and a variety of multi-drive load-carrying vehicles. These products are sold through its existing dealer network as well as various marketing groups within the European region of the Vegetation Management Division. Bomford-Turner Ltd. (Bomford) equipment includes hydraulic boom-mounted hedge and hedgerow cutters, industrial grass mowers, agricultural seedbed preparation cultivators and related replacement parts. Bomford equipment is sold to governmental agencies, contractors and agricultural end-users in the U.K., Ireland, France and other parts of Europe, North America, Australia and Asia. Bomford's sales network is similar to that of McConnel in the U.K. Spearhead Machinery Limited (Spearhead) manufactures a range of tractor-mounted vegetation maintenance equipment, including reach mowers, flail mowers and rotary cutters. These products are manufactured in the company's Bomford facility. Fieldquip Australia Pty Ltd (Fieldquip) broadens the company's presence in Australia. The company sells a variety of vegetation maintenance equipment, specifically rotary mowers and tractor attachments. Fieldquip sells to customers ranging from large agricultural and commercial operators to small farm hobbyist and residential users, as well as agricultural dealers who serve owners and operators in the turf, golf, park and airport industries and growers with orchards, vineyards and plantations in Australia and the South Pacific. Rousseau Holdings S.A. (Rousseau) sells hydraulic and mechanical boom mowers, primarily in France, through its own sales force and its dealer distribution network mainly to agricultural and governmental markets. These products have also been introduced into other markets outside of France. These products are manufactured at the company's facility near Lyon, France. SMA equipment includes hydraulic boom-mounted hedge and hedgerow cutters and related replacement parts. SMA's principal customers are French local authorities. SMA's (Signalisation Moderne Autoroutiere S.A.) product offerings include certain quick-attach boom mowers manufactured by the company in the U.K. to expand its presence in agricultural dealerships. The SMA product line is manufactured at the company's facility near Lyon, France. Forges Gorce manufactures cutting blades which are sold to some of the company's subsidiaries, as well as to other third party customers and distributors. Morbark manufactures a broad range of tree chippers, stump grinders, mulchers, brush cutters, flails and debarkers sold under the Morbark, Rayco, Denis Cimaf and Boxer brand names. Its products are sold to industrial and commercial contractors mainly through a network of independent dealers and distributors and, to a lesser extent, direct sales to end-users. Timberwolf produces a variety of commercial tree care and forestry equipment and attachments under several brand names, including Timberwolf and Wolftrack. Timberwolf sells its products primarily to commercial customers through a comprehensive network of dealers. Alamo Industrial equipment is principally sold through independent dealers to governmental end-users, related independent contractors and utility and other dealers serving infrastructure maintenance operators and other applications in the U.S. and other countries. Governmental agencies and contractors that perform services for such agencies purchase primarily hydraulically-powered, tractor - and off-road chassis mounted mowers, including boom-mounted mowers, other types of cutters and replacement parts for heavy-duty, intensive use applications, including maintenance around highway, airport, recreational and other public areas. A portion of Alamo Industrial's sales includes tractors, which are not manufactured by Alamo Industrial. Tiger equipment includes heavy duty, tractor- and truck-mounted mowing and vegetation maintenance equipment and replacement parts. Tiger sells to state, county and local governmental entities and related contractors, primarily through a network of independent dealers. Tiger's dealer distribution network is independent of Alamo Industrial's dealer distribution network. A portion of Tiger's sales includes tractors, which are not manufactured by Tiger. Alamo Group The Netherlands produces a variety of landscape and vegetation maintenance equipment and attachments under several brand names, including Herder, Conver, Roberine, and Votex. Alamo Group The Netherlands primarily sells to contractors who perform infrastructure maintenance for governmental agencies and private landowners. Herder (Herder Implementos e Maquinas Agricolas Ltda.) and Santa Izabel (Santa Izabel Agro Industria Ltda.) give the company a presence in the Brazilian agricultural market. Herder manufactures and distributes flail and rotary mowers and various other agricultural equipment, direct and through dealers. Its products are used in a wide variety of agricultural and governmental markets. Santa Izabel designs, manufactures and markets a variety of agricultural implements, including sugar cane trailers sold throughout Brazil. Herschel (Herschel Corporation) aftermarket replacement parts are sold for many types of farm equipment and tractors and certain types of mowing and construction equipment. Herschel products include a wide range of cutting parts, plain and hard-faced replacement tillage tools, disc blades and fertilizer application components. Herschel replacement tools and parts are sold throughout the United States, Canada and Mexico to five major customer groups: farm equipment dealers; fleet stores; wholesale distributors; OEMs; and construction equipment dealers. Valu-Bilt Tractor Parts (Valu-Bilt) complements the Herschel product lines while also expanding the company's offering of aftermarket agricultural parts and added catalog and internet sales direct to end-users. Industrial Equipment Gradall (Gradall excavator business) produces a range of excavators based on high-pressure hydraulic telescoping booms which are sold through dealers primarily to governmental agencies and, to a lesser extent, the mining industry, steel mills and other specialty applications in the U.S. and other countries. Many of these products are designed for excavation, grading, shaping and similar tasks involved in land clearing, road building, grading or maintenance. These products are available mounted on various types of undercarriages: wheels for full-speed highway travel, wheels for on/off road use, and crawlers. A portion of Gradall's sales includes truck chassis which are not manufactured by Gradall. VacAll produces catch basin cleaners and roadway debris vacuum systems. These units are powerful and versatile with uses including, but not limited to, removal of wet and dry debris, spill elimination, and cleaning of sludge beds. VacAll also offers a line of sewer cleaners. Its products are primarily sold through dealers to industrial and commercial contractors as well as governmental agencies. A portion of VacAll's sales includes truck chassis which are not manufactured by the company. Super Products produces truck-mounted vacuum machines, combination sewer cleaners and hydro excavators. Its products are sold to municipalities, utilities and contractors through a nationwide distributor network. Super Products LLC (Super Products) also operates a network of rental stores that provides short and long-term rental contracts for its products. Rental customers are primarily contractors serving the petrochemical, petroleum production and refining industries. A portion of the sales of Super Products includes truck chassis which are not manufactured by the company. Rivard manufactures vacuum trucks, high pressure cleaning systems and trenchers. Rivard's equipment is sold primarily in France and certain other markets, mainly in Europe, the Middle East and North Africa, and to governmental entities and related contractors. This business also complements the company's product offerings in North America. The majority of Rivard's customers provide their own truck chassis. Tenco and RPM both design and manufacture a heavy-duty line of snow removal equipment, including truck-mounted snow plows, snow blowers, dump bodies and spreaders. Their products are primarily sold through independent dealers. End-users are governmental agencies, contractors, airports and other industrial users. Wausau designs and manufactures a comprehensive range of snow removal and ice control products. Products include snowplows, snow blowers, snow throwers, brooms, deicers, brine sprayers and other related accessories and parts. Wausau sells its products through its established dealer network to both governmental and non-governmental end-users and sells directly to airports and fixed-base operators. Everest designs and manufactures a range of snow removal and ice control products, including snowplows, wing systems, spreader bodies, and other related accessories and parts. Everest also manufactures custom-engineered underground construction forms for tunnels. Henke Manufacturing Corporation (Henke) designs and manufactures snow plows and heavy duty snow removal equipment, hitches and attachments for trucks, loaders and graders sold primarily through independent truck and industrial equipment dealers. Henke's primary end-users are governmental agencies, related contractors and other industrial users. Howard P. Fairfield LLC (H.P. Fairfield) is a full-service distributor of public works and runway maintenance products, parts and service, whose sales and service outlets are located in the northeastern part of the U.S. H.P. Fairfield's offerings include custom municipal snow and ice removal equipment, a range of salt spreaders and truck bodies, street sweepers, a line of industrial rotary, flail and boom mowers, solid waste and recycling equipment, water and sewer maintenance equipment, municipal tractors and attachments, and asphalt maintenance patchers, some of which are sourced from other Alamo Group companies. H.P. Fairfield also provides truck up-fitting services as part of its business. Schwarze Industries, Inc. (Schwarze) equipment includes truck-mounted air vacuum, mechanical broom, and regenerative air sweepers, pothole patchers and replacement parts. Schwarze sells its products primarily to governmental agencies and independent contractors, either directly or through its independent dealer network. A portion of Schwarze's sales includes truck chassis which are not manufactured by Schwarze. ODB manufactures and sells leaf and debris collection equipment and replacement brooms for street sweepers, both of which are sold to municipalities, contractors and commercial landscape markets in North America. Nite-Hawk Sweepers LLC (Nite-Hawk) manufactures parking lot sweepers with unique and innovative hydraulic designs. Nite-Hawk focuses mainly on and sells direct to parking lot contractors. A portion of Nite-Hawk's sales includes truck chassis which are not manufactured by Nite-Hawk. Royal Truck manufactures and sells truck mounted highway crash attenuator trucks, cone safety and traffic control trucks, and a broad range of other equipment focused on highway safety. Royal Truck sells its products directly to a diverse base of customers in the traffic control services, equipment rental, and construction businesses, as well as to governmental agencies. A portion of Royal Truck's sales includes truck chassis which are not manufactured by Royal Truck. Replacement Parts The company derives a significant portion of its revenues from sales of replacement parts for each of its wholegoods lines. Replacement parts represented approximately 17% of the company's total sales for the year ended December 31, 2023. Product Development The company's research and development expenses included approximately $13.4 million in 2023. Seasonality The company's unit sales are fairly constant quarter to quarter. However, replacement part sales are generally higher in the second and third quarters of the year, because a substantial number of the company's products are used for maintenance activities such as vegetation maintenance, highway right-of-way maintenance, construction, and street and parking lot sweeping. Usage of this equipment is typically lower in harsh weather. The company utilizes an annual twelve-month sales forecast provided by its marketing departments which is updated quarterly in order to develop a production plan for its manufacturing facilities. In addition, many of the company's marketing departments attempt to equalize demand for products throughout the calendar year (year ended December 31, 2023) by offering seasonal sales programs. Environmental and Other Governmental Regulations The U.S. Environmental Protection Agency (EPA), the California Air Resources Board (CARB), and similar regulators in other U.S. states and foreign jurisdictions in which the company sells its products have emission requirements setting maximum emission standards for certain equipment. In addition to the EPA's implementation of Tier 4 emission requirements applicable to diesel engines, China, the European Union (EU) and the United Kingdom also have adopted similar regulations, and similar emission regulations are also being considered in other markets in which the company sells its products. CARB continues to propose new regulations, including Tier 5 off-road diesel engine emissions standards that are in development. The U.S. federal government, several U.S. states, and certain international markets where the company sells its products, including the EU and some EU member countries have introduced product life-cycle laws, rules, or regulations, which are intended to reduce waste and environmental and human health impact, and require manufacturers to label, collect, dispose, and recycle certain products, including some of its products, at the end of their useful life. These include, among other laws and regulations the Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) directive, the U.S. Toxic Substances Control Act (TSCA), or similar substance level laws, rules, or regulations that require notification of use of certain chemicals, or ban or restrict the use of certain chemicals; California Proposition 65 and other product substance restriction laws, some of which require certain labeling of products; energy efficiency laws, rules, or regulations, which are intended to reduce the use and inefficiencies associated with energy and natural resource consumption and require specified efficiency ratings and capabilities for certain products; conflict minerals laws, such as those contained in the Dodd-Frank Wall Street Reform and Consumer Protection Act and the rules promulgated by the U.S. Securities and Exchange Commission (SEC), which require specific procedures for the determination and disclosure of the use of certain minerals, known as conflict minerals, which are mined from the Democratic Republic of the Congo and adjoining countries; and supply chain transparency laws and regulations addressing modern slavery and human trafficking. The company is also subject to various other federal, state, and local laws affecting its business, as well as a variety of regulations relating to such matters as working conditions, equal employment opportunities, and product safety, including National Highway Traffic Safety Administration reporting. In addition, a variety of laws regulate the company's contractual relationships with its dealers, some of which impose restrictive standards on the relationship between the company and its dealers, including events of default, grounds for termination, non-renewal of dealer contracts, and equipment repurchase requirements. History Alamo Group Inc. was founded in 1955. The company was incorporated in the state of Texas in 1969 and was reincorporated in the state of Delaware in 1987.