Alamo Group Q2 2025 Earnings Call Transcript

Quartr
Provided by Quartr
August 7, 2025

Key Takeaways

  • Positive Sentiment: In Q2 2025, Alamo Group reported revenue of $419.1 million, up slightly year-over-year, with operating income rising to $47.1 million (11.2% margin) and net income increasing nearly 10% to $31.1 million.
  • Positive Sentiment: The Industrial Equipment division achieved record net sales of $240.7 million (17.6% organic growth) and expanded its operating margin by 100 basis points to 14.3%, led by strong demand for vacuum trucks and snow removal equipment.
  • Neutral Sentiment: Vegetation Management division net sales declined 15.7% to $178.4 million versus last year but showed an 8.8% sequential improvement as bookings and cost-reduction measures stabilized the business.
  • Positive Sentiment: Strong cash generation drove operating cash flow of $36.9 million and cut net debt by 93.5% year-over-year to $11.3 million, enhancing balance sheet flexibility.
  • Positive Sentiment: The Board approved a quarterly dividend of $0.30 per share and completed the tuck-in acquisition of Ring-O-Matic to bolster its vacuum excavation and equipment rental offerings.
AI Generated. May Contain Errors.
Earnings Conference Call
Alamo Group Q2 2025
00:00 / 00:00

Transcript Sections

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Operator

Good day, and welcome to the Alamo Group Incorporated Second Quarter twenty twenty five Conference Call. All participants will be in a listen only mode. After today's presentation, there will be an opportunity to ask questions. I would now like to turn the conference over to Mr. Edward Rizzuti, EVP, Corporate Development and Investor Relations. Please go ahead, sir.

Edward Rizzuti
Edward Rizzuti
EVP, Corporate Development & IR at Alamo Group

Thank you. By now, you should have all received a copy of the press release. However, if anyone is missing a copy and would like to receive one, please contact us at (212) 827-3746, and we will send you a release and make sure you are on the company's distribution list. There will be a replay of the call, which will begin one hour after the call and run for one week. The replay can be accessed by dialing 704-4529 with the passcode seven million eight hundred eighty eight thousand four hundred eighty.

Edward Rizzuti
Edward Rizzuti
EVP, Corporate Development & IR at Alamo Group

Additionally, the call is being webcast on the company's website at www.alamogroup.com, and a replay will be available for sixty days. On the line with me today are Jeff Leonard, President and Chief Executive Officer and Agnes Kamps, Executive Vice President and Chief Financial Officer. Management will make some opening remarks and then we will open up the line for your questions. During the call today, management may reference certain non GAAP numbers in their remarks. Reconciliations of these non GAAP results to applicable GAAP numbers are included in the attachments to our earnings release.

Edward Rizzuti
Edward Rizzuti
EVP, Corporate Development & IR at Alamo Group

Before turning the call over to Jeff, I would like to make a few comments about forward looking statements. We will be making forward looking statements today that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward looking statements involve known and unknown risks and uncertainties, which may cause the company's actual results in future periods to differ materially from forecasted results. Among those factors which could cause actual results to differ materially are the following: adverse economic conditions which could lead to a reduction in overall market demand supply chain disruptions labor constraints competition weather, seasonality, currency related issues, geopolitical events and other risk factors listed from time to time in the company's SEC reports. The company does not undertake any obligation to update the information contained herein, which speaks only as of this date.

Edward Rizzuti
Edward Rizzuti
EVP, Corporate Development & IR at Alamo Group

I would now like to introduce Jeff Leonard. Jeff, please go ahead.

Jeffery Leonard
President & CEO at Alamo Group

Thank you, Ed. We'd like to thank everyone who has joined us on the conference call today and express our appreciation for your continued interest in Alamo Group. Our second quarter results reflected a strong solid operating performance driven by sustained strength in the governmental and industrial markets supported by further modest improvement in the markets for vegetation management equipment. Sales increased modestly compared to the 2024. However, operating income improved significantly as a result of the efficiency improvement measures we have successfully implemented over the past several quarters.

Jeffery Leonard
President & CEO at Alamo Group

I would now like to turn the call over to Agnes, who will take us through a review of our financial results for the second quarter. I will then provide additional comments on the results and say a few words about the outlook for the balance of 2025. Following our formal remarks, we look forward to your questions. Agnes, please go ahead.

Agnes Kamps
Agnes Kamps
EVP, CFO & Treasurer at Alamo Group

Thank you, Jeff. Good morning, everyone. I am pleased to report that we delivered solid operational performance this quarter, reflecting the strength and resilience of our business model. Our Industrial Equipment division delivered impressive results. Our Vegetation Management division continued its recovery, and we are encouraged by the progress made.

Agnes Kamps
Agnes Kamps
EVP, CFO & Treasurer at Alamo Group

2025 revenue was $419,100,000 compared to strong prior year second quarter revenue of $416,300,000 Gross profit for the quarter was $108,300,000 with a margin of 25.8% of net sales compared to January and margin of 26% for the same period last year. SG and A expenses were $57,100,000 which is a reduction of 6% driven by savings Management division. Operating income in the 2025 was $47,100,000 with an operating margin of 11.2% of net sales, reflecting an increase of 83 basis points compared to the second quarter in 2024. Net income for the second quarter was $31,100,000 or 2.57 per diluted share compared to net income of $28,300,000 or $2.35 per diluted share last year at the same time. Almost 10% increase in the net income was driven by stronger operating results.

Agnes Kamps
Agnes Kamps
EVP, CFO & Treasurer at Alamo Group

Interest expense decreased $2,400,000 compared to the same period in 2024, driven by significantly lower debt levels. Lower interest expense helped offset unfavorable impact of the revaluation of U. S. Dollar denominated monetary assets held in our Canadian entities. The provision for income tax was 10,300,000 resulting in effective tax rate of approximately 24.9% compared to 24.8% in the 2024.

Agnes Kamps
Agnes Kamps
EVP, CFO & Treasurer at Alamo Group

With that overview, let's take a closer look at the performance of our divisions. Vegetation Management division reported net sales of $178,400,000 a 15.7% reduction compared to the 2024. While this was a reduction compared to the strong quarter in 2024, it was a 8.8% sequential improvement as bookings and backlog have stabilized. Operating income for this division was $12,800,000 representing 7.1% of net sales. The impact of lower revenue compared to the 2024 was partially offset by savings from the cost reductions taken in 2024.

Agnes Kamps
Agnes Kamps
EVP, CFO & Treasurer at Alamo Group

Industrial Equipment division net sales were another record $240,700,000 representing an impressive 17.6% organic growth compared to the 2024. Growth in the second quarter was driven by strong sales across the division, especially notable were sales of vacuum trucks as well as snow removal equipment. Operating income was also a record $34,300,000 or 14.3% of net sales, which was a 100 basis point improvement compared to the same period last year, a result of growth and our operational excellence initiatives. Moving on to the balance sheet. We maintain a strong financial position and flexibility to support ongoing initiatives and future investments.

Agnes Kamps
Agnes Kamps
EVP, CFO & Treasurer at Alamo Group

Our total assets of $1,558,000,000 at the end of second quarter increased by $51,700,000 compared to last year at the same time. An increase in cash and cash equivalents were partially offset by decrease in accounts receivable and inventory. We reduced our accounts receivable by $32,300,000 to $356,200,000 also representing a reduction in days sales outstanding by about three days compared to the same period in 2024. Inventory of $372,100,000 was also reduced by $13,100,000 compared to last year. Reductions we achieved in Vegetation Management divisions were offset by increase in Industrial Equipment division.

Agnes Kamps
Agnes Kamps
EVP, CFO & Treasurer at Alamo Group

Higher inventory in the Industrial Equipment division supports double digit growth in that division. As a result of our disciplined cash management, the operating cash flow year to date was $36,900,000 At the end of second quarter twenty twenty five, our total debt was $213,100,000 and debt net of cash was $11,300,000 This was an improvement of $163,800,000 or 93.5% compared to the second quarter in twenty twenty four, driven by strategic debt reduction and strong cash generation. To conclude, I would like to emphasize our commitment to delivering long term value to our shareholders. We are pleased that our Board has approved a quarterly dividend of $0.30 per share. As we move forward, we remain focused on driving growth and optimization in our operations. Thank you. I'll turn it back over to Jeff.

Jeffery Leonard
President & CEO at Alamo Group

Thank you, Agnes. I'd like to add a personal welcome to everyone who's on the call with us this morning. In the second quarter, our markets continued to develop in accordance with our expectations and improvements in operating efficiencies combined with lower costs contributed to the improved earnings per share. Demand remained robust in the Government and Industrial Contractor segments and our Industrial Equipment division had another excellent quarter. Sales in the division were up nearly 18 compared to the 2024 with all of this growth being organic.

Jeffery Leonard
President & CEO at Alamo Group

Sales of excavators, vacuum trucks, street sweepers, highway safety vehicles and snow removal equipment all improved nicely. Manufacturing facility utilization remained quite strong and resulted in higher efficiencies that supported the expansion of operating margin in this division. The combination of strong sales growth and improved efficiencies contributed to a 100 basis point expansion of the division's operating income. Industrial Equipment division EBITDA of 16.7% improved 60 basis points compared to the 2024. The order backlog in the Industrial Equipment division remained quite good at nearly $510,000,000 providing us very good visibility and confidence through the second half of the year and into the early months of twenty twenty six.

Jeffery Leonard
President & CEO at Alamo Group

Second quarter order bookings in this division were up nearly 21 compared to the 2024, primarily driven by exceptionally strong orders for vacuum trucks. On a year to date basis, Industrial Division orders were up over 10% compared to the 2024. Markets for the company's vegetation management equipment continued to improve at a modest but steady pace, and there were several positive indicators pointing to improved market conditions that were evident during this quarter. Notably, this was the division's fifth sequential quarter of improvement in order bookings. Second quarter order bookings were nearly 10% higher than the 2024, and year to date orders are up nearly 14% compared to the first six months of last year.

Jeffery Leonard
President & CEO at Alamo Group

Agricultural equipment sales were down compared to the 2024, but improved solidly on a sequential basis. Ag equipment orders in the second quarter were up firmly compared to the prior year's second quarter and were sharply higher sequentially. Sales of governmental mowers further improved in North And South America, but declined somewhat in Europe compared to the 2024. We saw a partly similar pattern in Forestry and Tree Care. Sales in the Forestry and Tree Care group declined relative to the 2024, but improved nicely on a sequential basis.

Jeffery Leonard
President & CEO at Alamo Group

Orders in these product lines also increased compared to the 2024. We were encouraged to see that U. S. Residential housing starts were somewhat higher this quarter, but we continue to believe that an interest rate relief is needed to restore and sustain momentum in this part of the division. Overall, despite the positive improvement in trends and markets for this division's products remained under pressure, dealers remain cautious regarding new inventory commitments on their balance sheets because of the higher floorplan interest rates.

Jeffery Leonard
President & CEO at Alamo Group

Although Vegetation Management division sales declined 16% compared to the 2024, it was encouraging to note the solid 9% improvement sequentially. Sequential improvement was mostly attributable to better performance from its North American ag equipment business and to a lesser extent from forestry and tree care. This division's results also benefited from better efficiencies resulting from plant consolidations completed last year as well as from significant reduction in sales, general and administrative costs. The division's operating margin declined 50 basis points to 7.1% of net sales, while EBITDA declined 120 basis points compared to the 2024. On a consolidated basis, the company's solid second quarter results aligned with our expectations.

Jeffery Leonard
President & CEO at Alamo Group

Sales increased modestly on a consolidated basis compared to the 2024, but rose more than 7% compared to the first quarter of this year, driven by strong organic growth in the Industrial Equipment division. Consolidated operating margin improved 83 basis points to 11.2% and net income improved by nearly 10% compared to the 2024. Second quarter earnings per share of $1.57 improved 9% net of a $0.21 per share impact of foreign exchange headwinds from the U. S. Dollar revaluation in our Canadian operations.

Jeffery Leonard
President & CEO at Alamo Group

Turning now to our outlook for the balance of 2025. We remain optimistic about the company's prospects for the next several quarters and beyond. While risks and uncertainty associated with tariffs remain, the combination of sustained strength of our industrial equipment markets, further recovery in vegetation management markets, improving internal efficiencies and a lower administrative cost structure continue to point to positive development of company performance for the next several quarters. We were very pleased to complete the tuck in acquisition of Ring O Matic in the second quarter as their vacuum excavation equipment nicely complements our vacuum truck and excavator product line and offers potential to accelerate growth in our equipment rental business. Ringomatic employs a group of exceptional employees and we're thrilled to have them join the Alamo Group team.

Jeffery Leonard
President & CEO at Alamo Group

With the company's net debt approaching zero, we're in a strong position to exploit our increasingly active M and A pipeline. We're encouraged by the quantity and quality of the actionable corporate development opportunities we've identified and are pursuing to accelerate corporate growth. This concludes our prepared remarks. We're now ready to take your questions. Operator, please go ahead.

Operator

Thank you. We will now begin the question and answer session. And our first question will come from Chris Moore with CJS Securities. Please go ahead.

Chris Moore
Senior Research Analyst at CJS Securities

Hey, good morning, guys. Congrats on a great quarter.

Jeffery Leonard
President & CEO at Alamo Group

Hi, Chris. Good morning.

Chris Moore
Senior Research Analyst at CJS Securities

Good morning. Maybe we'll just follow-up on some of the stuff you're talking about, Jeff. So from a visibility standpoint, sounds like industrial is looking good at least into early twenty twenty six. Can you maybe just talk a little bit more about vegetation for Q4 and your thoughts in terms of this improving orders, continuing that trend?

Jeffery Leonard
President & CEO at Alamo Group

Yes, I think we're likely to see that trend continue for the next several quarters at least, Chris. Mean, we're coming from a very low point as you know. So the climb out has to be consistent and I think it will be. I was very encouraged to see how much the ag market recovered during this quarter. It was actually a little better than I thought.

Jeffery Leonard
President & CEO at Alamo Group

And forestry was maybe not as quite as good as I thought it was going to be. But forestry is the bigger ticket, more expensive items and there we definitely could benefit from some interest rate relief, which I am hoping one of these days we are going to see. But all in all, the activity level is improving and I think the dealer sentiment is slowly improving as well despite ongoing headwinds in ag. Commodity pricing still isn't brilliant at the moment. But overall, are encouraged.

Jeffery Leonard
President & CEO at Alamo Group

And I think that's partly just because there is so much inelasticity in our pipeline at the moment. I have shared with you in previous quarters that our pipeline is exceptionally low of inventory in the field. So it doesn't take much to drive the orders higher at this So we feel very good about where we are going. The reduction in the cost structure is significant in that division and we are maintaining it. And the plant consolidations are finally starting to see the efficiency improvements we were counting on, particularly in ag.

Jeffery Leonard
President & CEO at Alamo Group

The consolidation of our two big ag plants late last year is finally starting to show real benefits we expected to see. So overall, I am encouraged. The markets were a little bit better in that space than I thought and I think the climb out is clear and I think it will continue for at least several quarters from what I can see.

Chris Moore
Senior Research Analyst at CJS Securities

Terrific. So far direct pain points from tariffs, including shifting production from Canada to The U. S. Have been manageable. The issue you've talked about in the past is the potential inflationary impact, impact on demand.

Chris Moore
Senior Research Analyst at CJS Securities

Just curious what you're seeing at this point. Are there kind of specific product lines that would be more at risk?

Jeffery Leonard
President & CEO at Alamo Group

The biggest risk overall is to our snow removal group and it's really a U. S./Canada issue as I've told you before. But we've largely mitigated that Chris by shifting a good deal of that production from Canada into The U. S. Into our plant here in Ohio where we're at the grade off facility today for what that's worth.

Jeffery Leonard
President & CEO at Alamo Group

So I don't see that being as too bad and the inflation side has been actually pretty decent. In other words, pressure on our purchase prices has been far less significant than I think Agnes and I anticipated. So, so far we are navigating the tariffs pretty effectively and I am very happy with that.

Chris Moore
Senior Research Analyst at CJS Securities

Got it. Perfect. And maybe just last one. We're at better than 1.6 this year, nine twenty five plus industrial. Just wondering from an industrial standpoint, how much existing infrastructure can handle from a revenue standpoint before you'd have to add a little capacity?

Jeffery Leonard
President & CEO at Alamo Group

I think we're okay yet because our plant in Wisconsin is not overwhelmed yet. We still have some capacity there. Our Ohio plant where we are today is busy for sure. The backhaul product line has been doing very well and so sales have been up across that product line pretty sharply. But we have still got plenty of capacity in Wisconsin that we can go after and we have other facilities as you know.

Jeffery Leonard
President & CEO at Alamo Group

Our Huntsville facility still has some capacity. So we are not feeling too much pressure yet, Chris, with that. I think labor is the bigger constraint again. We're starting to see labor tighten again as sort of like we did during the pandemic and that's something we're watching very closely.

Chris Moore
Senior Research Analyst at CJS Securities

Got it. Very helpful. I'll jump back in line. Thanks guys.

Jeffery Leonard
President & CEO at Alamo Group

Thanks Chris.

Operator

Our next question will come from Mig Dobre with Baird.

Mircea Dobre
Associate Director - Research & Senior Research Analyst at Robert W. Baird & Co

Yes, hello. Just Back to vegetation management. What's the right way to think about revenue here in the back half of the year? And I'm wondering in terms of both kind of how you see demand play out, but also in theory, there should be some seasonality here that we have to kind of take into account?

Jeffery Leonard
President & CEO at Alamo Group

Yes. I think the seasonality will start to show up again in the fourth quarter, Mig. But I think as long as we can keep building the backlog, that capital will be in a better position to book and bills, over one again, which is nice to see. So the business is reinflating, not as fast as we'd like obviously. But I think you're going to see a slow build of inventory.

Jeffery Leonard
President & CEO at Alamo Group

I don't think it's going be dramatic for the remainder of this year, but I think it will start to build again. As we've seen, we've seen that for the past several quarters. We keep talking about the sequential improvements and I think those will continue.

Mircea Dobre
Associate Director - Research & Senior Research Analyst at Robert W. Baird & Co

So I'm sorry, just to be clear here, your $178,000,000 of revenue in Q2, you are saying that we continue to build sequentially here in Q3 and into Q4 as the year progresses?

Jeffery Leonard
President & CEO at Alamo Group

I think so. I mean, there is still some uncertainty out there on the forestry side, not so much in the ag side, but in the forestry side, there is still some uncertainty there. We've still seen some order cancellations in forestry mix, so that's we're not completely out of the woods there. But my assessment is I think revenue will continue to build, but very slow in that division.

Agnes Kamps
Agnes Kamps
EVP, CFO & Treasurer at Alamo Group

Maybe if I could add something. I would agree with that. We are feeling a little more confident in on the Ag side. Orders have been growing pretty nicely over there and productivity in the plant after consolidation has been improving. So on the ag side, we're feeling a little bit better, but I would agree with what Jeff had mentioned about forestry.

Mircea Dobre
Associate Director - Research & Senior Research Analyst at Robert W. Baird & Co

And then my follow-up, you mentioned in the press release that the margin in vegetation still reflected some of the effects of the recent facility consolidation costs. Maybe it would be helpful to call out what these costs are, maybe magnitude the nature of the cost? I mean, you're obviously not adjusting them out. And at what point in time should we expect this drag to be done with? And implicitly, what would that mean for margins going forward as you kind of lap all of this?

Agnes Kamps
Agnes Kamps
EVP, CFO & Treasurer at Alamo Group

Yes. I will take this one. What we're referring to in terms of gross margin is productivity. As these plants have consolidated, there was a couple of capital projects needed to complete and simple learning curve, and that has been improving. So in our plant in the U.

Agnes Kamps
Agnes Kamps
EVP, CFO & Treasurer at Alamo Group

S. Ag in Selma, that certainly has been improving and productivity will improve in the second half. And we're still working. We still have a little more lift in our plant in the forestry in Wind, Michigan. So that's related to productivity.

Mircea Dobre
Associate Director - Research & Senior Research Analyst at Robert W. Baird & Co

You quantify this?

Mircea Dobre
Associate Director - Research & Senior Research Analyst at Robert W. Baird & Co

Let me ask the question differently. If per Jeff's comments, we're thinking that revenue maybe gets a little bit better in Q3 and in Q4, is it reasonable to expect margins to improve sequentially relative to Q2 as well?

Jeffery Leonard
President & CEO at Alamo Group

Yes, I would not say that, Nate, for what it's worth because we still have a fairly unfavorable mix in forestry at the moment. And I did comment, I think, the call that though or at least I did on the previous call that it's the large forestry equipment that still remains down. The Tree Care side is coming back nicely, but the margins in the Tree Care side, the smaller products are not what they are in the big industrial machine. So the mix is still relatively unfavorable in forestry and we're still working through some demons on the inventory side, mentioned with dealer cancellations and so on. So I wouldn't factor in too much of a margin improvement for the next quarter at least.

Jeffery Leonard
President & CEO at Alamo Group

I think if we see it, it will be more like a Q4 event in that side of the business in forestry and tree care. And I think we could probably give you a shot at quantifying it, but I don't think we want to do that on this call today and maybe on the after call.

Mircea Dobre
Associate Director - Research & Senior Research Analyst at Robert W. Baird & Co

Okay. Then final question for me. Jeff, we talked in the past about your intent to retire and looking for a replacement for you. We're sitting here in August. We haven't released I haven't heard anything new on the matter.

Mircea Dobre
Associate Director - Research & Senior Research Analyst at Robert W. Baird & Co

So I'm wondering kind of how your thinking has evolved and what's going on in terms of internal, external candidates, how is the Board looking at this?

Jeffery Leonard
President & CEO at Alamo Group

Okay. I can give you a very satisfying answer to that, think, what it's worth. We're with our Board of Directors here in Ohio this week. The process is going exactly according to the plan and I think you're going to see it reach a conclusion in the third quarter.

Jeffery Leonard
President & CEO at Alamo Group

So yes, it's getting more close for sure. So and that's both a happy and a sad thing for me personally. We've got a very active M and A pipeline as I commented on the call and I certainly want to see the company pilot its way through that with success. So I've offered to stay involved as much or as little as needed going forward. And that's about all I can say about it. But the actual succession process is well advanced.

Mircea Dobre
Associate Director - Research & Senior Research Analyst at Robert W. Baird & Co

All right. Appreciate that. Thank you.

Operator

Our next question will come from Mike Shisky with D. A. Davidson. Please go ahead.

Michael Shlisky
Managing Director & Senior Equity Research Analyst at D.A. Davidson

Hello. Good morning. Pardon me, the background noise Hi, Mike. Morning. Yes.

Michael Shlisky
Managing Director & Senior Equity Research Analyst at D.A. Davidson

Hi. I just had a couple of quick ones here or maybe one. Maybe the first one is not that quick. It's about capital allocation. I know you're pursuing some M and A deals.

Michael Shlisky
Managing Director & Senior Equity Research Analyst at D.A. Davidson

It sounds like despite the strong orders in industrial and the backlog, you're not pursuing any large capacity additions there. I was wondering if you had any thoughts about trying to enter any new product categories with up with the amped up R and D budgets or other ways to put capital to work in an organically positive way?

Jeffery Leonard
President & CEO at Alamo Group

Well, we're always pursuing them, Mike. We obviously don't talk about publicly what we've got in R and

Jeffery Leonard
President & CEO at Alamo Group

D pipeline. But yes, we look for that growth to come partly from acquisition but also from organic developments inside. We really like this little Ring O Matic acquisition. I know that's inorganic, but that is a new platform for us that really drive our rental So we are very happy to get that one and the response from our customers has been very positive to that.

Jeffery Leonard
President & CEO at Alamo Group

We are very encouraged by the way that should unfold under our leadership. In terms of the R and D pipeline, we have had to change gears a little bit. We were investing very, very heavily electrification and now the need or let's say the drive and demand for that has taken a time out for the moment. And of course, we also have the change in emission standards coming up here in another year or two. We have to be paying attention to that and getting prepared for that and that causes you to spend more on R and D just in the preparation phase because you have to advance all those products forward.

Jeffery Leonard
President & CEO at Alamo Group

In terms of new verticals that we would develop organically with inside the company, no, I don't think we've got anything major in the pipeline there that I want to talk about today. We don't need to. We've got more than adequate growth coming out of our existing initiatives. So capital allocation remains very heavily toward M and A at the moment. And I think that's going to be the case for the remainder of this year.

Michael Shlisky
Managing Director & Senior Equity Research Analyst at D.A. Davidson

Great. And then I also wanted to touch on your snow business, you've done quite well for several years in a row here. It sounds like you've got pretty decent orders last the rest of this year and the next. Curious as to the legs of that, how much of your business has become chassis plus blade and how much it feels just like the blade? That's been a large part of the growth.

Michael Shlisky
Managing Director & Senior Equity Research Analyst at D.A. Davidson

So I kind of want to get a feel for whether there's more than one year of like legs left in your snow business.

Jeffery Leonard
President & CEO at Alamo Group

In the snow business, I'm sorry. Yes, we do have a lot of noise on the line, Mike, but we were both agonists. I'm struggling to hear your question. The snow business remains very, very active for us and it's like the vacuum truck business. It's is a little bit spiky.

Jeffery Leonard
President & CEO at Alamo Group

You get a large order and then the market takes the time out and so on. But the activity is very strong right now, especially in Canada. There is still some significant orders to be placed there, which is encouraging and The U. S. Market has been stable.

Jeffery Leonard
President & CEO at Alamo Group

I followed the Douglas earnings call closely and they were reporting an uptick in snow, which we're seeing as well. So there seems to be plenty of legs left in that market from my point of view. Mike, I don't see any kind of a slowdown coming there.

Michael Shlisky
Managing Director & Senior Equity Research Analyst at D.A. Davidson

Outstanding. Thanks so much. I'll pass it along.

Jeffery Leonard
President & CEO at Alamo Group

Thank you.

Operator

This concludes our question and answer session. I would like to turn the conference back over to management for any closing remarks. Please go ahead.

Jeffery Leonard
President & CEO at Alamo Group

Thank you. This concludes our preparation for today's meeting. We look forward to speaking with you again on our third quarter conference call in November.

Operator

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Executives
    • Edward Rizzuti
      Edward Rizzuti
      EVP, Corporate Development & IR
    • Agnes Kamps
      Agnes Kamps
      EVP, CFO & Treasurer
Analysts
    • Jeffery Leonard
      President & CEO at Alamo Group
    • Chris Moore
      Senior Research Analyst at CJS Securities
    • Mircea Dobre
      Associate Director - Research & Senior Research Analyst at Robert W. Baird & Co
    • Michael Shlisky
      Managing Director & Senior Equity Research Analyst at D.A. Davidson
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