Allient (ALNT) Q1 2026 earnings summary

Executive summary

• Entered 2026 in a stronger position with improved balance sheet, cost structure, and portfolio mix focused on higher-value motion, controls, and power applications aligned with long-term growth trends.

• Q1 2026 revenue increased 5% year-over-year to $138.9 million, with net income up 51% to $5.4 million and diluted EPS rising to $0.32.

• Gross margin improved to 32.7%, driven by higher sales, improved mix, and operational efficiencies.

• Orders increased 15% year-over-year to $158.1 million, with backlog reaching $251 million and a book-to-bill ratio of 1.14x.

• Strategic focus on industrial automation, power quality for data centers, and engineered systems for OEMs, with continued investments in R&D and operational efficiency initiatives.

Financial highlights

• Q1 revenue grew 5% to $138.9M; organic growth of 1% on constant currency basis; FX added $5.1M.

• Gross margin expanded 50 bps YoY to 32.7% ($45.4M gross profit), with operating income up 6% to $9.3M (6.7% of revenue).

• Adjusted net income was $8.4M ($0.50/share); adjusted EBITDA $17.3M (12.4% of revenue).

• Interest expense declined to $2.6M due to lower average debt; net cash from operations was $6.2M, down from $13.9M YoY.

• Capital expenditures were $2.2M in Q1; full-year guidance $12M-$15M.

Outlook and guidance

• Strong bookings and backlog (book-to-bill 1.14x, $251M backlog) support constructive outlook for 2026.

• Portfolio aligned with long-term growth drivers: electrification, automation, energy efficiency, and digital infrastructure.

• FY26 capital expenditures expected between $12M and $15M; effective tax rate projected at 21–23%.

• Expect to see benefits from Dothan transition and structural actions in 2H 2026, though higher operating costs from the facility move will persist into Q2.

• Macro environment remains uneven; proactive steps taken to diversify supply base and manage trade policy risks.