Alamo Group Inc. (ALG) 2025 Q4 法說會逐字稿

Good morning, and welcome to the Alamo Group fourth quarter and full year 2025 earnings conference call. (Operator Instructions) Please note, this event is being recorded.

早安，歡迎參加 Alamo Group 2025 年第四季及全年財報電話會議。(接線員指示) 請注意，本活動將被錄音。

I would now like to turn the conference over to Edward Rizzuti, Executive Vice President, Corporate Development and Investor Relations. Please go ahead.

現在我想把會議交給企業發展與投資人關係執行副總裁 Edward Rizzuti。請開始。

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're 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 1 (855) 669-9658 with the pass code 4809758. Additionally, the call is being webcast on the company's website at www.almo-group.com, and a replay will be available for 60 days.

謝謝。此時，各位應該都已收到新聞稿副本。不過，如果有人尚未收到且希望取得，請致電 (212) 827-3746 與我們聯繫，我們將寄送新聞稿並確保您在公司發送名單中。本次電話會議將提供重播，於會議結束後一小時開始，並持續一週。可撥打 1 (855) 669-9658 並輸入密碼 4809758 收聽重播。此外，本次會議亦於公司網站 www.almo-group.com 進行網路直播，重播將提供 60 天。

On the line with me today are Robert Hureau, 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.

今天與我同線的有總裁兼執行長 Robert Hureau，以及執行副總裁兼財務長 Agnes Kamps。管理團隊將先做開場致詞，之後我們將開放提問。

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. Before turning the call over to Robert, 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 visions of the Private Securities Litigation Reform Act of 1995.

在今天的電話會議中，管理團隊的發言可能會提及某些非 GAAP 數字。這些非 GAAP 結果與適用 GAAP 數字之間的調節表，已包含在我們財報新聞稿的附件中。在把電話交給 Robert 之前，我想先就前瞻性陳述做幾點說明。我們今天將發表前瞻性陳述，係依據 1995 年《私人證券訴訟改革法》之安全港條款作出。

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 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.

前瞻性陳述涉及已知與未知的風險與不確定性，可能導致公司未來期間的實際結果與預測結果出現重大差異。可能導致實際結果與預測結果出現重大差異的因素包括：不利的經濟狀況（可能導致整體需求下降）、供應鏈中斷、勞動力限制、競爭、天氣、季節性、匯率相關問題、地緣政治事件，以及公司不時在向 SEC 提交的報告中列示的其他風險因素。公司不承擔更新本文所含資訊的任何義務；本文資訊僅截至本日為準。

I would now like to introduce Robert Hureau. Robert, please go ahead.

現在我想介紹 Robert Hureau。Robert，請開始。

Thank you, Ed. I'd like to thank everyone for joining our fourth-quarter earnings conference call. We appreciate your continued interest in the Alamo Group. Before we get started, I'd like to share a few thoughts. As you know, the fourth quarter was the first full quarter during which I've been at the helm at the Alamo Group. During this time, I've had an opportunity to visit some of our manufacturing facilities, speak with our customers, suppliers, partners, investors, and interact with our employees. The input from everyone has been incredibly valuable.

謝謝你，Ed。我想感謝各位參加我們的第四季財報電話會議。我們感謝各位持續關注 Alamo Group。在開始之前，我想先分享幾點想法。如各位所知，第四季是我在 Alamo Group 掌舵後的第一個完整季度。在此期間，我有機會參訪我們的一些製造設施，與客戶、供應商、合作夥伴、投資人交流，並與員工互動。各方提供的意見都非常寶貴。

In addition, during this period, the leadership team and I have been working together to develop a set of strategic initiatives designed to grow the business and a framework by which we'll operate. As I reflect in the Alamo Group business, its products, markets, financial profile, and all the opportunities in front of us, I can say that I am more confident and excited today about where we expect to take this company over the next three to five years than it was when I joined just a short time ago.

此外，在這段期間，我與領導團隊也共同合作，制定一套旨在推動業務成長的策略性倡議，以及我們將據以運作的框架。當我回顧 Alamo Group 的業務、產品、市場、財務概況，以及我們面前的所有機會時，我可以說，相較於我不久前剛加入時，今天我對於未來三到五年我們預期將帶領公司前進的方向更有信心，也更感到振奮。

I'll turn the call over to Agnes to review our initial results in detail. When she's finished, I'll come back and discuss the performance of each of our divisions, highlight some of the key initiatives which are underway, and summarize a few of our long-term goals. Agnes?

接下來我把電話交給 Agnes，請她詳細說明我們的初步結果。她結束後，我會回來討論各事業部的表現，重點說明一些正在推進的關鍵倡議，並總結我們的幾項長期目標。Agnes？

Thank you, Robert. Net sales for the fourth quarter of 2025 were $373.7 million, down 3% compared to the fourth quarter of 2024. Gross profit for the fourth quarter of 2025 was $85 million compared to $91.8 million for the fourth quarter of 2024. Gross margin for the fourth quarter of 2025 was 22.7%, down 110 basis points compared to the fourth quarter of 2024. The degradation in gross margin were due to a few reasons, including inverse leverage on the lower Vegetation Management division volumes, charges related to inventory reserves taken during the quarter and certain Vegetation Management division product lines that we intend to divest or discontinue, and the impact from tariff costs partially offset by pricing and disciplined margin management in our Industrial Equipment division.

謝謝你，Robert。2025 年第四季淨銷售額為 3.737 億美元，較 2024 年第四季下降 3%。2025 年第四季毛利為 8,500 萬美元，較 2024 年第四季的 9,180 萬美元下降。2025 年第四季毛利率為 22.7%，較 2024 年第四季下降 110 個基點。毛利率下滑有幾個原因，包括：植被管理事業部（Vegetation Management）銷量較低所造成的反向營運槓桿、季度內提列的存貨備抵相關費用，以及我們計畫出售或停止的部分植被管理事業部產品線所產生的費用；另有關稅成本的影響，部分由工業設備事業部（Industrial Equipment）的定價與嚴謹的毛利管理所抵銷。

Selling, general, and administrative expense, or SG&A expense, for the fourth quarter of 2025 was $58.3 million, up 9.3% from the fourth quarter of 2024. The SG&A expense in the fourth quarter of 2025 included approximately $3.2 million related to acquisition and integration costs, restructuring costs and the addition of (inaudible).

2025 年第四季銷售、一般及行政費用（SG&A）為 5,830 萬美元，較 2024 年第四季增加 9.3%。2025 年第四季的 SG&A 費用包含約 320 萬美元，與併購及整合成本、重組成本以及新增的(聽不清楚) 相關。

Net interest expense for the fourth quarter of 2025 was $2.5 million compared to $2.7 million in the fourth quarter of 2024. For the full fiscal year 2025, our effective income tax rate was 25.6%, which was higher than the effective income tax rate for the full year 2024. However, the 2025 effective tax rate is in line with our current and longer-term expectations.

2025 年第四季淨利息費用為 250 萬美元，較 2024 年第四季的 270 萬美元下降。2025 全會計年度的有效所得稅率為 25.6%，高於 2024 全年的有效所得稅率。不過，2025 年的有效稅率符合我們目前及長期的預期。

During the fourth quarter of 2025, we recognized expenses related to acquisition integration activities of $1.6 million. Most of these costs were related to the acquisition of Petersen Industries. In addition, we recognized $7.3 million in restructuring expenses. Both acquisition and integration expenses and the restructuring expenses will be treated as adjustments for certain non-GAAP measures as shown in the press release.

在 2025 年第四季，我們認列與併購整合活動相關的費用 160 萬美元。其中大部分成本與收購 Petersen Industries 有關。此外，我們認列 730 萬美元的重組費用。併購與整合費用以及重組費用，將如新聞稿所示，作為若干非 GAAP 指標的調整項目。

Adjusted EBITDA for the fourth quarter of 2025 was $44.8 million or 12% of net sales compared to adjusted EBITDA of $51.8 million or 13.4% of net sales for the fourth quarter of 2024. Adjusted earnings per share on a fully diluted basis for the fourth quarter of 2025 was $1.70 compared to $2.39 for the fourth quarter of 2024.

2025 年第四季調整後 EBITDA 為 4,480 萬美元，約占淨銷售額的 12%；相較之下，2024 年第四季調整後 EBITDA 為 5,180 萬美元，約占淨銷售額的 13.4%。2025 年第四季在完全稀釋基礎下的調整後每股盈餘為 1.70 美元，較 2024 年第四季的 2.39 美元下降。

Now I'll share some comments regarding the results for each of the divisions. Net sales in the Industrial Equipment division for the fourth quarter of 2025 were $234.9 million, an increase of 4.2% compared to the fourth quarter of 2024. Adjusted EBITDA for the Industrial Equipment division for the fourth quarter of 2025 was $41.5 million or 17.7% of net sales compared to $35.5 million or 15.7% of net sales for the fourth quarter of 2024. We are pleased with the continued strong performance, particularly with the adjusted EBITDA margins in the Industrial Equipment division. The performance in this division demonstrates the attractiveness of our vocational truck related end markets in which we have great leadership positions.

接下來我將就各事業部的結果分享一些評論。2025 年第四季工業設備事業部的淨銷售額為 2.349 億美元，較 2024 年第四季增加 4.2%。2025 年第四季工業設備事業部的調整後 EBITDA 為 4,150 萬美元，約占淨銷售額的 17.7%；相較之下，2024 年第四季為 3,550 萬美元，約占淨銷售額的 15.7%。我們對於持續強勁的表現感到滿意，尤其是工業設備事業部的調整後 EBITDA 利潤率。該事業部的表現顯示，我們所服務的職業用卡車相關終端市場具有吸引力，而我們在其中擁有領先的市場地位。

Net sales for the Vegetation Management division for the fourth quarter of 2025 were $138.7 million, a decrease of 13.2% compared to the fourth quarter of 2024. The decrease in the net sales reflects weakness in certain end markets, particularly Tricare and municipal mowing.

2025 年第四季植被管理事業部的淨銷售額為 1.387 億美元，較 2024 年第四季下降 13.2%。淨銷售額的下滑反映部分終端市場疲弱，尤其是 Tricare 與市政割草市場。

Adjusted EBITDA for the Vegetation Management division for the fourth quarter of 2025 was $3.2 million or 2.3% of net sales compared to $16.3 million or 10.2% of net sales for the fourth quarter of 2024. The adjusted EBITDA margins in the Vegetation Management division were low this quarter due to inverse leverage on both fixed manufacturing costs and SG&A expenses from the lower volumes.

2025 年第四季植被管理事業部的調整後 EBITDA 為 320 萬美元（占淨銷售額 2.3%），相較之下，2024 年第四季為 1,630 萬美元（占淨銷售額 10.2%）。本季植被管理事業部的調整後 EBITDA 利潤率偏低，主因是出貨量下降導致固定製造成本與銷售、一般及行政（SG&A）費用出現反向槓桿效應。

Moving on to the balance sheet and cash flow. Cash provided by operating activities for the fiscal year 2025 was $177.5 million compared to $209.8 million for the fiscal year 2024. The operating cash flow of $177.5 million reflects disciplined management of accounts receivable and accounts payable where we made improvements on days sales outstanding and days payables outstanding. The operating cash flow also reflects uses of cash for inventory, which will be our intensified focus in 2026.

接著談資產負債表與現金流。2025 會計年度營業活動提供的現金為 1.775 億美元，較 2024 會計年度的 2.098 億美元減少。1.775 億美元的營業現金流反映我們對應收帳款與應付帳款的紀律性管理，並在應收帳款週轉天數（DSO）與應付帳款週轉天數（DPO）方面有所改善。營業現金流亦反映存貨占用現金的情況，這將是我們在 2026 年加強聚焦的重點。

Our free cash flow conversion for the full fiscal year 2025 was robust at 142% of net income. Cash used in investing activities for the fiscal year 2025 was $46.2 million and reflects cash used for the acquisition of Ring-O-Matic and $30.6 million used for capital expenditures. The increase in capital expenditure compared to the same period in prior year was due to expansion of our manufacturing facility in Industrial Equipment division. We are excited about opening of this new facility as it enables growth and improved operations in Western Europe.

2025 全會計年度我們的自由現金流轉換率表現強勁，達淨利的 142%。2025 會計年度投資活動使用的現金為 4,620 萬美元，主要反映用於收購 Ring-O-Matic 的現金，以及 3,060 萬美元的資本支出。資本支出較去年同期增加，係因工業設備事業部擴建製造設施所致。我們對這座新廠的啟用感到振奮，因其可支持西歐地區的成長並提升營運效率。

Cash yield in financing activities for the fiscal year 2025 was $30.8 million, reflecting repayments of principal on our long-term debt and dividends paid. As of December 31, 2025, our gross debt was $205.7 million. In addition, as of December 31, 2025, we had $309.7 million in cash on the balance sheet.

2025 會計年度融資活動產生的現金為 3,080 萬美元，反映償還長期債務本金及支付股利。截至 2025 年 12 月 31 日，我們的總負債為 2.057 億美元。此外，截至 2025 年 12 月 31 日，我們資產負債表上的現金為 3.097 億美元。

In January 2026, we closed on the acquisition of Petersen Industries. We funded this acquisition with a $120 million draw on our revolver and approximately $50 million cash on hand. Subsequent to the closing of the acquisition, total availability under our credit facility was $477 million, including Gordian and pro forma net leverage remains quite low. We're excited about the acquisition of Petersen, given its leadership mission, attractive margins, and commercial synergies.

2026 年 1 月，我們完成對 Petersen Industries 的收購交割。本次收購資金來源為循環信貸額度（revolver）提用 1.2 億美元，以及約 5,000 萬美元的手頭現金。收購交割後，我們在信貸融資安排下的可用額度合計為 4.77 億美元（包含 Gordian），且按備考（pro forma）計算的淨槓桿仍維持在相當低的水準。我們對收購 Petersen 感到振奮，因其具備領先的使命定位、具吸引力的利潤率，以及商業協同效益。

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 $0.04 per share or 13.3% increase in our quarterly dividend to $0.34 per share. As we move forward, we remain focused on driving growth and optimization of our operations.

最後，我想強調我們致力於為股東創造長期價值。我們很高興董事會已核准將季度股利提高每股 0.04 美元（增幅 13.3%），至每股 0.34 美元。展望未來，我們將持續聚焦於推動成長並優化營運。

Thank you. I'll turn it back over to Robert.

謝謝。我把時間交回給 Robert。

Thank you, Agnes. We start by providing more color on the operating performance for each of our divisions. First, the Industrial Equipment division. As Agnes mentioned, net sales in the Industrial Equipment division increased by 4% during the quarter. The increase in net sales during the quarter was due to several factors, including favorable pricing net sales from the acquired Ring-O-Matic business, which closed in the second quarter of the year and continued market share gains in several of our businesses, partially offset by a decrease in sales in our snow business.

謝謝你，Agnes。我們先就各事業部的營運表現提供更多細節。首先是工業設備事業部。如 Agnes 所提，工業設備事業部本季淨銷售額成長 4%。本季淨銷售額增加有多項因素，包括有利的定價、併購取得的 Ring-O-Matic 業務所帶來的淨銷售額（該交易於年度第二季完成交割），以及我們多項業務持續提升市占；部分被除雪業務銷售下滑所抵銷。

The decrease in net sales in our snow business reflects a comparison to an unusually strong fourth quarter of 2024, where we recognized one large single order in the Canadian market. While the snow business can be lumpy from quarter-to-quarter, there's real positive momentum in many aspects of this business, which we're excited about.

除雪業務淨銷售額下滑，主要是因為與 2024 年第四季異常強勁的基期相比；當時我們在加拿大市場認列了一筆大型單一訂單。雖然除雪業務各季之間可能波動較大，但該業務在多個面向確實呈現正向動能，我們對此感到振奮。

Net sales in both our Excavator and Vacuum business and our Sweeper and Safety business performed well during the quarter. These businesses continued to deliver double-digit year-over-year net sales growth. In addition, in the Industrial Equipment division -- sorry, the Industrial Equipment division expanded its adjusted EBITDA margins in both the fourth quarter and the full year.

本季我們的挖掘機與真空設備業務，以及清掃與安全業務，淨銷售額表現皆佳。這些業務持續繳出年增雙位數的淨銷售成長。此外，在工業設備事業部——抱歉，是工業設備事業部在第四季與全年皆擴大了調整後 EBITDA 利潤率。

The book bill in the Industrial Equipment division for the fourth quarter of 2025 was 0.85 times. Net orders during the fourth quarter of 2025 were up 21% compared to the prior year. Net orders in the excavator and back business, Suites and Safety business, and Snow business were all up year over year. Lead times in all the businesses within the Industrial Equipment division we're in a good competitive position.

2025 年第四季工業設備事業部的接單出貨比（book-to-bill）為 0.85 倍。2025 年第四季淨訂單較去年同期成長 21%。挖掘機與後端業務、清掃與安全業務，以及除雪業務的淨訂單皆較去年同期增加。工業設備事業部旗下各業務的交期（lead times）使我們處於良好的競爭位置。

Today, our Industrial Equipment division represents 59% of our total net sales. As a reminder, the products in this -- in the Industrial Equipment division serve end markets, including public works, utilities infrastructure, and construction. These are attractive long-cycle markets. As I mentioned during our last call, net sales in this division and its end markets have been very robust over the past few years fueled in part by various government-driven investments.

目前，我們的工業設備事業部占總淨銷售額的 59%。提醒一下，工業設備事業部的產品服務的終端市場包括公共工程、公用事業基礎設施與建築施工。這些都是具吸引力的長週期市場。如我在上次電話會議中提到，過去幾年該事業部及其終端市場的淨銷售表現非常強勁，部分受惠於各項政府主導的投資。

Looking forward, we expect the rate of growth in these end markets to slow as the near-term effect of those prior external investments slows down. Overall, 2025 was a very strong year for our Industrial division, and we're looking forward to continuing to grow this business, both organically and inorganically.

展望未來，隨著先前外部投資的短期效應逐步消退，我們預期這些終端市場的成長速度將放緩。整體而言，2025 年對我們的工業事業部是非常強勁的一年；我們期待持續以有機與併購兩種方式推動該業務成長。

Now the Vegetation Management division. Net sales in the Vegetation Management division declined by 13% due to several factors, including a decline in certain end markets and not ramping production volumes quickly enough in a few businesses that underwent the manufacturing consolidation activity, partially offset by favorable pricing.

接著是植被管理事業部。植被管理事業部淨銷售額下降 13%，原因包括部分終端市場下滑，以及在進行製造整併的幾項業務中，產量爬坡速度不夠快；部分被有利的定價所抵銷。

The end market was most notable in our tree care and recycling business. Recall that a portion of our tree care and recycling business involved in a manufacturing sale of very large and very expensive equipment used in land clearing operations and is partially tied to housing starts, which remains suppressed. On the other hand, and importantly, net sales in our US agriculture business increased year-over-year in the fourth quarter. This was the first quarter in 8 quarters where net sales in this business turned positive, a very encouraging sign looking forward. Regarding the production inefficiencies in the 2 facilities that underwent consolidation making progress, we see the progress in the various underlying KPIs, but not yet in the financial results. We currently expect the work to continue through the remainder of the first quarter and into the second quarter before the facilities are running as designed and better aligned to the end market demand. The book-to-bill in the Vegetation Management division for the fourth quarter of 2025 was 1.1x.

終端市場的影響在我們的樹木養護與回收業務最為明顯。請回想，我們樹木養護與回收業務的一部分涉及製造並銷售用於土地清理作業、體積非常大且價格非常高的設備，且與住宅開工數部分相關，而住宅開工仍然低迷。另一方面，且同樣重要的是，我們美國農業業務在第四季的淨銷售額較去年同期增加。這是該業務連續 8 個季度以來首次轉為正成長，對未來而言是非常令人鼓舞的訊號。至於進行整併的兩座工廠所產生的生產效率不彰問題，我們正取得進展；我們在各項底層 KPI 上看見改善，但尚未反映在財務結果上。我們目前預期相關工作將持續至第一季剩餘期間並延伸至第二季，之後工廠才會如設計般運轉，並能更好地與終端市場需求對齊。2025 年第四季植被管理事業部的接單出貨比（book-to-bill）為 1.1 倍。

Net orders for the total division during the fourth quarter of 25 were down 3% compared to the prior year. Net orders in the US and European agricultural businesses were up year-over-year, while net orders in the other businesses were down year-over-year. Today, our Vegetation Management division represents 41% of total net sales. As a reminder, the products in the Vegetation Management division serve end markets, including tree care and recycling, agriculture public works and land maintenance.

25年第四季整體事業部的淨訂單較前一年下降3%。美國與歐洲的農業業務淨訂單年增，而其他業務的淨訂單則年減。目前，我們的植被管理事業部占總淨銷售額的41%。提醒一下，植被管理事業部的產品服務的終端市場包括樹木養護與回收、農業、公共工程以及土地維護。

As I mentioned on our last call, net sales in this division and its end markets have declined over the past few years, rolling over a period of significant growth that occurred between 2021 and in 2023. Looking forward, we expect the rate of decline in the end markets to improve and stabilize before returning to growth. In addition, inventory in the channel remains healthy. We're seeing pockets of increased quoting activity in the first quarter in certain businesses within the Vegetation Management division. This is also a positive sign potentially pointing to a more stable 2026. Overall, we have much more work to do in the Vegetation Management division. We're confident we'll improve the manufacturing efficiencies and drive margin improvement as originally planned.

如同我在上次電話會議中提到的，該事業部及其終端市場的淨銷售額在過去幾年有所下滑，主要是因為2021年至2023年間曾出現顯著成長，之後進入回落期。展望未來，我們預期終端市場的下滑幅度將改善並趨於穩定，之後再回到成長。此外，通路端庫存仍維持健康水位。我們在第一季看到植被管理事業部內某些業務出現報價活動增加的局部跡象。這也是一個正面訊號，可能指向2026年將更為穩定。整體而言，植被管理事業部仍有許多工作要做。我們有信心能如原先規劃提升製造效率並推動毛利率改善。

I'd now like to share some comments regarding the broad framework of our long-term strategy. As mentioned before, there are 4 pillars of the strategy in which we'll focus and devote resources. One, people and culture, two, commercial excellence; three, operational excellence; and four, capital deployment. Examples of the types of steps we're taking related to 1 or more of these 4 strategic pillars I just mentioned include the following: first, we finalized construction of our manufacturing facility expansion project in France, nearly doubling the size of the facility. The increase in the manufacturing footprint will allow us to continue to grow sales in Western Europe in the attractive vocational truck space.

接下來我想就我們長期策略的整體架構分享一些看法。如先前所述，我們的策略有四大支柱，將聚焦並投入資源。第一，人員與文化；第二，商業卓越；第三，營運卓越；第四，資本配置。我剛提到的四大策略支柱中，與其中一項或多項相關的具體作為例子如下：首先，我們已完成法國製造廠擴建專案的建設，使廠房規模幾乎倍增。製造產能版圖的擴大，將使我們能在具吸引力的專業卡車市場中，持續推動西歐地區的銷售成長。

Net orders, by the way, in France were up 32% year over year in the second half of 2025. We completed the consolidation of additional manufacturing facilities in our snow and sweeper and safety businesses within the Industrial Equipment division. Production is up and running smoothly in both facilities in which the manufacturing lines were consolidated. These consolidations will allow us to continue to remove fixed cost and expand gross margins.

順帶一提，2025年下半年法國的淨訂單年增32%。我們也完成了工業設備事業部中，除雪、清掃車與安全業務的額外製造據點整併。在兩個完成產線整併的廠區，生產已順利運轉。這些整併將使我們能持續降低固定成本並擴大毛利率。

We launched our global procurement and supply chain initiative. This initiative will allow us to expand margins and optimize carrying levels of inventories over the next several years. In our Tree Care and recycling business within our Vegetation Management division, we signed several new independent dealers in critical parts of the United States where we had long-standing gaps. These commercial efforts will help improve sales and market share. We recruited and elevated several very experienced and talented senior leaders in a few businesses within the Vegetation Management division.

我們啟動了全球採購與供應鏈計畫。此計畫將使我們在未來數年擴大利潤率，並最佳化庫存持有水位。在植被管理事業部的樹木養護與回收業務中，我們在美國若干關鍵地區（過去長期存在空缺）簽下了數家新的獨立經銷商。這些商業推動將有助於提升銷售與市占率。我們在植被管理事業部內的部分業務，延攬並拔擢了數位資深且極具才華的高階主管。

We're looking forward to positive outcomes from these industry veterans in 2026. As Agnes mentioned, we signed and recently closed on the acquisition of Petersen Industries, a market leader in the manufacturer of Grapple equipment serving the bulky waste end market. This acquisition is a great example of the type of tuck-in acquisitions we're targeting. The M&A pipeline is robust, and we're excited to build on this momentum in 2026. We continue to centralize certain functional departments like IT, finance, procurement and HR. These actions will help unlock previously constrained value and will lay the foundation for a more modern technology-driven organization, all while maintaining that local entrepreneurial brands part, we love. In terms of product innovation, we're in final stages of testing our next-generation hybrid sweeper, which uses a proprietary electric sweeping architecture compared to third-party hydraulic systems in our competitors' products.

我們期待這些產業資深人士在2026年帶來正面成果。如Agnes所提，我們已簽署並於近期完成對Petersen Industries的收購交割；該公司是服務於大型廢棄物終端市場之抓斗（Grapple）設備製造領導者。這項收購是我們鎖定的補強型（tuck-in）併購之絕佳例子。我們的併購（M&A）案源管線相當充沛，並期待在2026年延續這股動能。我們持續將部分職能部門集中化，例如IT、財務、採購與人資。這些行動將有助於釋放先前受限的價值，並為更現代、科技驅動的組織奠定基礎，同時維持我們所重視的在地創業型品牌特質。在產品創新方面，我們正處於下一代混合動力清掃車的最終測試階段；相較於競品採用第三方液壓系統，我們使用自有的電動清掃架構。

This new electric sweeping architecture can run on diesel CNG or electric chassis globally and deliver superior efficiency, safety and performance. This is a great example of how Alamo Group's product innovation engine is beginning to shift from fast follower to first mover. Lastly, we performed a review of the portfolio of the businesses we operate. As a result, we identified and aligned around divesting or discontinuing a few product lines that don't fit our go-forward strategy and are not and have not been profitable. These actions will unfold over the course of 2026. And while small, we expect it will also contribute to our margin expansion story. These are all great examples of the key initiatives underway that we believe will help deliver on our long-term goals.

這套新的電動清掃架構可在全球搭配柴油、CNG或電動底盤運行，並提供更優異的效率、安全性與性能。這是Alamo Group產品創新引擎開始從「快速跟隨者」轉向「先行者」的絕佳例子。最後，我們對所營運的業務組合進行了檢視。因此，我們已辨識並達成共識，將出售或停止少數不符合未來策略、且目前與過去皆未獲利的產品線。這些行動將在2026年逐步展開。雖然規模不大，但我們預期也將對利潤率擴張的故事有所貢獻。以上皆是我們正在推動的關鍵計畫之良好例證，我們相信這些將有助於達成長期目標。

Before I conclude, I'd like to highlight again a few of our financial targets. It's very important to understand these are long-term through-the-cycle targets. First, sales growth of 10%, including the effects of acquisitions; second, adjusted operating margins of around 15%. Third, adjusted EBITDA margins of around 18% to 20%. And finally, fourth, free cash flow as a percentage of net income of 100%. In summary, as we've worked through the transition during the latter part of 2025 and I'd like to express my thanks and appreciation to our employees who continue to demonstrate a strong passion for helping solve the needs of our customers.

在我結束之前，我想再次強調幾項財務目標。非常重要的一點是，請理解這些是長期、跨景氣循環的目標。第一，銷售成長10%，包含併購帶來的影響；第二，調整後營業利益率約15%。第三，調整後EBITDA利潤率約18%至20%。最後第四，自由現金流占淨利的比率為100%。總結而言，在我們於2025年下半年完成轉型過程之際，我也要向持續展現強烈熱忱、協助解決客戶需求的員工表達感謝與肯定。

I also want to thank our customers and shareholders, many of whom I've had the opportunity to meet. All of you are helping to further shape the future of Alamo Group and to deliver sustainable, superior performance.

我也要感謝我們的客戶與股東，其中許多人我都有機會親自會面。各位都在協助塑造Alamo Group的未來，並推動可持續且卓越的績效表現。

This concludes our prepared remarks. Operator, please open the lines for questions.

以上為我們事先準備的發言。接線生，請開放提問線路。

(Operator Instructions) Mike Shlisky, DA Davidson.

(接線生指示) Mike Shlisky，DA Davidson。

I wanted to get a final point on couple of different details from your prepared remarks there. First of all, on the industrial side, you mentioned that growth rates might slow down, if I caught that correctly, does that mean you're going to see a decline in the top line in 2026 or just maybe perhaps notify to double-digit growth, but still positive in 2026.

我想就你們剛才的準備稿中幾個不同細節做最後確認。首先，在工業端方面，你提到成長率可能會放緩，如果我理解無誤，這是否表示你們在2026年的營收（top line）會下滑？還是只是可能不再是兩位數成長，但在2026年仍維持正成長？

Yes, Mike. In short, I would say more the latter. So as we've mentioned, the Industrial division has seen strong end market demand over the last eight quarters, really strong, robust double-digit growth. All things being equal, we expect to the end markets to slow in 2026. I think as we look out over the course of the year, that lag means something in the order of magnitude of flattish to maybe low to mid-single-digit end market growth. (inaudible) my (inaudible) on our business.

是的，Mike。簡而言之，我會說比較偏向後者。如我們所提，工業事業部在過去八個季度的終端市場需求非常強勁，呈現強勢、穩健的兩位數成長。在其他條件相同下，我們預期2026年終端市場將放緩。我認為從全年來看，這種滯後效應大致意味著終端市場成長可能接近持平，或是低到中個位數成長。(聽不清) 我(聽不清) 對我們業務的看法。

Recall that roughly 25% of that industrial division business is snow. Something a little bit different going on with within snow in the past, we would historically chase every last dollar of sales regardless of the margin profile -- we're not going to do that. We're changing direction with respect to the snow business, it's all about the quality of earnings and the margins. And therefore, on a year-over-year basis, you'll likely see a little bit downward pressure in snow, but the remaining businesses would align with that end market demand that I just talked about. So that was a long-winded answer, but in short, kind of flattish to low to mid-single-digit end market demand in the majority of those industrial divisions businesses. Does that get to your question, Mike?

請記得，該工業事業部業務中約有25%是除雪相關。除雪業務方面有些不同的情況；過去我們在歷史上會不計毛利結構、追逐每一塊銷售額——我們不會再這麼做。我們正在調整除雪業務的方向，重點在於獲利品質與利潤率。因此，以年對年來看，除雪業務可能會出現一些下行壓力，但其餘業務將與我剛提到的終端市場需求一致。所以這是一個比較冗長的回答，但簡而言之，工業事業部多數業務的終端市場需求大致持平到低至中個位數成長。這樣有回答到你的問題嗎，Mike？

Yes, just to clarify, your comments do or do not include the effect of peers and other acquiring businesses.

是的，澄清一下，您的評論是否包含同業以及其他併購業務的影響？

Excluding Pearson.

不包含 Pearson。

Okay. And then the other fine point I wanted to ask about was actually on Peterson. Just tell us -- can you tell us a little bit about whether that's a growing business in 2026? Is it going to be accretive except all the usual stuff that we want to hear about just from a directional standpoint for the next 12 months?

好的。另外我想問的一個細節其實是關於 Peterson。請跟我們說一下——您能否稍微談談，2026 年那會是一個成長型業務嗎？從未來 12 個月的方向性角度來看，撇開我們通常會想聽到的那些常規事項，它會是增厚（accretive）嗎？

Yes. So we're really excited about the Petersen acquisition. First thing I would say is it really is a great example of the type of tuck-in deals that we're looking at. It's a business whose end markets whose sales channels, whose product categories are very similar or close to our core. It's accretive from a margin perspective.

是的。所以我們對 Petersen 這項收購非常興奮。我首先要說的是，這確實是我們正在尋找的那類補強型（tuck-in）交易的絕佳例子。它的終端市場、銷售通路以及產品類別都與我們的核心業務非常相似或相當接近。從毛利率角度來看，它是增厚的。

We got it at a fair price. We think it's a growth end market. It's a leader in its space. It's got talented management team that is staying with the business. So many, many positive attributes about that business. As we think about it in 2026, I believe in the press release, we articulated the purchase price, the multiple and what the 2025 sales were going to be. One thing to highlight as you think about 2026 is we acquired it at the end of January.

我們以合理的價格買下它。我們認為它所處的是成長型終端市場。它在其領域是領導者。它擁有一支有才幹的管理團隊，且會繼續留在這項業務中。因此，這項業務有非常、非常多的正面特質。談到 2026 年的展望，我相信在新聞稿中我們已說明了收購價格、倍數，以及 2025 年的銷售額會是多少。而在思考 2026 年時，有一點要特別強調：我們是在 1 月底完成收購。

So you'll see 11/12 of sales in 2026, of course. I think the growth will be a little bit slow in 2026, but overall, a good long-term end market to be in. In terms of the margin profile, it's above what the Alamo Group averages are in terms of adjusted operating margins and adjusted EBITDA margins. We are going to make some investments early in this business. to drive some of those synergies, particularly in the area of operations and some commercial folks. So you might see a little bit of degradation in the margin profile early on relative to its history, but nothing that would drive it below the (inaudible). (inaudible)

因此，2026 年當然只會反映 11/12 的銷售額。我認為 2026 年的成長會稍微慢一些，但整體而言，這是一個適合長期布局的終端市場。就利潤率結構而言，它高於 Alamo Group 的平均水準，無論是調整後營業利益率或調整後 EBITDA 利潤率。我們會在這項業務初期做一些投資，以推動部分協同效益，特別是在營運以及一些商務人員方面。因此，相較於其過往水準，您可能會在初期看到利潤率結構略有下滑，但不至於使其低於(聽不清楚)。 (聽不清楚)

Maybe one last one for me. This week is a big (inaudible) show of products on the like (inaudible) can you share with us what your the (inaudible)educations for what you think might take place here? Good other (inaudible) here testing what (inaudible) for 2026.

我這邊最後再問一個。本週有一個大型的（聽不清楚）產品展，像（聽不清楚）那樣——您能否跟我們分享一下，您對於這裡可能會發生什麼的（聽不清楚）預期？另外（聽不清楚）也在測試 2026 年（聽不清楚）會如何。

Yes. So we're super excited for the first time (inaudible). The entire Alamo Group portfolio or the majority of the portfolio will be there in one booth, if you will. So you'll be there as a team showcasing a lot of our products will have some new things don't want to share right now what those are. We've got a lot of new products in the work. I highlighted one in the prepared remarks that we're super excited about. We think in many cases, these product innovations really demonstrate the shift (inaudible) here at Alamo from a follower to first mover. That's an important principle that we're adopting here at the Alamo Group.

是的。所以我們非常興奮，這是第一次(聽不清楚)。整個 Alamo Group 的產品組合，或至少大部分的產品組合，都會在同一個攤位展出。所以你會看到我們以團隊形式展示許多產品；也會有一些新東西，但我現在不想透露是什麼。我們有很多新產品正在開發中。我在事先準備的講稿中提到其中一項，我們對此非常興奮。我們認為在很多情況下，這些產品創新確實展現了 Alamo 在這裡的轉變（聽不清楚）——從追隨者變成先行者（first mover）。這是我們在 Alamo Group 這裡正在採納的一項重要原則。

Not going to showcase all of those at the show. Some of them are still in the final stages, but will be rolled out later in 2026. I would expect we would take orders, I would expect show to drive positive results for us. It will be my first time there, so (inaudible) at the show.

我們不會在展會上展示所有這些產品。其中一些仍在最後階段，但會在 2026 年稍晚推出。我預期我們會接到訂單，也預期展會會為我們帶來正面成果。這將是我第一次參加，所以（聽不清楚）在展會上。

(inaudible) Mircea Dobre, Baird.

(聽不清楚) Mircea Dobre，Baird。

(inaudible) So let me provide a little bit more.

(聽不清楚) 那我再補充說明一下。

Color with respect to the fourth action division. And then quarter specific question. (inaudible) a little bit here. Starting with the fourth quarter, there really were three things that drove the margin compression in the fourth quarter. The first was lower volumes and the lower volumes had inverse leverage on our fixed manufacturing costs and our SG&A costs as a said, that was the primary driver of the margin progression in the quarter.

就第四（聽不清楚）事業部而言，補充一些背景說明。然後再問一個針對季度的問題。（聽不清楚）這裡稍微談一下。先從第四季開始，第四季的利潤率被壓縮，主要有三個因素。第一是出貨量較低，而出貨量較低使我們的固定製造成本與 SG&A 成本出現反向槓桿效應；如我所說，這是本季利潤率變動的主要驅動因素。

The reason the volumes were lower, we saw end market demand slow meaningfully in two of our businesses in Tree Care and in government mowing or municipal knowing. In the tree care business, Recall that the majority of this business serves the large industrial sector, which is tied to land clearing operations, which is tied to housing. And many of these products are very, very expensive to north of $1 million. And so what we saw was dealers hesitant to place orders in the fourth quarter. That was different from the preceding quarters during 2025.

出貨量之所以較低，是因為我們看到兩項業務的終端市場需求明顯放緩：樹木養護（Tree Care）以及政府割草或市政割草。在樹木養護業務方面，請記得這項業務的大部分服務大型工業部門，而該部門與土地清理作業相關，土地清理又與房市相關。而且其中許多產品非常昂貴，價格超過 100 萬美元。因此我們看到經銷商在第四季對下單較為猶豫。這與 2025 年前幾個季度的情況不同。

In many ways, similarly in government mowing Here, we are selling through dealers, but many of our end customers are state DOT offices, Department of Transportation Officers. In the third and fourth quarter and more pronounced in the fourth quarter, the DOT offices are wrestling with the impact from the 1 big beautiful build. Under the 1 big beautiful bill, federal government is shifting burdens to the state for certain costs and expenses and actually resin certain funding tied to highways and access and things of that nature. So in the fourth quarter, you saw DOTs, certain large state DOTs that we do business with hesitant to place orders. don't think either of these things are long term in nature.

在政府割草方面，很多情況也類似：我們同樣是透過經銷商銷售，但許多終端客戶是各州的 DOT 辦公室，也就是交通運輸部門。在第三季與第四季，且在第四季更為明顯，DOT 辦公室正在因應「1 big beautiful build」帶來的影響。在「1 big beautiful bill」之下，聯邦政府把某些成本與費用的負擔轉移給各州，並且實際上重新調整（resin，疑為聽誤）某些與公路、通行與此類事項相關的資金。因此在第四季，你會看到我們往來的一些大型州 DOT 對下單較為猶豫。我不認為這兩件事具有長期性。

They're short term, but that drove the end markets down, which compressed margins. That's the first thing. In addition, reflecting on that softer end markets, we ended up taking some charges and reserves around some slow-moving inventory in these particular businesses that I just referenced. That's the second thing. And then the third thing was we talked about the consolidation activity in two facilities in the vegetation division. We made good progress from the third to the fourth in terms of driving those efficiencies.

它們是短期的，但確實使終端市場走弱，進而壓縮利潤率。這是第一點。此外，考量到終端市場較疲弱，我們也針對我剛提到的這些特定業務中部分滯銷庫存提列了一些費用與備抵。這是第二點。第三點是，我們談到植被（Vegetation）事業部兩座工廠的整併活動。在推動效率提升方面，我們從第三季到第四季取得了不錯的進展。

We can see in the underlying KPIs. Things are getting better, it will take another quarter or thereabouts, but it's improving. But nonetheless, we left a little bit of backlog on the table in the quarter. Those are the three drivers of the margin degradation in the fourth quarter in order of prominence, if you will.

我們從底層 KPI 就看得出來。情況正在改善，可能還需要再一個季度左右，但確實在好轉。不過，儘管如此，本季我們仍有一部分積壓訂單（backlog）沒有完成交付。以上就是第四季利潤率下滑的三個驅動因素，按重要性排序大致如此。

As we shift from the fourth to the first within the Vegetation Management division, we would expect to see top line improvement first fourth to first, and we would expect to see margin improvement, adjusted operating and adjusted EBITDA margin improvement from the fourth to first. you compare that first quarter of 2026 relative to where we were in the first quarter of 2022, 2025, we're likely to get close to that level, maybe a little bit south of that level. But recall, we're coming off of 8 quarters of down 13%, 14%, 15%. In terms of profitability in the first quarter in Vegetation Management division, Again, we'll see sequential good improvement, but probably not all the way back to the level of first quarter 2025. So good progress.

當我們在植被管理（Vegetation Management）事業部從第四季轉到第一季時，我們預期營收會先出現改善（第四季到第一季），同時也預期調整後營業利益率與調整後 EBITDA 利潤率會從第四季到第一季有所改善。若將 2026 年第一季與我們在 2022、2025 年第一季的水準相比，我們可能會接近那個水準，但可能會略低一些。但請記得，我們是從連續 8 個季度下滑 13%、14%、15% 的狀態走出來的。就植被管理事業部第一季的獲利能力而言，同樣地，我們會看到良好的季比改善，但可能還無法完全回到 2025 年第一季的水準。所以進展良好。

We're encouraged. We're starting to see green shoots in many of these places, even in tree care, we saw good green shoots in the quoting activity early on in 2026. Longer term, the goal is to get back at least initially longer term in 2026, and get back initially to at least where we were in the first half of 2025 back in that 8% adjusted operating margin level.

我們感到受到鼓舞。我們開始在許多這些領域看到復甦跡象，即使是在樹木養護方面，我們在2026年初的報價活動中也看到了良好的復甦跡象。從較長期來看，目標是至少在2026年較長期的初期階段，先回到至少我們在2025年上半年時的水準，也就是約8%的調整後營業利益率水準。

Longer term, through the cycle, the goal is to get to that 15% OI, 18% adjusted EBITDA levels. We think we can do that. The primary thing that needs to happen is we need the end markets and the volumes to stabilize from the there we can start building we think we have start happening in 2026. Does that help?

從長期、穿越景氣循環來看，目標是達到15%的營業利益（OI），以及18%的調整後EBITDA水準。我們認為我們做得到。最主要需要發生的是，我們需要終端市場與出貨量先穩定下來，從那裡我們就能開始逐步建立；我們認為這在2026年會開始發生。這樣有幫助嗎？

Got it. That was awesome, Robert. Last one for me here, just on M&A. I understand that Petersen is still in the early days of being integrated here. But just wondering what your deal pipeline looks like? And is there any detail you could give on verticals you might be a or potential adjacencies that might be looking to add to your current platform that could be M&A targets in the future.

了解。那很棒，Robert。我這邊最後一題，關於併購（M&A）。我了解Petersen目前仍在整合的早期階段。但我想請教你們的交易案源（deal pipeline）目前看起來如何？以及你是否能提供一些細節，關於你們可能會關注的垂直領域，或是可能想在現有平台上新增的相鄰領域，作為未來潛在的併購標的。

(inaudible) Lever within our capital deployment framework, Super excited about it. Ed and the team are doing a wonderful job building the pipeline. We're engaged with a number of folks. Nothing is imminent, but we're excited about the trajectory that we're on. As we've said in a couple of instances, we are primarily focused on tuck-in acquisitions. It doesn't mean we won't do a large deal, but that the sweet spot is going to be on tuck-in acquisitions. These are probably $10 million to $20 million of EBITDA, give or take, something in that order of magnitude.

（聽不清）在我們的資本配置框架中，這是一個槓桿，我們對此非常興奮。Ed和團隊在建立案源方面做得非常出色。我們正與多方接洽。目前沒有任何交易迫在眉睫，但我們對目前的發展軌跡感到振奮。如同我們在幾次場合提到的，我們主要聚焦於補強型收購（tuck-in acquisitions）。這不代表我們不會做大型交易，但甜蜜點會是在補強型收購上。這些交易的規模大概是1,000萬到2,000萬美元的EBITDA，上下浮動，約莫是這個量級。

We like to stay close to the core, meaning sales channels that we're familiar with, where we can drive commercial synergies, product categories that we're familiar with and markets that we're familiar with. Again, it doesn't mean we won't go a little bit to the right or to the little bit to the left like we did with Peterson entering into the waste management and grapple space, but we feel like that's close enough to the core. One thing I would say is probably in the near term, we're probably lean a little bit more industrial in nature, long cycle in nature rather than shorter cycle in nature. We love both divisions here at the Alamo Group, and there's opportunities for M&A in both divisions, but near term probably leaning just a smidge more towards the industrial space. Does that help?

我們喜歡貼近核心，也就是我們熟悉的銷售通路、能夠推動商業協同效益的領域、我們熟悉的產品類別，以及我們熟悉的市場。同樣地，這不代表我們不會稍微往右或往左延伸，就像我們透過Peterson切入廢棄物管理與抓斗（grapple）領域一樣，但我們認為那仍然足夠貼近核心。我想補充的是，短期內我們可能會更偏向工業性質、長週期性質的業務，而不是較短週期的業務。我們很喜歡Alamo Group旗下的兩個事業部，兩邊都有併購機會，但短期內可能會稍微更偏向工業領域。這樣有幫助嗎？

Chris Moore, CJS Securities.

Chris Moore，CJS Securities。

Maybe just 1 follow-up on the vegetation margins. I'll start with. I want to make sure I heard correctly. So in terms of Q1, Robert, did you say that the margins can approach the 8.1% that you did in Q1 '25, I thought there's still some consolidation going on in the vegetation division. Did I hear that correctly?

也許再追問一題關於植被管理事業部的毛利率。我先從這個開始。我想確認我是否聽對了。所以就第一季而言，Robert，你是說毛利率可以接近你們在2025年第一季做到的8.1%嗎？我原本以為植被管理事業部仍在進行一些整併。我有聽對嗎？

No. And maybe I wasn't clear or it's getting a little long in this year. So let me try it again. As we move from the fourth quarter of 2025 into the first quarter of 2026, we should expect to see good progression on the top line and good progression on the adjusted operating and adjusted EBITDA margins from (inaudible). Fourth, (inaudible) and when we compare the first of '26 to the first in 2025, will approach or (inaudible) get all the way back to that level. But we're making good progress towards it. We think there's good progression. We see the efficiencies. We won't get all the way back to where we were in terms of the margin in Q1 of 2025.

不是。也許是我講得不夠清楚，或是今年的會議時間有點長了。所以我再說一次。當我們從2025年第四季走到2026年第一季時，我們應該會看到營收端有良好的改善，調整後營業利益率與調整後EBITDA利潤率也會有良好的改善，從（聽不清）。第四季，（聽不清），而當我們把2026年第一季與2025年第一季相比時，會接近或（聽不清）回到那個水準。但我們正朝那個方向取得良好進展。我們認為改善趨勢良好。我們看到了效率提升。但我們不會完全回到2025年第一季的那個利潤率水準。

Got it. Okay. You look close to $8.1 million, you won't get there. That makes sense. In terms of just the backlog at the (inaudible) book-to-bill was on the industry, I think it was 0.8% something. The backlog at the end of (inaudible) division was roughly $400 million and the backlog model, when we think about that back of the (inaudible) we're also looking at the order pattern. The order had or a couple of things, and quite strong in the Industrial division across all three businesses. (inaudible) really, really robust in our snow group excited about the things that we can do there. Again, I do think it's important just to stress when you -- when we look at the snow business and its impact on the division going forward.

了解。好。你看起來接近8.1百萬美元，但不會到那裡。這樣就合理。就（聽不清）的在手訂單而言，工業部門的出貨比接單（book-to-bill）我記得大概是0.8%之類的。（聽不清）事業部期末在手訂單大約是4億美元，而在手訂單模型，當我們思考那個（聽不清）時，我們也在看訂單型態。訂單有或幾件事，而且工業事業部三個業務的表現都相當強勁。（聽不清）我們的除雪（snow）事業群非常、非常強勁，我們對能在那裡做的事情感到興奮。同樣地，我確實認為有必要強調，當你——當我們看除雪業務及其對該事業部未來的影響時。

We're going to be a little light on sales as we're not chasing that last dollar at low margins. We're being a little bit more disciplined around the types of business that we do really good backlog -- sorry, a really good order pattern. The backlogs overall, the lead times are in good shape. We don't feel like we're too extended. Snow is probably six months, which is six to nine months, which is better than our competitors, and we're picking up share because of that. In the Vegetation Management division, again, from an order pattern perspective, we saw really good order strength in the first quarter in our US ag business in our European ag businesses, which is really remarkable.

我們的銷售可能會稍微偏低，因為我們不會為了低毛利去追逐最後一塊錢的營收。我們在承接的業務類型上會更有紀律；在手訂單非常好——抱歉，是訂單型態非常好。整體在手訂單方面，交期狀況良好。我們不覺得自己拉得太長。除雪業務大概是六個月，也就是六到九個月，這比競爭對手更好，因此我們也因此在提升市占。在植被管理事業部方面，同樣從訂單型態來看，我們在第一季看到美國農業業務與歐洲農業業務的訂單力道非常強，這相當令人驚訝。

We think that signals potentially good, more stable environment in 2026. The other businesses, (inaudible) Care and government mowing, like I said, were somewhat weak in the fourth quarter. I think maybe the other thing to add, Chris, there is the ending -- sorry, the inventories in the channel in both divisions are in reasonably good spot, particularly within US ag. They've been depleted over the last several years. So there's no -- that's not a headwind for us going into 2026. In fact, if anything, it might be a little bit of a tailwind.

我們認為這可能意味著2026年的環境會更好、也更穩定。其他業務，（聽不清）樹木養護與政府割草，如我所說，在第四季相對疲弱。我想另外可以補充的是，Chris，兩個事業部的通路庫存水位都處於相當不錯的位置，尤其是在美國農業領域。過去幾年庫存已經被消化。因此，進入2026年這不會成為我們的逆風。事實上，如果有的話，反而可能會是些許順風。

Got it. And just in terms of the longer-term 15% operating margin, I know that's -- initially, I thought it was fiscal '28, but it's more through the through the cycle and you talked about different pieces leading to manufacturing, procurement, supply chain. Are you looking at that? I'm trying to envision that, is that kind of smooth improvement over the next two, three, four years? Is it more kind of back half loaded when we get some normalization from a volume perspective, just trying to understand kind of how we get from here to that 15%. .

了解。另外就長期15%營業利益率而言，我知道那——一開始我以為是2028財年，但其實是穿越景氣循環的目標，而且你提到不同的構成要素，包括製造、採購、供應鏈。你們是這樣看待的嗎？我試著想像一下，這會是在接下來兩、三、四年平滑地改善嗎？還是會比較偏向後半段，等到出貨量面有些正常化之後才會更明顯？我只是想了解我們大概如何從現在走到那個15%。.

Yes, I can understand that. The first thing, and it's the most important is we need end market stability. As I mentioned, we've seen 8 quarters now of consecutive down 13%, 14%, 15% in the end markets. That's a really challenging environment to operate in. I think the team has done a nice job taking out costs and adjusting to rightsize to that level of demand, we still have more work to do. But the first thing that we need is stabilization in those end markets. And the way we think about that is, obviously, the fourth quarter was not what we all wanted or expect going forward.

是的，我能理解。第一件事，也是最重要的，是我們需要終端市場的穩定。如我提到的，我們已經看到終端市場連續 8 個季度下滑 13%、14%、15%。這是一個非常具有挑戰性的營運環境。我認為團隊在削減成本並調整規模以符合該需求水準方面做得很好，但我們仍有更多工作要做。但我們首先需要的是那些終端市場的穩定。而我們對此的看法是，很明顯，第四季並非我們所有人想要的，也不是我們對未來的預期。

We've got to get back to where you were in the first half of 2025 in the vegetation division. And that is when you look at the average between the first and the second quarter, we were around 20% adjusted operating margin. So that's what we're chasing. We've got to get back to there stable volumes rightsize the manufacturing facilities to the end market demand level, we get to 8%.

我們必須回到 2025 年上半年植被事業部的水準。也就是說，當你看第一季與第二季的平均值時，我們的調整後營業利益率約為 20%。所以那就是我們追求的目標。我們必須回到那裡：穩定的出貨量、將製造設施的規模調整到符合終端市場需求水準，然後我們就能達到 8%。

From there, we're on our way with a little bit of tail win with a little bit of volume growth, will then push to 10%, and we'll begin our journey on the 300 basis points that I talked about in the last call, point from procurement, point from park and service point from continued manufacturing efficiencies. So I expect if the markets stabilize, you'll see good progression, certainly back half '25 to full year 26% in terms of that operating margin, and then it slows steady on our way from there. That color help?

從那裡開始，在一些順風與些許出貨量成長的推動下，我們將進一步推升到 10%，並開始我在上次電話會議提到的 300 個基點的改善旅程：其中 1 個百分點來自採購、1 個百分點來自零件與服務、1 個百分點來自持續的製造效率提升。因此我預期，如果市場趨於穩定，你將會看到良好的進展，尤其是在 2025 年下半年到 2026 全年，就該營業利益率而言；之後我們會以穩健的步伐持續前進。這樣的說明有幫助嗎？

It does. It does.

有。有。

(Operator Instructions) Greg Burns, Sidoti & Company.

(接線員指示) Greg Burns，Sidoti & Company。

Did you mention what side of the business or more specifically where the product divestitures were coming from?

你有提到這些產品剝離是來自業務的哪一側，或更具體地說，是從哪裡來的嗎？

In the Vegetation Management division. And these are product lines. They're not brands or businesses, they're product lines that really don't fit where we're going long term. So we'll look to divest those at some point over the course of 2026.

在植被管理事業部。而且這些是產品線。它們不是品牌或事業，而是一些從長期方向來看並不符合我們目標的產品線。因此我們會在 2026 年期間的某個時間點尋求剝離這些產品線。

Okay. And then the orders in the Vegetation Management side of the business in the fourth quarter, I know you mentioned ag was up and Tree Care and government marine were down. Is there any way you could quantify maybe like how much ag was up, how much tree care was down just to get a sense of where those 2 businesses are from a demand perspective? .

好的。另外，植被管理這一側業務在第四季的訂單，我知道你提到農業是成長的，而樹木養護以及政府/海事是下滑的。你能否量化一下，例如農業大概成長多少、樹木養護大概下滑多少，好讓我們從需求角度了解這兩個業務目前的狀況？.

Yes, definitely. So the US ag business in the European ag business, they were both up double digits. The US ag business, even a little bit stronger. So good performance -- and by the way, we see that continuing into the first quarter. So really positive sign that those end markets are moving in the right direction. Now again, whether or not in 2026, they get all the way to flat or growth is coming off of 8 quarters of down 15%, still to be determined, but it's a very positive, very positive sign. In the Tree Care and the government mowing or now municipal mowing, they too were double digits but down double digits. What I will say is in TreatCare and Government Boeing it feels like that was a fourth quarter end of year hesitant to place orders specifically in Tree Care because we can see in the first quarter, the level of quoting activity actually increased. So we're in (inaudible) to the first quarter a little in the early days. Overall, I think that's going to be in a good spot as Congress kind of works through their renewal or extension of the Infrastructure Investment Act, but we'll see short-term weakness there in government volume. That color help?

是的，當然可以。美國農業業務與歐洲農業業務都呈現兩位數成長。美國農業業務甚至更強一些。所以表現不錯——順帶一提，我們看到這種趨勢延續到第一季。因此這是非常正面的訊號，顯示這些終端市場正朝正確方向發展。當然，到了 2026 年它們是否能完全回到持平或成長，畢竟是從連續 8 個季度下滑 15% 的基礎上回升，仍有待觀察，但這是一個非常正面、非常正面的訊號。至於樹木養護以及政府割草（現在稱為市政割草），它們也是兩位數，但為兩位數下滑。我要說的是，在樹木養護與政府割草方面，感覺第四季年末時下單較為猶豫，特別是在樹木養護，因為我們在第一季看到報價活動的水準其實有所增加。所以我們在（聽不清）第一季，現在還在早期階段。整體而言，我認為隨著國會推進《基礎建設投資法》的續期或延長，這塊將會處於不錯的位置，但短期內政府端的出貨量仍會偏弱。這樣的說明有幫助嗎？

Yes. No, that was great.

有。不，那很棒。

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

問答環節到此結束。我想把電話會議交回管理層，請其做任何結語。

We appreciate the interest in the Alamo Group and look forward to speaking with you again on our next call. Thank you.

感謝各位對 Alamo Group 的關注，並期待在下一次電話會議再次與各位交流。謝謝。

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

本次電話會議到此結束。感謝各位參加今天的簡報。您現在可以掛線。