Michael Shlisky's questions to ALAMO GROUP (ALG) leadership • Q2 2025
Question
Michael Shlisky of D.A. Davidson & Co. questioned the company's capital allocation priorities, specifically regarding M&A versus organic growth initiatives like R&D or new product categories. He also asked about the sustainability of the strong performance in the snow removal business.
Answer
President & CEO Jeffery Leonard affirmed that capital allocation remains heavily focused on M&A, citing a very active pipeline and the recent Ring O Matic acquisition as a key platform for growth. He noted that while R&D continues, particularly for emissions standards, there are no major new organic verticals planned. Regarding the snow business, Leonard stated that activity remains very strong, especially in Canada, and he does not foresee a slowdown, seeing plenty of legs left in that market.