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    Orin Hirschman • AIGH Investment Partners

    Orin Hirschman's questions to Allient Inc (ALNT) leadership

    Orin Hirschman's questions to Allient Inc (ALNT) leadership • Q2 2025

    Question

    Orin Hirschman of Aigh Capital Management questioned the specifics of the data center business, including the function of its power conditioning products and the company's capacity to meet surging demand. He also asked for an update on the industrial automation recovery and whether the munitions business was facing any capacity constraints.

    Answer

    Richard Warzala, Chairman, CEO & President, explained that Allient's data center solutions enhance power quality and efficiency, and confirmed the company is expanding capacity to meet demand. He stated that the industrial automation market has 'turned the corner' with sequential improvements. Regarding munitions, he assured that Allient is not capacity constrained due to prior facility investments and is now seeing high-volume inquiries convert into firm orders.

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    Orin Hirschman's questions to Allient Inc (ALNT) leadership • Q1 2025

    Question

    Orin Hirschman sought to quantify the revenue impact of the rare earth magnet sourcing issue and asked for an update on the recreational vehicle market, including its size and whether it has bottomed.

    Answer

    Executive Richard Warzala estimated that magnet costs can be around 20% of the cost of goods sold, implying the $1.5 million of impacted magnets could relate to roughly $7.5 million to $8 million in sales. Regarding vehicles, he clarified that the off-road vehicle market is about 40-50% industrial and commercial, not purely consumer-based, and the company is not exiting but is focused on profitability. He suggested the consumer portion's outlook is best obtained from the vehicle manufacturers themselves.

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