Peter [Analyst]'s questions to Alamo Group Inc (ALG) leadership • Q4 2024
Question
Speaking for Mircea Dobre, Peter asked for confirmation that all cost savings were in the Vegetation division, the outlook for that segment's decrementals, the long-term margin potential for the Industrial segment, and for more detail on the M&A strategy.
Answer
CFO Agnes Kamps confirmed the entire $25-$30 million in savings is within the Vegetation division and expects decrementals to improve significantly in 2025. President and CEO Jeff Leonard added that a 15% operating margin for the Industrial segment is 'very doable' by the end of 2025, aided by further plant consolidation opportunities. On M&A, Leonard highlighted a focus on adjacent governmental product lines and European expansion for the Industrial division, noting he expects opportunities to materialize in the first half of 2025.