Allient (ALNT) Q2 2026 earnings summary

Executive summary

• Achieved 10% revenue growth to $153.8 million in Q2 2026, with 9% organic growth on a constant currency basis, driven by strong demand in industrial automation, data center, aerospace & defense, and medical markets.

• Net income surged 85% year-over-year to $10.4 million, with adjusted net income at $13.5 million and adjusted EPS of $0.80, reflecting operational improvements and margin expansion.

• Gross margin reached a record 34.9%, up 170 basis points year-over-year, and operating margin rose to 10.2%, the highest in a decade.

• Record orders of $201.3 million, up 49% year-over-year, drove backlog to $298 million, providing strong visibility into the second half of 2026.

• Operational initiatives under the STAN/Simplify to Accelerate NOW program drove cost discipline, annualized savings, and cultural change.

Financial highlights

• Revenue grew 10% year-over-year to $153.8 million; organic growth was 9% on a constant currency basis.

• Gross margin reached 34.9%, up 170 basis points year-over-year; gross profit was $53.6 million.

• Operating income rose to $15.6 million (10.2% margin), up from $11.7 million (8.4%).

• Adjusted EBITDA grew to $23.7 million (15.4% of revenue); interest expense declined by $1 million to $2.5 million.

• Bookings for Q2 2026 were $201.3 million (+49% YoY); backlog at quarter-end was $298 million (+26% YoY).

Outlook and guidance

• Strong order intake and backlog support solid momentum and improved visibility for the second half of 2026 and early 2027.

• Full-year 2026 capital expenditures expected to be $12–$15 million; tax rate guidance remains 21–23%.

• STAN cost optimization expected to deliver $5–$7 million in annualized savings in 2026, with a runway for similar savings over the next 2–3 years.

• Restructuring and realignment costs for 2026 anticipated at $2–$3 million.

• Liquidity and cash flow expected to be sufficient for operational and capital needs over the next twelve months.