Allient (ALNT) Q4 2025 earnings summary

Executive summary

• Entered 2025 with priorities to expand margins, strengthen the balance sheet, and align the portfolio with secular growth drivers, achieving measurable progress in all areas.

• Q4 2025 revenue grew 17% year-over-year to $143.4M, with net income up 112% to $6.4M and gross margin expanding 90bps to 32.4%.

• Full-year 2025 revenue reached $554.5M, up 5% year-over-year, with net income up 67% to $22.0M and record gross margin of 32.8%.

• Strong operating leverage and cost discipline drove margin expansion and significant earnings growth, with diluted EPS more than doubling year-over-year in Q4.

• Strategic initiatives, including the Simplify to Accelerate NOW program, delivered over $6M in annualized savings.

Financial highlights

• Q4 revenue rose 17% year-over-year to $143.4 million, with 15% organic growth on a constant currency basis.

• Q4 operating income increased 76% to $11.4 million (7.9% margin); full-year operating income up 46% to $44 million (7.9% margin).

• Q4 net income more than doubled to $6.4 million ($0.38 per share); adjusted net income was $9.3 million ($0.55 per share).

• Adjusted EBITDA for Q4 was $19 million (13.3% margin); full-year adjusted EBITDA was $76.9 million (13.9% margin), up 210 basis points year-over-year.

• Record operating cash flow of $56.7 million for the year, up 35% from prior year.

Outlook and guidance

• Book-to-bill ratio exited above one, with Q4 at 1.01x and backlog at $233 million, most expected to convert in 3–9 months.

• 2026 tax rate expected between 21% and 23%; capital expenditures projected at $10–$12 million, focused on customer programs and growth.

• Management expects continued momentum in automation, data center, and defense, but notes uneven macro conditions and policy/tariff uncertainties.

• Sequential order growth of 9% in Q4 supports positive momentum into 2026.