0001558370-25-010524
SEC filingSecond quarter revenue grew 3% YoY to $139.6M, with gross margin improving to 33.2% and net income rising 388% to $5.6M, driven by cost actions and mix.
For the three months ended June 30, 2025, Allient reported revenue of $139.6 million, up 3% from $136.0 million in the prior-year quarter. The increase was primarily driven by growth in Medical, Industrial, and Aerospace & Defense markets, partially offset by declines in Vehicle. Organic revenue, excluding foreign currency and acquisitions, rose 0.9%. Gross profit increased 14% to $46.4 million, and gross margin expanded 330 basis points to 33.2%, reflecting favorable product mix, higher volume, and operational improvements from the Simplify to Accelerate NOW strategy. Operating income surged 139% to $11.7 million (8.4% margin vs. 3.6%), as total operating expenses declined 3% due to cost reduction actions. Net income jumped 388% to $5.6 million ($0.34 diluted EPS vs. $0.07). Non-GAAP adjusted net income was $9.5 million ($0.57 per share).
Allient does not report discrete segment revenue in the MD&A; however, it discusses performance across four target markets. Medical, Industrial, and Aerospace & Defense drove Q2 revenue growth, while Vehicle market sales decreased. The company noted steady demand in Aerospace & Defense and improved order patterns in Industrial. Bookings decreased 2% in Q2 but increased 5% year-to-date, reflecting timing of customer orders and continued strength in key end markets.
Management expects the Simplify to Accelerate NOW program to deliver $6–$7 million in annualized cost savings in 2025, partially offset by $4–$5 million in one-time restructuring costs. Full-year effective tax rate is forecast between 21% and 23%, and capital expenditures are planned at $8–$10 million. The company remains focused on expanding its Motion, Controls, and Power technology pillars. Recent legislation (OBBBA) will be evaluated for tax impact starting Q3 2025. Liquidity remains strong with $49.9 million cash and $133.0 million available under the revolving credit facility.