0001104659-26-056256
SEC filingRevenue grew 5% YoY driven by foreign currency and volume; gross margin improved 50 bps to 32.7% on operational efficiencies.
For the three months ended March 31, 2026, Allient reported revenue of $138.9 million, a 5% increase from $132.8 million in the prior-year period. The growth was driven by a 3.8% favorable foreign currency impact and a 0.8% organic volume increase, with particular strength in the Industrial and Vehicle markets. Gross profit rose 6% to $45.4 million, and gross margin improved 50 basis points to 32.7%, benefiting from higher sales volume, improved product mix, and operational efficiencies from the Simplify to Accelerate NOW program.
Operating income increased 6% to $9.3 million, as gross profit gains were partially offset by higher selling expenses (+17%) due to increased commissions and marketing costs, and higher general and administrative expenses (+12%) from personnel and IT costs. Engineering and development costs were essentially flat (+1%). Restructuring costs declined to $0.9 million from $1.5 million in the prior year. Net income surged 51% to $5.4 million, aided by a 30% reduction in interest expense from lower average debt balances and a favorable swing in other income/expense. Diluted EPS rose to $0.32 from $0.21.
The MD&A does not provide a formal segment breakdown by operating segment. However, management noted that revenue growth was most significant within the Industrial and Vehicle target markets. Bookings increased 15% to $158.1 million, reflecting a 10.8% volume increase and a 4.1% foreign currency benefit, indicating improving customer demand in those markets. Backlog grew 6% to $251.0 million.
Management expects the Simplify to Accelerate NOW program to generate additional annualized cost savings in 2026, with $2-$3 million in additional restructuring costs anticipated for the year, substantially paid by year-end. The effective tax rate for full-year 2026 is projected at 21%-23%. Capital expenditures are expected to be between $12 million and $15 million. The company remains focused on expanding its three technology pillars—Motion, Controls, and Power—and is monitoring geopolitical and tariff uncertainties, while maintaining compliance with all debt covenants.