Alamo Group sales rise, Kubota revenue falls as tariffs shift ag market

As the agricultural sector continues to face pressure from tariffs and bankruptcies, equipment manufacturers Alamo Group and Kubota reported mixed third-quarter results. 

Alamo Group’s business units implemented standard annual price increases earlier in the year and raised prices again recently to offset tariff-related costs, President and Chief Executive Robert Hureau said during the company’s Nov. 7 earnings call. 

“As it relates to tariffs, our aim in both divisions will be to pass these costs along to customers and to continue availing ourselves of applicable tariff exemptions,” he said. “In tandem with price increases, we continue to focus on local sourcing and supplier diversification where appropriate.” 

Meanwhile, Kubota’s operating profit finished at 214.7 billion yen ($1.5 billion), down 22% year over year, as North American sales fell, due in part to tariffs and overall declines in farm performance, according to the company’s Nov. 7 earnings presentation. 

Alamo Group sales up 4.7% YoY 

Alamo Group posted mixed third-quarter results, with higher sales offset by lower net income. The company’s larger industrial division outperformed expectations while its smaller vegetation management division softened, according to the company’s Nov. 6 earnings report. 

According to the company’s Q3 earnings release: 

• Net sales landed at $420 million, up 4.7% YoY; 

• Net income was $25.4 million, down 7.4 YoY; 

• Total assets increased to $1.6 billion, up 7.7% YoY; 

• Vegetation Management division sales, which represent 41.2% of its total sales, fell 9% to $173.1 million; and 

• Industrial Equipment division sales, which represent 58.8% of its total sales, rose 17% to $247 million. 

Alamo’s Vegetation Management division remained weak, amid year-over-year sales declines in its tree care, government mowing and agricultural segments, Hureau said. 

“Regarding pricing similar to the Industrial Equipment division, many of the Vegetation Management businesses increased price during the year and more recently increased price again to mitigate the impact of tariffs,” he said. “Regarding our core end markets like land management, agriculture and tree care, they continue to show weakness, and as a result, sales volumes were lower.” 

Kubota’s North American machinery revenue falls 11.7% YoY 

Alongside fellow Japanese OEMs Hitachi and Komatsu, Kubota felt continued tariff pressures, resulting in an 11.7% drop in North American machinery revenues, according to the company’s Nov. 7 earnings presentation. 

According to Kubota’s Nov. 7 Q3 earnings release, the company reported: 

• Revenue totaled $14.9 billion, down 3.2% YoY;  

• North American machinery sales were $5.8 billion, down 11.7% YoY; 

• Current finance receivables landed at $3.9 billion, up 0.6% YoY; 

• Noncurrent finance receivables increased to $10.3 billion, up 7.6% YoY; 

• Total assets rose to $39.4 billion, up 4.4% YoY. 

Editor’s note: All amounts have been converted to U.S. dollars. 

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