Allient Delivers Record Revenue, Margins and Orders in Third Quarter 2026

BUFFALO, N.Y.--(BUSINESS WIRE)--Allient Inc. (Nasdaq: ALNT) (“Allient” or the “Company”), a global designer and manufacturer of precision and specialty Motion, Controls and Power products and solutions for targeted industries and applications, today reported financial results for its third quarter ended September 30, 2026.

“We delivered an outstanding third quarter, with record revenue and margins demonstrating the earnings power of a stronger, more efficient Allient,” commented Dick Warzala, Chairman and CEO. “Higher volume, favorable mix and continued operational improvements drove an 83% increase in operating income and more than doubled net income. Our Simplify to Accelerate NOW strategy is helping us translate stronger demand into improved profitability while continuing to invest in capacity, technology and productivity.

“Industrial and Aerospace & Defense remained important drivers of growth, and Vehicle also contributed meaningfully to the revenue increase. Across the organization, we remain focused on higher-value motion, controls and power applications where our engineering capabilities and solutions-oriented approach can deepen customer relationships and support attractive long-term returns.”

Mr. Warzala added, “Record orders of $218 million and backlog of $351 million provide us with a positive outlook as we move into the fourth quarter and early 2027. Our priorities are to execute against that demand, provide full support for our internal growth opportunities and to maintain our disciplined approach on investments. While customer schedules, mix and the trade environment can affect quarterly performance, we believe our stronger operating model and financial flexibility position us well to build on our progress.”

Third Quarter 2026 Results (Narrative compares with prior-year period unless otherwise noted)

Revenue increased 18%, or $25.7 million, to $164.4 million, compared with $138.7 million. Foreign currency translation provided an unfavorable impact of $0.9 million; on a constant currency basis, revenue grew 19% organically. See the attached table for a description of non-GAAP financial measures and reconciliation of revenue excluding foreign currency exchange rate fluctuations.

Sales to U.S. customers were 57% of total revenue, consistent with the third quarter of 2025, with the balance of sales to customers primarily in Europe, Canada and Asia-Pacific. The Company continues to benefit from its diversified geographic footprint and balanced exposure across end markets.

Market Performance:

• Industrial revenue increased 15% to $81.7 million, driven by continued demand for industrial automation and solutions supporting data center and infrastructure and other critical facility applications.
• Vehicle revenue increased 27% to $27.3 million, primarily reflecting stronger commercial automotive demand, including shipments accelerated ahead of a customer’s model changeover.
• Aerospace & Defense revenue increased 36% to $25.5 million, reflecting strong defense-related demand for mission-critical platforms and systems, as well as favorable program timing.
• Medical revenue decreased 2% to $21.3 million, as higher demand for surgical precision motion applications was more than offset by lower demand for medical mobility applications.
• Distribution channel sales, while representing a smaller portion of total revenue, increased 39%, reflecting broad-based growth across the channel.

Gross profit increased 30% to $60.2 million. Gross margin expanded 330 basis points to 36.6%, reflecting higher sales volume, improved product mix and operational improvements under STAN.

Operating costs and expenses were $37.9 million, compared with $34.0 million. The increase reflected higher sales commissions, personnel-related expenses, software licensing and information technology consulting costs, and sales and marketing activity. As a percentage of revenue, operating costs were 23.0%, an improvement of 150 basis points year-over-year, demonstrating operating leverage on the higher revenue base.

Restructuring and business realignment costs declined to $15,000 from $0.8 million in the prior-year quarter, primarily reflecting lower costs associated with the transfer of assembly operations from the Company’s Dothan, Alabama facility and the timing of other STAN actions. The Company expects approximately $2 million of restructuring and business realignment costs for full-year 2026.

Operating income increased 83% to $22.3 million, compared with $12.2 million. Operating margin expanded 480 basis points to a record 13.6%, reflecting higher gross margin, operating expense leverage and lower restructuring costs.

Interest expense decreased 27% to $2.5 million from $3.4 million, primarily reflecting lower average debt balances.

The effective income tax rate was 22.2% for the third quarter of 2026, consistent with the prior-year period. The Company expects its income tax rate for the full year 2026 to be approximately 21% to 23%.

Net income increased 137% to $15.3 million, or $0.91 per diluted share, compared with $6.5 million, or $0.39 per diluted share. Adjusted net income, which excludes amortization of intangible assets related to acquisitions, acquisition and integration-related costs, restructuring and business realignment costs, and other non-recurring items, was $18.0 million, or $1.07 per diluted share, up 82% from $9.9 million, or $0.59 per diluted share. See the attached tables for a description of non-GAAP financial measures and reconciliation table for Adjusted Net Income and Diluted Earnings per Share.

Earnings before interest, taxes, depreciation, amortization, stock-based compensation expense, acquisition and integration-related costs, restructuring and business realignment costs, and foreign currency gains/losses (“Adjusted EBITDA”) was $29.7 million, or 18.0% of revenue, compared with $20.3 million, or 14.6% of revenue. The Company believes that, when used in conjunction with measures prepared in accordance with U.S. generally accepted accounting principles, Adjusted EBITDA, which is a non-GAAP measure, helps in the understanding of its operating performance. See the attached table for a description of non-GAAP financial measures and reconciliation table for Adjusted EBITDA.

Balance Sheet and Cash Flow Review

Cash and cash equivalents were $39.6 million at September 30, 2026, compared with $40.7 million at December 31, 2025. Net cash provided by operating activities was $22.1 million for the first nine months of 2026, compared with $43.1 million in the prior-year period. The change was primarily due to accounts receivable timing and investments in inventory to support rapid growth and strategic buys of critical materials to mitigate supply constraints. Working capital management and cash conversion remain priorities as the Company supports higher business activity.

Capital expenditures were $10.6 million for the first nine months of 2026, compared with $5.1 million in the prior-year period, as the Company continued to invest in capacity, technology and productivity in support of long‑term growth. The Company expects full-year 2026 capital expenditures to be approximately $12.0 million to $15.0 million.

Total debt was $173.4 million at September 30, 2026, down $7.0 million from December 31, 2025. Debt, net of cash, decreased to $133.7 million, resulting in a net debt-to-capitalization ratio of 29.0%. The Company had $162.0 million of unused revolving credit capacity at quarter end.

The Company’s leverage ratio, defined as total net debt divided by trailing twelve months Adjusted EBITDA, improved to 1.49x from 1.82x at December 31, 2025. The bank leverage ratio, as defined under the Company’s credit agreement and excluding foreign cash and certain other adjustments, was 1.89x at quarter-end, well within covenant requirements. See the attached table for a description of non-GAAP financial measures and reconciliation table for Total Net Debt and Leverage Ratio.

Orders and Backlog Summary ($ in thousands)

Third quarter orders increased 64% year-over-year and 8% sequentially to a record $218.1 million, resulting in a book-to-bill ratio of 1.33x. The increase reflected broad-based demand across key targeted markets, led by Industrial and Aerospace & Defense. Foreign currency translation provided an unfavorable impact of $0.8 million compared with the prior-year period.

Backlog increased 52% year-over-year and 18% from June 30, 2026, to $351.5 million. The higher backlog provides improved visibility into the fourth quarter of 2026 and early 2027. The majority is expected to convert to revenue within six to twelve months, reflecting revised order patterns to ensure critical material availability on a longer-term basis.

Conference Call and Webcast

The Company will host a conference call and webcast on Thursday, November 5, 2026, at 10:00 am ET. During the conference call, management will review the financial and operating results and discuss Allient’s corporate strategy and outlook. A question-and-answer session will follow.

To listen to the live call, dial (201) 389-0908. In addition, the webcast and slide presentation may be found at: www.allient.com/investors.

A telephonic replay will be available from 2:00 pm ET on the day of the call through Thursday, November 19, 2026. To listen to the archived call, dial (412) 317-6671 and enter replay pin number 13762680 or access the webcast replay via the Company’s website.

About Allient Inc.

Allient (Nasdaq: ALNT) is a global engineering and manufacturing enterprise that develops solutions to drive the future of market-moving industries, including medical, life sciences, aerospace and defense, industrial automation, robotics, semi-conductor, transportation, agriculture, construction and facility infrastructure. A family of globally responsible companies, Allient takes a One-Team approach to “Connect What Matters” and provides the most robust, reliable, and high-value products and systems by utilizing its core Motion, Controls, and Power technologies and platforms.

Headquartered in Buffalo, N.Y., Allient employs more than 2,500 team members around the world. To learn more, visit www.allient.com.

Safe Harbor Statement

The statements in this news release that relate to future plans, events or performance are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate, or imply future results, performance, or achievements. Examples of forward-looking statements include, among others, statements the Company makes regarding expected savings from restructuring and simplifying actions, the cost of implementing such actions, operating results, expectations for the level of sales, the Company’s belief that it has sufficient liquidity to fund its business operations, and expectations with respect to the conversion of backlog to sales. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on the Company’s current beliefs, expectations and assumptions regarding the future of the Company’s business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company’s control. The Company’s actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, general economic and business conditions, conditions affecting the industries served by the Company and its subsidiaries, conditions affecting the Company's customers and suppliers, competitor responses to the Company's products and services, the overall market acceptance of such products and services, the pace of bookings relative to shipments, the ability to expand into new markets and geographic regions, the success in acquiring new business, the impact of changes in income tax rates or policies, commercial activity and demand across our and our customers’ businesses, global supply chains, the prices of our securities and the achievement of our strategic objectives, the ability to attract and retain qualified personnel, the ability to successfully integrate an acquired business into our business model without substantial costs, delays, or problems, and other factors disclosed in the Company's periodic reports filed with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it is made. New risks and uncertainties arise over time, and it is not possible for us to predict the occurrence of those matters or the manner in which they may affect us. The Company has no obligation or intent to release publicly any revisions to any forward looking statements, whether as a result of new information, future events, or otherwise.

FINANCIAL TABLES FOLLOW

ALLIENT INC.
Reconciliation of Non-GAAP Financial Measures
(In thousands, Unaudited)

In addition to reporting revenue and net income, which are U.S. generally accepted accounting principle (“GAAP”) measures, the Company presents Revenue excluding foreign currency exchange rate impacts, Organic revenue, EBITDA and Adjusted EBITDA (earnings before interest, income taxes, depreciation and amortization, stock-based compensation expense, acquisition and integration-related costs, restructuring and business realignment costs, and foreign currency gains/losses), total net debt, and leverage ratio, which are non-GAAP measures.

The Company believes that Revenue excluding foreign currency exchange rate impacts is a useful measure in analyzing organic sales results. The Company excludes the effect of currency translation from revenue for this measure because currency translation is not fully under management’s control, is subject to volatility and can obscure underlying business trends. The portion of revenue attributable to currency translation is calculated as the difference between the current period revenue and the current period revenue after applying foreign exchange rates from the prior period. Organic revenue is reported revenues adjusted for the impact of foreign currency and the revenue contribution from acquisitions.

The Company believes EBITDA and Adjusted EBITDA are often a useful measure of a Company’s operating performance and are a significant basis used by the Company’s management to evaluate and compare the core operating performance of its business from period to period by removing the impact of the capital structure (interest), tangible and intangible asset base (depreciation and amortization), taxes, stock-based compensation expense, acquisition and integration-related costs, restructuring and business realignment costs, foreign currency gains/losses on short-term assets and liabilities, and other items that are not indicative of the Company’s core operating performance. EBITDA and Adjusted EBITDA do not represent and should not be considered as an alternative to net income, operating income, net cash provided by operating activities or any other measure for determining operating performance or liquidity that is calculated in accordance with GAAP. In addition to the performance measures identified above, we believe that total net debt and leverage ratio provide meaningful measures of liquidity and a useful basis for assessing our ability to fund our activities, including the financing of acquisitions and debt repayments. Total net debt is calculated as total debt less cash and cash equivalents. Leverage ratio is total net debt divided by adjusted EBITDA for the trailing twelve months.

The Company’s calculation of Revenue excluding foreign currency exchange impacts for the three and nine months ended September 30, 2026 is as follows:

The Company’s calculation of organic revenue for the three and nine months ended September 30, 2026 is as follows:

ALLIENT INC.
Reconciliation of Non-GAAP Financial Measures
(In thousands, Unaudited)

The Company’s calculation of Adjusted EBITDA for the three and nine months ended September 30, 2026, and 2025, and for the trailing twelve months ended September 30, 2026 and December 31, 2025 is as follows:

The Company’s calculation of Total Net Debt and Leverage Ratio as of September 30, 2026, and December 31, 2025, is as follows:

ALLIENT INC.
Reconciliation of GAAP Net Income and Diluted Earnings per Share to
Non-GAAP Adjusted Net Income and Adjusted Diluted Earnings per Share
(In thousands, except per share data)
(Unaudited)

The Company’s calculation of Adjusted net income and Adjusted diluted earnings per share for the three and nine months ended September 30, 2026, and 2025 is as follows:

Adjusted net income and diluted EPS are defined as net income as reported, adjusted for certain items, including amortization of intangible assets and unusual non-recurring items. Adjusted net income and diluted EPS are not a measure determined in accordance with GAAP in the United States, and may not be comparable to the measure as used by other companies. Nevertheless, the Company believes that providing non-GAAP information, such as adjusted net income and diluted EPS are important for investors and other readers of the Company’s financial statements and assists in understanding the comparison of the current quarter’s and current year’s net income and diluted EPS to the historical periods’ net income and diluted EPS.