Allient Inc. (ALNT) Q2 2026 Earnings: Revenue $154M (+10.2%)
ALNT — Q2 2026 Financial Report Analysis
Q2 · Fiscal year 2026 · Published by Pham Hop
Allient's Q2 2026 revenue rose 10.2% to $153.8M and EPS to $0.61 from $0.34, as industrial and defense orders jumped 49% and lifted backlog to $298M.
Revenue
$154M
+10.2% YoY
Net income
$10M
+85.0% YoY
Diluted EPS
$0.61
+79.4% YoY
Operating margin
10.2%
This period vs a year ago
Same period last year
This period
Revenue▲+10.2%
≈$140M
$154M
Net income▲+85.0%
≈$5.6M
$10M
Diluted EPS▲+79.4%
≈$0.34
$0.61
Year-ago figures (≈) are worked out from the growth rate the company reported. Each row has its own scale.
Orders jumped 49% while sales grew 10%, and profit nearly doubled
Allient, a Williamsville, New York maker of precision motors, motion controllers, drives and power-quality equipment sold into factory automation, vehicles, medical devices and defense, had its best quarter in some time in the three months to June 30, 2026. Revenue rose 10.2% to $153.8 million, all of it from selling more units (9.3% "organic" growth, meaning excluding currency moves and acquisitions) plus a 0.9% lift from a weaker dollar. Net income rose 85% to $10.4 million and diluted EPS to $0.61 from $0.34. The bigger number is orders: new bookings of $201.3 million were 49% higher than a year earlier, lifting the order backlog to $298.0 million.
At a glance
Book-to-bill of 1.31 ($201.3M of new orders against $153.8M shipped): the company took in about $1.31 of new business for every $1 it delivered, versus 0.97 a year ago, so the order book is growing rather than being drawn down.
Operating margin of 10.2%, up from 8.4%: operating margin is the share of revenue left after running the business, before interest and tax. Gross margin rose 1.7 points to 34.9% while overhead grew only in line with sales.
Cash flow lagged profit growth: first-half operating cash flow fell to $20.1M from $38.4M, as receivables and inventory absorbed $23.5M of cash to support the higher volume.
The numbers
Metric
Q2 2026
Q2 2025
YoY Change
Revenue
$153.8M
$139.6M
+10.2%
Organic revenue growth (ex-currency)
+9.3%
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Gross margin
34.9%
33.2%
+1.7 pts
Operating income
$15.6M
$11.7M
+33.7%
Operating margin
10.2%
8.4%
+1.8 pts
Net income
$10.4M
$5.6M
+85.0%
Diluted EPS
$0.61
$0.34
+79.4%
Adjusted diluted EPS (non-GAAP)
$0.80
$0.57
+40.4%
Adjusted EBITDA (non-GAAP)
$23.7M
$20.1M
+18.2%
Bookings (new orders)
$201.3M
$135.0M
+49.1%
Backlog (period-end)
$298.0M
$236.6M
+26.0%
Source: Allient Form 10-Q for the quarter ended June 30, 2026. Adjusted figures are the company's own non-GAAP measures.
Where the growth came from
Allient reports as a single business segment but breaks out revenue by end market. Industrial and aerospace & defense carried the quarter; vehicle shrank.
End market
Q2 2026
Q2 2025
YoY Change
Share of Q2 revenue
Industrial
$76.5M
$65.5M
+16.8%
49.7%
Vehicle
$25.0M
$26.7M
−6.6%
16.2%
Aerospace & Defense
$24.2M
$21.0M
+15.6%
15.8%
Medical
$21.8M
$20.0M
+8.9%
14.2%
Distribution and Other
$6.3M
$6.4M
−1.7%
4.1%
Industrial alone added $11.0 million of the $14.2 million revenue increase, and the 10-Q says the order surge was also "primarily within Industrial and Aerospace and Defense." Vehicle was the one sizeable market to decline, and the 10-Q does not explain why. By geography, 54% of quarterly sales went to US customers and 46% abroad (mainly Europe, Canada and Asia-Pacific); Europe rose 10.5% to $45.3 million.
The quarter is also a clear step up from the start of the year. Subtracting Q2 from the first-half totals, Q1 2026 revenue grew about 4.6% and Q1 bookings about 14.9%; in Q2 those rates rose to 10.2% and 49.1%.
Why margins widened
Management attributes the higher gross margin to "higher sales volume, improved product mix, and operational improvements" from its Simplify to Accelerate NOW program, a cost and footprint overhaul that included moving assembly work out of its Dothan, Alabama plant to Tulsa, Oklahoma and Reynosa, Mexico. Cost of goods sold rose 7.5% against 10.2% sales growth, which is where most of the extra profit came from: gross profit rose $7.2 million, operating expenses only $3.3 million.
Within operating costs, selling expense rose 26% (higher sales commissions and marketing), general and administrative 10% (staff costs, software licences and IT consulting) and engineering 7% (mainly incentive pay). Restructuring charges fell to $0.6 million from $1.1 million.
Below operating income, interest expense dropped 29% to $2.5 million because the company has been paying down debt, and "other expense" (mostly currency losses) fell to $0.1 million from $0.8 million.
What the headline numbers hide
Not all of the 85% profit jump is operations. Pre-tax income rose $5.7 million: about $3.9 million from higher operating income, $1.0 million from lower interest and $0.8 million from smaller currency losses. The effective tax rate also fell to 20.2% from 23.1%, worth roughly $0.4 million. By our rough after-tax split, about two-thirds of the $0.27 EPS increase came from the business itself and the rest from cheaper financing, currency and tax. There were no buybacks helping: diluted shares rose 1.0% to 16.9 million.
GAAP vs adjusted. Adjusted EPS of $0.80 sits $0.19 above GAAP. The company adds back acquisition-related amortization ($0.14 a share, an accounting charge for intangible assets bought in past deals, not a cash cost), restructuring ($0.03) and currency losses ($0.02). The restructuring add-back recurs: about $4 million in 2025 and $2–3 million expected in 2026 ($1.5 million so far). On the adjusted measure EPS grew 40%, not 79%, which is the better read on underlying earnings growth.
Cash conversion weakened. First-half operating cash flow of $20.1 million was 1.28 times net income, still above 1, but down from $38.4 million a year ago. Receivables (money customers owe) rose 12.4% since December to $99.8 million and inventory 8.0% to $117.9 million, both faster than the 7.5% first-half revenue growth. Accounts payable rose by $14.4 million, so delaying payments to suppliers offset much of that. That is a normal pattern when orders are rising, but the payables boost will not repeat indefinitely. Free cash flow (operating cash flow minus capital spending) was $13.1 million versus $35.2 million.
Debt is coming down slowly. Long-term debt fell to $173.3 million from $180.4 million at year-end, with cash of $42.1 million ($35.7 million of it held abroad). The company was in compliance with its lender covenants.
Possible upside not booked: after the Supreme Court's February 2026 ruling against certain 2025 emergency tariffs, Allient has applied for refunds, but none has been approved or recognized.
Takeaway: The order book is the story. A 49% jump in bookings and a 1.31 book-to-bill, concentrated in industrial and defense, give Allient a $298 million backlog, roughly two quarters of revenue at the current rate. Unless those orders are cancelled or delayed, the 10% revenue growth should hold into the second half, though the 85% profit rise overstates the underlying gain; adjusted EPS growth of 40% is the cleaner figure.
Outlook
Allient does not give revenue or earnings guidance. What it does say for full-year 2026: an effective tax rate of about 21–23% (above the first half's 20.5%), capital spending of $12–15 million (only $7.1 million spent so far, so the second half will be heavier), and $2–3 million of restructuring costs. Management also flags tariffs and trade policy as a continuing risk to costs and customer ordering, given its plants in Mexico, China and Europe.
Our read: the backlog, up 26% year on year, supports continued revenue growth into Q3 and Q4, and second-quarter margins show the cost program is working when volume rises. Three things to watch in the Q3 report, expected in early November: whether bookings stay above shipments (a book-to-bill above 1) or Q2 was a one-time spike in orders; whether the vehicle market stops shrinking; and whether receivables and inventory start turning back into cash, which would show the growth is converting into money in the bank and not only into accounting profit.