Allient (NASDAQ:ALNT) reported record third-quarter revenue, margins and orders as demand for defense, industrial automation and data center power-quality products helped drive a sharp increase in earnings.
Revenue rose 18% from a year earlier to $164.4 million, while net income more than doubled to $15.3 million, or $0.91 per diluted share, from $6.5 million, or $0.39 per share. Orders reached $218.1 million, up 64%, and backlog climbed 52% to $351.5 million.
Chairman, President and CEO Dick Warzala said higher volume, favorable product mix and operational improvements contributed to the results. Operating income increased 83% to $22.3 million, with operating margin expanding to a record 13.6% from 8.8% a year earlier.
Growth led by defense and industrial markets
Industrial revenue increased 15% to $81.7 million, supported by automation and applications serving data centers and other critical facilities. Aerospace and defense revenue rose 36% to $25.5 million, reflecting defense demand and favorable program timing, according to CFO Jim Michaud.
Data center and infrastructure-related sales reached $21.1 million, or 12.9% of quarterly revenue, up 40% from a year earlier. Warzala said additional capacity at the company’s Milwaukee operation is online and supporting growth. He also said Allient is planning to increase capacity in Mexico while continuing to rationalize its broader footprint.
Vehicle revenue rose 27% to $27.3 million, while medical revenue declined 2% to $21.3 million. Michaud initially said some vehicle growth reflected shipments accelerated ahead of a customer’s model changeover and cautioned against treating the full growth rate as a new run rate.
Later in the call, Warzala clarified that the quarter’s shipments were not pulled from future demand. He said the company still had past-due orders and could have shipped more if not for material and capacity constraints. He also noted a specific instance of increased volume in the vehicle market.
Mix supports margins as backlog grows
Gross margin expanded 330 basis points to a record 36.6%, and adjusted EBITDA rose 46% to $29.7 million. Adjusted earnings were $1.07 per diluted share, compared with $0.59 a year earlier.
Michaud said product and program mix can vary between quarters, although he described the benefits of simplification, productivity and footprint changes as durable. Asked how much of the margin improvement was structural, Warzala said mix was a significant factor, alongside cost changes and stronger conversion as operations passed break-even levels.
Allient expects most of its backlog to convert to revenue within six to 12 months. Warzala said customers across markets are placing orders earlier to help secure materials. He said the company was not seeing evidence of widespread double ordering, though he could not rule out some customers building safety stock.
Operating cash flow for the first nine months fell to $22.1 million from $43.1 million a year earlier, primarily because of higher receivables and inventory investments. Michaud said Allient had invested in critical materials to support deliveries. Capital expenditures rose to $10.6 million from $5.1 million, and the company maintained its full-year capital spending expectation of $12 million to $15 million.
Drone products and investment plans
Warzala said Allient is in the early stages of developing drone and counter-drone component sales. The company introduced its Vyxalon Apex Drone Drive in August and has launched standard propulsion motors alongside its custom offerings.
The CEO said current results reflect incremental growth rather than a large drone-driven increase. Allient is focused on customer qualification and design cycles, with a more meaningful revenue contribution viewed as a 2027–2028 objective.
On tariffs, Michaud said pricing actions, supplier negotiations and sourcing adjustments had limited the effect on results. As of September 30, Allient had received $273,000 in cash tariff refunds, with $651,000 approved. He said refunds were not a meaningful driver of the quarter’s margin improvement.
Allient ended the quarter with $173.4 million in total debt, nearly $40 million in cash and $162 million of unused revolving credit capacity. Warzala said the company has reviewed acquisition opportunities and would remain disciplined in seeking businesses that complement its portfolio and support diversification.
About Allient (NASDAQ:ALNT)
Allient Inc (NASDAQ: ALNT) designs and manufactures precision and engineered products that control motion, power, and electromagnetic energy. Its portfolio includes motors, motion-control systems, electronic controls, power electronics, magnetic components, and related assemblies used in demanding industrial applications.
The company serves customers in markets such as medical equipment, aerospace and defense, industrial automation, robotics, transportation, and other specialized equipment industries.
