Allient Delivers Double‑Digit Revenue Growth, Record Gross Margin and Strong Orders in Second Quarter 2026

• Revenue increased 10% to $153.8 million; on a constant currency basis, revenue grew 9% organically
• Gross margin expanded 170 basis points to a record 34.9%, and operating margin increased
  180 basis points to 10.2% of revenue, reflecting higher volume, improved mix and ongoing operational improvements under the Simplify to Accelerate NOW (STAN initiative)
• Net income climbed 85% to $10.4 million, or $0.61 per diluted share, while adjusted net income rose to $13.5 million and adjusted diluted earnings per share to $0.80
• Adjusted EBITDA increased to $23.7 million, or 15.4% of revenue, up 100 basis points from the prior‑year period
• Record orders of $201.3 million grew 49% year‑over‑year and 30% sequentially, resulting in a book‑to‑bill ratio of 1.31x and a backlog of $298.0 million at quarter end
• Cash and cash equivalents were $42.1 million at quarter end; total debt reduced $4.0 million during the quarter to $173.3 million, with the leverage ratio improving to 1.63x, as described in the reconciliation of non-GAAP financial measures

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 second quarter ended June 30, 2026.

“Our Simplify to Accelerate NOW (STAN initiatives) are leading the way for continued improvement in our Company and our results. We delivered an excellent second quarter, with double‑digit revenue growth, record gross margin, sharply higher earnings and very strong orders and backlog,” commented Dick Warzala, Chairman and CEO. “Results reflected broad-based demand across key targeted markets, led by Industrial automation and solutions supporting data center and other infrastructure, along with strong activity in Aerospace & Defense and Medical. Operational improvements and disciplined execution continued to enhance mix, margin and operating leverage.

“Our teams are managing through a dynamic demand and supply environment, including restructuring actions and the Dothan transition, while investing in capacity, inventory and technology in support of our growth. With strong backlog, improved leverage metrics, expanded margin profile and a solid balance sheet, we are well positioned as we move through the second half of 2026.”

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

Revenue increased 10%, or $14.2 million, to $153.8 million, compared with $139.6 million in the second quarter of 2025. Foreign currency translation provided a favorable impact of $1.3 million; on a constant currency basis, revenue grew 9% 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 54% of total revenue, compared with 55% in the second 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 market revenue increased 17%, reflecting continued strength in industrial automation and solutions supporting data center infrastructure and other critical facility applications.
• Aerospace & Defense revenue increased 16%, reflecting program timing and strong defense‑related demand tied to mission‑critical platforms and systems.
• Medical market revenue increased 9%, reflecting broad‑based end‑market demand, including higher demand in surgical precision motion applications and pumps serving life sciences and healthcare customers.
• Vehicle market revenue declined 7%, primarily due to lower powersports demand, partially offset by increased commercial automotive.
• Distribution channel sales, while representing a smaller portion of total revenue, decreased 6%, reflecting normal variability in channel ordering patterns.

Gross margin expanded 170 basis points to a record 34.9%, benefiting from higher sales volume, improved product mix and operational improvements driven by the Company’s Simplify to Accelerate NOW strategy.

Operating costs and expenses were $38.0 million compared with $34.7 million in the second quarter of 2025, reflecting higher commissions driven by sales volumes, increased personnel-related costs (including higher incentive compensation), and higher sales and marketing-related costs. As a percentage of revenue, operating costs were 24.7%, an improvement of 10 basis points year-over-year, reflecting both growth‑related variable compensation and the benefits of structural cost actions implemented under Simplify to Accelerate NOW.

Restructuring and business realignment costs declined year‑over‑year to $0.6 million but remained elevated due to carryover costs associated with the Dothan transition, as the Company continued executing the transfer of assembly operations, optimizing footprint and enhancing long‑term efficiency and quality. Restructuring and business realignment costs in 2026 are anticipated to be approximately $2 million to $3 million.

Operating income increased to $15.6 million, or 10.2% of revenue, compared with $11.7 million, or 8.4% of revenue, in the prior‑year period, reflecting improved gross margin and operating leverage.

Interest expense decreased to $2.5 million from $3.6 million in the second quarter of 2025, primarily due to lower average debt balances.

The effective income tax rate was 20.2% for the second quarter of 2026 compared with 23.1% in 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 85% to $10.4 million, or $0.61 per diluted share, compared with $5.6 million, or $0.34 per diluted share, in the prior-year period. 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 $13.5 million, or $0.80 per diluted share, up from $9.5 million, or $0.57 per diluted share, in the second quarter of 2025. 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 $23.7 million, or 15.4% of revenue, compared with $20.1 million, or 14.4% of revenue, in the prior-year period. 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 $42.1 million at June 30, 2026, compared with $40.7 million at December 31, 2025. Net cash provided by operating activities was $20.1 million for the first six months of 2026, compared with $38.4 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. The Company expects working capital to normalize over time as these strategic investments convert to revenue and cash.

Capital expenditures were $7.1 million for the first six months of 2026, compared with $3.2 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 $173.3 million at June 30, 2026, down from $180.4 million at December 31, 2025. Debt, net of cash, decreased to $131.2 million, resulting in a net debt-to-capitalization ratio of 29.6%. As of June 30, 2026, the Company had $162.0 million of unused capacity under its revolving credit facility.

The Company’s leverage ratio, defined as total net debt divided by trailing twelve months Adjusted EBITDA, was 1.63x at June 30, 2026. The bank leverage ratio, as defined under the Company’s credit agreement and excluding foreign cash and certain other adjustments, was 2.07x 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)

	Q2 2026		Q1 2026		Q4 2025		Q3 2025		Q2 2025
Orders	$	201,302	$	158,080	$	145,088	$	133,119	$	135,032
Backlog	$	298,031	$	250,991	$	232,925	$	230,984	$	236,586

Second quarter orders were a record $201.3 million, which increased 49% year‑over‑year and 27% sequentially, resulting in a book‑to‑bill ratio of 1.31x. The increase reflects improvements in customer demand across key target markets, primarily within Industrial and Aerospace & Defense. Foreign currency translation provided a favorable impact of $1.1 million compared with the prior-year period.

Backlog increased to $298.0 million at quarter end, up from $251.0 million at March 31, 2026, providing strong visibility into the second half of 2026 and early 2027. The majority of the backlog is expected to convert to revenue within three to nine months, consistent with the Company’s historical conversion patterns.

Conference Call and Webcast

The Company will host a conference call and webcast on Thursday, August 6, 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 [phone]. 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, August 20, 2026. To listen to the archived call, dial [phone] and enter replay pin number 13761057 or access the webcast replay via the Company’s website. A transcript will also be posted to the website once available.

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. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited)
	For the three months ended						For the six months ended
	June 30,						June 30,
	2026			2025			2026			2025
Revenue	$	153,770		$	139,578		$	292,685		$	272,381
Cost of goods sold		100,178			93,222			193,718			183,273
Gross profit		53,592			46,356			98,967			89,108
Operating costs and expenses:
Selling		7,583			6,026			14,609			12,040
General and administrative		15,941			14,439			31,343			28,252
Engineering and development		10,684			9,944			20,325			19,498
Acquisition and integration-related costs		—			23			—			23
Restructuring and business realignment costs		641			1,122			1,503			2,621
Amortization of intangible assets		3,133			3,125			6,256			6,218
Total operating costs and expenses		37,982			34,679			74,036			68,652
Operating income		15,610			11,677			24,931			20,456
Other expense, net:
Interest expense		2,523			3,552			5,076			7,187
Other expense, net		68			823			53			1,507
Total other expense, net		2,591			4,375			5,129			8,694
Income before income taxes		13,019			7,302			19,802			11,762
Income tax provision		(2,628	)		(1,685	)		(4,054	)		(2,588	)
Net income	$	10,391		$	5,617		$	15,748		$	9,174
Basic earnings per share:
Earnings per share	$	0.62		$	0.34		$	0.94		$	0.55
Basic weighted average common shares		16,798			16,687			16,756			16,639
Diluted earnings per share:
Earnings per share	$	0.61		$	0.34		$	0.93		$	0.55
Diluted weighted average common shares		16,875			16,713			16,940			16,671

ALLIENT INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) (Unaudited)
	June 30,			December 31,
	2026			2025
Assets
Current assets:
Cash and cash equivalents	$	42,088		$	40,705
Trade receivables, net of provision for credit losses of $953 and $887 at June 30, 2026 and December 31, 2025, respectively		99,825			88,775
Inventories		117,908			109,198
Prepaid expenses and other assets		14,629			14,759
Total current assets		274,450			253,437
Property, plant, and equipment, net		62,347			61,771
Deferred income taxes		9,940			10,509
Intangible assets, net		81,475			88,391
Goodwill		133,169			134,332
Operating lease assets		23,598			21,030
Other long-term assets		8,942			8,125
Total Assets	$	593,921		$	577,595
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	42,574		$	28,433
Accrued liabilities		37,608			40,890
Total current liabilities		80,182			69,323
Long-term debt		173,337			180,389
Deferred income taxes		2,985			3,241
Operating lease liabilities		18,316			16,431
Other long-term liabilities		6,807			6,756
Total liabilities		281,627			276,140
Stockholders’ Equity:
Common stock, no par value, authorized 50,000 shares; 16,992 and 16,936 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively		114,547			113,936
Preferred stock, par value $1.00 per share, authorized 5,000 shares; no shares issued or outstanding		—			—
Retained earnings		211,620			197,046
Accumulated other comprehensive loss		(13,873	)		(9,527	)
Total stockholders’ equity		312,294			301,455
Total Liabilities and Stockholders’ Equity	$	593,921		$	577,595

ALLIENT INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
	For the six months ended
	June 30,
	2026			2025
Cash Flows From Operating Activities:
Net income	$	15,748		$	9,174
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization		12,401			12,682
Deferred income taxes		407			61
Stock-based compensation expense		1,845			1,755
Debt issue cost amortization recorded in interest expense		325			323
Other		1,848			2,860
Changes in operating assets and liabilities, net of acquisitions:
Trade receivables		(12,206	)		(3,594	)
Inventories		(11,299	)		7,125
Prepaid expenses and other assets		(567	)		(459	)
Accounts payable		14,431			5,107
Accrued liabilities		(2,806	)		3,401
Net cash provided by operating activities		20,127			38,435
Cash Flows From Investing Activities:
Purchase of property and equipment		(7,070	)		(3,189	)
Net cash used in investing activities		(7,070	)		(3,189	)
Cash Flows From Financing Activities:
Borrowings on long-term debt		2,000			—
Principal payments of long-term debt and finance lease obligations		(9,227	)		(22,221	)
Payment of debt issuance costs		—			(41	)
Dividends paid to stockholders		(1,174	)		(1,000	)
Tax withholdings related to net share settlements of restricted stock		(2,701	)		(1,024	)
Net cash used in financing activities		(11,102	)		(24,286	)
Effect of foreign exchange rate changes on cash		(572	)		2,853
Net increase in cash and cash equivalents		1,383			13,813
Cash and cash equivalents at beginning of period		40,705			36,102
Cash and cash equivalents at end of period	$	42,088		$	49,915

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 six months ended June 30, 2026 is as follows:

	Three months ended			Six months ended
	June 30, 2026			June 30, 2026
Revenue as reported	$	153,770		$	292,685
Less: Foreign currency impact - (favorable) / unfavorable		(1,255	)		(6,341	)
Revenue excluding foreign currency exchange impacts	$	152,515		$	286,344

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

	Three months ended		Six months ended
	June 30, 2026		June 30, 2026
Revenue change over prior year	10.2	%	7.5	%
Less: Impact of acquisitions and foreign currency	(0.9	)	(2.4	)
Organic growth	9.3	%	5.1	%

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

The Company’s calculation of Adjusted EBITDA for the three and six months ended June 30, 2026 and 2025 is as follows:

	Three months ended				Six months ended				TTM ended
	June 30,				June 30,				June 30,		December 31,
	2026		2025		2026		2025			2026		2025
Net income as reported	$	10,391	$	5,617	$	15,748	$	9,174	$	28,608	$	22,034
Interest expense		2,523		3,552		5,076		7,187		11,064		13,175
Provision for income tax		2,628		1,685		4,054		2,588		8,166		6,700
Depreciation and amortization		6,191		6,401		12,401		12,682		25,126		25,407
EBITDA		21,733		17,255		37,279		31,631		72,964		67,316
Stock-based compensation expense		998		835		1,846		1,755		3,521		3,430
Acquisition and integration-related costs		—		23		—		23		24		47
Restructuring and business realignment costs		641		1,122		1,503		2,621		2,875		3,993
Foreign currency loss		343		832		363		1,509		933		2,079
Adjusted EBITDA	$	23,715	$	20,067	$	40,991	$	37,539	$	80,317	$	76,865

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

	June 30, 2026		December 31, 2025
Total debt	$	173,337	$	180,389
Less: cash and cash equivalents	$	42,088	$	40,705
Total net debt (Non-GAAP)	$	131,249	$	139,684
Trailing twelve months Adjusted EBITDA (Non-GAAP)	$	80,317	$	76,865
Leverage Ratio (Non-GAAP)		1.63		1.82

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 six months ended June 30, 2026 and 2025 is as follows:

	For the three months ended
	June 30,
			Per diluted				Per diluted
	2026		share		2025		share
Net income as reported	$	10,391	$	0.61	$	5,617	$	0.34
Non-GAAP adjustments, net of tax (1)
Amortization of intangible assets – net		2,400		0.14		2,394		0.14
Foreign currency loss – net		263		0.02		637		0.04
Acquisition and integration-related costs – net		—		—		18		—
Restructuring and business realignment costs – net		491		0.03		859		0.05
Non-GAAP adjusted net income and adjusted diluted earnings per share	$	13,545	$	0.80	$	9,525	$	0.57
Weighted average diluted shares outstanding				16,875				16,713

_______________________________
(1)	Applies a blended federal, state, and foreign tax rate of 23% applicable to the non-GAAP adjustments.

	For the six months ended
	June 30,
			Per diluted				Per diluted
	2026		share		2025		share
Net income as reported	$	15,748	$	0.93	$	9,174	$	0.55
Non-GAAP adjustments, net of tax (1)
Amortization of intangible assets – net		4,792		0.28		4,763		0.29
Foreign currency loss (gain) – net		278		0.02		1,156		0.07
Acquisition and integration-related costs – net		—		—		18		—
Restructuring and business realignment costs – net		1,151		0.07		2,007		0.12
Non-GAAP adjusted net income and adjusted diluted earnings per share	$	21,969	$	1.30	$	17,118	$	1.03
Weighted average diluted shares outstanding				16,940				16,671

_______________________________
(1)	Applies a blended federal, state, and foreign tax rate of 23% applicable to the non-GAAP adjustments.

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.