Allient Inc. Reports 9% Revenue Decline in Q1 2025, Initiates Restructuring Strategy

Allient Inc. reported a decline in financial performance for the first quarter of 2025, with revenues totaling $132.8 million, down 9% from $146.7 million in the same period last year. The decrease in revenue was attributed to reduced demand in key markets, particularly the Vehicle and Industrial sectors, which was partially offset by growth in Aerospace and Defense. The company's gross profit also fell to $42.8 million, a 10% decrease from $47.4 million, resulting in a gross margin of 32.2%, slightly lower than the previous year's 32.3%. Net income for the quarter was $3.6 million, a significant drop of 48% compared to $6.9 million in the prior year, leading to diluted earnings per share of $0.21, down from $0.42.

In terms of operational changes, Allient has initiated its "Simplify to Accelerate NOW" strategy, which includes a restructuring plan aimed at enhancing operational efficiency. This strategy involves the creation of a Machining Center of Excellence in Dothan, Alabama, and the consolidation of assembly operations into facilities in Tulsa, Oklahoma, and Reynosa, Mexico. The company expects to incur one-time costs of approximately $4 to $5 million related to this realignment, with anticipated annualized cost savings of $6 to $7 million starting in 2025.

Allient's customer base remains diverse, with 52% of revenues generated from U.S. customers and the remainder from international markets, primarily in Europe, Canada, and Asia-Pacific. The company reported a 13% increase in bookings compared to the previous year, reflecting a return to more normalized customer order patterns. However, the backlog decreased by 8% to $237.3 million, down from $258.1 million, indicating potential challenges in future revenue generation.

The company's balance sheet showed an increase in cash and cash equivalents, rising to $47.8 million from $36.1 million at the end of 2024. Total assets increased to $586.9 million, while total liabilities rose slightly to $314.1 million. Allient's long-term debt decreased to $222.2 million, and the company remains in compliance with its financial covenants. Looking ahead, Allient anticipates continued challenges due to macroeconomic conditions and geopolitical uncertainties but remains focused on leveraging its operational improvements and strategic initiatives to drive future growth.