# Alamo Reports 0.7x Pro Forma Leverage After Econ Acquisition

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/48139
Published: 2026-11-04T01:50:49.000Z
Updated: 2026-11-04T01:50:49.000Z
Section: Business

> The company completed its purchase of Econ for about $158.7 million on Oct. 27, using borrowings from its revolving credit facility.

Alamo Group reported pro forma net leverage of about 0.7 times adjusted EBITDA after completing its Econ Engineering acquisition, while reaffirming a target of up to 2.5 times. The 0.7x figure reflects the company’s post-acquisition leverage; 2.5x is its target ceiling.

Alamo completed its purchase of 100% of Econ Engineering Group Limited on Oct. 27 for about $158.7 million, subject to customary closing adjustments. The company funded the acquisition with borrowings from its revolving credit facility. After the deal, Alamo had $206.6 million in remaining revolver availability and an additional $400 million accordion feature.

President and CEO Robert Hureau reaffirmed the leverage target during Alamo’s Nov. 3 earnings call, held at 10 a.m. ET (15:00 UTC). “we'll maintain a strong balance sheet, targeting net leverage of up to 2.5x,” Hureau said. The target had been discussed as part of the company’s strategy on its prior call.

Econ makes roadway maintenance trucks and equipment and operates a rental fleet in the United Kingdom. For the fiscal year ended Mar. 31, 2026, it had about $88 million in net sales and $38.5 million in adjusted EBITDA.

Alamo makes industrial and vegetation management equipment, including vocational trucks and street sweepers.