Allient 2Q First Take: Strong Orders Growth and Progress on Simplify to Accelerate NOW

Research evidence excerpt

J P M O R G A N

North America Equity Research

05 August 2026

Allient

2Q First Take: Strong Orders Growth and Progress on

Simplify to Accelerate NOW

Allient's 2Q26 results beat expectations, with revenue of $154M growing 10%

YoY (9% organic) and adj. EPS of $0.80 (vs. consensus $0.62), driven by strength

in Industrial, Aerospace & Defense, and Medical. Gross margins expanded

~170bps on the back of higher volumes, improved mix, and progress on cost

initiatives. Orders increased 49% YoY and 27% sequentially to $201M, and

backlog surged to $298M, producing a 1.31x book-to-bill ratio. Adj. EBITDA beat

expectations, posting ~100bps of margin expansion YoY to 15.4%. We expect a

positive reaction to the print given strong organic revenue growth, progress made

on cost initiatives, and impressive orders paired with record backlog.

Beating Both Revenue and Cost Expectations: Allient beat expectations on

both top and bottom-line with adj. EPS of $0.80 (vs. consensus/JPMe $0.62/

$0.61) and net sales of $154M. Organic sales growth accounted for 9% of the

10% YoY revenue growth. The vehicle segment was the only laggard, missing

expectations and decreasing 7% (vs. consensus/JPMe 2.5%/5.0%), while

industrial grew 17% (vs. consensus/JPMe 6.5%/8.0%), medical 9% (vs.

consensus/JPMe 5%/5%), and A&D 16% (vs. consensus/JPMe 1%/4%).

Gross margins expanded 170bps YoY, while adj. EBITDA of $24M (15.4%

margin) increased ~100bps YoY and beat consensus/JPMe ($20M/$21M).

Strength in Industrial and A&D the Highlight: Industrial demand was

fueled by continued strength in industrial automation and data center

infrastructure markets, while Aerospace & Defense performance was driven

by program timing and strong demand within mission-critical platforms.

Vehicle weakness was a product of lower powersports demand, with

commercial automotive partially offsetting performance. Medical also saw

strength, with management attributing the growth to broad-based end-market

demand with specific callouts in surgical precision motion and pumps.

Leverage Decreases, Backlog and Orders Increase: During the 2Q, Allient

generated ~$14M in operating cash flow (~9% of sales), which was below the

$24M posted in 2Q25.…