Revenue Performance
Allient Inc. reported fourth-quarter revenue of $143.4 million, representing a 17% increase year-over-year, including 15% organic growth on a constant currency basis. Sequentially, revenue rose 3%, reflecting continued demand momentum toward the end of the year. U.S. customers accounted for 56% of total sales, compared with 54% in the prior-year quarter, with the balance primarily generated across Europe, Canada, and the Asia-Pacific region. Orders increased 9% sequentially, producing a book-to-bill ratio of 1.01 and indicating sustained order activity. Market performance during the quarter was led by the Industrial segment, where revenue rose 24% driven by strengthening automation demand and demand for power quality solutions supporting data center infrastructure. Vehicle market revenue increased 35%, primarily reflecting higher commercial automotive shipments linked to a transitioning model program as well as improved demand from construction and powersports applications. Medical market sales grew 9% supported by surgical instrument demand, while Aerospace & Defense revenue declined 5% due to the timing of program shipments. Distribution channel sales increased 11%.
Profitability and Margins
Profitability improved significantly during the quarter as operational efficiencies and volume growth contributed to margin expansion. Gross margin increased 90 basis points to 32.4%, reflecting higher volumes, favorable product mix, and continued operational improvements under the company’s Simplify to Accelerate NOW initiative. Operating costs and expenses declined to 24.5% of revenue, representing a 170-basis-point improvement compared with the prior year. As a result, operating income rose 76% to $11.4 million, representing 7.9% of revenue versus 5.3% in the comparable period. Net income more than doubled to $6.4 million, or $0.38 per diluted share, compared with $3.0 million, or $0.18 per diluted share, in the prior-year quarter. Adjusted net income reached $9.3 million, or $0.55 per diluted share, while adjusted EBITDA increased 35% to $19.0 million, with margin expanding to 13.3%.
Full-Year Results and Balance Sheet
For the full year ended December 31, 2025, revenue totaled $554.5 million, increasing 5% year-over-year, including 3% organic growth on a constant currency basis. Growth was driven primarily by the Industrial market, which rose 8% due to continued demand for data-center-related power quality solutions. Aerospace & Defense revenue also increased 8%, while Medical sales rose 5%, partially offset by a 6% decline in Vehicle market sales. Gross margin reached a record 32.8% for the year, expanding 150 basis points, and operating income increased 46% to $44.0 million, or 7.9% of sales. Net income rose to $22.0 million, or $1.32 per diluted share, compared with $13.2 million in the prior year. Operating cash flow improved 35% to $56.7 million, while cash and cash equivalents increased to $40.7 million. The company reduced total debt to $180.4 million and lowered net debt to $139.7 million, resulting in a leverage ratio improvement to 1.82x.