Allient Reports Fourth Quarter 2024 Results with Strengthening Orders and Margin Expansion

Allient Inc. (Nasdaq: ALNT), a global designer and manufacturer of precision and specialty Motion, Controls and Power products and solutions, reported its fourth quarter and full year 2024 results on March 6, 2025. The company's financial performance demonstrated resilience and strategic focus amidst a dynamic demand environment. Allient's Q4 2024 results highlighted strengthening orders, margin expansion, and operational improvements, positioning the company for future growth.



Fourth Quarter 2024 Results
Allient's revenue for the fourth quarter of 2024 decreased by 13% year-over-year to $122.0 million. Despite the revenue decline, the company maintained its gross margin at 31.5% and improved it sequentially. Allient's operating margin improved by 30 basis points to 5.3% compared to the prior-year period, driven by lower business development costs and cost discipline. The company's net income for the quarter was $3.0 million, or $0.18 per diluted share, compared to $4.3 million, or $0.26 per diluted share, in the prior-year period.

Strengthening Orders and Book-to-Bill Ratio
Allient's orders increased by 15% sequentially in the fourth quarter, reflecting the strengthening demand in power quality and defense sectors. This increase resulted in a book-to-bill ratio near 1.00, indicating a potential recovery in revenue. The company's strategic initiatives, such as the Simplify to Accelerate NOW program, have generated tangible results, delivering $10 million in annualized savings in 2024 and targeting an additional $6-7 million in annual savings for 2025.

Margin Expansion and Operational Improvements
Allient's gross margin remained steady at 31.5% despite lower volume, demonstrating effective cost management and production efficiency improvements. The company's operating margin improved by 30 basis points to 5.3% compared to the prior-year period, driven by lower business development costs and cost discipline. Allient's strategic focus on operational improvements and cost discipline has been a significant driver of its margin expansion, even in the face of lower revenue.



Diverse Market Portfolio and Strategic Initiatives
Allient's diverse market portfolio, with strengths in Aerospace & Defense and Medical, helps buffer overall performance during industry-wide demand slowdowns. The company's strategic initiatives, such as the Simplify to Accelerate NOW program and the Dothan facility transformation, are driving cost savings and efficiency gains. Allient's plans to create a state-of-the-art Machining Center of Excellence at its Dothan, Alabama facility while transferring current assembly operations to other facilities are expected to generate an additional $6-7 million in annual savings.

Conclusion
Allient Inc.'s Q4 2024 results demonstrate the company's ability to navigate challenging market conditions while maintaining profitability and positioning itself for future growth. The company's strategic focus on operational improvements, cost discipline, and margin expansion has enabled it to maintain gross margins and improve operating margins despite lower revenue. Allient's diverse market portfolio and strategic initiatives, such as the Simplify to Accelerate NOW program and the Dothan facility transformation, contribute to the company's resilience and long-term success. As the market recovers, Allient is well-positioned to capitalize on the strengthening orders and return to more normalized run rates.