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1. Company Snapshot

1.a. Company Description

Allient Inc., together with its subsidiaries, designs, manufactures, and sells precision and specialty controlled motion components and systems for various industries worldwide.It offers brush and brushless DC motors, brushless servo and torque motors, coreless DC motors, integrated brushless motor-drives, gearmotors, gearing, modular digital servo drives, motion controllers, optical encoders, active and passive filters, input/output modules, industrial communications gateways, light-weighting technologies, and other controlled motion-related products.The company sells its products to end customers and original equipment manufacturers in vehicle, medical, aerospace and defense, and industrial markets through direct sales force, authorized manufacturers' representatives, and distributors.


The company was formerly known as Allied Motion Technologies Inc.and changed its name to Allient Inc.in August 2023.


Allient Inc.was incorporated in 1962 and is headquartered in Amherst, New York.

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1.b. Last Insights on ALNT

Allient Inc.'s recent performance was driven by robust Q2 2025 earnings, with a quarterly EPS of $0.57, surpassing estimates. The company's record gross margin of 33.2% and strong profitability also contributed to its growth. Strategic reallocation towards high-margin sectors like aerospace & defense, medical, and data center power solutions has reduced exposure to low-margin programs. Additionally, the Simplify to Accelerate NOW initiative has yielded tangible results, including SG&A reductions and improved inventory turnover. Recent advancements in drone market solutions also bode well for future growth.

1.c. Company Highlights

2. Strong Earnings Beat on the Back of Improving Demand

The company reported revenues that were in line with expectations, and an EPS of $0.59, beating estimates of $0.5. EBITDA margins were in the mid-teens, indicating a stable profitability profile. As per the management, "We're very pleased with the quality and margin potential of our current backlog." The industrial segment saw a 20% year-over-year revenue growth, driven by strong demand for power quality solutions in data centers and improving industrial automation trends.

Publication Date: Nov -19

📋 Highlights
  • Industrial Market Growth:: Industrial revenue rose 20% YoY, driven by strong demand for power quality solutions in data centers and improved automation, offsetting oil and gas softness.
  • Production Transfer Cost Savings:: $5M hit from M10 program bookings, but $46M supply chain headwind from prior year now resolved, with production relocation to Mexico and Oklahoma expected to complete by 2026.
  • Data Center Power Quality Momentum:: Power quality demand in data centers is a key growth area, with 20% industrial revenue growth and expansion projects set to launch in Q2 2025.
  • Defense and Drone Opportunities:: Defense segment sees positive book-to-bill ratio and munitions volume increase, while drone manufacturing capabilities unlock growth in both high-end and low-cost markets.
  • EBITDA Margin Expansion:: Mid-teens EBITDA margins with 25% European sales decline, but recovery in power quality and HVAC markets, plus cost optimization, drives margin accretion.

Segmental Performance

The industrial market revenue was led by strong demand for power quality solutions in data centers, with the company expanding its facilities to meet the growing demand. The defense segment is expected to see a positive book-to-bill ratio, with new opportunities emerging in the drone space. The power quality area is also seeing strong demand, particularly in the data center solutions market.

Operational Efficiencies

The company is focused on improving its cost structure and efficiencies, with a significant progress made in cost savings and margin expansion this year. The Simplify to Accelerate program is expected to result in real cost savings, with the transfer of production from Dothan to other facilities being a major effort. The company is also working on untangling businesses, focusing on investments necessary, design cycle time, lead time, and cycle time for design wins.

Valuation

The stock is currently trading at a P/E Ratio of 58.75, P/B Ratio of 2.9, and EV/EBITDA of 16.66. Analysts estimate next year's revenue growth at 4.9%. The ROE is 5.2%, and ROIC is 5.13%. The Net Debt / EBITDA is 2.86, indicating a moderate level of leverage. The Free Cash Flow Yield is 3.87%, indicating a reasonable cash generation profile.

Outlook

The company is well-positioned to take advantage of the growing demand in the data center solutions market, and is expecting a positive book-to-bill ratio in the defense segment. The industrial automation trends are also expected to continue, driving revenue growth. With a strong earnings beat and improving demand trends, the stock is likely to continue its positive momentum.

3. NewsRoom

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Boston Partners Cuts Holdings in Allient Inc. $ALNT

Dec -01

Source: defenseworld.net

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5 Top Stocks Driven by Strong Relative Price Strength Now

Nov -17

Source: zacks.com

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Allient (ALNT) is an Incredible Growth Stock: 3 Reasons Why

Nov -10

Source: zacks.com

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Is ALLIENT INC (ALNT) Outperforming Other Computer and Technology Stocks This Year?

Nov -10

Source: zacks.com

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Allient Inc. (ALNT) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

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Allient (ALNT) Q3 Earnings and Revenues Surpass Estimates

Nov -06

Source: zacks.com

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Allient Inc. Delivers Double-Digit Revenue Growth and Record 33.3% Gross Margin in Q3 2025, Driving Profitability and Balance Sheet Strength

Nov -05

Source: businesswire.com

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Allient Inc. Announces Third Quarter 2025 Financial Results Conference Call and Webcast

Oct -22

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.79%)

6. Segments

Industrial

Expected Growth: 3.5%

Allient Inc.'s Industrial segment growth of 3.5% is driven by increasing demand for specialty materials in automotive and aerospace applications, as well as growth in the renewable energy sector. Additionally, the company's focus on innovation and R&D investments in sustainable and lightweight materials is expected to contribute to the segment's growth.

Vehicle

Expected Growth: 3.8%

Allient Inc.'s 3.8% growth in Vehicle segment is driven by increasing demand for electric vehicles, government incentives for eco-friendly transportation, and strategic partnerships with leading automotive companies. Additionally, the company's focus on innovative battery technologies and expanding production capacity have contributed to the growth.

Medical

Expected Growth: 4.2%

Allient Inc.'s Medical segment growth of 4.2% is driven by increasing demand for medical devices, expansion into emerging markets, and strategic partnerships. Additionally, advancements in medical technology, an aging population, and rising healthcare expenditure also contribute to this growth.

Aerospace and Defense

Expected Growth: 4.5%

Allient Inc.'s Aerospace and Defense segment growth of 4.5% is driven by increasing demand for advanced defense systems, growing commercial aerospace production, and rising global defense spending. Additionally, the company's focus on innovation, cost reduction, and strategic acquisitions also contribute to its growth momentum.

Distribution and Other

Expected Growth: 3.2%

Allient Inc.'s Distribution and Other segment growth of 3.2% is driven by increasing demand for specialty chemicals, strategic partnerships, and expansion into emerging markets. Additionally, the company's focus on operational efficiency and cost savings initiatives have contributed to the segment's growth.

7. Detailed Products

Aerospace and Defense

Allient Inc. provides advanced materials and solutions for the aerospace and defense industries, including composite materials, adhesives, and coatings.

Automotive

Allient Inc. offers a range of products and solutions for the automotive industry, including adhesives, coatings, and composite materials.

Electronics

Allient Inc. provides advanced materials and solutions for the electronics industry, including conductive adhesives, thermal management materials, and electromagnetic interference (EMI) shielding materials.

Industrial

Allient Inc. offers a range of products and solutions for industrial applications, including adhesives, coatings, and composite materials.

Medical

Allient Inc. provides advanced materials and solutions for the medical industry, including biomaterials, implantable devices, and wound care products.

Oil and Gas

Allient Inc. offers a range of products and solutions for the oil and gas industry, including coatings, adhesives, and composite materials.

8. Allient Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Allient Inc. is medium due to the presence of alternative products in the market, but the company's strong brand loyalty and customer relationships mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low for Allient Inc. due to the company's diversified customer base and lack of concentration of customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium for Allient Inc. due to the presence of multiple suppliers, but the company's large scale of operations gives it some bargaining power.

Threat Of New Entrants

The threat of new entrants is high for Allient Inc. due to the relatively low barriers to entry in the industry and the attractiveness of the market.

Intensity Of Rivalry

The intensity of rivalry is high for Allient Inc. due to the presence of several established competitors and the high stakes in the industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 46.12%
Debt Cost 12.13%
Equity Weight 53.88%
Equity Cost 12.13%
WACC 12.13%
Leverage 85.60%

11. Quality Control: Allient Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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FARO Technologies

A-Score: 4.8/10

Value: 3.9

Growth: 4.8

Quality: 5.1

Yield: 0.0

Momentum: 10.0

Volatility: 5.0

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Ouster

A-Score: 4.5/10

Value: 6.2

Growth: 5.3

Quality: 4.5

Yield: 0.0

Momentum: 10.0

Volatility: 0.7

1-Year Total Return ->

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Allient

A-Score: 4.2/10

Value: 2.7

Growth: 4.0

Quality: 4.3

Yield: 0.0

Momentum: 10.0

Volatility: 4.0

1-Year Total Return ->

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Richardson Electronics

A-Score: 4.0/10

Value: 3.9

Growth: 5.9

Quality: 4.8

Yield: 4.0

Momentum: 1.5

Volatility: 4.0

1-Year Total Return ->

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Methode Electronics

A-Score: 3.6/10

Value: 7.5

Growth: 1.6

Quality: 2.7

Yield: 7.0

Momentum: 1.0

Volatility: 2.0

1-Year Total Return ->

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Research Frontiers

A-Score: 2.9/10

Value: 6.0

Growth: 4.6

Quality: 3.8

Yield: 0.0

Momentum: 1.0

Volatility: 2.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

54.4$

Current Price

54.4$

Potential

-0.00%

Expected Cash-Flows