Allied Motion reports 27% revenue growth
Allied Motion Technologies Inc., a designer and manufacturer of precision and specialty controlled motion products and solutions for the global market, reported record revenue of $145.5 million for its first quarter ended March 31, 2023.
Highlights include:
- Revenue grew 27% to a record $145.5 million, driven by strong demand in Industrial and Aerospace & Defense markets; Organic growth was 25% on a constant currency basis
- Gross margin expanded 230 basis points to 31.5% on higher volume and accretive acquisitions
- Operating income grew 167% to $11.4 million with a margin of 7.8%, which was up 410 basis points due to strong operating leverage
- Net income more than doubled to $6.3 million or $0.39 per diluted share
“We delivered record sales in the quarter as our global team continued to execute our strategy and drive strong organic growth. This level of performance speaks to the ability of our entire team to execute at a very high level, and to our market diversification, particularly within industries that demand precision controlled motion solutions,” said Dick Warzala, chairman and CEO. “These results translated into margin expansion and operating leverage, despite ongoing macro challenges, and a measurably strengthened bottom line with solid cash generation, which helped offset what is typically a higher cash consumption quarter.
“2023 is off to a strong start, and while we are seeing some pockets of weakness, especially in Europe, our overall demand outlook is positive with a healthy backlog to continue to support our growth," he added. "We expect our investments in technology and solutions, as well as the further integration, rationalization and leveraging of recent acquisitions, to continue to yield results we anticipated and, over time, support an enhanced margin profile.”
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