Slide 1: Second Quarter 2025 Financial Results Call
Nasdaq: ALNT August 7, 2025 Second Quarter 2025 Financial Results Call Dick Warzala Jim Michaud Chairman, President & CEO Chief Financial Officer © Allient Inc.
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT The statements in this presentation that relate to future plans, events or performance are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, any statement that may pre
Slide 3: Q2 2025: Record Gross Margin, Strong Profitability and Cash Generation
Q2 2025: RECORD GROSS MARGIN, STRONG PROFITABILITY AND CASH GENERATION Continued momentum across Revenue +5% QoQ Net Income +58% QoQ revenue, margins, and earnings $139.6M +3% YoY $5.6M +388% YoY Strong contribution from higher- margin end markets Gross Margin +100bps QoQ Q2 Cash from Operations Ope
Slide 4: Simplify to Accelerate NOW: Unlocking Margin Expansion and Agility
SIMPLIFY TO ACCELERATE NOW: UNLOCKING MARGIN EXPANSION Achieved $10 million in annualized AND AGILITY savings in 2024 Goal is to reduce annualized costs Cost reduction and profit enhancing initiatives another $6 to $7 million in 2025; largely supported by the Dothan • Realign and right-size our foot
Slide 5: Revenue Growth Reflects Strength in Diversified End Markets
REVENUE GROWTH REFLECTS STRENGTH IN DIVERSIFIED END MARKETS ($ in millions; narrative compared with prior-year period unless otherwise noted) Quarters Q2 25 market results: + 13% A&D (program timing) $136.0 $139.6 $132.8 + 4% Medical (surgical instrument $125.2 $122.0 demand) + 3% Industrial (streng
Slide 6: TTM Revenue Mix Evolution Driven by Demand and Realignment
TTM REVENUE MIX EVOLUTION DRIVEN BY DEMAND AND REALIGNMENT Revenue by Market ($ in millions) $569.1 $519.6 4% Distribution 5% YoY Change and Market Drivers 13% A&D 16% +12% Reflects defense and space program timing 14% Medical Higher surgical related demand offset by softness in 15% + 1% pump-relate
Slide 7: Record Gross Margin
RECORD GROSS MARGIN ($ in millions; narrative compared with prior-year period unless otherwise noted) Gross Profit and Margin - Quarters $46.4 Margin expansion continues for $40.7 $42.8 $39.3 $38.4 fourth straight quarter, up 330 bps since Q2 24 low Q2 25 Gross margin impacts 29.9% 31.4% 31.5% 32.2%
Slide 8: Operating Leverage
OPERATING LEVERAGE ($ in millions; narrative compared with prior-year period unless otherwise noted) Strong operating leverage given Operating Income and Margin - Quarters the execution of our cost transformation strategy $11.7 $8.8 Q2 25 margin up 480 bps YoY and $6.6 $6.4 180 bps sequentially $4.9
Slide 9: Earnings Growth Accelerates on Solid Execution
EARNINGS GROWTH ACCELERATES ON SOLID EXECUTION Sequential growth: ($ in millions, except per share data) Adjusted Net Income & Net income +58% GAAP Net Income & EPS Adjusted EPS¹ Adj. Net income(1) +25% $9.5 Adj. EBITDA(1) +15% $7.6 $5.6 Adj. EBITDA margin(1) +120 bps $4.9 $5.1 $5.2 $3.0 $3.6 $2.1 $
Slide 10: Record Operating Cash Flow Enhances Financial Flexibility
RECORD OPERATING CASH FLOW 2025 Financial priorities: ENHANCES FINANCIAL FLEXIBILITY 1. Reduce inventory and strengthen ($ in millions) working capital management 2. Take out costs Three Months Ended Six Months Ended 3. Reduce debt 6/30/25 6/30/24 6/30/25 6/30/24 Inventory Turnover 3.1x Net cash pro
Slide 11: Stronger Balance Sheet with Lower Leverage and Increased Liquidity
STRONGER BALANCE SHEET WITH LOWER LEVERAGE AND INCREASED LIQUIDITY ($ in millions) CAPITALIZATION Debt down $20M in Q2 and June 30, Dec 31, 2025 2024 $22M YTD Cash and cash equivalents $ 49.9 $ 36.1 Net debt reduced $35.8M YTD Total debt 202.2 224.2 Bank leverage ratio² of 2.92x at Total net debt 15
Slide 12: Steady Demand and Backlog Conversion Support Visibility
STEADY DEMAND AND BACKLOG CONVERSION SUPPORT VISIBILITY ($ in millions) Orders $480.0 $493.2 Q2 25 Book:Bill 0.97x $137.4 $137.6 $135.0 $117.9 Steady demand in Industrial $102.6 market applications where power quality solutions are needed, as well as continued strength in Aerospace & Defense Q2 24 Q
Slide 13: Positioned for Long-Term Growth Amid Complex Market Dynamics
POSITIONED FOR LONG-TERM GROWTH AMID COMPLEX MARKET DYNAMICS¹ Proactively Managing Market Challenges: • Tariff and rare earth trade risks remain manageable through agile supply strategies • Customer order patterns continue to normalize as inventory levels rebalance Driving Operational Leverage: • Si
Slide 14: Conference Call and Webcast Playback
CONFERENCE CALL AND WEBCAST PLAYBACK Replay Number: 412-317-6671 passcode: 10200458 Telephone replay available through Thursday, August 21, 2025 Webcast / Presentation / Replay available at wwwˌallientˌcom/investors Transcript, when available, at wwwˌallientˌcom/investors | © Allient Inc. 14
Slide 15: Supplemental Information
Nasdaq: ALNT Supplemental Information © Allient Inc. 15
Slide 16: Adjusted Net Income Reconciliation
ADJUSTED NET INCOME RECONCILIATION ($ in thousands, except per share data) For the three months ended June 30, Sept 30, Dec 31, Mar 31, June 30, 2024 2024 2024 2025 2025 Net income $ 1,150 $ 2,101 $ 3,013 $ 3,557 $ 5,617 Non-GAAP adjustments, net of tax (1) Amortization of intangible assets - net 2,
Slide 17: Adjusted Net Income Reconciliation
ADJUSTED NET INCOME RECONCILIATION ($ in thousands, except per share data) For twelve months ended Dec 31, Dec 31, June 30, 2023 2024 2025 Net income $ 24,097 $ 13,166 $ 14,288 Non-GAAP adjustments, net of tax (1) Amortization of intangible assets - net 9,752 9,726 9,551 Foreign currency loss / (gai
Slide 18: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION ($ in thousands) For the three months ended June 30, Sept 30, Dec 31, Mar 31, June 30, 2024 2024 2024 2025 2025 Net income $ 1,150 $ 2,101 $ 3,013 $ 3,557 $ 5,617 Interest expense 3,384 3,435 3,089 3,635 3,552 Provision for income taxes 299 612 862 903 1,685 Depreciati
Slide 19: Adjusted EBITDA Reconciliation
ADJUSTED EBITDA RECONCILIATION ($ in thousands, except per share data) For twelve months ended Dec 31, Dec 31, June 30, 2023 2024 2025 Net income $ 24,097 $ 13,166 $ 14,288 Interest expense 12,383 13,296 13,711 Provision for income taxes 5,603 3,692 4,062 Depreciation and amortization 25,068 25,891
Slide 20: Revenue Excluding Foreign Currency Exchange and Calculation of Organic Revenue
REVENUE EXCLUDING FOREIGN CURRENCY EXCHANGE AND CALCULATION OF ORGANIC REVENUE ($ in thousands) Three Months Ended Six Months Ended June 30, 2025 June 30, 2025 Revenue as reported $ 139,578 $ 272,381 Foreign currency impact (2,382) (563) Revenue excluding foreign currency exchange impacts $ 137,196
Slide 21: Total Net Debt and Leverage Ratio Reconciliation
TOTAL NET DEBT AND LEVERAGE RATIO RECONCILIATION ($ in thousands) June 30, 2025 December 31, 2024 Total debt $ 222,218 $ 224,177 Less: cash and cash equivalents $ 49,915 $ 36,102 Total net debt (Non-GAAP) $ 152,303 $ 188,075 TTM Adjusted EBITDA (Non-GAAP) $ 66,091 $ 62,525 Leverage Ratio (Non-GAAP)
Slide 22: Second Quarter 2025 Financial Results Call
Nasdaq: ALNT August 7, 2025 Second Quarter 2025 Financial Results Call Dick Warzala Jim Michaud Chairman, President & CEO Chief Financial Officer © Allient Inc.