Alliance Laundry (ALH) Q1 2026 earnings summary

Executive summary

• Q1 2026 net revenue grew 10% year-over-year to $427 million, with broad-based growth across all end markets and geographies, driven by both volume and price.

• Adjusted EBITDA rose 9% to $109 million (25.5% margin), and adjusted net income surged 85% to $63 million, reflecting strong operations and lower interest expense from deleveraging.

• Net income increased to $57 million, with a net income margin of 13.3%.

• Continued deleveraging with $65 million debt repayment, reducing net leverage to 2.6x.

• Completed second distributor acquisition in New York, marking the 17th U.S. acquisition since 2019.

Financial highlights

• Gross profit increased 8% to $157 million, with gross margin at 36.8%.

• Adjusted net income per diluted share was $0.31, up from $0.20 a year ago.

• Operating cash flow was $80 million, up 76% year-over-year.

• Interest expense dropped to $17.9 million, down from $44.9 million year-over-year.

• Net debt at quarter-end was $1.17 billion.

Outlook and guidance

• Full-year 2026 revenue growth guidance raised to 6–7%, with adjusted EBITDA growth guidance increased to 7–8%.

• Net leverage expected to reach low 2x by year-end 2026.

• Capex projected at ~3% of revenue; effective tax rate ~23.5%; interest cost ~$85 million.

• Continued focus on deleveraging, organic investment, and potential shareholder returns via buybacks or dividends.