Alliance Laundry (ALH) Q2 2026 earnings summary

Executive summary

• Net revenue for Q2 2026 rose 7% year-over-year to $477 million, with broad-based growth across products, markets, and geographies, especially in North America and Asia Pacific, and strong adoption of digital innovations.

• Adjusted EBITDA increased 12% to $134 million, with margin expansion driven by pricing, operational excellence, and supply chain efficiency.

• Net income increased 121% to $69 million; adjusted net income up 55% to $83 million, reflecting higher operating earnings and $22 million lower interest expense from significant debt reduction.

• Net leverage reduced to 2.4x, with $115 million of debt repaid year-to-date and credit upgrades lowering cost of debt.

• The company raised its full-year guidance based on strong first-half results and increased visibility for the remainder of 2026.

Financial highlights

• Gross profit increased 9% to $190 million, with gross margin up 90 basis points to 39.8%.

• Adjusted EBITDA margin expanded to 28.1%, up 135 basis points; North America margin at 31.6%.

• Adjusted net income surged 55% year-over-year to $83 million; adjusted EPS rose 32% to $0.41.

• Operating cash flow for the quarter was $66.3 million; $50 million of debt repaid in Q2, $115 million year-to-date.

• Interest expense fell to $17.8 million due to lower debt balances and improved credit rating.

Outlook and guidance

• Full-year 2026 revenue growth guidance maintained at 6%-7%, with equal contributions from price and volume.

• Adjusted EBITDA growth guidance raised to 8%-10%.

• Net leverage target improved to 2.0x by year-end 2026.

• Interest expense for 2026 expected at $80 million; effective tax rate anticipated at 23%.

• Capital expenditures for 2026 expected at $60 million.