Alliance Laundry (ALH) Q4 2025 earnings summary

Executive summary

• Achieved full-year revenue of $1.7 billion, up 13% year-over-year, with Q4 revenue of $435 million, up 10%, driven by organic growth and selective price realization across North America and International segments.

• Adjusted EBITDA grew 14% for the year to $436 million, with a record margin of 25.5%; Q4 Adjusted EBITDA up 17% to $107 million.

• Net leverage reduced from 5.0x to 2.8x Adjusted EBITDA, aided by operational performance, IPO proceeds, and strong cash flow.

• Continued investment in capacity, automation, digital, and engineering capabilities, with expansion in Thailand and Czech Republic.

• Established as a public company, enhancing governance and capital allocation flexibility.

Financial highlights

• Q4 net revenue was $435 million, with gross profit up 16% to $161 million and gross margin up 190 basis points to 37.0% year-over-year.

• Full-year Adjusted EBITDA was $436 million (25.5% margin), with adjusted net income for the year at $185 million (+11% YoY), and Q4 adjusted net income at $49 million (+18% YoY).

• Full-year gross profit increased 16% to $642 million, with gross margin expanding 100 bps to 37.6%.

• Operating cash flow for the year increased 46% to $212 million.

• Net debt reduced to $1.2 billion, with cash of $123 million at year-end.

Outlook and guidance

• 2026 guidance projects net revenue growth of 5–7%, Adjusted EBITDA growth of 6–8%, and continued margin expansion, with net leverage targeted in the low 2x range.

• CapEx expected at ~3% of revenue; effective tax rate at ~23.5%; interest expense at ~$85 million; diluted share count ~205 million.

• Guidance assumes balanced contributions from volume and price, with stronger revenue growth in H1 2026.