EVI Industries (EVI) Q1 2026 earnings summary

Executive summary

• Achieved record quarterly revenue of $108.3 million, up 16% year-over-year, and record gross profit of $33.9 million, up 17% year-over-year, driven by strong demand and recent acquisitions.

• Net income declined to $1.8 million from $3.2 million, mainly due to higher operating expenses and increased investment in modernization and integration.

• Four acquisitions completed since the prior year, including the largest in company history, expanded scale and market leadership across North America.

• Declared and paid a special cash dividend of $0.33 per share, totaling $5.0 million, the largest in company history.

• Investments in systems, integrations, and people are impacting near-term profitability but are part of a long-term growth strategy.

Financial highlights

• Revenue: $108.3 million, up from $93.6 million year-over-year.

• Gross profit: $33.9 million, up from $28.9 million year-over-year, with a record 31.3% gross margin.

• Operating income: $3.6 million, down from $5.0 million year-over-year.

• Net income: $1.8 million, down from $3.2 million year-over-year.

• Adjusted EBITDA: $6.75 million, down from $7.61 million year-over-year.

Outlook and guidance

• Management remains confident in long-term growth, supported by a strong balance sheet and ample borrowing capacity.

• Focus remains on sustainable growth, profitability, and value creation, with ongoing investments in technology and operational efficiency.

• Near-term results may be impacted by current initiatives, but these are expected to drive stronger margins and returns in the future.

• Management expects sufficient liquidity from cash, operations, and credit facility to fund operations and capital expenditures for at least the next twelve months.

• Inflation and supply chain risks are being monitored, but inflation did not significantly impact results in the reported period.