EVI Industries (EVI) Q2 2025 earnings summary

Executive summary

• Achieved record revenue and gross profit for both the three- and six-month periods ended December 31, 2024, with six-month revenue of $186.3 million and gross profit of $56.4 million; gross margin reached a record 30.3%.

• Net income for the six months rose to $4.4 million from $2.6 million year-over-year, with adjusted EBITDA at $12.7 million.

• Completed two acquisitions in the Southeast and one in the Midwest/Illinois shortly after the quarter, supporting the buy-and-build strategy.

• Continued investment in technology, field service, and e-commerce, with over 70% of operations using new field service technologies.

• Paid a special cash dividend of $4.6 million ($0.31/share), the largest in company history.

Financial highlights

• Six-month revenue increased 4% year-over-year to $186.3 million; three-month revenue up 1% to $92.7 million.

• Six-month gross profit was $56.4 million, with gross margin at 30.3%; adjusted EBITDA for six months was $12.7 million.

• Six-month net income was $4.4 million, up from $2.6 million; diluted EPS for six months was $0.29.

• Operating cash flow for six months was $2.2 million, down from $10.9 million, mainly due to working capital changes.

• Capital expenditures totaled $2.1 million; $10.5 million used for acquisitions.

Outlook and guidance

• Expects to benefit from a $100 million+ equipment sales backlog across all laundry categories and a robust acquisition pipeline.

• Management expects existing cash, operations, and credit to be sufficient for at least the next twelve months.

• Investments in technology and personnel are expected to yield positive returns, though near-term expenses may impact operating profits.

• Inflationary trends and supply chain risks are being monitored for potential impact on costs and pricing.