EVI Industries (EVI) Q4 2026 earnings summary

Executive summary

• Achieved record revenue of $446.6 million, gross profit of $140.7 million, and operating income of $15.7 million for fiscal 2026, with gross margin reaching 31.5% and gross profit growth outpacing revenue growth.

• Completed three acquisitions: two in commercial laundry (ASN Laundry Group and Belenky, Inc.) and one establishing a new consumer garment care services division via the acquisition of Sudsies.

• Demonstrated strong operating leverage and improved margins, supported by investments in technology, people, and process optimization.

• Emphasized a decentralized, entrepreneurial culture, retaining local leadership and brands while leveraging enterprise resources for growth and innovation.

Financial highlights

• Fiscal 2026 revenue rose 15% to $446.6 million; gross profit up 19% to $140.7 million (31.5% margin); operating income up 14% to $15.7 million; net income up 3% to $7.7 million; adjusted EBITDA up 16% to $29.1 million (6.5%).

• Q4 revenue up 11% to $121.9 million; gross profit up 13% to $38.5 million (31.6% margin); operating income up 37% to $5.6 million; net income up 31% to $2.7 million; adjusted EBITDA up 26% to $9.1 million (7.5%).

• Generated $20.6 million in operating cash flow for the year; Q4 operating cash flow was $13.4 million.

• Ended June 2026 with $44.2 million in net debt, down $11.5 million sequentially and stable year-over-year despite acquisitions and investments.

Outlook and guidance

• Entering fiscal 2027 with a substantial pipeline of acquisition opportunities across both commercial laundry and consumer garment care.

• Management targets double-digit consolidated operating margins over time, leveraging scale and ongoing operational improvements.

• Plans to continue disciplined expansion, focusing on organic growth, recurring revenue, and strategic acquisitions.

• Sees potential to build a significant second division in consumer garment care with meaningful earnings and cash flow.