K-Bro Linen (KBL) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue rose 13.4% year-over-year to $91.0 million, with healthcare up 6.5% and hospitality up 23.3%.

• Announced acquisition of UK-based Star Mayan for £107.2 million, creating a top-three UK platform.

• Adjusted EBITDA increased to $15.0 million from $13.4 million; margin stable at 16.5%.

• Net earnings fell to $0.8 million from $1.8 million; adjusted net earnings decreased to $3.4 million.

• Declared Q1 dividends of $0.300 per share; long-term debt at $119.3 million, down from $123.8 million.

Financial highlights

• Hospitality segment revenue grew 23.3% to $40.4 million; healthcare segment up 6.5% to $50.6 million.

• EBITDA margin declined to 13.6% from 14.5% year-over-year.

• Adjusted net earnings per share (diluted) at $0.323, down from $0.343.

• Distributable cash flow for Q1 was $5.8 million; payout ratio at 55.1%.

• Total assets increased to $438.4 million; long-term debt rose 81.5% to $119.3 million.

Outlook and guidance

• Expects steady healthcare volume growth and solid hospitality activity, supported by travel trends.

• Combined Adjusted EBITDA margins anticipated to remain near historical seasonal levels.

• 2025 capital spending planned at $10–12 million, excluding Star Mayan integration.

• Focus remains on strategic acquisitions and leveraging liquidity for growth.