K-Bro Linen (KBL) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 2.7% YoY to $160.1 million; net earnings increased to $12.0 million, while Adjusted EBITDA was essentially flat at $33.5 million.

• Nine-month revenue grew 24.9% to $449.5 million, primarily reflecting the Stellar Mayan acquisition and implemented price increases.

• Healthcare growth and steady volumes supported results; hospitality revenue declined amid softer volumes and competition, particularly in the UK.

Financial highlights

• Q3 revenue was $160.1 million versus $155.9 million YoY; EBITDA increased 6.9% to $34.2 million from $32.0 million.

• Q3 net earnings were $12.0 million versus $8.9 million; adjusted net earnings rose to $13.0 million from $12.0 million.

• Nine-month revenue was $449.5 million versus $360.0 million; EBITDA was $85.1 million versus $65.8 million, and net earnings were $22.0 million versus $15.1 million.

• Nine-month Adjusted EBITDA was $85.9 million versus $72.2 million; adjusted net earnings were $27.7 million versus $23.2 million.

• Nine-month cash provided by operating activities was $46.9 million versus $41.0 million; cash at September 30 was $15.5 million.

Outlook and guidance

• 2026 capital spending is expected to be up to $22.0 million; ongoing base-business spending is expected at $15.0–$18.0 million annually in the short to medium term.

• Canadian Adjusted EBITDA margins are expected near seasonally adjusted historical levels; UK margins are expected below historical levels due to Stellar Mayan’s lower-margin profile.

• If current diesel prices persist, consolidated Adjusted EBITDA margin could be negatively affected by 1.0% in Q4 2026; the Q3 impact was 0.7%, and UK fuel hedges expire at year-end.

• Stellar Mayan run-rate cost synergies are expected over the guided 12–24-month period, with integration expected to finish within anticipated timelines.

• Healthcare activity is expected to increase steadily; hospitality is expected to remain solid long term, despite recent softness and competition, particularly in the UK.