Alliance Laundry (ALH) Q1 2026 earnings summary

Executive summary

• Q1 2026 net revenue rose 10% year-over-year to $427 million, with broad-based growth across geographies and end markets, driven by both volume and price increases.

• Adjusted EBITDA increased 9% to $109 million, with a margin of 25.5%.

• Adjusted net income surged 85% to $63 million, reflecting strong operations and lower interest expense from deleveraging.

• Net income rose to $57 million, with a net income margin of 13.3%.

• Continued deleveraging with $65 million debt repaid in Q1, reducing net leverage to 2.6x.

Financial highlights

• Gross profit increased 8% to $157 million, with a gross margin of 36.8%.

• Adjusted EBITDA margin held steady at 25.5%.

• Adjusted net income per diluted share was $0.31, up from $0.20.

• Operating cash flow was $80 million, up 76% year-over-year.

• Interest expense dropped to $17.9 million, down from $44.9 million year-over-year.

Outlook and guidance

• Full-year 2026 revenue growth guidance raised to 6%-7%, with adjusted EBITDA growth guidance at 7%-8%.

• Net leverage expected to reach low 2x by year-end 2026.

• Capex projected at ~3% of revenue for 2026; effective tax rate ~23.5%.

• Guidance assumes continued cost discipline and realization of price and volume increases.

• Liquidity is considered adequate for operational and debt requirements over the next twelve months.