EVI Industries (EVI) Q3 2026 earnings summary

Executive summary

• Achieved record revenue and gross profit for both the third quarter and nine-month period ended March 31, 2026, reflecting strong demand, enterprise expansion, operational optimization, and successful acquisitions.

• Revenue for the nine months ended March 31, 2026 increased 16% year-over-year to $324.7 million, driven by acquisitions and price increases.

• Net income for the nine months was $5.0 million, down from $5.4 million in the prior year, due to higher operating and interest expenses.

• Expanded from a single-location business to a leading North American commercial laundry distributor with 32 businesses and about 900 associates.

• Focus shifting from scale-building to operational optimization, modernization, and enterprise-wide coordination to enhance scalability, efficiency, and customer experience.

Financial highlights

• Third quarter revenue rose 8% year-over-year to $101.1 million; gross profit up 17% to $32.8 million, with a record gross margin of 32.5%.

• Nine-month revenue increased 16% to $324.7 million; gross profit up 21% to $102.2 million, with a gross margin of 31.5%.

• Compounded annual growth rates since 2016: 29% in revenue, 15% in net income, and 26% in adjusted EBITDA.

• Operating expenses increased 23% year-over-year, mainly due to costs from acquired businesses, higher selling costs, and increased compensation and technology expenses.

• Net income margin was 1.5% for the nine months ended March 31, 2026; diluted EPS was $0.31 for the nine months.

Outlook and guidance

• Management expects operational optimization, technology investments, and process improvements to drive future scalability, efficiency, and profitability.

• Backlog remains strong, with delayed projects expected to be fulfilled in future periods.

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

• Inflation and supply chain risks are being monitored, but inflation did not significantly impact results in the reported periods.

• Anticipates continued market share gains and long-term value creation through recurring customer relationships and cross-selling opportunities.