EVI INDUSTRIES, INC. (EVI): Results of Operations and Financial Condition
EVI INDUSTRIES, INC. (EVI) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 EVI Industries Reports Record Results for the Fiscal Fourth Quarter and Fiscal 2026, Including Record Revenue, Gross Profit, and Operating Income Expanded Commercial Laundry Through Two Acquisitions and Formed Consumer Garment Care Services Division with a Foundation
How this was made
The 30-second read
Why it matters
The earnings release provides fresh quantitative data on revenue, profit, and cash flow, offering traders a basis for short‑term positioning.
Market read
EVI's record earnings could attract momentum traders and influence valuation of similar service distributors.
What to watch
Net debt unchanged and cash flow modest; capital expenditures may pressure future cash generation.
EVI Industries Reports Record Results for the Fiscal Fourth Quarter and Fiscal 2026, Including Record Revenue, Gross Profit, and Operating Income
Fiscal 2026 revenue, gross profit, operating income and adjusted EBITDA reached records, while fourth-quarter earnings grew faster than revenue and net debt declined during the quarter.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Fiscal 2026 revenueGAAP | $ 446,570 (in thousands) | – | 15% |
| Fourth quarter fiscal 2026 revenueGAAP | $ 121,873 (in thousands) | 21% | 11% |
| Fiscal 2026 cost of salesGAAP | 305,846 (in thousands) | – | – |
| Fourth quarter fiscal 2026 cost of salesGAAP | 83,392 (in thousands) | – | – |
| Fiscal 2026 gross profitGAAP | $ 140,724 (in thousands) | – | 19% |
| Fourth quarter fiscal 2026 gross profitGAAP | $ 38,481 (in thousands) | – | 13% |
| Fiscal 2026 gross marginGAAP | 31.5% | – | – |
| Fourth quarter fiscal 2026 gross marginGAAP | 31.6% | – | 80-basis point improvement |
| Fiscal 2026 SG&AGAAP | 125,012 (in thousands) | – | – |
| Fourth quarter fiscal 2026 SG&AGAAP | 32,839 (in thousands) | – | – |
| Fiscal 2026 operating incomeGAAP | $ 15,712 (in thousands) | – | 14% |
| Fourth quarter fiscal 2026 operating incomeGAAP | $ 5,642 (in thousands) | – | 37% |
| Fiscal 2026 interest expense, netGAAP | 3,937 (in thousands) | – | – |
| Fourth quarter fiscal 2026 interest expense, netGAAP | 979 (in thousands) | – | – |
| Fiscal 2026 income before income taxesGAAP | 11,775 (in thousands) | – | – |
| Fourth quarter fiscal 2026 income before income taxesGAAP | 4,663 (in thousands) | – | – |
| Fiscal 2026 provision for income taxesGAAP | 4,057 (in thousands) | – | – |
| Fourth quarter fiscal 2026 provision for income taxesGAAP | 1,915 (in thousands) | – | – |
| Fiscal 2026 net incomeGAAP | $ 7,718 (in thousands) | – | 3% |
| Fourth quarter fiscal 2026 net incomeGAAP | $ 2,748 (in thousands) | – | 31% |
| Fiscal 2026 basic net earnings per shareGAAP | $ 0.51 | – | – |
| Fiscal 2026 diluted net earnings per shareGAAP | $ 0.48 | – | – |
| Fourth quarter fiscal 2026 basic net earnings per shareGAAP | $ 0.18 | – | – |
| Fourth quarter fiscal 2026 diluted net earnings per shareGAAP | $ 0.17 | – | – |
| Fiscal 2026 adjusted EBITDAnon-GAAP | $ 29,119 (in thousands) | – | 16% |
| Fourth quarter fiscal 2026 adjusted EBITDAnon-GAAP | $ 9,096 (in thousands) | 100-basis point improvement | 26% |
| Fiscal 2026 adjusted EBITDA marginnon-GAAP | 6.5% | – | – |
| Fourth quarter fiscal 2026 adjusted EBITDA marginnon-GAAP | 7.5% | – | – |
| Fourth quarter service visitsother | approximately 30,300 service visits | up approximately 10% sequentially | – |
| Fourth quarter unique service customersother | approximately 11,600 unique customers | – | – |
Capital returns
- Dividends paid: $ 4,983 (in thousands) for the twelve months ended 6/30/2026; $ 4,593 (in thousands) for the twelve months ended 6/30/2025.
- Repurchases of common stock in satisfaction of employee tax withholding obligations: $ 1,544 (in thousands) for the twelve months ended 6/30/2026; $ 716 (in thousands) for the twelve months ended 6/30/2025.
- Issuances of common stock under employee stock purchase plan: $ 177 (in thousands) for the twelve months ended 6/30/2026; $ 124 (in thousands) for the twelve months ended 6/30/2025.
What drove it
- The completion in the fourth quarter of a portion of activity deferred from the third quarter, together with an increased mix of industrial sales, contributed to the 21% sequential increase in revenue.
- Management attributed gross-margin improvement to continued growth in higher-margin service, parts and consumables revenue and to ownership of a greater portion of the supply chain through Continental.
- The Company said its core ERP, field service and supporting technology platforms are substantially deployed, shifting the emphasis toward standardizing processes, productivity and coordination across businesses.
- EVI completed acquisitions of ASN Laundry Group in August 2025 and Belenky, Inc. in February 2026.
- Sudsies closed on September 1, 2026 and serves as the foundation of EVI's consumer garment care services division.
Concerns
- Deliveries and installations depend on customer facility readiness and construction schedules and can be delayed by adverse weather conditions and other events outside the Company's control.
- Corporate expenses totaled $13.8 million for fiscal 2026 and $3.8 million for the fourth quarter, including approximately $3.7 million of technology investment during fiscal 2026.
- Trade policy remains uncertain; EVI cited higher supplier and OEM costs and said it has adjusted pricing and worked with suppliers on cost mitigation.
- The Company identified integration, indebtedness, capital availability and strategic-benefit risks related to acquisitions, including Sudsies and the new consumer garment care services division.
What to watch
- Whether service, parts and consumables continue to increase as a portion of revenue and support gross-margin expansion.
- Conversion of the substantially deployed ERP, field service and supporting technology platforms into productivity and operating leverage.
- The pace of corporate-expense leverage toward management's objective of double-digit consolidated operating margins.
- Execution of the consumer garment care expansion following the September 1, 2026 closing of Sudsies.
- Future tariff-related supplier and OEM cost impacts, pricing actions and demand effects.
Balance sheet and cash flow
- Cash: $ 6,774 (in thousands) at 6/30/2026; $ 8,852 (in thousands) at 6/30/2025.
- Long-term debt: $ 51,000 (in thousands) at 6/30/2026; $ 53,000 (in thousands) at 6/30/2025.
- Net debt: $44.2 million at June 30, 2026; declined $11.5 million during the fourth quarter and remained substantially unchanged compared to June 30, 2025.
- Net cash provided by operating activities: $ 20,606 (in thousands) for the twelve months ended 6/30/2026; $ 21,265 (in thousands) for the twelve months ended 6/30/2025.
- Fourth-quarter operating cash flow: $13.4 million, an increase of 35% over the prior-year quarter.
- Capital expenditures: $ 7,152 (in thousands) for the twelve months ended 6/30/2026; $ 4,861 (in thousands) for the twelve months ended 6/30/2025.
- Cash paid for acquisitions, net of cash acquired: $ 7,182 (in thousands) for the twelve months ended 6/30/2026; $ 46,925 (in thousands) for the twelve months ended 6/30/2025.
- Proceeds from borrowings: $ 83,000 (in thousands) for the twelve months ended 6/30/2026; $ 106,000 (in thousands) for the twelve months ended 6/30/2025.
- Debt repayments: $ 85,000 (in thousands) for the twelve months ended 6/30/2026; $ 66,000 (in thousands) for the twelve months ended 6/30/2025.
Analysis
EVI reported record fiscal 2026 revenue of $ 446,570 (in thousands), up 15%, and record gross profit of $ 140,724 (in thousands), up 19%. Gross margin reached a record 31.5%. Operating income increased 14% to $ 15,712 (in thousands), while net income increased 3% to $ 7,718 (in thousands). Adjusted EBITDA increased 16% to $ 29,119 (in thousands), or 6.5%.
Fourth-quarter performance accelerated from the annual growth rate. Revenue increased 11% to $ 121,873 (in thousands), with the Company citing completion of some third-quarter deferred deliveries and installations and a greater industrial-sales mix. Fourth-quarter gross profit increased 13% to $ 38,481 (in thousands), and gross margin was 31.6%, an 80-basis point improvement. Operating income increased 37% to $ 5,642 (in thousands), net income increased 31% to $ 2,748 (in thousands), and adjusted EBITDA increased 26% to $ 9,096 (in thousands), or 7.5%.
Management attributed margin improvement to the growth of more durable service, parts and consumables revenue, which carries higher margins than equipment sales, and to Continental's greater ownership of the supply chain. The fourth quarter included approximately 30,300 service visits, up approximately 10% sequentially, to approximately 11,600 unique customers. EVI said its technology platforms are substantially deployed and that it is now focused on using those systems to standardize processes, raise productivity and improve coordination.
Cash generation remained positive, with $ 20,606 (in thousands) of fiscal-year net cash provided by operating activities and fourth-quarter operating cash flow of $13.4 million. Net debt declined $11.5 million during the fourth quarter to $44.2 million at June 30, 2026, despite two fiscal-year acquisitions. Fiscal-year capital expenditures were $ 7,152 (in thousands), while cash paid for acquisitions, net of cash acquired, was $ 7,182 (in thousands). The Company paid $ 4,983 (in thousands) in dividends and repaid $ 85,000 (in thousands) of debt during the year.
The Company made two commercial-laundry acquisitions during fiscal 2026 and established a consumer garment care services division after acquiring Sudsies on September 1, 2026. Management's stated long-term objective is double-digit consolidated operating margins. It reported corporate expenses of $13.8 million for fiscal 2026 and $3.8 million for the fourth quarter as the principal gap against that objective. No quantitative fiscal 2027 guidance was provided. Key execution issues are leveraging corporate and technology costs, integrating acquired businesses, managing timing-sensitive deliveries and installations, and navigating supplier and OEM cost pressure associated with tariffs.
Management, verbatim
Fiscal 2026 was our best year, and the fourth quarter demonstrated meaningful progress toward the operating leverage we believe is achievable across EVI. Since the close of the fiscal year, we also established a new division in consumer garment care services. Our model is consistent across both the commercial laundry division and the consumer garment care division, as we seek to partner with great operators, provide the resources and capabilities to grow their businesses, and continuously improve performance across the broader organization.
Henry M. Nahmad, Chairman and Chief Executive Officer
Our success in acquisitions extends beyond financial results; it’s built on people, culture, and trust. We take great pride in how we engage with business owners and their teams, striving to honor their legacies and provide their employees with meaningful opportunities to grow within our organization.
Henry M. Nahmad, Chairman and Chief Executive Officer
EVI today rests on a strong foundation: durable end markets, an entrepreneurial and decentralized operating model, deeply invested leadership, consistent cash generation, and a conservatively capitalized balance sheet. That foundation gives our businesses the freedom to think locally, act decisively, and invest for the long term.
Henry M. Nahmad, Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Quantitative fiscal 2027 guidance for revenue, gross margin, operating expenses, tax rate, EPS, adjusted EBITDA, cash flow or capital expenditures was not provided.
- Previous-release outlook was not provided, so no comparison with prior guidance is available.
- Segment revenue, segment profit and segment growth metrics were not reported.
- Non-GAAP EPS was not reported.
- Free cash flow was not reported.
- A GAAP operating-margin figure was not reported.
- Prior-quarter absolute financial metrics were not reported in the filing.
- Dividend per share, share-repurchase authorization and total shares repurchased were not reported.
- Cash and debt figures for the fourth-quarter prior period were not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
EVI Industries, a NYSE American listed distributor of commercial laundry equipment and services, filed an 8‑K reporting its FY 2026 financials.
Ticker impact
EVI Industries reported record Q4 and FY 2026 results with revenue up 15% YoY to $446.6M and adjusted EBITDA up 16% to $29.1M.
Potential modest upside as investors price in higher margins and growth trajectory.
Record revenue and profit growth indicate operational leverage; however, modest net income and small market cap limit magnitude.
Market effects
Highlights durability of commercial laundry sector and could boost peers with similar business models.
Positive for US small‑cap industrial distributors.
Limited to niche equipment distribution market.
Counterpoint
Margins remain modest; growth may be unsustainable if equipment cycles slow.
Key entities
- ExecutiveHenry M. Nahmad
Chairman and CEO of EVI Industries, provided commentary on results.
