Second Quarter 2026
Filed Aug 13, 2026Alliance Laundry Reports Second Quarter 2026 Results
Net revenue increased 7%, net income increased 121%, Adjusted EBITDA increased 12%, margins expanded, and the Company raised full-year Adjusted EBITDA growth guidance to +8% to 10%.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net revenuesGAAP | $ 476,755 (in thousands) | – | 7% |
| Equipment, service parts and other revenueGAAP | $ 464,206 (in thousands) | – | – |
| Equipment financing revenueGAAP | $ 12,549 (in thousands) | – | – |
| Gross profitGAAP | $ 189,896 (in thousands) | – | 9% |
| Gross marginGAAP | 39.8% | – | an approximate 90 basis points increase |
| Cost of salesGAAP | $ 277,389 (in thousands) | – | – |
| Cost of sales - related partiesGAAP | $ 2,135 (in thousands) | – | – |
| Equipment financing expensesGAAP | $ 7,335 (in thousands) | – | – |
| Selling, general, and administrative expensesGAAP | $ 84,139 (in thousands) | – | – |
| Selling, general, and administrative expenses - related partiesGAAP | $ 109 (in thousands) | – | – |
| Total operating expensesGAAP | $ 84,248 (in thousands) | – | – |
| Operating incomeGAAP | $ 105,648 (in thousands) | – | – |
| Interest expense, netGAAP | $ 17,809 (in thousands) | – | – |
| Income before taxesGAAP | $ 87,832 (in thousands) | – | – |
| Provision for income taxesGAAP | $ 19,163 (in thousands) | – | – |
| Net incomeGAAP | $ 68,669 (in thousands) | – | 121% |
| Net income marginGAAP | 14.4% | – | – |
| Basic net income per shareGAAP | $ 0.35 | – | – |
| Diluted net income per shareGAAP | $ 0.34 | – | – |
| Adjusted Net incomenon-GAAP | $83 million | – | approximately 55% |
| Adjusted EBITDAnon-GAAP | $ 133,781 (in thousands) | – | 12% |
| Adjusted EBITDA Marginnon-GAAP | 28.1% | – | an approximate 135 basis point increase in profitability |
| North America Segment Adjusted EBITDAnon-GAAP | $ 113,632 (in thousands) | – | 17% |
| North America Segment Adjusted EBITDA marginnon-GAAP | 31.6% | – | – |
| International Segment Adjusted EBITDAnon-GAAP | $ 33,948 (in thousands) | – | decreased by 8% |
| International Segment Adjusted EBITDA marginnon-GAAP | 28.9% | – | – |
| Operating cash flow for the quarterGAAP | $66.3 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| North AmericaGrowth was broad-based across all end markets, supported by demand mix shift toward larger-capacity machines in the Vended market. Multi-Housing and On-Premise delivered solid results, while Commercial-in-Home posted strong growth. | $ 359,258 (in thousands) | – | 9% |
| InternationalAsia Pacific continued to see strong growth, Europe delivered steady performance, and the Middle East & Africa region continued to experience reduced activity due to the on-going conflict in the Middle East. | $ 117,497 (in thousands) | – | approximately flat |
Fiscal year 2026 outlook
- RevenueRevenue Growth +6% to 7%
- Tax rateEffective Tax Rate ~23.0%
- NoteAdjusted EBITDA Growth +8% to 10%
- NoteNet Leverage 2.0x by year end
- NoteCapital Expenditures (% of Revenue) ~3%
- NoteInterest Expense ~$80 million
- NoteDiluted Share Count ~205 million
- NoteRevenue performance is expected to be fairly consistent between quarters across the second half of 2026.
- NoteMargin expansion is expected to be weighted more towards the fourth quarter given the geographic mix of business and normal seasonal patterns.
Capital returns
- The Company paid down $50 million in debt during the second quarter.
- $65 million paid down in the first quarter.
- Payments on long-term borrowings were $ 115,000 (in thousands) for the six months ended June 30, 2026.
- Repurchase of common stock was — for the six months ended June 30, 2026.
What drove it
- Pricing actions to offset cost increases contributed slightly more than half of net-revenue growth, with the balance driven by unit volume and mix.
- Broad-based North America growth was supported by larger-capacity-machine mix in Vended, predictable replacement demand in Multi-Housing and On-Premise, and Commercial-in-Home growth.
- Pricing actions already in place offset tariff exposure and other inflationary increases.
- Margin expansion reflected volume leverage, operational excellence, and supply chain efficiency.
- Net-income growth reflected operating-earnings growth plus approximately $22 million in lower interest expense following significant debt reduction of $825 million over the past twelve months.
- Adjusted EBITDA guidance was raised as the Company realizes the benefit of price and volume increases alongside continued cost-down initiatives.
Concerns
- International revenue was approximately flat and International Segment Adjusted EBITDA decreased by 8%.
- The Middle East & Africa region continued to experience reduced activity due to the on-going conflict in the Middle East.
- Margin expansion was partially offset by legal expense and incremental public company costs net of discrete benefits from tariff refunds and insurance proceeds.
- International EBITDA reflected geographic mix and ongoing investment in people and products in emerging international markets.
What to watch
- Whether revenue growth remains within the guided +6% to 7% range through the second half of 2026.
- The expected fourth-quarter weighting of margin expansion.
- Progress toward net leverage of 2.0x by year end.
- International demand trends, including Asia Pacific growth, Europe performance, and activity in the Middle East & Africa region.
- The realization of continued cost-down initiatives and the durability of pricing actions against tariff exposure and inflation.
Balance sheet and cash flow
- Cash and cash equivalents were $ 159,467 (in thousands) as of June 30, 2026, compared with $ 123,102 (in thousands) as of December 31, 2025.
- Total debt was $1.25 billion and net debt was $1.09 billion as of June 30, 2026.
- Long-term debt, net was $ 1,241,167 (in thousands) as of June 30, 2026, compared with $ 1,354,636 (in thousands) as of December 31, 2025.
- Net Leverage decreased to 2.4 x, a reduction of 0.2 turns from March 31, 2026, and down 0.4 turns from prior year end.
- Net cash provided by operating activities was $ 146,139 (in thousands) for the six months ended June 30, 2026, compared with $ 50,697 (in thousands) for the six months ended June 30, 2025.
- Capital expenditures were $ 13,873 (in thousands) for the six months ended June 30, 2026, compared with $ 16,597 (in thousands) for the six months ended June 30, 2025.
- Cash, cash equivalents, and restricted cash at end of period were $ 183,438 (in thousands) for the six months ended June 30, 2026, compared with $ 241,457 (in thousands) for the six months ended June 30, 2025.
Analysis
Alliance reported a strong second quarter, led by $ 476,755 (in thousands) of net revenues, up 7%, and $ 68,669 (in thousands) of GAAP net income, up 121%. Pricing actions contributed slightly more than half of revenue growth, while unit volume and mix supplied the balance. The quarter's principal growth engine was North America, where revenue increased 9% to $ 359,258 (in thousands); International revenue was approximately flat at $ 117,497 (in thousands).
Profitability expanded across the consolidated business. Gross profit rose 9% to $ 189,896 (in thousands), and gross margin reached 39.8%, an approximate 90 basis point increase. Adjusted EBITDA was $ 133,781 (in thousands), up 12%, and Adjusted EBITDA Margin was 28.1% versus 26.7%. Volume leverage, operational excellence, supply-chain efficiency, and pricing offsetting tariffs and inflation supported the expansion, although legal expense and incremental public-company costs partially offset those gains.
North America combined growth with stronger segment profitability: Segment Adjusted EBITDA increased 17% to $ 113,632 (in thousands) and margin was 31.6%. Demand was broad-based, with larger-capacity Vended machines, replacement demand in Multi-Housing and On-Premise, and Commercial-in-Home growth cited as drivers. International Segment Adjusted EBITDA declined 8% to $ 33,948 (in thousands), and its 28.9% margin was below 31.2%. Asia Pacific strength and steady Europe performance were offset by reduced Middle East & Africa activity and investment in emerging international markets.
Cash generation and debt reduction remain central features of the release. Quarterly operating cash flow was $66.3 million, compared with $5.3 million in the prior-year quarter. The Company paid down $50 million in debt during the quarter, following $65 million in the first quarter, leaving total debt of $1.25 billion, net debt of $1.09 billion, and Net Leverage of 2.4 x at June 30, 2026. Management now anticipates net leverage of 2.0x by year end, absent any other capital allocation opportunities.
The guidance update preserves the +6% to 7% revenue-growth outlook but raises Adjusted EBITDA growth to +8% to 10% from +7% to 8%. Management expects second-half revenue performance to be fairly consistent between quarters, while margin expansion is expected to be weighted toward the fourth quarter. Interest expense is now expected to total approximately $80 million and the effective tax rate is forecast at ~23.0%, while capital-expenditure and diluted-share-count assumptions remain unchanged.
Management, verbatim
Our performance this quarter, including the revenue growth and profitability we delivered, demonstrates the strength and durability of our business model that is rooted in diversification across all three dimensions: product, end markets and geography.
Michael Schoeb, CEO of Alliance
Our strong first half performance, combined with our visibility into the remainder of the year, provides the foundation to raise our earnings guidance and firm up our deleveraging target.
Michael Schoeb, CEO of Alliance
Not in the filing
stated, not guessed- Non-GAAP earnings per share was not available in the provided filing text, which ends during the Adjusted net income reconciliation.
- Free cash flow was not reported.
- Dividend amount and dividend payment date were not reported.
- Quarterly capital expenditures were not reported.
- GAAP gross-margin guidance was not reported.
- Operating-expense guidance was not reported.
- Prior-quarter revenue, gross profit, operating income, net income, EPS, Adjusted Net income, and Adjusted EBITDA comparisons were not reported.
- A previous quarterly release outlook was not provided; therefore, no actual-versus-prior-guidance comparison is included.
AlphaAI 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.