EVI's Operating Income Reaches a Record $6.2 Million

The Tip Desk · November 9, 2026 · 3 min read

Commercial laundry operating income rose 38% to $11.3 million as the company posted record first-fiscal-quarter results and closed a consumer garment care deal.

EVI Industries (EVI) reported record first-fiscal-quarter results for the three months ended September 30, 2026, with operating income up 75% to $6.2 million and net income up 108% to $3.8 million, or $0.24 a share on a diluted basis.

Revenue rose 4.3% to a record $112.9 million. Gross profit increased 12% to a record $38.0 million, and gross margin expanded from 31.3% to a record 33.7%. Adjusted EBITDA rose 47% to a record $9.9 million, with the margin expanding from 6.2% to a record 8.8%. Net income margin widened from 1.7% to 3.4% of revenues.

The commercial laundry segment carried the earnings lift. Segment operating income increased 38% to $11.3 million, or 10.2% of the segment’s revenues. Segment EBITDA rose 33% to $13.4 million, and EBITDA margin expanded from 9.3% to 12.1%, including about $0.5 million of tariff refunds recorded as a reduction to cost of sales. Unallocated corporate operating loss was $5.2 million.

Consolidated revenue growth included 2.9% growth in commercial laundry and about $1.6 million from the first month of consumer garment care operations after the September 1, 2026 acquisition of Sudsies, Inc., which established a new division in that industry. Within commercial laundry, the company said growth was led by parts, service and installation. The garment care division contributed $114 thousand of operating income and $291 thousand of segment EBITDA.

The company said a more favorable revenue mix and improved profitability in field service accounted for the majority of the increase in gross profit. About $2.7 million of a $4.1 million increase in gross profit reached operating income, and $3.2 million reached adjusted EBITDA. Management said it is reinvesting a portion of gross profit in recruiting and developing leaders, sales professionals and service technicians, which it said takes time to reach full productivity.

Field service operations completed approximately 31,000 appointments for nearly 12,000 unique customers. Equipment order backlog at September 30, 2026 increased compared with June 30, 2026. The company said customers are increasingly selecting higher-capacity equipment, in many cases fewer, larger machines, and that this preference, together with the timing of larger projects, may affect unit volumes, equipment revenue and gross margin in a given quarter.

Operating cash flow was $7.8 million, compared with $1.0 million a year earlier. Net debt was $76.7 million at September 30, 2026, compared with $44.2 million at June 30, 2026. The company said the approximately $32.5 million increase primarily reflected borrowings in connection with the Sudsies acquisition, partially offset by operating cash generated during the quarter. Cash was $8.3 million. Long-term debt was $85.0 million.

Management remains focused on a previously stated long-term objective of double-digit consolidated operating margins. It said progress will depend on higher productivity, a growing contribution from service and related activities, disciplined expense management and a larger earnings base, and that commercial laundry’s 10.2% operating margin and 12.1% EBITDA margin must also fund shared resources.

Following the quarter, EVI acquired Commercial Laundry Equipment, a Florida distributor of commercial laundry products and provider of installation and maintenance services, adding 18 employees. The company said it continues to explore potential acquisitions in both commercial laundry and consumer garment care services and remains selective.

Chairman and Chief Executive Officer Henry M. Nahmad said the quarter opened a new chapter with the Sudsies team and that results increasingly show up in earnings from field work. He said the company will continue to invest with discipline and pursue acquisitions when it believes they can create value.