8-K: EVI Industries Reports Record Q2 Results, Revenue Up 24%

EVI Industries announced record second-quarter fiscal year 2026 operating results, driven by a 24% revenue increase and strategic investments in modernization.

Summary

• Record second fiscal quarter 2026 revenue increased 24% to $115.3 million.
• Record second fiscal quarter 2026 gross profit increased 29% to $35.5 million, representing a record gross margin of 30.8%.
• Record second fiscal quarter 2026 operating income increased 78% to $4.2 million.
• Record second fiscal quarter 2026 net income increased 110% to $2.4 million.
• Record second fiscal quarter 2026 Adjusted EBITDA increased 49% to $7.7 million, or 6.6% of revenue.
• For the six months ended December 31, 2025, revenue increased 20% to $223.6 million, and gross profit increased 23% to $69.4 million.
• Net income for the six months ended December 31, 2025, was $4.2 million, compared to $4.4 million in the prior year.
• Adjusted EBITDA for the six months ended December 31, 2025, increased 13% to $14.4 million, or 6.4% of revenue.
• The company surpassed $425 million in revenues for the twelve months ended December 31, 2025.
• EVI has transformed from a single-location business in Florida with 31 employees in 2016 into a leading North American commercial laundry distribution and service enterprise with 31 businesses and over 900 associates.
• Investments in field service technology resulted in an approximate 13% improvement in average response time over the past twelve months.
• Operating cash flow was positive for both the threeand six-month periods ended December 31, 2025, despite a planned $12 million inventory buildup and a $5 million cash dividend payment.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a strong positive report, highlighting record financial performance across multiple key metrics for the quarter, driven by successful strategic acquisitions and ongoing investments in operational efficiency. The slight dip in six-month net income is offset by significant growth in other areas and strategic investments for future scalability.

Positives

• Achieved record revenue, gross profit, operating profit, net income, and Adjusted EBITDA for the second fiscal quarter of 2026.
• Second quarter revenue increased 24% year-over-year to $115.3 million, driven by acquired businesses and legacy operations.
• Gross margin reached a record 30.8% for the quarter and 31.1% for the six months, reflecting favorable product mix, pricing discipline, and strategic acquisitions.
• Net income for the second quarter increased 110% to $2.4 million, demonstrating strong underlying operating performance.
• Adjusted EBITDA for the second quarter increased 49% to $7.7 million, indicating improved efficiency.
• Underlying operating margins increased compared to prior-year periods, showcasing improved efficiency within core operations.
• Investments in field service technology led to a 13% improvement in average service response time over the past twelve months.
• Technology-enabled service optimization has contributed to a meaningful improvement in service margins.
• The company generated positive operating cash flow during both the threeand six-month periods ended December 31, 2025.
• EVI maintains solid liquidity, strong working capital, and access to low-cost capital, supporting continued investment and growth.

Negatives

• Net income for the six months ended December 31, 2025, was $4.2 million, a decrease from $4.4 million in the prior year period.
• Operating cash flow was adversely impacted by a planned buildup of inventory of approximately $12 million associated with confirmed customer sales order contracts in backlog.
• Cash flows were also impacted by a $5 million cash dividend payment and the final payment of the purchase price related to the Continental acquisition.

Risks

• General economic and business conditions in the United States and other countries where the company operates.
• Economic uncertainty, including governmental measures like tariffs, global trading markets, credit markets, and their impact on pricing, demand, and availability of products.
• Currency exchange fluctuations, particularly a weakening of the U.S. dollar, which could increase costs and negatively affect operating results.
• Industry conditions and trends, and credit market volatility.
• Supply chain delays and disruptions, impacting the company's ability to deliver products and services on a timely basis.
• Inflation and other price increases (including tariffs), and their impact on costs and the company's ability to successfully increase product and service prices to offset these costs.
• Interest rate increases, affecting the cost of the company's indebtedness and its ability to raise capital.
• The company's ability to implement its business and growth strategies and plans.
• Risks associated with the buy-and-build growth strategy, including challenges in identifying or consummating acquisitions, integration risks, indebtedness, stockholder dilution, and risks related to acquired businesses' operations and suppliers.
• Risks that initiatives and investments, including in acquired businesses and technology/modernization, may not result in anticipated benefits.
• The company's service operations and capabilities may not expand as expected.
• Impact of market share growth efforts, which may not be successful and could adversely affect gross margin and other financial results.
• Technology changes and competition, including the company's ability to compete effectively and its impact on pricing, profit margins, and competition for qualified employees.
• Risks relating to relationships with principal suppliers and customers, including the impact of losing any such relationship.
• Risks related to the company's indebtedness and the availability, terms, and deployment of debt and equity capital.
• Cybersecurity threats or incidents, including potential misappropriation of assets, data corruption, or operational disruptions.
• Dividends may not be paid in the future.

Future Outlook

The company expects its ongoing investments in people, processes, and technology to further enhance its ability to deliver best-in-class laundry solutions, expand complementary product and service offerings, and improve responsiveness and efficiency. These actions are anticipated to expand competitive advantages, strengthen the company's foundation, and position it for sustained growth, improved efficiency, customer satisfaction, and long-term shareholder value. Management believes these initiatives will be critical for improving operating efficiency, working capital management, and long-term margin potential as the enterprise continues to grow. EVI plans to continue evaluating a robust pipeline of acquisition opportunities and pursuing strategic transactions to expand its product portfolio and assess differentiated growth initiatives within the laundry ecosystem.

Management Comments

• Henry M. Nahmad, Chairman and CEO, commented: "EVI has built a differentiated enterprise with deep customer relationships, expansive sales and service reach, and a strategy to become the undisputed leader in our industry. The investments we are making today in people, technology, and operational capabilities are grounded in the strength of our underlying business. We believe these actions are expanding our competitive advantages, strengthening our foundation, and positioning EVI to deliver sustained growth, improved efficiency, customer satisfaction, and long-term value for our shareholders."
• Mr. Nahmad also stated: "Our strategy remains grounded in disciplined execution and thoughtful capital deployment. As we continue to build on our reputation as a trusted acquirer and partner in the commercial laundry industry, we are also taking a more expansive view of growthevaluating opportunities that leverage our relationships, operating capabilities, and distribution reach. We believe this balanced approach positions us well to drive sustainable long-term value while maintaining the financial flexibility that has been central to our success."

Industry Context

StockSavvy.ai notes that EVI Industries operates in the highly fragmented commercial laundry industry, where its disciplined 'buy-and-build' strategy has enabled it to consolidate market share and establish itself as a leading North American enterprise. The company's significant investments in technology and operational optimization align with broader industry trends emphasizing efficiency, data-driven decision-making, and enhanced customer service in specialized distribution and service sectors.

Comparison to Industry Standards

• The filing states EVI has established itself as a leader in the highly fragmented commercial laundry industry, but does not provide specific comparable companies or industry benchmarks for direct comparison of financial metrics.
• EVI highlights its core strength as having the largest sales and services organizations in the industry, suggesting a competitive advantage in market reach and customer support.

Stakeholder Impact

• Shareholders: Expected to benefit from sustained growth, improved efficiency, customer satisfaction, and long-term value creation. The company's strong financial performance and strategic investments aim to enhance shareholder value.
• Employees/Associates: The company's growth strategy has led to an increase to over 900 associates. Investments in people, processes, and technology are intended to build a more scalable, integrated, and efficient organization, potentially benefiting employees through improved tools and processes.
• Customers: Expected to receive enhanced best-in-class laundry solutions, expanded product and service offerings, more rapid technical service responses, and more coordinated equipment installations due to ongoing investments.
• Suppliers: The company maintains strong supplier relationships and is pursuing strategic transactions to expand product portfolios through partnerships with OEMs, potentially creating new opportunities for suppliers.
• Creditors: The company operates from a position of balance sheet strength, solid liquidity, and access to low-cost capital, indicating a strong ability to meet its financial obligations.

Next Steps

• Continue to advance the deployment of data-driven operational systems to improve service execution, decision support, and scalability.
• Further enhance field service capabilities through real-time remote technical support and standardized maintenance workflows.
• Continue to invest in analytics-driven inventory and procurement tools across its extensive SKU base.
• Evaluate a robust pipeline of acquisition opportunities as part of its buy-and-build growth strategy.
• Pursue select strategic transactions to expand Continental's product portfolio through partnerships with OEMs.
• Assess differentiated growth initiatives in and around the laundry ecosystem.

Key Dates

Recommendation

EVI Industries has delivered exceptional quarterly results, achieving record revenue, gross profit, operating income, net income, and Adjusted EBITDA, significantly outpacing prior periods. The company's disciplined 'buy-and-build' strategy continues to drive substantial growth, evidenced by a 24% increase in Q2 revenue and a 110% surge in net income. Strategic investments in technology and operational optimization are yielding tangible benefits, such as improved service margins and response times, positioning the company for sustained long-term value creation. Despite a minor dip in six-month net income, the overall financial health, robust acquisition pipeline, and strong management commentary suggest a compelling growth trajectory and competitive advantage in a fragmented industry.

Keywords

EVI Industries, commercial laundry, financial results, Q2 2026, revenue growth, gross profit, operating income, net income, adjusted EBITDA, acquisitions, buy-and-build strategy, technology investments, modernization, operational optimization, distribution, service enterprise, SEC filing