EVI Industries (NYSEAMERICAN:EVI) reported record results for the third quarter of fiscal 2026, with Chairman and Chief Executive Officer Henry M. Nahmad saying the company achieved record revenue, record gross profit and record gross margin for the three- and nine-month periods ended March 31.
Speaking on the company’s earnings call, Nahmad said the results reflected the continued expansion of EVI’s business, steady demand for its commercial laundry products and services, and the company’s ongoing shift toward a larger and more coordinated operating platform.
CEO Highlights Decade of Expansion
Nahmad used the call to frame the quarter within EVI’s broader growth strategy. He said the company has expanded over the past decade from a single-location business in Florida with 32 employees into a North American commercial laundry distribution and service enterprise with 32 businesses.
Today, EVI has approximately 900 associates, more than 200 sales professionals and over 425 service personnel serving customers across the United States and Canada, according to Nahmad.
Since beginning its long-term growth strategy in 2016, Nahmad said EVI has generated compounded annual growth rates of approximately 29% in revenue, 15% in net income and 26% in adjusted EBITDA. He also pointed to an improvement in the company’s revenue mix and margins, noting that gross margin expanded from approximately 23% in fiscal 2019 to 32.5% for the third quarter and 31.5% for the first nine months of fiscal 2026.
Operational Optimization Becomes a Larger Focus
While acquisitions and organic growth remain priorities, Nahmad said EVI is increasingly focused on operational optimization and enterprise-wide coordination. He said the company has substantially completed the deployment of its ERP system, field service platform and business intelligence capabilities.
Those investments are giving EVI “significantly greater operational visibility and data-driven insight” across the organization, Nahmad said, adding that the company sees opportunities to improve coordination, process execution, inventory management, labor utilization and overall operating efficiency.
“We believe this represents an important transition for EVI,” Nahmad said. “Building upon this foundation, we are increasingly leveraging our technology investments and operating infrastructure to create a more coordinated enterprise.”
He said the company expects these efforts to improve operating leverage, strengthen working capital efficiency, enhance the customer experience and create additional growth opportunities over time.
Weather and Project Timing Delayed Some Fulfillment
Although EVI delivered record revenue for the quarter and nine-month period, Nahmad said revenue fulfillment during the quarter was affected by severe weather, customer facility readiness delays and installation timing issues.
He said the company does not believe those issues indicate weaker customer demand. In many cases, projects were delayed rather than lost, and “a significant portion” of affected orders remains in backlog and is expected to be fulfilled in future periods.
At the same time, EVI reported sequential improvement in selling, general and administrative expenses. Nahmad said SG&A declined during the quarter, primarily due to lower general and administrative expenses, even with costs related to the acquisition of Belenky included in the period.
He attributed the improvement to operating discipline, process improvements, facility consolidation efforts and better enterprise coordination.
Service Platform Shows Productivity Gains
EVI also reported progress in its service operations. Nahmad said service appointments supported by the company’s field service platform increased approximately 9% sequentially to more than 27,500 appointments across more than 10,600 customers. Technician productivity improved approximately 3% during the quarter.
Nahmad said those metrics point to improving operational execution and stronger customer engagement. He also said EVI’s service organization, knowledge of installed equipment, local market presence and recurring customer contact create opportunities to strengthen relationships and expand repeat purchasing activity.
The company is also developing adjacent growth opportunities within its existing customer base. Nahmad cited Premier Chemical Solutions, which was developed organically within one of EVI’s business units, as one example. While still relatively small, he said the business is growing rapidly, adding customers and maintaining very low attrition rates.
Nahmad said Premier Chemical Solutions demonstrates how EVI can use its customer relationships, service organization and installed equipment knowledge to pursue high-margin, repeat purchasing opportunities with relatively low capital investment and customer acquisition costs.
Inventory Rises as Acquisition Strategy Remains Active
Inventory increased during the quarter, which Nahmad attributed primarily to customer project timing, larger industrial installations expected to be delivered in the fourth fiscal quarter, and proactive purchasing tied to anticipated manufacturer price increases and tariffs.
Approximately 65% of EVI’s equipment inventory across its four operating regions is allocated to confirmed customer sales order contracts, according to Nahmad. He said that shows a substantial portion of inventory is tied to identified customer demand and future revenue fulfillment.
As part of its operational optimization initiatives, EVI is focusing on demand planning, inventory visibility and coordination with OEM and supply chain partners. Nahmad said the company believes those efforts can improve procurement and fulfillment efficiency, strengthen working capital management and support more consistent operating cash flow generation.
EVI also completed the acquisition of Belenky during the quarter, making it the 32nd business to join the company. Nahmad said EVI continues to evaluate acquisition and investment opportunities both within and around the commercial laundry industry.
“We remain very optimistic about the future of EVI,” Nahmad said, citing the company’s expanded service organization, customer relationships and investments in technology and operating infrastructure as drivers of future operational improvement and long-term value creation.
About EVI Industries (NYSEAMERICAN:EVI)
EVI Industries, Inc, through its subsidiaries, engages in the distribution, sale, rental, and lease of commercial and industrial laundry and dry-cleaning equipment in the United States, Canada, the Caribbean, and Latin America. The company sells and/or leases commercial laundry equipment specializing in washing, drying, finishing, material handling, water heating, power generation, and water reuse applications. It offers washroom equipment, such as washers and dryers, tunnel systems, and vended machines; finishing equipment comprising sheet feeders, flatwork ironers, automatic sheet folders, and stackers; and material handling equipment, including conveyor and rail systems.
