EVI Industries (NYSEAMERICAN:EVI) said fiscal 2026 was the strongest year in its history, citing record revenue, gross profit and gross margin, alongside operating cash flow generation and continued acquisition activity.
Chairman and Chief Executive Officer Henry Nahmad said the company generated approximately $447 million in revenue and $141 million in gross profit for the fiscal year ended June 30, 2026. Gross margin reached a record 31.5%, with gross profit growing faster than revenue, according to Nahmad.
Fourth-Quarter Operating Leverage
Nahmad highlighted operating leverage in the fourth quarter, stating that EVI’s commercial laundry operating businesses generated an adjusted EBITDA margin above 10% before corporate expense, with the adjustment solely reflecting stock-based compensation expense.
He said corporate expenses largely represent infrastructure shared across the company’s operating businesses, including investments in personnel, technology, processes and capabilities. The company views those investments as tools to improve the customer experience and support its decentralized operating model, rather than simply as mechanisms to reduce costs.
EVI plans to continue using technology to support local operating leaders, Nahmad said. He cited better information for managers, technician productivity, job costing, inventory decisions and coordination among businesses as areas where the company is putting its investments to work.
The company also identified a customer relationship management system as a capability still under development. Nahmad said EVI believes a CRM could provide its sales organization with improved visibility into customer relationships, needs and opportunities across the enterprise.
Commercial Laundry Remains Core Business
Commercial laundry remains EVI’s foundation, Nahmad said. He described the sector as one with recurring needs for equipment, service, replacement parts, consumables and maintenance across multifamily, vended, on-premise and industrial laundry markets.
The company said its operating businesses provide system planning and design, equipment and product specifications, installation and commissioning, and ongoing support including parts, maintenance, repairs, chemicals and technical expertise.
Nahmad said EVI is focused on building deeper customer relationships through service and problem-solving rather than operating as a purely transactional equipment distributor. The company is seeking to preserve the local decision-making, accountability and market knowledge of its operating businesses while offering them access to capital, technology, specialized talent and broader corporate resources.
Acquisitions and Consumer Garment Care Expansion
During fiscal 2026 and shortly after year-end, EVI completed three acquisitions: two in commercial laundry and one that established its consumer garment care services division.
Nahmad characterized the new division as an expansion within the broader laundry market rather than a move away from commercial laundry. Sudsies, the company’s first consumer garment care business, provides the initial platform for the division. He said Sudsies is built around craftsmanship, quality, convenience, technology-enabled logistics and relationships with consumers and luxury retail partners, while its founders and leadership remain involved.
EVI sees consumer garment care as a large and fragmented market with independent operators and local brands. Nahmad said the company intends to remain disciplined while pursuing an opportunity to build a second division with meaningful earnings and cash flow.
The company entered fiscal 2027 with what Nahmad called a substantial pipeline of acquisition conversations across its areas of focus. He said EVI is evaluating a meaningful number of opportunities but will continue to assess potential deals based on people, culture, economics and strategic fit.
Cash Flow and Balance Sheet
EVI generated approximately $21 million in operating cash flow during fiscal 2026 and ended June with approximately $44 million in net debt, essentially unchanged from the prior year despite completing two acquisitions and continuing to invest in the enterprise, Nahmad said.
He said the company views financial flexibility as strategic because acquisition opportunities may not arise on a predictable schedule. More than half of EVI is collectively owned by executives and the original owners of businesses that have joined the company, according to Nahmad.
Over the past decade, EVI’s revenue has grown more than tenfold and the company has completed more than 30 acquisitions, Nahmad said. Looking ahead, he said EVI sees opportunities to grow commercial laundry organically, expand recurring service and consumables revenue, acquire additional businesses and improve profitability, while developing the consumer garment care division.
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.
