Shares of EVI Industries, Inc. (EVI Quick QuoteEVI - Free Report) have gained 11.2% since the company reported its earnings for the quarter ended March 31, 2025, outpacing the S&P 500’s 4% rise during the same period. However, over the past month, EVI stock trailed the broader market, climbing 8.8% compared with the S&P 500’s 11.2% gain, reflecting some divergence in short-term sentiment despite solid quarterly results.

For the fiscal third quarter ended March 31, 2025, EVI reported earnings per share of 7 cents, up from 6 cents in the prior-year quarter. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

The company reported an 11% year-over-year increase in revenues to $93.5 million from $84 million. Gross profit also rose 9% to a record $28.1 million from $25.8 million, although gross margin slipped slightly to 30% from 30.7%. 

Net income came in at $1 million, a modest increase from $0.96 million a year earlier. Adjusted EBITDA rose to $5.1 million from $4.9 million, though EBITDA margin dipped to 5.4% from 5.9%, as the company absorbed increased operating expenses tied to its growth initiatives.

EVI Industries, Inc. Price, Consensus and EPS Surprise

EVI Industries, Inc. price-consensus-eps-surprise-chart | EVI Industries, Inc. Quote

Operational Metrics Reflect Strategic Investments

EVI’s continued investment in personnel and technology influenced its expense structure. Selling, General and Administrative (SG&A) expenses rose 10% in the quarter to $25.8 million, driven by higher commissionable sales, recent acquisitions and one-time charges related to its largest-ever acquisition. Despite these pressures, cash flow from operations stood strong at $9.1 million, contributing to a $5.9 million, or 25%, reduction in net debt compared to the prior quarter.

Management Emphasizes Technology and Organic Growth

Management underscored progress in EVI’s digital transformation initiative, including substantial completion of its field service technology rollout and further development of a proprietary e-commerce platform and customer relationship management system. These efforts aim to enhance efficiency and customer experience across its 425-person service team, reportedly the largest in the commercial laundry industry. Leadership remains committed to disciplined financial management while maintaining a growth-oriented culture backed by strategic investments.

Key Drivers Behind Revenue Trends

Revenue growth was fueled by steady, repeatable unit sales across both On-Premise Laundry (OPL) and Vended verticals. The company noted an increase in average selling prices for Vended units, aligning with broader market trends. However, the average selling price for OPL units declined, as smaller machine sales outpaced larger systems. Notably, sales from large industrial projects made up a smaller portion of the mix this quarter. Still, management indicated that the backlog of signed large projects remains healthy, supporting future revenue visibility.

Other Developments: GNA Acquisition Anchors Expansion

In a significant post-quarter move, EVI completed its acquisition of Girbau North America, Inc. (GNA) on April 1, 2025. The deal, announced in early March, represents the largest in EVI’s history and is expected to materially increase both revenue and operating profit. GNA, a master distributor with strong supplier relationships and operational infrastructure, brings enhanced scale to EVI’s platform. In addition to GNA, the company completed three other acquisitions during the nine-month period, expanding its geographic footprint in Illinois, Florida and Indiana. These moves reinforce EVI’s buy-and-build strategy and support its stated goal of becoming the market leader in North American commercial laundry distribution and service.