Shares of EVI Industries, Inc. (EVI Quick QuoteEVI - Free Report) have declined 15.8% since the company reported results for the quarter ended March 31, 2026, underperforming the S&P 500 Index, which was essentially flat over the same period. Over the past month, EVI shares have fallen 20.8% compared to a 5% gain for the broader market.

EVI reported third-quarter fiscal 2026 net income of 5 cents per share, which declined from 7 cents per share in the prior-year quarter.

Revenues of $101.1 million denoted an 8% rise from $93.5 million in the year-ago quarter, while gross profit rose 17% to a record $32.8 million. 

Gross margin expanded to a record 32.5% from 30% a year earlier. 
However, net income declined to $0.8 million from $1 million in the prior-year quarter.

Operating income was essentially flat at $2.3 million, while adjusted EBITDA increased 11% to $5.6 million.

EVI Industries, Inc. Price, Consensus and EPS Surprise

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

EVI’s Margin Expansion and Operational Metrics

The company attributed its revenue growth primarily to contributions from acquired businesses, market-share gains and expanded service capabilities. Despite weather-related disruptions and delays in customer facility readiness and installations, EVI still delivered record quarterly revenues. Management noted that many delayed projects remain in the backlog and are expected to be fulfilled in future periods.

Operational modernization initiatives continued to gain traction during the quarter. 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, measured by jobs completed per technician per day, improved 3%. Management said that these improvements reflect stronger operational execution and customer engagement.

EVI also highlighted recurring revenue opportunities within its installed customer base. Premier Chemical Solutions, a division focused on chemicals and detergents for commercial laundry operations, increased sales revenues by 49% during the first nine months of fiscal 2026. The division added roughly 12 new customer accounts per month while maintaining customer attrition below 1%. Management believes the business demonstrates the company’s ability to generate higher-margin repeat purchasing activity with limited incremental acquisition costs.

EVI: Management Commentary and Strategic Focus

Chairman and CEO Henry Nahmad said that EVI is entering a new phase centered on operational optimization and enterprise-wide coordination after years of expansion through acquisitions. The company has substantially completed deployment of its enterprise resource planning system, field service platform and business intelligence capabilities, which management believes will improve scalability, efficiency and customer responsiveness.

Nahmad said that investments in technology, inventory management and operational coordination are intended to improve operating leverage and long-term profitability. Management also pointed to declining sequential selling, general and administrative expenses, which fell approximately $0.7 million from the second fiscal quarter despite costs related to the acquisition of Belenky, Inc.

Working Capital and Financial Position of EVI

Inventory levels increased during the quarter to support confirmed customer sales orders, including larger industrial projects expected to be delivered in the fourth fiscal quarter. Inventory was also affected by manufacturer price increases tied to tariffs and inflation, as well as proactive purchasing actions ahead of anticipated pricing changes. Approximately 65% of equipment inventory across the company’s four operating regions was allocated to confirmed customer sales contracts.

As of March 31, 2026, cash totaled $4.3 million compared with $8.9 million as of June 30, 2025. Inventories increased to $80.2 million from $66.1 million, while long-term debt rose to $60 million from $53 million. Net cash provided by operating activities for the first nine months of fiscal 2026 was $7.2 million, down from $11.3 million in the prior-year period.

Other Developments at EVI

During the quarter, EVI completed the acquisition of Belenky, Inc., an Akron, Ohio-based distributor of commercial laundry products and related services. The transaction marked the 32nd commercial laundry business acquired by EVI since the launch of its buy-and-build strategy. Management said that the acquisition expands the company’s presence in Ohio and aligns with its strategy of maintaining local leadership while leveraging EVI’s operational infrastructure and technology investments.