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EVI Industries Q1 Earnings Rise Y/Y on Strong Service Growth
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Shares of EVI Industries, Inc. (EVI - Free Report) have gained 4.9% since the company reported its earnings for the quarter ended Sept. 30, 2026, outperforming the S&P 500 index’s 3.3% growth over the same period. Over the past month, EVI shares have surged 14.3% against the S&P 500’s 2% decline.
EVI reported first-quarter fiscal 2027 earnings per share of 24 cents, which increased from 11 cents a year earlier.
Revenues of $113 million denoted a 4.3% rise from $108.3 million in the year-ago quarter.
Net income surged 108.3% year over year to $3.9 million from $1.9 million. Gross profit rose 12.2% to $38 million, while gross margin expanded 240 basis points to 33.7%. Operating income jumped 75% to $6.2 million.
EVI Industries, Inc. Price, Consensus and EPS Surprise
Adjusted EBITDA increased 47% year over year to $9.9 million, with the corresponding margin expanding to 8.8% from 6.2%.
The Commercial Laundry segment recorded operating income of $11.3 million, up 38% year over year. Segment EBITDA increased 33% to $13.4 million, while EBITDA margin improved to 12.1% from 9.3%.
Balance Sheet and Cash Flow Update
EVI Industries ended Sept. 30, 2026, with cash of $8.3 million, up from $6.8 million as of June 30, 2026.
Total assets increased to $360.5 million from $304.5 million,
Long-term debt increased to $85 million from $51 million. Net debt rose to $76.7 million from $44.2 million, primarily reflecting borrowings associated with the Sudsies acquisition.
Net cash provided by operating activities increased significantly to $7.8 million in the first quarter of fiscal 2027 from $1 million in the year-ago quarter,
EVI's Management Commentary
Chairman and CEO Henry M. Nahmad attributed the improved results to customer service execution, operational improvements and investments in business capabilities.
Management emphasized the importance of recurring customer relationships supported by equipment installation, maintenance, repair and parts distribution.
During the quarter, EVI completed approximately 31,000 field service appointments for nearly 12,000 unique customers, highlighting the scale of its service operations.
The company continues investing in employee development, technology and operational processes to improve productivity and customer retention.
Factors Influencing EVI's Quarterly Performance
Commercial laundry revenues increased 2.9% year over year, supported primarily by stronger parts, service and installation activities.
A favorable revenue mix and improved field service profitability contributed substantially to gross profit growth. Approximately $2.7 million of the $4.1 million increase in gross profit translated into higher operating income.
EVI also benefited from approximately $0.5 million in tariff refunds, which reduced cost of sales.
Nevertheless, higher personnel investments and corporate expenses partially offset profitability improvements. Management also cautioned that equipment purchasing patterns, project timing, tariffs and supplier costs could create quarterly fluctuations. Equipment backlog increased sequentially.
EVI's Outlook and Growth Priorities
Management reiterated its long-term objective of achieving double-digit consolidated operating margins, supported by service expansion, productivity improvements and disciplined expense management.
The company expects its technology investments and operational initiatives to generate additional efficiency gains as revenues expand.
Other Developments
On Sept. 1, 2026, EVI acquired Sudsies, Inc., establishing its Consumer Garment Care Services division. The acquisition contributed approximately $1.6 million in revenues during September.
Following the quarter, EVI acquired Florida-based Commercial Laundry Equipment, adding 18 employees and expanding its commercial laundry presence in the state.
The company continues evaluating acquisitions across both business segments, emphasizing disciplined integration and long-term operational development.
Image: Zacks
EVI Industries Q1 Earnings Rise Y/Y on Strong Service Growth
Shares of EVI Industries, Inc. (EVI - Free Report) have gained 4.9% since the company reported its earnings for the quarter ended Sept. 30, 2026, outperforming the S&P 500 index’s 3.3% growth over the same period. Over the past month, EVI shares have surged 14.3% against the S&P 500’s 2% decline.
EVI reported first-quarter fiscal 2027 earnings per share of 24 cents, which increased from 11 cents a year earlier.
Revenues of $113 million denoted a 4.3% rise from $108.3 million in the year-ago quarter.
Net income surged 108.3% year over year to $3.9 million from $1.9 million. Gross profit rose 12.2% to $38 million, while gross margin expanded 240 basis points to 33.7%. Operating income jumped 75% to $6.2 million.
EVI Industries, Inc. Price, Consensus and EPS Surprise
EVI Industries, Inc. price-consensus-eps-surprise-chart | EVI Industries, Inc. Quote
EVI's Other Key Business Metrics
Adjusted EBITDA increased 47% year over year to $9.9 million, with the corresponding margin expanding to 8.8% from 6.2%.
The Commercial Laundry segment recorded operating income of $11.3 million, up 38% year over year. Segment EBITDA increased 33% to $13.4 million, while EBITDA margin improved to 12.1% from 9.3%.
Balance Sheet and Cash Flow Update
EVI Industries ended Sept. 30, 2026, with cash of $8.3 million, up from $6.8 million as of June 30, 2026.
Total assets increased to $360.5 million from $304.5 million,
Long-term debt increased to $85 million from $51 million. Net debt rose to $76.7 million from $44.2 million, primarily reflecting borrowings associated with the Sudsies acquisition.
Net cash provided by operating activities increased significantly to $7.8 million in the first quarter of fiscal 2027 from $1 million in the year-ago quarter,
EVI's Management Commentary
Chairman and CEO Henry M. Nahmad attributed the improved results to customer service execution, operational improvements and investments in business capabilities.
Management emphasized the importance of recurring customer relationships supported by equipment installation, maintenance, repair and parts distribution.
During the quarter, EVI completed approximately 31,000 field service appointments for nearly 12,000 unique customers, highlighting the scale of its service operations.
The company continues investing in employee development, technology and operational processes to improve productivity and customer retention.
Factors Influencing EVI's Quarterly Performance
Commercial laundry revenues increased 2.9% year over year, supported primarily by stronger parts, service and installation activities.
A favorable revenue mix and improved field service profitability contributed substantially to gross profit growth. Approximately $2.7 million of the $4.1 million increase in gross profit translated into higher operating income.
EVI also benefited from approximately $0.5 million in tariff refunds, which reduced cost of sales.
Nevertheless, higher personnel investments and corporate expenses partially offset profitability improvements. Management also cautioned that equipment purchasing patterns, project timing, tariffs and supplier costs could create quarterly fluctuations. Equipment backlog increased sequentially.
EVI's Outlook and Growth Priorities
Management reiterated its long-term objective of achieving double-digit consolidated operating margins, supported by service expansion, productivity improvements and disciplined expense management.
The company expects its technology investments and operational initiatives to generate additional efficiency gains as revenues expand.
Other Developments
On Sept. 1, 2026, EVI acquired Sudsies, Inc., establishing its Consumer Garment Care Services division. The acquisition contributed approximately $1.6 million in revenues during September.
Following the quarter, EVI acquired Florida-based Commercial Laundry Equipment, adding 18 employees and expanding its commercial laundry presence in the state.
The company continues evaluating acquisitions across both business segments, emphasizing disciplined integration and long-term operational development.