EVI

Shares of EVI Industries, Inc. EVI 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-eps-surprise-chart | EVI Industries, Inc. Quote 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. 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. 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. 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. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report EVI Industries, Inc. (EVI): Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Record revenue and gross profit reflect continued enterprise growth and progress in operational optimization, customer engagement, and long-term scalability initiatives. MIAMI, May 11, 2026--(BUSINESS WIRE)--EVI Industries, Inc. (NYSE American: EVI) announced today its operating results for the third quarter of the fiscal year ending June 30, 2026. The Company also provided updates on its long-term growth strategy and ongoing operational optimization, process improvement, and enterprise-wide coordination initiatives intended to improve scalability, efficiency, customer experience, and long-term operating performance. Since commencing the execution of its long-term growth strategy in 2016, EVI has evolved from a single-location business in Florida with 32 employees into a leading North American commercial laundry distribution and service enterprise encompassing 32 businesses and approximately 900 associates, including more than 200 sales professionals and over 425 service personnel. Through disciplined acquisitions, operational investment, and the continued expansion of its service and infrastructure capabilities, EVI has generated compounded annual growth rates of approximately 29% in revenue, 15% in net income, and 26% in adjusted EBITDA over such ten-year period. During this period, the Company has also focused on improving the quality and profitability of its revenue base, contributing to gross margin expansion from approximately 23% in fiscal 2019 to 32.5% and 31.5% for the three and nine-month periods ended March 31, 2026, respectively. As EVI’s enterprise has expanded, management’s focus has increasingly shifted toward operational optimization across the enterprise. The Company has substantially completed the deployment of its ERP system, field service platform, and business intelligence capabilities, which management believes provide the operational visibility and data-driven insight necessary to support a new phase focused on process improvement, operational coordination, and enterprise-wide efficiency initiatives. Management aims to improve coordination both upstream with manufacturers and supply chain partners and downstream with customers in an effort to reduce operational redundancies, increase labor utilization, enhance customer responsiveness, improve inventory efficiency, and create additional opportunities to expand market share and repeat customer purchasing activity over time. Management believes these initiatives position EVI to improve operating leverage, profitability, and long-term cash flow generation as the enterprise continues to mature. While revenues for the third fiscal quarter were adversely affected by disruptions associated with severe weather conditions and delays in customer facility readiness, delivery, and installation schedules, EVI nonetheless delivered record revenues for both the three and nine-month periods ended March 31, 2026, reflecting the Company’s expanded operating enterprise, contributions from acquired businesses, and continued market share gains. During the quarter, the Company also continued advancing operational modernization and process improvement initiatives focused on customer experience, coordination, working capital efficiency, and scalable infrastructure. Management believes these initiatives are strengthening EVI’s operating foundation and positioning the enterprise to improve long-term operating leverage, repeat customer revenue generation, and profitability. Third Fiscal Quarter Performance Compared to the three months ended March 31, 2025 Revenue increased 8% to a record $101.1 million, Gross Profit increased 17% to a record $32.8 million, representing a record gross margin of 32.5%, Operating Income remained flat at $2.3 million, Net Income was $0.8 million compared to $1.0 million, and Adjusted EBITDA increased 11% to $5.6 million, or 5.5% of revenue. Nine-Months Performance Compared to the nine months ended March 31, 2025 Revenue increased 16% to a record $324.7 million, Gross Profit increased 21% to a record $102.2 million, representing a record gross margin of 31.5%, Operating Income increased 4% to $10.1 million, Net Income was $5.0 million compared to $5.4 million, and Adjusted EBITDA increased 12% to a record $20.0 million, or 6.2% of revenue. Revenue for the third fiscal quarter and nine-month period reached record levels, driven primarily by contributions from acquired businesses and supported by ongoing initiatives to expand market share, strengthen customer relationships, and enhance service capabilities across the enterprise. Selling, general and administrative expenses decreased approximately $0.7 million compared to the second fiscal quarter, all of which was the result of a decrease in general and administrative expenses, notwithstanding the inclusion of one month of expenses associated with the acquisition of Belenky, Inc. Management believes these improvements reflect increasing operating discipline, process improvements, facility consolidation efforts, and technology-enabled coordination initiatives designed to improve scalability, efficiency, and long-term operating leverage across the enterprise. Henry Nahmad, Chairman and Chief Executive Officer, commented: "Over the past decade, EVI has built a significantly larger and more capable enterprise through disciplined acquisitions, operational investment, and a long-term commitment to customer service. As our enterprise continues to mature, we believe we are entering a new phase focused on operational optimization, process improvement, and enterprise-wide coordination initiatives intended to improve scalability, efficiency, customer experience, and long-term operating performance." Mr. Nahmad continued, "While certain factors affected the pace at which revenue was fulfilled during the quarter, we continued to make encouraging progress strengthening the quality and economics of the enterprise. We believe our investments in technology, field service operations, business intelligence capabilities, inventory management, and operational coordination are positioning EVI to improve operating leverage, enhance customer engagement, expand repeat purchasing activity across our installed customer base, and generate increasing long-term value over time." Customer Experience, Field Service Technology and Modernization Initiatives The Company continues to invest in operational modernization initiatives intended to improve the customer experience and strengthen operational coordination across the enterprise and the Company’s supply chain. As these technologies become more broadly deployed and utilized across the organization, management is increasingly focused on process improvement and operational execution intended to enhance efficiency, scalability, and customer engagement. During the quarter, the Company continued expanding the use of its field service technologies and integrated analytics capabilities, which management believes are contributing to measurable operational improvements and stronger customer engagement. Total service appointments supported by the field service platform increased approximately 9% compared to the second fiscal quarter to more than 27,500 appointments across more than 10,600 customers, while technician productivity, measured by jobs completed per technician per day, improved 3%. Management believes EVI’s recurring customer relationships are an important component of the Company’s long-term growth opportunity. Over 75% of customers that purchased parts during the quarter had purchased from EVI within the last three years, which management believes demonstrates the recurring nature of many customer relationships, the importance of EVI’s service organization, and the value of the Company’s installed equipment knowledge. Organic Growth and Recurring Revenue Opportunities The Company continues to identify opportunities to create repeat customer revenue opportunities across its growing customer base. One example is Premier Chemical Solutions; a division developed within one of the Company’s 32 business units to serve customer demand for chemicals and detergents used in commercial laundry operations. Consistent with EVI’s entrepreneurial culture, local leadership identified the opportunity and organized dedicated management, sales, and service resources to support its growth. For the nine months ended March 31, 2026, Premier Chemical Solutions increased chemical and detergent sales revenue by 49% compared to the same period of the prior fiscal year. The division has added approximately 12 new customer accounts per month during the fiscal year, while maintaining customer attrition below 1.0%. Management believes these results demonstrate EVI’s ability to leverage its customer relationships, installed equipment knowledge, service organization, and local market presence to expand higher-margin repeat purchasing activity with relatively limited incremental customer acquisition costs and capital investment. Importantly, Premier Chemical Solutions currently operates within only one of EVI’s 32 business units, and management believes broader cross-selling opportunities may exist across the Company’s broader installed customer base. Working Capital and Financial Strength Inventory balances increased during the quarter, reflecting higher working capital investment associated with confirmed customer sales order contracts, including certain larger industrial projects anticipated to be delivered during the fourth fiscal quarter. Inventory balances also increased due in part to manufacturer price increases associated with rising costs and tariffs, as well as the Company’s decision to purchase certain equipment inventory in advance of anticipated pricing actions and customer delivery requirements. Across the Company’s four operating regions, excluding the Company’s master distributor operations, approximately 65% of equipment inventory is currently allocated to confirmed customer sales order contracts, which management believes demonstrates that a substantial portion of inventory is tied to identified customer demand and future revenue fulfillment. As part of the Company’s broader operational optimization efforts, management continues to focus on improving demand planning, inventory visibility, and coordination with OEM and supply chain partners in an effort to enhance procurement and fulfillment efficiency, improve working capital management, and support more consistent long-term operating cash flow generation. EVI continues to operate from a position of financial strength and flexibility, with a balance sheet and liquidity profile that management believes supports continued investment in technology, service capabilities, organic growth opportunities, working capital, and acquisition activity. Buy-and-Build Growth Strategy During the quarter, EVI completed the acquisition of Belenky, Inc., an Akron, Ohio-based distributor of commercial laundry products and provider of related installation and maintenance services. Belenky represents the 32nd commercial laundry business to join the EVI family and further expands the Company’s presence in Ohio. Consistent with EVI’s entrepreneurial operating model, acquired businesses generally operate with local leadership and decision-making authority while benefiting from the Company’s capital resources, technology investments, operating infrastructure, and strategic support. EVI believes preserving the relationships, culture, and market expertise of acquired businesses is an important component of long-term value creation. The Company continues to evaluate acquisition and investment opportunities in and around the commercial laundry industry. Management believes EVI’s reputation, long-term approach to enterprise building, operational experience, and credibility as a disciplined and trusted acquirer position the Company to continue pursuing attractive growth opportunities. Earnings Call and Additional Information The Company has provided a pre-recorded earnings conference call, including a business update, which can be accessed under "Financial Info" in the "Investors" section of the Company’s website at www.evi-ind.com or by visiting https://ir.evi-ind.com/message-from-the-ceo. For additional information regarding the Company’s results for the quarter ended March 31, 2026, please see the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, as filed with the Securities and Exchange Commission on or about the date hereof. Use of Non-GAAP Financial Information In this press release, EVI discloses the non-GAAP financial measure of adjusted EBITDA, which EVI defines as earnings before interest, taxes, depreciation, amortization, and amortization of stock-based compensation. Adjusted EBITDA is determined by adding interest expense, income taxes, depreciation, amortization, and amortization of stock-based compensation to net income, as shown in the attached statement of Condensed Consolidated Earnings before Interest, Taxes, Depreciation, Amortization, and Amortization of Stock-based Compensation. EVI considers adjusted EBITDA to be an important indicator of its operating performance. Adjusted EBITDA is also used by companies, lenders, investors and others because it excludes certain items that can vary widely across different industries or among companies within the same industry. For example, interest expense can be dependent on a company’s capital structure, debt levels and credit ratings, and the tax positions of companies can vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. Adjusted EBITDA should not be considered as an alternative to net income or any other measure of financial performance or liquidity, including cash flow, derived in accordance with GAAP, or to any other method of analyzing EVI’s results as reported under GAAP. About EVI Industries EVI Industries, Inc., through its wholly owned subsidiaries, is a value-added distributor and a provider of advisory and technical services. Through its vast sales organization, the Company provides its customers with planning, designing, and consulting services related to their commercial laundry operations. The Company sells and/or leases its customers commercial laundry equipment, specializing in washing, drying, finishing, material handling, water heating, power generation, and water reuse applications. In support of the suite of products it offers, the Company sells related parts and accessories. Additionally, through the Company’s robust network of commercial laundry technicians, the Company provides its customers with installation, maintenance, and repair services. The Company’s customers include retail, commercial, industrial, institutional, and government customers. Purchases made by customers range from parts and accessories to single or multiple units of equipment, to large complex systems as well as the purchase of the Company’s installation, maintenance, and repair services. Safe Harbor Statement Except for the historical matters contained herein, statements in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as "may," "should," "could," "seek," "believe," "expect," "anticipate," "estimate," "project," "intend," "strategy" and similar expressions are intended to identify forward looking statements. Forward looking statements may relate to, among other things, events, conditions, and trends that may affect the future plans, operations, business, strategies, operating results, financial position and prospects of the Company. Forward looking statements are subject to a number of known and unknown risks and uncertainties that may cause actual results, trends, performance or achievements of the Company, or industry trends and results, to differ materially from the future results, trends, performance or achievements expressed or implied by such forward looking statements. These risks and uncertainties include, among others, those associated with: general economic and business conditions in the United States and other countries where the Company operates or where the Company’s customers or suppliers are located; economic uncertainty, including as it relates to governmental measures such as tariffs, including legislation and judicial decisions with respect thereto, and their effect on the pricing and demand for, and availability of, the Company’s products, global trading markets, credit markets, industry conditions, economic conditions generally or otherwise on the Company and its business and results; currency exchange fluctuations, including that a weakening of the U.S. dollar would result in increased costs, which in turn would negatively affect the Company’s operating results; industry conditions and trends; credit market volatility; risks related to supply chain delays and disruptions and their impact on the Company’s business and results, including the Company’s ability to deliver products and services to its customers on a timely basis; risks relating to inflation and other price increases (including due to the imposition of tariffs), and their impact on the Company’s costs and results (including that, if desired, the Company may not be able to successfully increase the price of its products and services to offset such costs, in whole or in part, and that price increases may result in reduced demand for the Company’s products and services); risks related to interest rate increases, including the impact thereof on the cost of the Company’s indebtedness and the Company’s ability to raise capital if deemed necessary or advisable; risks associated with international relations and international hostilities, including any escalation or worsening thereof, and their impact on economic conditions; the Company’s ability to implement its business and growth strategies and plans, including changes thereto; risks and uncertainties associated with the Company’s "buy-and-build" growth strategy, including, without limitation, that the Company may not be successful in identifying or consummating acquisitions or other strategic transactions, integration risks, risks related to indebtedness incurred by the Company in connection with the financing of acquisitions and other strategic transactions, dilution experienced by the Company’s existing stockholders as a result of the issuance of shares of the Company’s common stock in connection with acquisitions or other strategic transactions (or for other purposes), risks related to the business, results, operations and prospects of acquired businesses, risks that suppliers of the acquired business may not consent to the transaction or otherwise continue its relationship with the acquired business following the transaction and the impact that the loss of any such supplier may have on the results of the Company and the acquired business, risks that the Company’s goals or expectations with respect to acquisitions and other strategic transactions may not be met, and risks related to the accounting for acquisitions; risks that initiatives and investments, including, without limitation, investments in acquired businesses and technology and modernization initiatives (including customer service, process improvement, working capital optimization and other initiatives and investments described in this press release), may not result in the benefits anticipated; sales contracts, including for parts and equipment held in inventory, and projects may not be completed when expected; the Company’s sales of chemicals and detergents may not expand as anticipated or at all, and may not be indicative of other potential value creation opportunities; the impact of measures which the Company may take from time to time in connection with its expansion efforts and pursuit of market share growth, including that they may not be successful and may adversely impact the Company’s gross margin and other financial results; technology changes; competition, including the Company’s ability to compete effectively and the impact that competition may have on the Company and its results, including the prices which the Company may charge for its products and services and on the Company’s profit margins, and competition for qualified employees; risks relating to the Company’s relationships with its principal suppliers and customers, including the impact of the loss of any such relationship; risks related to the Company’s indebtedness; the availability, terms and deployment of debt and equity capital if needed for expansion or otherwise; and risks of cybersecurity threats or incidents, including the potential misappropriation or use of assets or confidential information, corruption of data or operational disruptions. Reference is also made to the other economic, competitive, governmental, technological and other risks and factors discussed in the Company’s filings with the SEC, including, without limitation, in the "Risk Factors" section of the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2025. Many of these risks and factors are beyond the Company’s control. Further, past performance and perceived trends may not be indicative of future results. The Company cautions that the foregoing factors are not exclusive. The reader should not place undue reliance on any forward-looking statement, which speaks only as of the date made. The Company does not undertake to, and specifically disclaims any obligation to, update, revise or supplement any forward-looking statement, whether as a result of changes in circumstances, new information, subsequent events or otherwise, except as may be required by law. EVI Industries, Inc. Condensed Consolidated Results of Operations (in thousands, except per share data) EVI Industries, Inc. Condensed Consolidated Balance Sheets (in thousands, except per share data) EVI Industries, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) EVI Industries, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) The following table reconciles net income, the most comparable GAAP financial measure, to Adjusted EBITDA. EVI Industries, Inc. Condensed Consolidated Earnings before Interest, Taxes, Depreciation, Amortization, and Amortization of Stock-based Compensation (in thousands) View source version on businesswire.com: https://www.businesswire.com/news/home/20260511944629/en/ Contacts EVI Industries, Inc. Henry M. Nahmad Chairman and CEO (305) 402-9300 Craig Ettelman Director of Finance and Investor Relations (305) 402-9300 [email protected]

This article first appeared on GuruFocus. Release Date: May 11, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. EVI Industries Inc (EVI) achieved record financial results, including record revenue, gross profit, and gross margin for the three and nine-month periods ended March 31. The company has transformed from a single-location business in Florida to a leading commercial laundry distribution and service enterprise in North America, with 32 businesses and approximately 900 associates. EVI Industries Inc (EVI) has generated compounded annual growth rates of approximately 29% in revenue, 15% in net income, and 26% in adjusted EBITDA since 2016. The deployment of ERP systems, field service platforms, and business intelligence capabilities has improved operational visibility and efficiency across the organization. The acquisition strategy remains active, with the recent acquisition of Balenki, marking the 32nd business to join the EVI enterprise. Revenue fulfillment was affected by severe weather conditions, customer facility readiness delays, and installation timing issues during the quarter. Inventory levels increased due to customer project timing and proactive purchasing actions, which could impact working capital management. Despite improvements, there are still challenges in achieving optimal demand planning and inventory visibility. The pace of operational optimization and enterprise-wide coordination initiatives may take time to fully realize intended benefits. There is a reliance on acquisitions for growth, which may pose integration challenges and require significant resources. Warning! GuruFocus has detected 5 Warning Signs with EVI. Is EVI fairly valued? Test your thesis with our free DCF calculator. Q: Can you elaborate on the factors that contributed to the record financial results for the quarter? A: Henry Nahmid, Chairman and CEO, explained that the record financial results were driven by the continued expansion of EVI's enterprise, enduring demand for their products and services, and the value delivered to customers across North America. The company has transformed significantly over the past decade, growing from a single-location business to a leading commercial laundry distribution and service enterprise with 32 businesses and approximately 900 associates. Q: How has EVI's gross margin evolved over recent years? A: Henry Nahmid noted that EVI has significantly improved its gross margin from approximately 23% in fiscal 2019 to 32.5% and 31.5% for the three and nine-month periods ended March 31, respectively. This improvement reflects the company's strategic growth and operational enhancements. Q: What operational improvements have been made to support EVI's growth? A: Henry Nahmid highlighted that EVI has completed the deployment of its ERP system, field service platform, and business intelligence capabilities. These investments provide greater operational visibility and data-driven insights, improving coordination, process execution, inventory management, labor utilization, and overall operational efficiency. Q: How is EVI addressing the temporary disruptions in revenue fulfillment? A: Henry Nahmid stated that the disruptions were due to severe weather conditions, customer facility readiness delays, and installation timing issues. However, these factors do not indicate a decline in customer demand, as many projects were delayed rather than lost. A significant portion of the affected orders remains in backlog and is expected to be fulfilled in future periods. Q: What is the status of EVI's acquisition strategy? A: Henry Nahmid confirmed that EVI's acquisition strategy remains highly active. During the quarter, they completed the acquisition of Balenki, marking the 32nd business to join the EVI enterprise. The company continues to evaluate attractive acquisition and investment opportunities within and around the commercial laundry industry. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Shares of EVI Industries, Inc. EVI have declined 10.4% since the company reported its earnings for the quarter ended Dec. 31, 2025, underperforming the S&P 500 index, which slipped just 0.1% over the same period. Over the past month, EVI stock has declined 17.1%, again lagging the broader market’s modest 0.4% decline, reflecting a sharply negative investor reaction despite what the company described as record quarterly results. For the second fiscal quarter, EVI Industries reported earnings per share of 15 cents, which rose from 7 cents in the prior-year period. Revenues increased 24% year over year to a record $115.3 million. Gross profit jumped 29% to $35.5 million, translating to a record gross margin of 30.8% compared to 29.7% a year earlier. Operating income surged 78% year over year to $4.2 million, while net income more than doubled, rising 110% to $2.4 million. Adjusted EBITDA for the quarter came in at $7.7 million, up 49% from $5.1 million, representing 6.6% of revenues. EVI Industries, Inc. price-consensus-eps-surprise-chart | EVI Industries, Inc. Quote CEO Henry M. Nahmad emphasized the long-term vision and transformation of EVI into a national leader in the commercial laundry space. He credited strategic investments in people, technology and operational efficiency for strengthening the company’s foundation. He also reiterated the company’s commitment to its buy-and-build strategy, highlighting a 10-year track record of 30% compound annual revenue growth and 16% net income growth. Nahmad described EVI’s approach as “disciplined execution and thoughtful capital deployment,” reflecting confidence in the company's scalability and resilience. EVI continued to advance modernization efforts during the quarter, particularly in its service operations. The company reported a 13% improvement in average service response time over the past year, driven by field service technology that facilitated nearly 9,000 service appointments during the quarter. Expanded technician utilization analytics and real-time remote support tools were also cited as contributors to improved service consistency and margins. Additionally, analytics-driven inventory and procurement tools are being deployed across over 15,000 SKUs, aimed at improving demand planning and reducing order latency. Management sees these systems as critical to enhancing operating efficiency and managing working capital as the business scales further. As of Dec. 31, 2025, EVI Industries reported cash of $4.3 million, down from $8.9 million as of June 30, 2025. Total assets stood at $315.6 million, while total liabilities were $171.7 million, including $58 million in long-term debt. Shareholders’ equity totaled $144 million, reflecting a stable capital base amid continued investment and acquisition activity EVI reported continued activity on the acquisition front, reinforcing its role as a consolidator in the fragmented commercial laundry distribution industry. Although no new acquisitions were announced during the quarter, the company noted it is actively evaluating additional targets and exploring partnerships aimed at expanding Continental’s product offerings. Cash flow from operations was positive at $5.1 million for the six-month period ended Dec. 31, 2025, despite a planned $12 million inventory buildup linked to customer sales orders in backlog. The company also paid a $5 million dividend and made the final payment on the Continental acquisition. Liquidity remains solid, with access to low-cost capital and working capital strength supporting future investments and acquisition efforts. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report EVI Industries, Inc. (EVI): Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Record Q2 results: Revenue rose 24% year‑over‑year to $115 million with gross margin near 31%, Adjusted EBITDA up 49% to $7.7 million, and net income up 110% to 2.1% of revenue (first six months revenue +20% to >$223M). Management is investing in data‑driven modernization—field service technology, operational analytics and inventory tools—which cut average response time ~13%, supported ~9,000 service appointments, and is expected to improve service margins and scalability despite near‑term higher operating expenses. Buy‑and‑build strategy: EVI continues acquisitive growth (including Continental), generated positive operating cash flow while funding a ~$12M inventory buildup and a ~$5M dividend, and says it retains strong liquidity and access to low‑cost capital to pursue further acquisitions. Interested in EVI Industries, Inc.? Here are five stocks we like better. EVI Industries (NYSEAMERICAN:EVI) reported what Chairman and CEO Henry Nahmad described as “another set of record results” for the second quarter of fiscal 2026, citing record revenue, gross profit, and operating profit, alongside continued investment in modernization and operational initiatives intended to improve long-term scalability and efficiency. In prepared remarks, Nahmad also highlighted the company’s growth since launching its long-term strategy in 2016, saying EVI has expanded from a single Florida location with 31 employees into a North American commercial laundry distribution and service enterprise consisting of 31 businesses and more than 900 associates. → Once Upon A Farm: Buy the $1B Growth Story? For the second quarter, EVI said revenue increased 24% year-over-year to $115 million. Nahmad attributed the increase primarily to contributions from acquired businesses, while noting legacy operations also contributed. Gross margin expanded to nearly 31%, which management attributed to favorable product mix, pricing discipline, and the benefits of strategic acquisitions, including Continental. Nahmad said net income increased 110% to 2.1% of revenues, while Adjusted EBITDA increased 49% to $7.7 million, or 6.6% of revenue. → Verizon: Your Total Return Leader for 2026 Might Be Hiding in Plain Sight For the first six months of the fiscal year, EVI reported revenue increased 20% to more than $223 million, with gross margin expanding to 31%. Nahmad said the company generated positive operating leverage on a consolidated basis compared to the prior-year period, but added that operating margin expansion was pressured by higher operating expenses tied to ongoing investments. Those costs were associated with technology, modernization, service capability expansion, integration activities, and organizational infrastructure. → 3 ETFs Designed to Survive the Next Market Crash Management emphasized modernization as a “central focus,” describing continued deployments of data-driven operational systems aimed at improving service execution, decision support, and scalability. Key initiatives and metrics cited on the call included: Field service technology: EVI said investments strengthened scheduling and responsiveness, contributing to an approximately 13% improvement in average response time over the past 12 months. Service volume: The company’s platform supported just under 9,000 service appointments during the quarter, which management said was consistent with normal seasonal patterns. Operational dashboards and analytics: EVI said it expanded technician utilization analytics and dashboards to improve visibility into productivity, utilization, and monetization, supporting staffing, scheduling, pricing, and margin management. Inventory and procurement tools: The company said it continued investing in analytics-driven tools across more than 15,000 SKUs sold over the last 12 months ended Dec. 31, 2025, with the goal of improved inventory controls, demand planning, and coordination from order capture through service delivery. Nahmad said these initiatives have already contributed to improved service margins as adoption scales and are expected to support operating efficiency, working capital management, and long-term margin potential as EVI grows. Nahmad reiterated EVI’s “buy and build” strategy and characterized the company as a “highly regarded acquirer” with an entrepreneurial culture. He said EVI continues to evaluate a robust pipeline of acquisition opportunities. Alongside M&A, management said it is pursuing select strategic initiatives to expand Continental’s product portfolio and deepen relationships with OEM partners seeking consistent access to customers across North America. Nahmad also said the company is taking a broader view of growth, evaluating opportunities “in and around the laundry ecosystem” that can be supported by EVI’s existing operations, relationships, and distribution reach. EVI said it continues to operate from a position of balance sheet strength and financial flexibility, generating positive operating cash flow during both the three- and six-month periods ended Dec. 31, 2025. Management noted that operating cash flow was impacted by a planned inventory buildup of approximately $12 million to support confirmed customer sales orders in the company’s backlog. Cash flow was also affected by capital allocation decisions, including the payment of an approximately $5 million cash dividend and the final purchase price payment related to the Continental acquisition. Despite those uses of cash, Nahmad said the company maintains strong liquidity, solid working capital, and access to low-cost capital, which he said provides flexibility to continue investing, pursue disciplined growth initiatives, and execute the company’s acquisition strategy. In closing remarks, Nahmad pointed to continued demand for the products and services EVI provides and said the company is investing deliberately to build “the foundation for long-term scalability, efficiency, and profitability.” He added that the company remains confident in its strategy and “well-positioned to continue delivering durable value for our customers, employees, and shareholders.” 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. The article "EVI Industries Q2 Earnings Call Highlights" was originally published by MarketBeat.

This article first appeared on GuruFocus. Release Date: February 09, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. EVI Industries Inc (EVI) achieved record second quarter revenue, gross profit, and operating profit, surpassing $425 million in trailing 12-month revenue. The company has experienced significant growth since 2016, with compounded annual growth rates of approximately 30% in revenue, 16% in net income, and 27% in adjusted EBITDA. EVI Industries Inc (EVI) is making significant investments in people, processes, and technology to enhance scalability, integration, and efficiency, positioning the company for long-term profitability. Revenue increased 24% year-over-year to $115 million, driven by contributions from acquired businesses and legacy operations. The company generated positive operating cash flow during the three and six-month periods ended December 31, 2025, maintaining strong liquidity and financial flexibility. Operating margin expansion was impacted by higher operating expenses associated with investments in technology, modernization, and organizational infrastructure. Cash flow was affected by a planned inventory buildup of approximately $12 million to support confirmed customer sales orders. The company faced higher operating expenses due to continuing investments in service capability expansion and integration activities. Despite strong performance, the strategic use of capital included a $5 million cash dividend and the final purchase price payment related to the Continental acquisition, impacting cash flow. The company's growth strategy involves significant investments, which may pose risks if anticipated returns are not realized. Warning! GuruFocus has detected 5 Warning Signs with EVI. Is EVI fairly valued? Test your thesis with our free DCF calculator. Q: Can you elaborate on the factors driving the 24% year-over-year revenue increase in the second quarter? A: Henry Nahmad, Chairman and CEO, explained that the revenue increase to $115 million was primarily driven by contributions from acquired businesses, with legacy operations also contributing. The growth reflects strong execution and enduring demand for EVI's products and services. Q: What were the key contributors to the expansion of gross margin to nearly 31%? A: Henry Nahmad noted that the gross margin expansion was due to a favorable product mix, pricing discipline, and the continued benefits of strategic acquisitions, including Continental. These factors collectively enhanced profitability. Q: How is EVI leveraging technology to improve operational efficiency? A: Henry Nahmad highlighted that EVI is deploying data-driven operational systems to improve service execution, decision support, and scalability. Investments in field service technology have strengthened scheduling and responsiveness, contributing to a 13% improvement in average response time over the past 12 months. Q: Can you discuss EVI's approach to acquisitions and growth opportunities? A: Henry Nahmad stated that EVI remains a highly regarded acquirer with a strong entrepreneurial culture. The company is evaluating a robust pipeline of acquisition opportunities and pursuing strategic initiatives to expand Continental's product portfolio and deepen relationships with OEM partners. Q: What is EVI's financial position and how does it support future growth initiatives? A: Henry Nahmad emphasized that EVI operates from a position of balance sheet strength and financial flexibility. The company generated positive operating cash flow during the quarter, maintained strong liquidity, and has access to low-cost capital, which supports continued investment and disciplined growth initiatives. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Revenue increased 24% resulting in record revenue, gross profit, and operating profit, surpassed $425M in revenues for the twelve months ended December 31, 2025, and continued investments in modernization and optimization initiatives. MIAMI, February 09, 2026--(BUSINESS WIRE)--EVI Industries, Inc. (NYSE American: EVI) announced today its operating results for the second quarter of the fiscal year ending June 30, 2026. The Company also provided updates related to its buy-and-build growth strategy, growth opportunities, and continued investments in technology, modernization, and operational optimization initiatives. Since commencing execution of its long-term growth strategy in 2016, EVI has transformed from a single-location business in Florida with 31 employees into a leading North American commercial laundry distribution and service enterprise encompassing 31 businesses and employing over 900 associates, including more than 200 sales professionals and over 425 service personnel. The disciplined execution of this strategy has driven compounded annual growth rates of approximately 30% in revenue, 16% in net income, and 27% in adjusted EBITDA over such ten-year period, and has established EVI as a leader in the highly fragmented commercial laundry industry. A core strength of EVI’s growing enterprise is the depth of its customer relationships, supported by the largest sales and services organizations in the industry. To fully leverage this reach, the Company is making significant investments in people, processes, and technology aimed at building a more scalable, integrated, and efficient organization. These investments are expected to further enhance EVI’s ability to deliver best-in-class laundry solutions, expand complementary product and service offerings, respond more rapidly to technical service needs, and execute more coordinated and efficient equipment installations. EVI also believes that its customer interactions serve as a significant source of insight which, when combined with the Company’s highly entrepreneurial culture, disciplined financial management, strong supplier relationships, and commitment to innovation, enable EVI to identify and pursue new growth opportunities and support long-term value creation. Henry M. Nahmad, Chairman and Chief Executive Officer of the Company, commented: "EVI has built a differentiated enterprise with deep customer relationships, expansive sales and service reach, and a strategy to become the undisputed leader in our industry. The investments we are making today in people, technology, and operational capabilities are grounded in the strength of our underlying business. We believe these actions are expanding our competitive advantages, strengthening our foundation, and positioning EVI to deliver sustained growth, improved efficiency, customer satisfaction, and long-term value for our shareholders." Second Fiscal Quarter Performance Compared to the three months ended December 31, 2024 Revenue increased 24% to a record $115.3 million, Gross Profit increased 29% to a record $35.5 million, representing a record gross margin of 30.8%, Operating Income increased 78% to a record of $4.2 million, Net Income increased 110% to a record of $2.4 million, and Adjusted EBITDA increased 49% to a record $7.7 million, or 6.6% of revenue. Six-Months Performance Compared to the six months ended December 31, 2024 Revenue increased 20% to a record $223.6 million, Gross Profit increased 23% to a record $69.4 million, representing a gross margin of 31.1%, Operating Income increased 6% to $7.8 million, Net Income was $4.2 million compared to $4.4 million, and Adjusted EBITDA increased 13% to a record $14.4 million, or 6.4% of revenue. The Company delivered strong year-over-year revenue growth during the quarter, driven primarily by contributions from acquired businesses, while legacy operations also contributed to the increased revenues. Gross margin increased to a record 30.8% for the quarter and 31.1% for the six months ended December 31, 2025, reflecting favorable product mix, pricing discipline, and the continued benefits of strategic acquisitions, including Continental (formerly Girbau North America), which the Company acquired during the fiscal year ended June 30, 2025. During the second quarter, net income increased to 2.1% of revenue and adjusted EBITDA increased to 6.6% of revenue, reflecting strong underlying operating performance and continued execution across the business. Underlying operating margins increased compared to the prior-year periods, demonstrating improved efficiency within the Company’s core operations. Consolidated operating margin expansion was impacted by capital deployed in connection with modernization and optimization initiatives, integration efforts, and other investments to expand the Company’s organizational capabilities. As previously stated, management believes these investments are well supported by the Company’s operating performance and essential to building a more scalable, efficient, and resilient enterprise capable of delivering sustainable growth, margin expansion, and improved profitability over time. Technology and Modernization Initiatives EVI continued to advance the deployment of data-driven operational systems during the second quarter designed to improve service execution, decision support, and scalability. Investments in field service technology strengthened scheduling and service responsiveness, resulting in an approximate 13% improvement in average response time over the past twelve months. Adoption of the field service platform supported an average of just under 9,000 service appointments during the second quarter, consistent with normal seasonal service patterns. During the second quarter, the Company expanded technician utilization analytics and operational dashboards to improve visibility into technician productivity, utilization, and monetization, supporting more effective staffing, scheduling, pricing, and margin management. Field service capabilities were further enhanced through real-time remote technical support and standardized maintenance workflows, reducing unnecessary site visits, improving service consistency, and lowering administrative effort. While these initiatives were recently commenced and take time to fully realize their potential, management has seen that they have contributed to a meaningful improvement in service margins, demonstrating the financial impact of technology-enabled service optimization as adoption scales. EVI has also continued to invest in analytics-driven inventory and procurement tools across more than 15,000 SKUs sold over the twelve months ended December 31, 2025. These systems are being deployed in an effort to strengthen inventory controls, support integrated demand planning, and improve visibility across the full order continuum. By enabling tighter cross functional orchestration from sales order capture through purchase order execution and service delivery, these tools are intended to reduce latency, improve forecast accuracy, and minimize process variance. Management believes these initiatives will be critical to improving operating efficiency, working capital management, and long-term margin potential as the enterprise continues to grow. Buy and Build Growth Strategy As a highly regarded acquirer in the commercial laundry industry with a strong entrepreneurial culture, the Company continues to evaluate a robust pipeline of acquisition opportunities. In parallel, EVI is pursuing select strategic transactions intended to expand Continental’s product portfolio through partnerships with OEMs seeking accelerated and consistent access to a broad network of distributors, sales professionals, and end customers across North America. The Company is also assessing differentiated growth initiatives in and around the laundry ecosystem. Management believes that EVI’s reputation as a trusted partner, combined with its expanded footprint and flexible operating platform, positions the Company to pursue a broad range of opportunities that can be supported by existing operations and capabilities. Mr. Nahmad commented: "Our strategy remains grounded in disciplined execution and thoughtful capital deployment. As we continue to build on our reputation as a trusted acquirer and partner in the commercial laundry industry, we are also taking a more expansive view of growth—evaluating opportunities that leverage our relationships, operating capabilities, and distribution reach. We believe this balanced approach positions us well to drive sustainable long-term value while maintaining the financial flexibility that has been central to our success." Capital Strength and Cash Flow EVI continues to operate from a position of balance sheet strength and financial flexibility. The Company generated positive operating cash flow during both the three- and six-month periods ended December 31, 2025; however, operating cash flow for the periods was adversely impacted by a planned buildup of inventory associated with confirmed customer sales order contracts in backlog. Inventory increased by approximately $12 million during the six-month period ended December 31, 2025 in support of these sales orders. Cash flows during the periods were also impacted by other strategic uses of cash, including the payment of an approximately $5 million cash dividend and the final payment of the purchase price related to the Continental acquisition. Despite these uses of cash, EVI maintains solid liquidity, strong working capital, and access to low-cost capital, supporting continued investment, disciplined growth initiatives, and acquisition activity. Earnings Call and Additional Information The Company has provided a pre-recorded earnings conference call, including a business update, which can be accessed under "Financial Info" in the "Investors" section of the Company’s website at www.evi-ind.com or by visiting https://ir.evi-ind.com/message-from-the-ceo. For additional information regarding the Company’s results for the quarter ended December 31, 2025, please see the Company’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2025, as filed with the Securities and Exchange Commission on or about the date hereof. Use of Non-GAAP Financial Information In this press release, EVI discloses the non-GAAP financial measure of adjusted EBITDA, which EVI defines as earnings before interest, taxes, depreciation, amortization, and amortization of stock-based compensation. Adjusted EBITDA is determined by adding interest expense, income taxes, depreciation, amortization, and amortization of stock-based compensation to net income, as shown in the attached statement of Condensed Consolidated Earnings before Interest, Taxes, Depreciation, Amortization, and Amortization of Stock-based Compensation. EVI considers adjusted EBITDA to be an important indicator of its operating performance. Adjusted EBITDA is also used by companies, lenders, investors and others because it excludes certain items that can vary widely across different industries or among companies within the same industry. For example, interest expense can be dependent on a company’s capital structure, debt levels and credit ratings, and the tax positions of companies can vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. Adjusted EBITDA should not be considered as an alternative to net income or any other measure of financial performance or liquidity, including cash flow, derived in accordance with GAAP, or to any other method of analyzing EVI’s results as reported under GAAP. About EVI Industries EVI Industries, Inc., through its wholly owned subsidiaries, is a value-added distributor and a provider of advisory and technical services. Through its vast sales organization, the Company provides its customers with planning, designing, and consulting services related to their commercial laundry operations. The Company sells and/or leases its customers commercial laundry equipment, specializing in washing, drying, finishing, material handling, water heating, power generation, and water reuse applications. In support of the suite of products it offers, the Company sells related parts and accessories. Additionally, through the Company’s robust network of commercial laundry technicians, the Company provides its customers with installation, maintenance, and repair services. The Company’s customers include retail, commercial, industrial, institutional, and government customers. Purchases made by customers range from parts and accessories to single or multiple units of equipment, to large complex systems as well as the purchase of the Company’s installation, maintenance, and repair services. Safe Harbor Statement Except for the historical matters contained herein, statements in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as "may," "should," "could," "seek," "believe," "expect," "anticipate," "estimate," "project," "intend," "strategy" and similar expressions are intended to identify forward looking statements. Forward looking statements may relate to, among other things, events, conditions, and trends that may affect the future plans, operations, business, strategies, operating results, financial position and prospects of the Company. Forward looking statements are subject to a number of known and unknown risks and uncertainties that may cause actual results, trends, performance or achievements of the Company, or industry trends and results, to differ materially from the future results, trends, performance or achievements expressed or implied by such forward looking statements. These risks and uncertainties include, among others, those associated with: general economic and business conditions in the United States and other countries where the Company operates or where the Company’s customers and suppliers are located; economic uncertainty, including as it relates to governmental measures such as the imposition of tariffs and their effect on the pricing and demand for, and availability of, the Company’s products, global trading markets, credit markets, industry conditions, economic conditions generally or otherwise on the Company and its business and results; currency exchange fluctuations, including that a weakening of the U.S. dollar would result in increased costs, which in turn would negatively affect the Company’s operating results; industry conditions and trends; credit market volatility; risks related to supply chain delays and disruptions and their impact on the Company’s business and results, including the Company’s ability to deliver products and services to its customers on a timely basis; risks relating to inflation and other price increases (including due to the imposition of tariffs), and their impact on the Company’s costs and results (including that, if desired, the Company may not be able to successfully increase the price of its products and services to offset such costs, in whole or in part, and that price increases may result in reduced demand for the Company’s products and services); risks related to interest rate increases, including the impact thereof on the cost of the Company’s indebtedness and the Company’s ability to raise capital if deemed necessary or advisable; the Company’s ability to implement its business and growth strategies and plans, including changes thereto; risks and uncertainties associated with the Company’s "buy-and-build" growth strategy, including, without limitation, that the Company may not be successful in identifying or consummating acquisitions or other strategic transactions, integration risks, risks related to indebtedness incurred by the Company in connection with the financing of acquisitions and other strategic transactions, dilution experienced by the Company’s existing stockholders as a result of the issuance of shares of the Company’s common stock in connection with acquisitions or other strategic transactions (or for other purposes), risks related to the business, results, operations and prospects of acquired businesses, risks that suppliers of the acquired business may not consent to the transaction or otherwise continue its relationship with the acquired business following the transaction and the impact that the loss of any such supplier may have on the results of the Company and the acquired business, risks that the Company’s goals or expectations with respect to acquisitions and other strategic transactions may not be met, and risks related to the accounting for acquisitions; risks that initiatives and investments, including, without limitation, investments in acquired businesses and technology and modernization initiatives (including in business intelligence tools, the Company’s field service software and other technology and modernization investments described in this press release), may not result in the benefits anticipated; the Company’s service operations and capabilities may not expand; the impact of measures which the Company may take from time to time in connection with its expansion efforts and pursuit of market share growth, including that they may not be successful and may adversely impact the Company’s gross margin and other financial results; technology changes; competition, including the Company’s ability to compete effectively and the impact that competition may have on the Company and its results, including the prices which the Company may charge for its products and services and on the Company’s profit margins, and competition for qualified employees; risks relating to the Company’s relationships with its principal suppliers and customers, including the impact of the loss of any such relationship; risks related to the Company’s indebtedness; the availability, terms and deployment of debt and equity capital if needed for expansion or otherwise; risks of cybersecurity threats or incidents, including the potential misappropriation or use of assets or confidential information, corruption of data or operational disruptions; and that dividends may not be paid in the future. Reference is also made to the other economic, competitive, governmental, technological and other risks and factors discussed in the Company’s filings with the SEC, including, without limitation, in the "Risk Factors" section of the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2025. Many of these risks and factors are beyond the Company’s control. Further, past performance and perceived trends may not be indicative of future results. The Company cautions that the foregoing factors are not exclusive. The reader should not place undue reliance on any forward-looking statement, which speaks only as of the date made. The Company does not undertake to, and specifically disclaims any obligation to, update, revise or supplement any forward-looking statement, whether as a result of changes in circumstances, new information, subsequent events or otherwise, except as may be required by law. View source version on businesswire.com: https://www.businesswire.com/news/home/20260209886748/en/ Contacts EVI Industries, Inc. 4500 Biscayne Blvd., Suite 340 Miami, Florida 33137 (305) 402-9300 Henry M. Nahmad Chairman and CEO (305) 402-9300 Craig Ettelman Director of Finance and Investor Relations (305) 402-9300 [email protected]

Shares of EVI Industries, Inc. EVI have declined 17.8% since the company reported its earnings for the quarter ended Sept. 30, 2025. This compares unfavorably with the S&P 500 index, which posted a 1.9% gain over the same period. Over the past month, EVI stock has lost 18.1%, while the broader market, as measured by the S&P 500, has advanced by 3.1%, highlighting a pronounced underperformance for the commercial laundry equipment distributor. For the first quarter of fiscal 2026, EVI reported earnings per share of 11 cents, which declined from 21 cents in the prior-year quarter. Revenue rose 16% year over year to $108.3 million from $93.6 million in the prior-year quarter. Gross profit grew 18% to a record $33.9 million, reflecting a gross margin of 31.3%, which also marked a record for the company. Operating income fell to $3.6 million from $5 million a year ago, and net income dropped 43% to $1.8 million from $3.2 million. Adjusted EBITDA also decreased 11% to $6.8 million compared to $7.6 million in the year-ago period, indicating margin compression amid ongoing investments. EVI Industries, Inc. price-consensus-eps-surprise-chart | EVI Industries, Inc. Quote EVI’s gross margin reached a record 31.3% in the quarter, up from 30.8% a year ago. This improvement was primarily attributed to the positive impact of the Continental acquisition (formerly Girbau North America). Excluding Continental, the gross margin would have been about 30.2%, slightly below the prior year, due to product mix in legacy operations. Adjusted EBITDA margin stood at 6.2% of revenues, down from 8.1% in the comparable period, as the company ramped up modernization and integration initiatives. Selling, general and administrative (SG&A) expenses rose to $30.3 million from $23.9 million, driven by investments in field service technologies, CRM systems and participation in a major industry exposition. These expenses contributed to the contraction in profitability metrics. Net income as a percentage of revenues fell to 1.7% compared to 3.5% in the prior-year quarter. Chairman and CEO Henry M. Nahmad emphasized the company’s long-term vision, stating that current initiatives — including acquisitions, technology upgrades and process improvements — are geared toward building a more resilient and scalable business. He stressed that while near-term margins were impacted, these efforts are foundational to EVI’s strategy of sustainable growth, market share expansion, and operational efficiency. Management views the current revenue gains and record gross margins as validation of its buy-and-build approach. While profitability dipped, the company believes that strategic investments — particularly in technology and integration — will yield stronger future performance. EVI’s strong revenue growth was supported by the integration of newly acquired businesses and stable performance in legacy operations. However, these acquisitions also required significant investments in consolidation and optimization, which pressured earnings. Notably, the company’s participation in the largest North American commercial laundry exposition — held for the first time since August 2022 — contributed to elevated expenses during the quarter. Additionally, higher SG&A costs and increased interest expense (up to $0.9 million from $0.5 million) further squeezed profitability. The elevated cost base reflects the company’s strategic decision to prioritize long-term platform enhancement over short-term operating leverage. The company reiterated its confidence in sustaining gross margin improvements and pursuing additional acquisitions. Management highlighted strong demand trends and ample financial flexibility, supported by a robust balance sheet and borrowing capacity, to continue investing in innovation and expansion. During the quarter, EVI declared a special cash dividend of 33 cents per share, totaling $5 million, the largest in its history. This move underscores the company’s financial strength and confidence in its strategic trajectory. EVI also completed four acquisitions since the comparable year-ago quarter, including its largest to date, thereby extending its market leadership in the fragmented commercial laundry space. Furthermore, EVI continued to scale its proprietary field service platform, which handled approximately 9,000 service appointments in September 2025, a significant increase from just 1,000 a year earlier. Phase one of a new CRM system was also rolled out at Continental, with plans for broader implementation. These technological investments are aimed at improving efficiency, customer responsiveness and sales effectiveness. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report EVI Industries, Inc. (EVI): Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

MIAMI, November 10, 2025--(BUSINESS WIRE)--EVI Industries, Inc. (NYSE American: EVI) announced today its operating results for the first quarter of the fiscal year ending June 30, 2026. The Company also provided updates related to its buy-and-build growth strategy, growth opportunities, and technology investments. EVI has established itself as a leader in the highly fragmented North American commercial laundry distribution and service industry through execution of its long-term growth strategy. Since the strategy’s inception in 2016, the Company has achieved compounded annual growth rates of 30% in revenue, 15% in net income, and 26% in adjusted EBITDA. First Fiscal Quarter Financial Highlights (compared to the first quarter of fiscal 2025) Revenue increased 16% to a record $108 million, Gross Profit increased 17% to a record $33.9 million, or a record 31.3%, Operating Income was $3.6 million compared to $5.0 million, Net Income was $1.8 million compared to $3.2 million, and Adjusted EBITDA was $6.8 million compared to $7.6 million, or 6.2% and 8.1% respectively. Henry M. Nahmad, Chairman and Chief Executive Officer, commented: "Our record results this quarter highlight the success of our sales organization and our ongoing progress in capturing market share across key regions. We believe that this performance underscores the strength of our strategy and the capabilities we are developing across our platform and that, with a solid foundation and strong demand trends, we are well positioned to sustain growth and continue advancing our long-term objectives." The Company achieved strong year-over-year revenue growth during the quarter, driven primarily by the addition of acquired businesses and supported by continued stability in its legacy operations. In the first quarter of the prior fiscal year, EVI achieved strong operating leverage, reflected in net income for the quarter of 3.5% of revenue, or adjusted EBITDA of 8.1%, as increased revenues and record gross profits offset spending related to the Company’s modernization and optimization initiatives. Since that time, EVI has completed four additional acquisitions, including the largest in its history, expanding its scale and reinforcing its position as a market leader. In line with management’s confidence in the business and consistent with its long-term growth strategy, the Company accelerated investment in modernization, optimization, and integration efforts. These initiatives, along with costs associated with migrating and consolidating acquired operations, temporarily impacted short-term profitability and prevented the achievement of operating leverage comparable to the prior-year period. Management believes these initiatives will enhance customer experience, expand service opportunities, and support sustainable growth and margin improvement in the years ahead. Gross Margins Record gross margins in the first quarter highlight the benefits of the Company’s disciplined execution and strategic acquisitions. The inclusion of Continental (formerly Girbau North America), acquired during fiscal 2025, had a positive impact on gross margin performance, driving the consolidated gross margin to a record 31.3%. Excluding Continental, gross margins would have been approximately 30.2%, modestly below the prior-year period due to product mix within the historical business. The Company expects to sustain the enhanced gross margin profile realized through Continental while advancing initiatives focused on procurement, supply chain efficiency, pricing, and inventory management—areas where management believes meaningful opportunities exist to further enhance margins and operating efficiency. The Company’s continued utilization of business intelligence tools is expected to support these objectives by enabling data-driven decision-making and greater visibility across its operations. Operating Efficiency Net Income for the quarter was 1.7% of revenue, compared to 3.5% in the prior-year period. Adjusted EBITDA for the quarter was 6.2% of revenue, compared to 8.1% in the prior-year period. This variance reflects the Company’s investments in long-term initiatives, including technology modernization, expansion of service capabilities, and integration of recently acquired businesses. Additionally, the results for the quarter were impacted by expenses incurred in connection with the Company’s participation during the quarter in the industry’s largest North American exposition, held for the first time since August 2022. While this investment temporarily affected earnings, the Company believes that the event provided valuable opportunities to strengthen its relationships with customers and partners and reinforce its leadership position in the commercial laundry industry. These combined efforts are expected to continue to enhance the Company’s platform and establish a stronger foundation for future margin expansion, operational efficiency, and sustainable growth. Capital Strength and Outlook Supported by a strong balance sheet, ample borrowing capacity, and disciplined capital management, the Company remains well positioned to pursue additional acquisitions, invest in innovation, and advance its operational initiatives. The declaration of a $5.0 million special cash dividend during the quarter—the largest in EVI’s history—reflects management’s confidence in the Company’s financial strength and long-term outlook. The dividend of $0.33 per share was paid on October 6, 2025, to stockholders of record at the close of business on September 25, 2025. With sustained demand across end markets and a strategy focused on growth and optimization, EVI continues to prioritize durable value creation over short-term margin gains, reinforcing its commitment to building a scalable and market resilient platform for the future. Technology Investments Field Service Technologies: The Company continued to advance the adoption of its field service platform, which supported approximately 9,000 appointments during September 2025, up from approximately 8,500 appointments in June 2025 and just 1,000 a year ago. In addition, the platform continues to deliver measurable improvements in technician productivity, scheduling efficiency, and customer responsiveness, reinforcing EVI’s strategy to leverage technology to enhance service performance, scalability, and long-term profitability. E-Commerce: The Company continued to advance development of its next-generation digital platform. Designed to extend beyond traditional e-commerce, the platform is expected to integrate product ordering, service scheduling, and data analytics in a seamless, customer-focused environment. Management believes this investment will play an important role in enhancing the customer experience and strengthening EVI’s position in an increasingly digital marketplace. Customer Relationship Management: The Company continued investing in the development and deployment of its new customer relationship management (CRM) system, designed to enhance the effectiveness of its sales organization. The platform provides sales professionals with real-time access to customer data, enabling a more personalized and responsive experience. Following the end of the quarter, the Company completed phase one of the CRM project, which encompassed the development, configuration, testing, and rollout of the system at Continental. The Company is now modifying the system to align with the specific structures and requirements of its other business units, with additional deployments planned over time. This investment strengthens the Company’s sales capabilities and supports its objective of delivering a consistent, high-quality customer experience. Acquisition Initiatives As a preferred acquirer within the commercial laundry industry, the Company continues to explore many qualified acquisition and strategic investment opportunities. Management believes that the Company’s expanded footprint and enhanced platform capabilities position it to capitalize on opportunities across the fragmented commercial laundry equipment and services market. Financial Strength and Liquidity EVI remains focused on maintaining a strong balance sheet and access to low-cost capital to fund strategic investments and future growth initiatives. The Company’s financial position continues to support its buy-and-build strategy, ongoing technology investments, and shareholder-return objectives. During the first fiscal quarter, net debt increased $2.2 million to $46.3 million, due primarily to $1.0 million in operating cash flow, offset in part by investing activities. Tariff Management EVI continues to monitor tariff developments and their potential impact on the Company’s results and operations. To offset higher supplier costs, the Company has adjusted pricing, diversified sourcing, and established agreements with key foreign suppliers to stabilize pricing. The Company believes that, despite ongoing trade-policy uncertainty, EVI’s essential product portfolio and resilient end-market demand provide a strong foundation for continued performance. Mr. Nahmad commented: "When we look at our results, it’s important to remember that everything we’re doing is about the long game. Every acquisition, every system we implement, every process we improve — it’s all focused on building a stronger company that can perform across any market cycle. We’re not optimizing for a single quarter or even a single year. We’re building for sustainable growth, profitability, and long-term value. The bottom line is this: we’re growing, we’re modernizing, and we’re investing with confidence. We’re capturing market share, expanding our service and technology capabilities, and positioning EVI for sustainable, long-term growth — and we’re confident that our strategy and the opportunities ahead will keep driving our success." Earnings Call and Additional Information The Company has provided a pre-recorded earnings conference call, including a business update, which can be accessed under "Financial Info" in the "Investors" section of the Company’s website at www.evi-ind.com or by visiting https://ir.evi-ind.com/message-from-the-ceo. For additional information regarding the Company’s results for the quarter ended September 30, 2025, please see the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, as filed with the Securities and Exchange Commission on or about the date hereof. Use of Non-GAAP Financial Information In this press release, EVI discloses the non-GAAP financial measure of adjusted EBITDA, which EVI defines as earnings before interest, taxes, depreciation, amortization, and amortization of stock-based compensation. Adjusted EBITDA is determined by adding interest expense, income taxes, depreciation, amortization, and amortization of stock-based compensation to net income, as shown in the attached statement of Condensed Consolidated Earnings before Interest, Taxes, Depreciation, Amortization, and Amortization of Stock-based Compensation. EVI considers adjusted EBITDA to be an important indicator of its operating performance. Adjusted EBITDA is also used by companies, lenders, investors and others because it excludes certain items that can vary widely across different industries or among companies within the same industry. For example, interest expense can be dependent on a company’s capital structure, debt levels and credit ratings, and the tax positions of companies can vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. Adjusted EBITDA should not be considered as an alternative to net income or any other measure of financial performance or liquidity, including cash flow, derived in accordance with GAAP, or to any other method of analyzing EVI’s results as reported under GAAP. About EVI Industries EVI Industries, Inc., through its wholly owned subsidiaries, is a value-added distributor and a provider of advisory and technical services. Through its vast sales organization, the Company provides its customers with planning, designing, and consulting services related to their commercial laundry operations. The Company sells and/or leases its customers commercial laundry equipment, specializing in washing, drying, finishing, material handling, water heating, power generation, and water reuse applications. In support of the suite of products it offers, the Company sells related parts and accessories. Additionally, through the Company’s robust network of commercial laundry technicians, the Company provides its customers with installation, maintenance, and repair services. The Company’s customers include retail, commercial, industrial, institutional, and government customers. Purchases made by customers range from parts and accessories to single or multiple units of equipment, to large complex systems as well as the purchase of the Company’s installation, maintenance, and repair services. Safe Harbor Statement Except for the historical matters contained herein, statements in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as "may," "should," "could," "seek," "believe," "expect," "anticipate," "estimate," "project," "intend," "strategy" and similar expressions are intended to identify forward looking statements. Forward looking statements may relate to, among other things, events, conditions, and trends that may affect the future plans, operations, business, strategies, operating results, financial position and prospects of the Company. Forward looking statements are subject to a number of known and unknown risks and uncertainties that may cause actual results, trends, performance or achievements of the Company, or industry trends and results, to differ materially from the future results, trends, performance or achievements expressed or implied by such forward looking statements. These risks and uncertainties include, among others, those associated with: general economic and business conditions in the United States and other countries where the Company operates or where the Company’s customers and suppliers are located; economic uncertainty, including as it relates to governmental measures such as the imposition of tariffs and their effect on the pricing and demand for, and availability of, the Company’s products, global trading markets, credit markets, industry conditions, economic conditions generally or otherwise on the Company and its business and results, and the risk that the measures taken or which may be taken by the Company may not be successful; currency exchange fluctuations, including that a weakening of the U.S. dollar would result in increased costs, which in turn would negatively affect the Company’s operating results; the potential of a recession; industry conditions and trends; credit market volatility; risks related to supply chain delays and disruptions and their impact on the Company’s business and results, including the Company’s ability to deliver products and services to its customers on a timely basis; risks relating to inflation, including the current inflationary trend, and other price increases (including due to the imposition of tariffs), and their impact on the Company’s costs and results (including that, if desired, the Company may not be able to successfully increase the price of its products and services to offset such costs, in whole or in part, and that price increases may result in reduced demand for the Company’s products and services); risks related to interest rate increases, including the impact thereof on the cost of the Company’s indebtedness and the Company’s ability to raise capital if deemed necessary or advisable; the Company’s ability to implement its business and growth strategies and plans, including changes thereto; risks and uncertainties associated with the Company’s "buy-and-build" growth strategy, including, without limitation, that the Company may not be successful in identifying or consummating acquisitions or other strategic transactions, integration risks, risks related to indebtedness incurred by the Company in connection with the financing of acquisitions and other strategic transactions, dilution experienced by the Company’s existing stockholders as a result of the issuance of shares of the Company’s common stock in connection with acquisitions or other strategic transactions (or for other purposes), risks related to the business, results, operations and prospects of acquired businesses, risks that suppliers of the acquired business may not consent to the transaction or otherwise continue its relationship with the acquired business following the transaction and the impact that the loss of any such supplier may have on the results of the Company and the acquired business, risks that the Company’s goals or expectations with respect to acquisitions and other strategic transactions may not be met, and risks related to the accounting for acquisitions; risks that investments, initiatives and expenses, including, without limitation, investments in acquired businesses and strategic and technology initiatives (including those associated with the Company’s field service software), and other investments, initiatives and expenses, including procurement, supply chain efficiency, pricing, and inventory management initiatives, may not result in the benefits anticipated; risks relating to Company’s planned e-commerce platform, including potential delays in the launch of the platform and the risk that the platform may not perform or positively impact the Company’s results as anticipated; the utilization of business intelligence tools may not result in the benefits anticipated; the Company’s service operations and capabilities may not expand; the impact of measures which the Company may take from time to time in connection with its expansion efforts and pursuit of market share growth, including that they may not be successful and may adversely impact the Company’s gross margin and other financial results; technology changes; competition, including the Company’s ability to compete effectively and the impact that competition may have on the Company and its results, including the prices which the Company may charge for its products and services and on the Company’s profit margins, and competition for qualified employees; risks relating to the Company’s relationships with its principal suppliers and customers, including the impact of the loss of any such relationship; risks related to the Company’s indebtedness; the availability, terms and deployment of debt and equity capital if needed for expansion or otherwise; risks of cybersecurity threats or incidents, including the potential misappropriation or use of assets or confidential information, corruption of data or operational disruptions; and that dividends may not be paid in the future. Reference is also made to the other economic, competitive, governmental, technological and other risks and factors discussed in the Company’s filings with the SEC, including, without limitation, in the "Risk Factors" section of the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2025. Many of these risks and factors are beyond the Company’s control. Further, past performance and perceived trends may not be indicative of future results. The Company cautions that the foregoing factors are not exclusive. The reader should not place undue reliance on any forward-looking statement, which speaks only as of the date made. The Company does not undertake to, and specifically disclaims any obligation to, update, revise or supplement any forward-looking statement, whether as a result of changes in circumstances, new information, subsequent events or otherwise, except as may be required by law. View source version on businesswire.com: https://www.businesswire.com/news/home/20251110692319/en/ Contacts EVI Industries, Inc. 4500 Biscayne Blvd., Suite 340 Miami, Florida 33137 (305) 402-9300 Henry M. Nahmad Chairman and CEO (305) 402-9300 Craig Ettelman Director of Finance and Investor Relations (305) 402-9300 [email protected]