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.
Second-quarter results and profitability metrics
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.
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.
Modernization and service execution initiatives
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.
Acquisitions and growth strategy
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.
Cash flow, balance sheet, and capital allocation
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.
Management outlook and priorities
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.”
About EVI Industries (NYSEAMERICAN:EVI)
EVI Industries, Inc, through its subsidiaries, engages in the distribution, sale, rental, and lease of commercial and industrial laundry and dry-cleaning equipment in the United States, Canada, the Caribbean, and Latin America. The company sells and/or leases commercial laundry equipment specializing in washing, drying, finishing, material handling, water heating, power generation, and water reuse applications. It offers washroom equipment, such as washers and dryers, tunnel systems, and vended machines; finishing equipment comprising sheet feeders, flatwork ironers, automatic sheet folders, and stackers; and material handling equipment, including conveyor and rail systems.
