ALH · Alliance Laundry Holdings Inc.

Alliance Laundry Holdings Inc. delivered strong Q1 2026 results with net revenues reaching $427 million, a 10% increase from $390 million in the prior year quarter, fueled by approximately 3% volume growth consistent with full-year expectations, pricing actions, and a 1% foreign exchange tailwind. Growth was broad-based across all end markets and geographies, underscoring the resilience of commercial laundry demand as a replacement-driven, essential industry. Gross profit rose 8% to $157 million, yielding a 36.8% margin, with pricing offsetting $20 million annualized tariff exposure supported by local-for-local manufacturing advantages. Adjusted EBITDA grew 9% to $109 million at a 25.5% margin, reflecting volume leverage, operational excellence, and supply chain efficiencies, though tempered by public company costs. Net income surged to $57 million from $17 million, aided by lower interest expense post-debt reductions. CEO Michael Schoeb highlighted the company's market-leading position and disciplined execution amid tariff challenges. Operating cash flow jumped 76% to $80 million, enabling $65 million debt repayment, reducing Net Leverage to 2.6x. Segment performance was robust: North America revenues up 9% to $320 million with 27.2% Adjusted EBITDA margin; International up 10% to $107 million with 30.4% margin, driven by Europe, Asia Pacific, and resilient Middle East & Africa. Business highlights include over 250,000 connected machines and accelerating Scan/Pay/Wash transactions, plus a distributor acquisition in New York. Confident in sustained momentum, management raised FY2026 guidance: revenue growth to +6-7% (from +5-7%), Adjusted EBITDA to +7-8% (from +6-8%), reaffirming deleveraging to low 2x Net Leverage by year-end with Capex ~3% of revenue and interest ~$85 million.