EVI Industries, Inc.

What they do

EVI distributes and services commercial laundry equipment, offering parts, installation, and maintenance to laundromats, institutions, and other commercial customers. The company operates through 32 businesses with approximately 900 associates, including over 200 sales professionals and more than 425 service personnel.

Revenue drivers

• Commercial laundry equipment distribution — Core revenue from selling washers, dryers, and related equipment; historically the largest revenue contributor.
• Parts and service — Recurring revenue from aftermarket parts and repair services, supported by a large service workforce.
• Acquired businesses — Contributions from 32 acquired businesses, including Western State Design, drive revenue growth and expand geographic reach.

Recent performance

For the third fiscal quarter ended March 31, 2026, revenue rose 8% to a record $101.1 million, and gross profit rose 17% to $32.8 million (32.5% margin). For the nine months, revenue increased 16% to $324.7 million and gross profit increased 21% to $102.2 million (31.5% margin). Operating income for the quarter was flat at $2.3 million; net income fell to $0.8 million from $1.0 million. Adjusted EBITDA for the nine months rose 12% to a record $20.0 million.

Strategy

Management emphasizes operational optimization after completing ERP, field service, and business intelligence deployments. They aim to improve coordination with suppliers and customers to reduce redundancies and increase labor utilization. They also continue to pursue disciplined acquisitions and expansion of service capabilities, targeting improved operating leverage and cash flow.

Risks

• Weather and installation delays — Severe weather and customer facility readiness issues disrupted Q3 revenue, highlighting supply chain and project timing vulnerabilities.
• Integration risk — The 32 acquired businesses must be integrated effectively; ERP and process changes could disrupt operations.
• Interest expense — Net interest expense rose to $2.96 million in the first nine months from $1.72 million a year earlier, with long-term debt at $60 million.
• Economic cyclicality — Commercial laundry demand is tied to customer capital spending, which may slow in economic downturns.

Outlook

Management expects continued revenue growth from acquisitions and market share gains. They are advancing process improvement initiatives to improve profitability and cash flow as the enterprise matures. The company remains focused on expanding its service capabilities and enhancing customer experience.