Alliance Laundry — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net revenues increased 5% year-over-year to $461 million, compared to $438 million in the prior year quarter.
• Net income rose to $65 million from $33 million in the prior year quarter, resulting in a net income margin of 14.1%.
• Adjusted net income increased approximately 57% to $76 million, up from $48 million in the prior year quarter.
• Gross profit increased 12% to $182 million, with gross margin expanding to 39.4%, an increase of approximately 240 basis points year-over-year.
• Adjusted EBITDA grew 14% to $127 million, with Adjusted EBITDA margin reaching 27.5%, up approximately 220 basis points from the prior year quarter.
• Operating cash flow for the quarter was $84 million, up from $66 million in the prior year quarter.
• Total debt stood at $1.21 billion with net debt at $1.07 billion as of September 30, 2026.
• Net leverage decreased to 2.25x, down from approximately 2.4x at June 30, 2026, and approximately 2.8x at the prior year end.

Guidance and Future Outlook:

• Full-year 2026 revenue growth guidance remains unchanged at +6% to 7% year-over-year.
• Full-year 2026 Adjusted EBITDA growth guidance was raised to approximately 10%, the high end of the previous range of +8% to 10%.
• Full-year 2026 Net Leverage guidance is now approximately 2.1x, down from the previous target of 2.0x (issued prior to the Q3 share repurchase).
• Full-year 2026 interest expense is now expected to total approximately $75 million, down from the previous estimate of ~$80 million.
• Full-year 2026 diluted share count is now expected to be approximately 203 million, down from the previous estimate of ~205 million.
• Capital expenditures as a percentage of revenue and the effective tax rate assumptions remain unchanged at ~3% and ~23.0%, respectively.

Business Segments and Product Lines:

• North America revenues increased 8% to $356 million, driven by higher volume in Commercial In-Home and On-Premise Laundry segments.
• North America Adjusted EBITDA margin increased over 300 basis points year-over-year.
• International revenues decreased 1% to $105 million, primarily due to foreign currency fluctuations, though Latin America showed solid growth.
• International Adjusted EBITDA increased to $27 million with a margin of 25.3%, up from 24.0% in the prior year quarter.
• In the Vended segment (laundromats and multi-housing), customers continued a trend of retooling with larger-capacity machines, though results were impacted by longer permitting and construction lead times.
• Europe remained steady supported by an ongoing replacement and upgrade cycle, while the Middle East & Africa stabilized supported by the hospitality market.

Market and Competitive Landscape:

• Demand for laundry solutions remains durable, supported by the non-discretionary nature of the business model.
• The company's local-for-local manufacturing footprint provides a structural cost advantage, particularly in the current tariff environment.
• Significant cost pressures persisted regarding steel and freight, but were offset by pricing actions taken late last year and tariff refunds.
• The company serves approximately 150 countries with a team of more than 4,000 employees.

Risks and Challenges:

• Foreign currency fluctuation had an approximate one percent negative impact on International revenue compared to the prior year.
• Ongoing inflationary pressures on input costs, specifically steel and freight, continue to impact the business.
• Regional and product mix variability may cause international results to fluctuate quarter-to-quarter.
• The press release notes general risks including high competition, reliance on distributors and suppliers, raw material cost fluctuations, and exposure to global economic conditions.

Management Commentary and Tone:

• CEO Michael Schoeb stated that results reflect a deep commitment to customers and the strength of the business model.
• Management highlighted investments in the connected equipment platform and deepening distributor partnerships.
• Management expressed confidence in operational excellence and disciplined capital allocation to compound value for shareholders.
• The tone was positive regarding the durability of demand and the ability to offset inflation through pricing and tariff refunds.

Other Key Points:

• The company repaid $45 million in debt during the quarter, bringing total year-to-date debt reduction to $160 million.
• The company repurchased $75 million of common stock during the third quarter.
• A discrete benefit from tariff refunds in the quarter helped absorb higher current year inflationary cost increases.
• Interest expense decreased by approximately $20 million year-over-year, contributing to the growth in adjusted net income.
• The company operates five brands: Speed Queen®, UniMac®, Huebsch®, Primus®, and IPSO®.