Alliance Laundry Holdings Inc.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 12 March 2026: press release. Guidance figures: 7 new. The quarter’s numbers.

Key takeaways

Full-year revenue rose 13%: Net revenues rose 13% to $1.7 billion in 2025. Volume supplied roughly 70% of the increase and price the remainder. Source
Adjusted EBITDA margin hit a record: Adjusted EBITDA rose 14% to $436 million, and the Adjusted EBITDA margin expanded to a record 25.5%, driven by volume, cost-down initiatives and pricing. Source
Fourth-quarter revenue grew 10%: Fourth-quarter net revenues rose 10% to $435 million. Adjusted EBITDA rose 17% to $107 million, or 24.5% of revenue. Source
Net income fell on IPO compensation: Fourth-quarter net income fell 44% to $21 million, mainly because of a one-time share-based compensation expense tied to the IPO, partly offset by lower interest expense. Source
Gross margin up 100 basis points: Gross margin expanded 100 basis points to 37.6% for the year. Fourth-quarter gross margin reached 37.0%, up 190 basis points, on volume leverage and cost-down initiatives. Source
Net leverage cut to 2.8x: Net leverage fell from 5.0x to 2.8x in one year. Debt declined to $1.4 billion from $2.1 billion, with cash of $123 million, leaving net debt of $1.2 billion at year end. Source
First full-year guidance introduced: The company introduced its first full-year annual guidance for 2026, covering revenue and Adjusted EBITDA growth, margin expansion and deleveraging. Source

“We delivered our second consecutive year of double-digit growth on both the top and bottom line, significantly strengthened our balance sheet”
Michael Schoeb, CEO of Alliance Laundry

Guidance

Area	Period	Figure	Against last quarter
Net revenue growth Source	2026 full year	+5% to 7%	New
Adjusted EBITDA growth Source	2026 full year	+6% to 8%	New
Net leverage Source	end of 2026	Low 2x	New
Capital expenditures, % of revenue Source	2026 full year	~3%	New
Effective tax rate Source	2026 full year	~23.5%	New
Interest expense Source	2026 full year	~$85 million	New
Diluted share count Source	2026 full year	~205 million	New

What changed from last quarter

New guidance: The company introduced 2026 annual guidance. The prior quarter's release, dated November 13, 2025, contained no full-year guidance. Source

Full-year and fourth-quarter results

Full-year revenue rose 13%: Net revenues rose 13% to $1.7 billion in 2025. Volume supplied roughly 70% of the increase and price the remainder. Source
Adjusted EBITDA margin hit a record: Adjusted EBITDA rose 14% to $436 million, and the Adjusted EBITDA margin expanded to a record 25.5%, driven by volume, cost-down initiatives and pricing. Source
Fourth-quarter revenue grew 10%: Fourth-quarter net revenues rose 10% to $435 million. Adjusted EBITDA rose 17% to $107 million, or 24.5% of revenue. Source
Net income fell on IPO compensation: Fourth-quarter net income fell 44% to $21 million, mainly because of a one-time share-based compensation expense tied to the IPO, partly offset by lower interest expense. Source

Segments and regions

North America revenue up 14%: North America revenue rose 14% to $1.3 billion, with Adjusted EBITDA up 14% to $361 million and a 28.5% margin. Equipment revenue rose 15%. Source
International margin widened on Europe: International revenue rose 10% to $440 million and Adjusted EBITDA rose 17% to $121 million. Management linked the margin gain to Speed Queen licensed stores in Europe. Source
Fourth-quarter growth by segment: Fourth-quarter North America revenue rose 9% to $317 million at a 27.9% margin. International revenue rose 12% to $118 million, with margin up 260 basis points to 24.8%. Source

“continued to invest in the innovation and market expansion that we believe will drive our next chapter of growth”
Michael Schoeb, CEO of Alliance Laundry

Products, end markets and innovation

Commercial-In-Home revenue grew over 20%: Management said demand for commercial-grade product in the home accelerated meaningfully in North America during 2025. Source
New products launched in 2025: The company launched the T55 stack tumbler, Scan-Pay-Wash cashless payment and the Stax-X unit, the first product fully developed at the Thailand engineering facility. Source
Over five million testing hours: Management said the company conducted over five million hours of physical product testing in 2025, reflecting the depth of investment behind its innovation pipeline. Source
Demand described as durable: Management described the fourth-quarter result as reinforcing a pattern of durable, demand-driven growth and the resilience of its end-market positioning. Source

Costs, margins and pricing

Gross margin up 100 basis points: Gross margin expanded 100 basis points to 37.6% for the year. Fourth-quarter gross margin reached 37.0%, up 190 basis points, on volume leverage and cost-down initiatives. Source
Tariff cost offset by pricing: Pricing largely offset an approximate $5 million tariff impact in the fourth quarter. Local-for-local manufacturing provided structural protection, with about $12 million of North America cost increases largely offset. Source
Selling and admin costs rose: Selling, general and administrative expenses rose to $324 million for the year from $266 million. The fourth-quarter figure includes the IPO-related share-based compensation. Source

Cash flow, debt and deleveraging

Operating cash flow up 46%: Operating cash flow rose 46% to $212 million for the year. Management attributed it to the business model, working capital management and earnings growth. Source
Net leverage cut to 2.8x: Net leverage fell from 5.0x to 2.8x in one year. Debt declined to $1.4 billion from $2.1 billion, with cash of $123 million, leaving net debt of $1.2 billion at year end. Source
One turn funded by operations: Management said about one full turn of the deleveraging came from operating cash generation, with the balance from proceeds of the October 2025 IPO. Source
Capex about 3% of revenue: Capital expenditures were $54 million for the year, about 3% of revenue, spent across the company's global manufacturing facilities. Source
No dividends paid in 2025: The cash flow statement shows no dividends paid in 2025, against $266 million in 2024, and $6.2 million of common stock repurchased in 2025. Source

Strategy and investment

Vended markets abroad drove growth: Management cited first-mover advantage in nascent vended markets across Asia and Latin America, alongside growth in Europe, as drivers of International results. Source
Northeast footprint expanded by acquisition: The acquisition of Metropolitan Laundry Machinery Sales expanded the company's direct distribution footprint in the high-density Northeast market. Source
Testing capacity added in Thailand and Czech Republic: Capital spending was directed at capacity expansion, automation and new product development, plus expanded testing capabilities in Thailand and the Czech Republic. Source

2026 guidance and targets

First full-year guidance introduced: The company introduced its first full-year annual guidance for 2026, covering revenue and Adjusted EBITDA growth, margin expansion and deleveraging. Source
Margin expansion and deleveraging expected: Management expects continued margin expansion in 2026 and deleveraging to the low 2x range of Net Leverage. Source
No GAAP reconciliation for 2026 guidance: Management said it did not reconcile 2026 Adjusted EBITDA and Net Leverage guidance to GAAP because excluded items cannot be predicted with reasonable certainty. Source

Coming up, as management said on 12 March 2026

Further detail in Form 10-Q: Management said additional information will be made available in quarterly reports on Form 10-Q and other SEC filings. Source

Risks management discussed

External: Tariffs added an approximate $5 million cost in the fourth quarter, which pricing actions largely offset. Source
Operational: Management said input cost increases in 2025 were more than offset by volume gains, cost-down initiatives and pricing actions. Source

Earlier plans management reported on

Met: The prior release estimated about $46.0 million of annualized interest savings. The current release says approximately $46 million was delivered in 2025.

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

Exhibit 99.1 Exhibit 99.1

Disciplined pricing actions largely offset tariff headwinds while preserving margins and cost- ABOUT ALLIANCE LAUNDRY variances, customer support expenses and selling and general expenses which are incurred in our ALLIANCE LAUNDRY SYSTEMS CONTACTS ALLIANCE LAUNDRY HOLDINGS INC. ALLIANCE LAUNDRY HOLDINGS INC. ALLIANCE LAUNDRY HOLDINGS INC. Reconciliation of cash, cash equivalents, and restricted cash to the Consolidated Balance Sheets:Cash and cash equivalents123,102154,682Restricted cash3,6026,401Restricted cash - for securitization investors22,99926,959Total cash, cash equivalents, and restricted cash shown in the Statement of Cash Flows$149,703$188,042Supplemental disclosure of cash flow information:Cash paid for interest$122,182$146,660Cash paid for interest - to securitized investors$31,696$34,313Cash paid for income taxes$48,725$54,154Supplemental disclosure of investing and financing non-cash activities:Capital expenditures included in accounts payable$3,211$6,292 ALLIANCE LAUNDRY HOLDINGS INC. ALLIANCE LAUNDRY HOLDINGS INC. Adjusted EBITDA increased 14% to $436 million, compared to $383 million in the prior year, driven FOURTH QUARTER 2025 RESULTS BY REPORTABLE SEGMENT down initiatives contributed to 80 basis points of gross margin expansion global operations to the reportable segments in determining Segment Adjusted EBITDA. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME CONSOLIDATED BALANCE SHEETS CONSOLIDATED STATEMENTS OF CASH FLOWS SEGMENT SUMMARY RECONCILIATION SCHEDULES The following table presents a reconciliation of Net income to the non-GAAP financial measure Investor Contact: by volume gains, cost-down initiatives, and pricing actions that more than offset input cost increases. •Acquisition of Metropolitan Laundry Machinery Sales expanded Alliance’s direct distribution Alliance Laundry makes the world cleaner as a provider of the highest quality commercial laundry (unaudited) (unaudited) (unaudited) adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) and Net Bob Calver We define “Segment Adjusted EBITDA” as, on a segment basis, net income excluding interest This improvement was achieved while maintaining disciplined operating cost management and North America revenue increased 9% to $317 million in the fourth quarter, with Adjusted EBITDA footprint in the high-density Northeast market systems. Our laundry solutions are available under five respected brands, sold and supported by a (in thousands, except per share amounts) (in thousands, except share and per share amounts) (in thousands) The following table presents revenue by segment, Segment Adjusted EBITDA and Segment Adjusted Selected financial information for each segment is as follows: income margin to Adjusted EBITDA margin: The following table presents a reconciliation of Debt to Net Debt and Net Debt to Adjusted EBITDA: Vice President, Investor Relations Alliance Reports Fourth Quarter and Full Year 2025 Results income/expense, income taxes, depreciation and amortization. Segment Adjusted EBITDA is also continuing to invest strategically in innovation and public company infrastructure. Adjusted EBITDA growing 15% to $88 million, and margin expanding to 27.9%. Growth was broad-based across all end •Delivered approximately $46 million in annualized interest savings through a combination of global network of select distributors. We serve approximately 150 countries with a team of more than December 31, 2025December 31, 2024AssetsCurrent assets:Cash and cash equivalents$123,102$154,682Restricted cash3,6026,401Restricted cash - for securitization investors22,99926,959Accounts receivable (net of allowance for credit losses of $3,021 and $2,663 at December 31, 2025 and 2024, respectively)113,65192,150Inventories, net146,039133,494Inventories, net - related parties821989Accounts receivable, net - restricted for securitization investors141,973130,060Equipment financing receivables, net2,8224,600Equipment financing receivables, net - restricted for securitization investors92,01188,288Prepaid expenses and other current assets28,86230,534Total current assets675,882668,157Equipment financing receivables, net4,9137,633Property, plant, and equipment, net265,250248,341Operating lease right-of-use assets20,74117,080Equipment financing receivables, net - restricted for securitization investors470,408417,672Deferred income tax asset3,1693,220Debt issuance costs, net3,4612,793Goodwill684,230666,580Intangible assets, net754,737793,666Other long-term assets3,0976,963Total assets$2,885,888$2,832,105Liabilities and Stockholders' Equity/(Deficit)Current liabilities:Current portion of long-term debt$113$20,896Accounts payable128,662141,808Accounts payable - related parties1,8521,338Asset backed borrowings - owed to securitization investors194,180170,862Current operating lease liabilities5,9275,502Other current liabilities153,592138,259Total current liabilities484,326478,665Long-term debt, net1,354,6362,034,545Asset backed borrowings - owed to securitization investors424,406382,910Deferred income tax liability169,355171,103Long-term operating lease liabilities15,74512,549Other long-term liabilities45,30229,661Total liabilities2,493,7703,109,433Stockholders' equity/(deficit):Redeemable preferred stock, $0.01 par value, 100,000,000 shares authorized, no shares issued or outstanding - - Common stock, $0.01 par value, 2,000,000,000 shares authorized, 197,532,147 and 189,609,192 issued, respectively, and 197,532,147 and 125,290,718, outstanding, respectively1,9751,896Additional paid-in capital509,369189,911(Accumulated deficit)/retained earnings(176,404)31,527Accumulated other comprehensive income/(loss)57,178(1,752)Treasury stock, at cost, 0 and 64,318,474 shares, respectively - (498,910)Total stockholders' equity/(deficit)392,118(277,328)Total liabilities and stockholders' equity/(deficit)$2,885,888$2,832,105 Year Ended December 31,20252024Cash flows from operating activities:Net income$101,755$98,319Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization93,70190,169Amortization and extinguishment of debt issuance costs4,5285,559Amortization of original issue discount6,2022,620Non-cash interest expense/(income)10,299(700)Non-cash (gain)/loss on commodity & foreign exchange contracts, net(751)657Non-cash foreign exchange loss/(gain), net25,152(4,654)Non-cash stock-based compensation19,5193,263Non-cash (gain)/loss for pension and post-retirement benefit plans(192)71Loss on sale of property, plant, and equipment1,291318Provision for credit losses3,6227,145Deferred income taxes(3,340)(31,583)Changes in assets and liabilities, net of the effects of acquisitions:Accounts and equipment financing receivables, net(9,801)639Accounts receivable - restricted for securitization investors(12,227)9,071Inventories, net(6,494)5,776Inventories, net - related party16855Equipment financing receivables, net - restricted for securitization investors(32,566)(35,065)Other assets3,382362Accounts payable(14,012)5,755Accounts payable - related parties514(171)Other liabilities20,935(12,146)Net cash provided by operating activities211,685145,460Cash flows from investing activities:Capital expenditures(53,668)(43,485)Acquisition of businesses, net of cash acquired(12,619)(27,948)Proceeds on disposition of assets2922,429Originations of equipment financing receivables, net - restricted for securitization investors(102,344)(92,092)Collections of equipment financing receivables, net - restricted for securitization investors76,69273,336Net cash used in investing activities(91,647)(87,760)Cash flows from financing activities:Payments on revolving line of credit borrowings - (5,674)Proceeds from long-term borrowings - 2,064,625Payments on long-term borrowings(710,000)(1,268,000)Cash paid for debt establishment and amendment fees(1,967)(2,389)Proceeds from initial public offering, net of issuance costs497,032 - Increase in asset backed borrowings owed to securitization investors219,829204,434Decrease in asset backed borrowings owed to securitization investors(155,014)(165,898)Dividends paid - (265,940)Return of capital paid - (634,060)Repurchase of common stock(6,205)(1,445)Taxes paid related to net share settlement of stock options(7,782)(1,138)Net proceeds from stock options exercised5,697111Proceeds from common stock issuance under employee purchase plan500 - Net cash used in financing activities(157,910)(75,374)Effect of exchange rate changes on cash, cash equivalents, and restricted cash(467)(4,253)(Decrease)/increase in cash, cash equivalents, and restricted cash(38,339)(21,927)Cash, cash equivalents, and restricted cash at beginning of period188,042209,969Cash, cash equivalents, and restricted cash at end of period$149,703$188,042 EBITDA Margin: ir@alliancels.com adjusted for the discrete items that management excluded in analyzing the segments’ operating margin expanded to a record 25.5%, demonstrating the Company’s ability to drive profitable growth. markets, with pricing actions largely offsetting modest tariff impacts and margin expansion driven by debt paydown and term loan repricing, meaningfully improving ongoing cost of capital and 4,000 employees. Our brands include Speed Queen®, UniMac®, Huebsch®, Primus® and IPSO®. Three Months Ended December 31,Year Ended December 31,2025202420252024Net revenues:Equipment, service parts and other$422,215$383,106$1,659,680$1,459,746Equipment financing12,65912,03049,55748,694Net revenues434,874395,1361,709,2371,508,440Costs and expenses:Cost of sales263,973244,6821,028,073914,655Cost of sales - related parties2,2901,5747,3226,218Equipment financing expenses7,67010,31931,73836,316Gross profit160,941138,561642,104551,251Selling, general, and administrative expenses97,34570,678324,458266,444Selling, general, and administrative expenses - related parties5575280300Other costs - 494 - 494Total operating expenses97,40071,247324,738267,238Operating income63,54167,314317,366284,013Interest expense, net29,26131,231150,501132,001Other expenses, net2,317(13,734)28,83123,376Other expenses, net - related parties - 5,187 - 5,187Income before taxes31,96344,630138,034123,449Provision for income taxes11,3677,56636,27925,130Net income$20,596$37,064$101,755$98,319Comprehensive income:Net income$20,596$37,064$101,755$98,319Other comprehensive income/(loss):Foreign currency translation adjustment(33)(29,207)59,122(27,439)Change in pension liability and other post-retirement benefits, net of taxes of $0 and $0 at December 31, 2025 and 2024, respectively (192)71(192)71Total other comprehensive (loss)/income(225)(29,136)58,930(27,368)Comprehensive income$20,371$7,928$160,685$70,951Net income per share attributable to common stockholders:Basic$0.11$0.22$0.57$0.58Diluted$0.10$0.21$0.56$0.56Weighted average number of common shares outstandingBasic195,038170,638177,002170,591Diluted201,085174,579181,443174,331 (Unaudited)Three Months Ended December 31, 2025Three Months Ended December 31, 2024(in thousands)North AmericaInternationalTotalNorth AmericaInternationalTotalNet revenues$316,823$118,051$434,874$290,056$105,080$395,136Cost of sales(1)199,61773,168186,71969,076Other segment items(2)28,74615,63026,08812,624Adjusted EBITDA$88,460$29,253$117,713$77,249$23,380$100,629Reconciling items:Interest expense, net(29,261)(31,231)Depreciation and amortization(24,357)(22,673)Refinancing and debt related costs(200)(250)Foreign exchange (loss)/gain on intercompany loans(2,117)8,797Share-based compensation(17,217)(678)Strategic transaction costs(1,451)(620)Corporate and other(11,147)(9,344)Income before taxes$31,963$44,630 (Unaudited)Three Months Ended December 31,Year Ended December 31,(in thousands, except percentages)2025202420252024Net Income$20,596$37,064$101,755$98,319Provision for income taxes11,3677,56636,27925,130Interest expense, net29,26131,231150,501132,001Depreciation and amortization24,35722,67393,70190,169Refinancing and debt related costs2002503,67933,217Foreign exchange loss (gain) on intercompany loans, net2,117(8,797)25,152(4,654)Share-based compensation17,21767819,7793,263Strategic transaction costs1,4516205,6275,803Adjusted EBITDA$106,566$91,285$436,473$383,248Net revenues$434,874$395,136$1,709,237$1,508,440Net income margin4.7 %9.4 %6.0 %6.5 %Adjusted EBITDA margin24.5 %23.1 %25.5 %25.4 % (Unaudited)(in thousands)December 31, 2025December 31, 2024Term loan$1,365,000$2,075,000Finance lease obligations236359Debt1,365,2362,075,359Less: Cash and cash equivalents(123,102)(154,682)Net debt$1,242,134$1,920,677Adjusted EBITDA$436,473$383,248Net debt to Adjusted EBITDA2.8x5.0x (Unaudited)Three Months Ended December 31,Year Ended December 31,(in thousands)2025202420252024North AmericaSegment net revenues316,823290,0561,268,9791,109,134Segment adjusted EBITDA88,46077,249361,487317,779Segment adjusted EBITDA margin27.9%26.6%28.5%28.7%InternationalSegment net revenues118,051105,080440,258399,306Segment adjusted EBITDA29,25323,380120,597103,148Segment adjusted EBITDA margin24.8%22.2%27.4%25.8% • Full year net revenues of $1.7 billion, up 13% versus prior year performance, such as refinancing and debt related costs, share-based compensation, strategic cost-down initiatives and strong incremental margins on volume growth. financial flexibility Together, they present a full line of commercial washing machines, dryers, and ironers (with load

FOURTH QUARTER 2025 CONSOLIDATED RESULTS • Full year net income of $102 million, up 3% versus prior year; with net income margin of 6.0% transaction costs, foreign exchange on intercompany loans and other non-recurring items which capacities from 20 - 400 lb. or 9 - 180 kg.) and support service. You can also enjoy the superior wash Randy Radtke

Full year Adjusted EBITDA of $436 million, up 14% versus prior year, with record Adjusted management believes are not indicative of the Company’s ongoing operating performance. Segment International revenue increased 12% to $118 million, with Adjusted EBITDA growing 25% to $29 and fabric care of commercial-grade laundry equipment in your home through our legendary Speed 2026 FULL YEAR GUIDANCE Senior Manager of Content and Creative Services Net revenues increased 10% to $435 million compared to $395 million in the prior year quarter. This EBITDA Margin of 25.5% Adjusted EBITDA is a measure of operating performance of our reportable segments and may not be million, and margin expanding 260 basis points to 24.8%. Revenue growth was driven by particularly Queen® washers and dryers. randy.radtke@alliancels.com result reinforces Alliance’s pattern of durable, demand-driven growth and the resilience of its end- • Q4 revenue of $435 million, up 10% versus prior year comparable to similar measures reported by other companies. strong performance in Europe, underpinned by the continued success of Speed Queen Licensed Stores, The Company’s outlook includes Adjusted EBITDA and Net Leverage, which are non-GAAP market positioning. • Net Leverage reduced by 2.2x to 2.8x in a single year through operations and IPO proceeds and solid demand across Asia Pacific markets. For more information, visit www.alliancelaundry.com. measures. The Company does not provide certain estimated future results for Adjusted EBITDA and
Introduces 2026 annual guidance: revenue growth of +5 to 7%, Adjusted EBITDA growth of +6 FORWARD-LOOKING STATEMENTS Net Leverage on a GAAP basis because the Company is unable to predict, with reasonable certainty, Gross profit increased 16% to $161 million, or 37.0% of revenue, an increase of 190 basis points of to 8%, continued margin expansion and deleveraging to the low 2x range Net Leverage CASH FLOW AND BALANCE SHEET NON-GAAP FINANCIAL MEASURES certain items that are excluded from Adjusted EBITDA, including but not limited to restructuring and margin expansion versus the prior year quarter. The improvement reflects the combined benefit of ___________________________________________________________________ This press release includes “forward-looking statements” within the meaning of the “safe harbor” acquisition-related charges, non-cash asset impairment charges and gains or losses from dispositions volume leverage and cost-down initiatives, with pricing actions largely offsetting the approximate $5 Operating cash flow for the year increased 46% to $212 million, versus $145 million in 2024. This provisions of the United States Private Securities Litigation Reform Act of 1995. In some cases, you We regularly review non-GAAP measures to evaluate our business, measure our performance and and foreign exchange gains/losses on intercompany loans. These items are uncertain and will depend million tariff impact in the quarter. robust cash generation reflects the Company’s business model, effective working capital management, Ripon, WI, March 12, 2026 - Alliance Laundry Systems (NYSE: ALH) (“Alliance” or the can identify these forward-looking statements by the use of terms such as “expect,” “will,” “continue,” manage our operations, including identifying trends affecting our business, formulating business plans on several factors, including industry conditions, and could be material to the Company’s results and strong earnings growth. “Company”), the global leader in commercial laundry equipment, today announced results for its or similar expressions, and variations or negatives of these words, but the absence of these words does and making strategic decisions. We believe that non-GAAP measures provide an additional way of computed in accordance with GAAP. The Company has not provided reconciliations between the Net income decreased 44% to $21 million compared to $37 million in the prior year quarter, primarily fourth quarter and full year ended December 31, 2025, and introduced its 2026 annual guidance. not mean that a statement is not forward-looking. Forward-looking statements represent our viewing aspects of our operations that, when viewed together with our GAAP results, provide a more Company’s 2026 guidance and the most directly comparable GAAP measures because it would be too due to a one-time share based compensation expense associated with the Company’s IPO, partially The Company significantly strengthened its balance sheet in 2025, reducing Net Leverage from 5.0x to management’s beliefs and assumptions only as of the date of this press release. You should read this complete understanding of our results of operations and the factors and trends affecting our business. difficult to prepare a reliable U.S. GAAP quantitative reconciliation without unreasonable effort. offset by significantly lower interest expense following debt reduction actions. Adjusted Net Income 2.8x, a reduction of 2.2x in a single year. Debt declined to $1.4 billion from $2.1 billion at the start of “2025 was a landmark year for Alliance. Our full year and fourth quarter results demonstrated our press release with the understanding that our actual future results may be materially different from These non-GAAP financial measures are also used by our management to evaluate financial results (Unaudited)Year Ended December 31, 2025Year Ended December 31, 2024(in thousands)North AmericaInternationalTotalNorth AmericaInternationalTotalNet revenues$1,268,979$440,258$1,709,237$1,109,134$399,306$1,508,440Cost of sales(1)791,853271,485700,743254,043Other segment items(2)115,63948,17690,61242,115Adjusted EBITDA$361,487$120,597$482,084$317,779$103,148$420,927Reconciling items:Interest expense, net(150,501)(132,001)Depreciation and amortization(93,701)(90,169)Refinancing and debt related costs(3,679)(33,217)Foreign exchange (loss)/gain on intercompany loans(25,152)4,654Share-based compensation(19,779)(3,263)Strategic transaction costs(5,627)(5,803)Corporate and other(45,611)(37,679)Income before taxes$138,034$123,449 increased 18% to $49 million versus $41 million in the prior year quarter, reflecting strong operating the year, with cash of $123 million resulting in Net Debt of $1.2 billion at year end. Approximately ability to deliver very strong outcomes driven by our market leading position and commitment to what we expect. All statements other than statements of historical fact are statements that could be and to plan and forecast future periods. Non-GAAP financial measures should be considered a The Company is introducing its first full-year annual guidance. In 2026, Alliance expects: performance including significantly lower interest expense. one full turn of that deleveraging was funded entirely by cash generated from operations, with the operational excellence as we serve customers across this resilient, essential industry,” said Michael deemed forward-looking statements, which include but are not limited to: expectations relating to supplement to, and not a substitute for, or superior to, the corresponding measures calculated in balance driven by proceeds from the October 2025 IPO. This demonstrates the Company’s strong free Schoeb, CEO of Alliance Laundry. “We delivered our second consecutive year of double-digit growth revenues and other financial or business metrics; statements regarding the Company’s plans, guidance, accordance with GAAP. Non-GAAP financial measures used by us may differ from the non-GAAP 2026 GuidanceRevenue Growth+5% to 7%Adjusted EBITDA Growth+6% to 8%Net LeverageLow 2x by end of yearCapex (% of Revenue)~3%Effective Tax Rate~23.5%Interest Expense~$85 millionDiluted Share Count~205 million The following table presents a reconciliation of Net income to Adjusted net income: Adjusted EBITDA increased 17% to $107 million, or 24.5% of revenue, an increase of 140 basis cash flow generation capability and its ability to delever independent of capital markets activity. on both the top and bottom line, significantly strengthened our balance sheet, and continued to invest growth, execution, costs and cost savings and any other statements of expectation or belief. These measures used by other companies, including our competitors. points versus the prior year quarter. Revenue grew 10% while Adjusted EBITDA grew 17% over the in the innovation and market expansion that we believe will drive our next chapter of growth.” statements are subject to known and unknown risks, uncertainties and other factors that may cause our (Unaudited)Three Months Ended December 31,Year Ended December 31,(in thousands, except per share data)2025202420252024Net income$20,596$37,064$101,755$98,319Amortization of intangible assets13,62012,93151,68150,515Refinancing and debt related costs2002503,67933,217Foreign exchange loss (gain) on intercompany loans, net2,117(8,797)25,152(4,654)Share-based compensation17,21767819,7793,263Strategic transaction costs1,4516205,6275,803Tax effect of add backs(6,239)(1,359)(22,634)(20,449)Adjusted net income$48,962$41,387$185,039$166,014Net income per share attributable to common stockholders - diluted:$0.10$0.21$0.56$0.56Adjusted net income per share attributable to common stockholders - diluted:$0.24$0.24$1.02$0.95 prior year quarter, demonstrating the operating leverage inherent in Alliance’s business model and its Capital expenditures were $54 million as the Company invested across its global manufacturing actual results, levels of activity, performance or achievements to differ materially from results “Adjusted EBITDA” represents Net income before provision for income taxes, interest expense, continuing focus on driving profitable growth. facilities. This represents approximately 3% of revenue, directed at capacity expansion, automation, FULL YEAR 2025 CONSOLIDATED RESULTS expressed or implied in this press release. Such risk factors include, but are not limited to, those related depreciation and amortization. Adjusted EBITDA is also adjusted for items that management excluded new product development, plus expanded testing capabilities in Thailand and the Czech Republic. to: the high degree of competition in the markets in which we operate; our reliance on the performance in analyzing the segments’ operating performance, such as refinancing and debt related costs, share- FULL YEAR 2025 RESULTS BY REPORTABLE SEGMENT Net revenues increased 13% to $1.7 billion, compared to $1.5 billion in the prior year. The increase of distributors, route operators, suppliers, retailers and servicers; our ability to achieve and maintain a based compensation, strategic transaction costs, foreign exchange on intercompany loans and other FULL YEAR 2025 BUSINESS HIGHLIGHTS was driven by both strong volume performance and mid-single digit price increases. Growth was high level of product and service quality; fluctuations in the cost and availability of raw materials; our non-recurring items which management believes are not indicative of the Company’s ongoing North America revenue increased 14% to $1.3 billion, compared to $1.1 billion in the prior year, with broad-based across both the North America and International reportable segments, with strong exposure to international markets, particularly emerging markets; our exposure to costs and difficulties operating performance. “Adjusted EBITDA Margin” represents Adjusted EBITDA divided by Net double-digit growth across the Vended and Commercial-in-Home end markets and high single digit Innovation Leadership - Alliance continued to invest at scale in 2025: performance across the Vended, On-Premise Laundry, and Commercial-In-Home end markets. Full of acquiring and integrating complementary businesses and technologies; and our exposure to revenues. growth in the On-Premise market. Equipment revenue increased 15% year over year, driven by year net revenue growth was driven predominantly by volume, which contributed roughly 70% of the worldwide economic conditions and potential global economic downturns. particularly strong performance in the Vended and Commercial-In-Home end markets. North America •Extended ProCapture lint filtration technology across a broader range of products increase, with price realization accounting for the remainder, a mix that reflects the strength of “Adjusted Net Income” represents Net income adjusted to exclude certain expenses not representative CONFERENCE CALL INFORMATION Adjusted EBITDA increased 14% to $361 million, compared to $318 million in the prior year. •Launched the T55 stack tumbler, the industry’s largest at 55 pounds underlying demand and the ongoing competitive differentiation of Alliance’s total cost of ownership Additional information concerning these and other risks and uncertainties are contained in the section of our ongoing operations and other charges. These adjustments include, but are not limited to, Adjusted EBITDA margin was 28.5%. The Company’s local-for-local manufacturing strategy •Introduced Scan-Pay-Wash, the industry’s first app-less cashless payment solution value proposition. entitled “Risk Factors” in the Company’s final prospectus filed October 9, 2025, which forms part of refinancing and debt related costs, share-based compensation, strategic transaction costs, intangible Alliance will host a conference call to discuss these results at 8:00 a.m. Eastern Time today, March 12, (1)Consists of Cost of sales, Cost of sales - related parties and Equipment financing expenses. provided significant structural protection from tariffs, with approximately $12 million in cost increase •Launched the Stax-X stacked washer-dryer unit for laundromats, the first product fully the Registration Statement on Form S-1 declared effective as of September 30, 2025. Additional amortization, foreign exchange on intercompany loans and other non-recurring items. 2026. (2)Other segment items for each reportable segment includes allocated engineering, sales and marketing, information technology, largely offset on both a dollar and margin basis through pricing actions. developed at Alliance’s Thailand engineering facility Gross profit increased 16% to $642 million, compared to $551 million in the prior year. Gross margin and certain other overhead expenses. information will be made available in our quarterly reports on Form 10-Q, and other filings and reports
Conducted over five million hours of physical product testing in 2025, reflecting the depth of expanded 100 basis points to 37.6%, driven by cost-down initiatives, operational leverage, and that we may file from time to time with the SEC. Except as required by law, we assume no obligation, “Net Debt” represents our total debt less Cash and cash equivalents. To listen to the conference call, a live audio webcast will be available on Alliance’s Investor Relations International revenue increased 10% to $440 million, compared to $399 million in the prior year investment and rigor behind innovation pipeline disciplined pricing, with the Company’s local-for-local manufacturing strategy providing structural and do not intend to, update these forward-looking statements, or to update the reasons actual results website at https://ir.alliancelaundry.com/news-events/ir-calendar. A replay of the webcast will be driven by strong performance in Europe and Asia Pacific, where expanding Vended end markets are tariff protection. could differ materially from those anticipated in these forward-looking statements, even if new “Net Debt to Adjusted EBITDA” or “Net Leverage” represents total debt less Cash and cash available after the call. driving growth. International Adjusted EBITDA increased 17% to $121 million, compared to $103 Commercial and Operational Execution - Alliance delivered strong commercial and operational information becomes available in the future. equivalents divided by Adjusted EBITDA for the relevant period. million in the prior year. Adjusted EBITDA margin expanded 160 basis points to 27.4%, driven by results across products, end markets and geographies in 2025: Net income increased 3% to $102 million, compared to $98 million in the prior year. Adjusted net To participate in the conference call, analysts and investors can dial 1 (800) 267-6316 and Speed Queen licensed stores in Europe, first-mover advantage in nascent vended markets across Asia income increased 11% to $185 million versus the prior year driven by higher earnings. Net income SEGMENT INFORMATION international participants can dial 1 (203) 518-9783. The Conference ID is ALHQ4FY25. Participants and Latin America, and continued focus on profitable growth across all regions. •Europe continued to gain traction, contributing to international growth and further establishing margin was 6.0% in the current year. should dial in at least 10 minutes prior to the call. our brands’ premium positioning in key markets Our business is organized into two reportable segments, North America and International. The Refer to the “2026 Full Year Guidance” and “Non-GAAP Financial Measures” sections below for additional information regarding forward-looking non-GAAP financial measures. •North America demand for commercial-grade product in the home accelerated meaningfully, Company uses Segment net revenues, Segment Adjusted EBITDA and Segment Adjusted EBITDA with Commercial-In-Home revenue growing over 20% Margin as its measures of performance. The Company allocates certain costs including manufacturing