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Alliance Laundry Holdings Inc.: Q1 FY2026 earnings call

What management said about Q1 FY2026, from the documents filed with the SEC on 12 May 2026: press release. Guidance figures: 2 narrowed, 5 kept. The quarter’s numbers.

Key takeaways

  • Net revenue rose 10%: Net revenues were $427 million, up from $390 million in the prior year quarter. Source
  • Adjusted EBITDA rose 9%: Adjusted EBITDA was $109 million, against $99.7 million a year earlier, giving a 25.5% margin compared with 25.6%. Source
  • Low end of full-year guidance raised: Management raised the low end of the 2026 revenue and Adjusted EBITDA growth ranges, citing first quarter results and visibility to the rest of the year. Source
  • Tariffs offset by pricing: Pricing actions in place continue to offset roughly $20 million of annualized tariff exposure; management credits its local-for-local manufacturing footprint. Source
  • Volume about three percent of growth: Volume contributed about three percent of the 10% growth, consistent with the full-year expectation set by the company; pricing and about one percent from foreign exchange supplied the balance. Source
  • Net Leverage down to 2.6x: Net Leverage improved to 2.6x, down 0.2 turns from year end. Source

“Net revenues grew 10% with broad-based growth across all end markets and geographies, Adjusted EBITDA grew 9% , and Adjusted Net Income nearly doubled year over year.”

Michael Schoeb, CEO of Alliance

Guidance

AreaPeriodFigureAgainst last quarter
Revenue growth Source2026 full year+6% to 7%Narrowed, low end up from +5% to 7%
Adjusted EBITDA growth Source2026 full year+7% to 8%Narrowed, low end up from +6% to 8%
Net Leverage Sourceend of 2026Low 2x range by year end; reduction of about three quarters of a turn in 2026Kept
Capex (% of revenue) Source2026 full year~3%Kept
Effective tax rate Source2026 full year~23.5%Kept
Interest expense Source2026 full year~$85 millionKept
Diluted share count Source2026 full year~205 millionKept

What changed from last quarter

  • Guidance raised: Revenue growth guidance range narrowed at the low end, from +5% to 7% to +6% to 7%. Source
  • Guidance raised: Adjusted EBITDA growth guidance range narrowed at the low end, from +6% to 8% to +7% to 8%. Source
  • New: Second New York distributor acquisition completed in the quarter, the company's 17th U.S. acquisition since 2019. Source

Results and growth drivers

  • Net revenue rose 10%: Net revenues were $427 million, up from $390 million in the prior year quarter. Source
  • Adjusted EBITDA rose 9%: Adjusted EBITDA was $109 million, against $99.7 million a year earlier, giving a 25.5% margin compared with 25.6%. Source
  • Net income and Adjusted Net Income rose: Net income was $57 million against $17 million; Adjusted Net Income rose 84.9% to $63 million from $34 million. Source
  • Low end of full-year guidance raised: Management raised the low end of the 2026 revenue and Adjusted EBITDA growth ranges, citing first quarter results and visibility to the rest of the year. Source

Segments and regions

  • North America revenue up 9%: North America revenue rose to $320 million, with Adjusted EBITDA up 8% to $87 million and a 27.2% margin. Growth was broad-based across all end markets. Source
  • International revenue up 10%: International revenue rose to $107 million, with Adjusted EBITDA up 13% to $33 million and a 30.4% margin, up from 29.6% a year earlier. Source
  • Asia Pacific grew in vended markets: Asia Pacific grew, particularly in nascent vended markets. Source

“Our local-for-local manufacturing strategy continues to be a real competitive advantage in the current tariff environment, and we remain on track for our full year deleveraging target.”

Michael Schoeb, CEO of Alliance

Products and customers

  • Connected equipment keeps growing: Connected equipment continues to grow across the installed base. Source
  • Scan/Pay/Wash usage rising: Scan/Pay/Wash, a cashless payment option requiring no app download, has grown in use since its recent launch. Source
  • Commercial-in-Home outpaces industry: Commercial-in-Home continued to outpace the broader industry, while On-Premise results were solid on predictable replacement demand. Source

Costs, margins and tariffs

  • Gross profit rose to $157 million: Gross profit increased 8% to $157 million, a gross margin of 36.8%. Source
  • Tariffs offset by pricing: Pricing actions in place continue to offset roughly $20 million of annualized tariff exposure; management credits its local-for-local manufacturing footprint. Source
  • Public company costs weigh on margin: Volume leverage, operational excellence and supply chain efficiency lifted margin, partly offset by added public company costs. Source
  • Lower interest expense lifts earnings: Interest expense, net was $17.9 million against $44.9 million a year earlier, following debt reduction over the past twelve months. Source

“The strength of our Q1 performance and growing visibility to the balance of the year give us confidence to raise the low end of our full year net revenue and Adjusted EBITDA guidance today.”

Michael Schoeb, CEO of Alliance

Demand and volume

  • Volume about three percent of growth: Volume contributed about three percent of the 10% growth, consistent with the full-year expectation set by the company; pricing and about one percent from foreign exchange supplied the balance. Source
  • Growth broad across end markets: Growth was broad-based across all end markets in both segments, which management attributes to the non-discretionary nature of commercial laundry demand. Source
  • Europe operators investing in replacements: Europe grew across all end markets as the total cost of ownership proposition resonated with operators investing in replacements and energy efficiency. Source

Capital, debt and leverage

  • Debt reduced by $65 million: The company repaid $65 million of debt in the quarter, ending with total debt of $1.3 billion and net debt of $1.2 billion. Source
  • Net Leverage down to 2.6x: Net Leverage improved to 2.6x, down 0.2 turns from year end. Source
  • Operating cash flow up 76%: Operating cash flow was $80 million, up 76% on the prior year, which management ties to cash conversion and working capital discipline. Source

Coming up, as management said on 12 May 2026

  • Year-end Net Leverage target: Management expects Net Leverage in the low 2x range by year end, after reducing it about three quarters of a turn in 2026. Source

Figures management reported

FigureReported
Connected machines Sourceover 250,000
Scan/Pay/Wash transactions in March Sourceover 100,000

Risks management discussed

  • Regulatory: Management cited roughly $20 million of annualized tariff exposure, offset by pricing actions already in place. Source
  • Regulatory: Potential new trade developments; management said the company is equipped to manage them. Source
  • External: Middle East and Africa region, about 2% of global revenue, grew but faced regional headwinds. Source
  • Operational: Incremental public company costs partly offset margin gains from volume leverage and efficiency. Source

Earlier plans management reported on

  • On track: Management said the company remains on track for its full-year deleveraging target. Source
  • Not stated: Volume growth was described as consistent with the full-year expectation the company has set. Source

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.