EVI Industries (EVI) shares jumped 16.4 percent following fiscal fourth-quarter earnings, outpacing the S&P 500's 0.7 percent decline over the same period.
The company reported earnings per share of 17 cents, beating the $0.16 consensus estimate, on record revenues of $121.9 million versus expectations of $111.1 million. Fiscal 2026 revenue climbed 11 percent year over year.
Net income surged 31 percent to $2.7 million. Adjusted EBITDA reached $9.1 million, up 26 percent, with the adjusted EBITDA margin expanding 100 basis points to 7.5 percent. Operating cash flow jumped 35 percent to $13.4 million.
The margin expansion matters. Gross profit rose 13 percent to $38.5 million, with gross margin expanding 80 basis points to 31.6 percent. Excluding $3.8 million in corporate expenses, fourth-quarter adjusted EBITDA for EVI's commercial laundry operating businesses totaled $12.9 million, or 10.6 percent of revenues. Management views corporate spending on technology and personnel as infrastructure capable of supporting significantly higher revenue, not as costs that scale directly with sales.
Operational leverage is materializing. EVI completed approximately 30,300 service visits, up 10 percent sequentially, for roughly 11,600 unique customers. The company continues deploying technology to enhance technician productivity, optimize inventory, and improve job costing across its businesses.
Fourth-quarter results benefited from project completions delayed by weather in Q3 and a 21 percent sequential revenue increase driven by a higher mix of industrial sales and stronger contributions from service, parts, and consumables—which carry higher margins than equipment sales. EVI's expanded ownership of its supply chain through Continental operations also contributed to profitability.
Tariffs and elevated supplier costs represent near-term headwinds. EVI has adjusted pricing and collaborated with suppliers on cost mitigation, though trade policy uncertainty persists. The company ended fiscal 2026 with $6.8 million in cash and reduced net debt by $11.5 million to $44.2 million.
Chairman and CEO Henry Nahmad said fiscal 2026 was EVI's strongest year, with improving operating leverage evident as infrastructure investments from prior years begin driving returns.
