Alliance Laundry Revenue Rises 5% to $461 Million, Raises 2026 EBITDA Growth Outlook
Key Facts
Alliance Laundry said on November 10 that revenue rose 5% to $461 million in the quarter ended September 30, 2026, compared with $438 million in the same period a year earlier. The company raised its full-year adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) growth outlook to about 10%, the top end of its previous range. It kept its annual revenue growth outlook at 6% to 7%. The announcement followed quarterly gains in gross profit, net income and margins. The company said higher volume, product mix and pricing contributed to the increase in quarterly revenue.
Gross profit rose 12% to $182 million, and its margin reached 39.4%, up about 240 basis points from the third quarter of 2025. Adjusted EBITDA also increased 14% to $127 million, with a margin of 27.5%, up about 220 basis points year over year. Net income was $65 million, compared with $33 million a year earlier, while net income margin was 14.1%. Adjusted net income reached $76 million, up about 57% from $48 million in the year-earlier period. The company linked the improvement to volume, product mix and pricing, along with ongoing cost-reduction initiatives and tariff refunds that helped offset higher input costs.
North America led revenue growth, with sales up 8% to $356 million. The company said Commercial In-Home and On-Premise Laundry drove the increase on higher volumes. The segment's adjusted EBITDA was $115 million, while its margin improved by more than 300 basis points from a year earlier. In the nine months ended September 30, North American revenue rose 8.7% to $1.035 billion. Over that period, Commercial In-Home revenue increased 19%, with equipment revenue up 9.6%, supported by demand across end markets.
International segment revenue, by contrast, fell 1% to $105 million in the quarter, with the company attributing the decline mainly to foreign exchange. The segment's adjusted EBITDA margin was 25.3%, and adjusted EBITDA reached $27 million. Performance varied across international markets: revenue in Latin America rose 13%, while revenue in Asia fell 12% because of project timing following a strong second quarter. For the nine-month period, international revenue increased 2.4% to $329.9 million. But the period's adjusted EBITDA margin declined to 28.2% from 28.3% a year earlier, reflecting regional, customer and product mix.
For the first nine months of 2026, group revenue rose 7.1% to $1.365 billion, compared with $1.274 billion in the same period of 2025. Gross profit margin for the period reached 38.7%, versus 37.8% a year earlier. The company attributed the margin improvement mainly to better absorption of production costs, cost-reduction initiatives and modest price increases. Cash from operating activities was $230.2 million, compared with $116.8 million in the first nine months of the previous year. The company said a $24.6 million increase in working capital limited operating cash flow during the period.
Chief Executive Michael Schoeb said the company continues to invest in expanding its connected equipment platform and deepening its distributor partnerships. He added that diversity across products, end markets and geographies supports long-term results. Cash capital expenditures in the first nine months were $23.8 million, and the company expects them to reach about $60 million in 2026. It also expects net leverage to be about 2.1 times at year-end. Interest expense was estimated at about $75 million, and diluted shares at about 203 million for fiscal 2026.
ALH shares closed at $25.07 on November 10, up 4.28% from the previous close. The company was scheduled to hold a conference call to discuss the results that day at 8:00 a.m. Eastern time. An Investing.com report said adjusted earnings per share were $0.38, compared with an estimate of $0.32. The report also said revenue rose 5% to $461 million. These figures are in the context of the quarterly results the company announced that day.