EVI Industries (NYSE: EVI) reported fourth-quarter fiscal 2026 earnings per share of $0.17, meeting analyst consensus estimates. This represents a 21% increase from the $0.14 per share reported in the same period last year.

Quarterly revenue reached $121.9 million, an 11% year-over-year increase that beat the analyst consensus estimate of $117.1 million by approximately 4%. The top-line growth was driven by strong performance in the commercial laundry business, with a shift toward higher-margin service, parts, and consumables revenues.

Financial Performance

Net income for the quarter surged 31% to $2.7 million from $2.1 million in Q4FY25. Adjusted EBITDA grew 26% to a record $9.1 million. Gross profit rose 13% to $38.5 million, lifting the gross margin to a record 31.6%, an improvement of 80 basis points year-over-year.

For the full fiscal year, revenue climbed 15% to a record $446.6 million, with net income rising 3% to $7.7 million. Full-year adjusted EBITDA increased 16% to a record $29.1 million, representing 6.5% of revenue.

What the Numbers Show

A significant portion of EVI Industries’ earnings power is currently absorbed by corporate expenses. While operating businesses generated adjusted EBITDA of $12.9 million (10.6% of revenue) in Q4FY26, consolidated operating income was $5.6 million after deducting $3.8 million in corporate costs. Management notes that these expenses largely reflect infrastructure investments in technology and acquisitions that do not scale directly with revenue, creating a gap between operational performance and consolidated margins.

Strategic Expansion

Following the fiscal year-end, EVI announced its entry into the consumer garment care services market through the acquisition of Sudsies, Inc., which closed on September 1, 2026. This marks the company’s first dedicated expansion beyond commercial laundry distribution since 2016. During FY26, EVI also completed two acquisitions in its core business: ASN Laundry Group and Belenky, Inc., bringing the total number of acquired commercial laundry businesses to 32.

Balance Sheet and Cash Flow

Net debt declined $11.5 million during the quarter to $44.2 million as of June 30, 2026, remaining substantially unchanged from the prior year despite funding two acquisitions. The company generated $13.4 million in operating cash flow during Q4FY26, a 35% increase over the prior-year quarter. Management stated that the balance sheet provides flexibility for continued organic growth, technology investments, and potential future acquisitions.

EVI Industries, Inc. has entered into a definitive agreement to acquire Miami, Florida-based Sudsies, Inc. to establish a new consumer garment care division. This move marks EVI's first expansion beyond the commercial laundry distribution and service industry since 2016. The company aims to leverage its growth strategy to enter a multibillion-dollar consumer market characterized by steady, recurring demand, currently served by independent, family-owned businesses. Sudsies is expected to become the foundation of this new division, continuing to operate under its established brand and led by its founder, Jason Loeb.

Financial Performance of Sudsies

Sudsies has demonstrated consistent growth and profitability, which management believes aligns with EVI's long-term approach to building businesses. For the twelve months ended June 30, 2026, Sudsies generated significant financial results, driven by its data-driven approach to customer acquisition and integrated logistics capabilities.

Over the five-year period from July 1, 2021, through June 30, 2026, Sudsies grew revenue at a compound annual growth rate of approximately 21%. During the same period, operating income and EBITDA expanded at compound annual growth rates of approximately 36% and 62%, respectively.

Strategic Rationale and EVI's Growth

EVI's Chairman and Chief Executive Officer, Henry M. Nahmad, highlighted that the acquisition capitalizes on the strengths that made EVI North America's leading commercial laundry enterprise. Since Henry M. Nahmad acquired a controlling interest in EVI in 2015, the company has executed a disciplined buy-and-build strategy. This strategy has grown annual revenue more than 12x, from approximately $36 million to nearly $435 million, compounding at 29% annually. Net income and Adjusted EBITDA have compounded at 15% and 26%, respectively, over the same period.

EVI intends to continue growing its core commercial laundry distribution and service business while using Sudsies as a platform to expand into new U.S. markets. The company believes the combination of its deep operating expertise and Sudsies' brand reputation will enable the creation of a national-scale consumer garment care platform. The transaction is expected to close promptly upon satisfaction of customary closing conditions and be accretive to EVI’s earnings for the fiscal year ending June 30, 2027.