EVI Industries reported record results for the first quarter of fiscal 2027, with higher revenue and stronger margins lifting operating income, net income and adjusted EBITDA. Growth was led by commercial laundry service, parts and installation work, while the September acquisition of Sudsies marked EVI’s entry into consumer garment care services.
The company said its operating initiatives are helping convert more gross profit into earnings. At the same time, net debt rose during the quarter, and commercial laundry results included a benefit from tariff refunds.
Key details
-
Revenue rose 4.3% to a record $112.9 million compared with the first quarter of fiscal 2026. Commercial laundry revenue grew 2.9%; the first month of Sudsies operations contributed about $1.6 million.
-
Profitability improved faster than sales:
- Gross profit increased 12% to a record $38.0 million, and gross margin expanded to 33.7% from 31.3%.
- Operating income rose 75% to a record $6.2 million.
- Net income increased 108% to a record $3.8 million, while net margin rose to 3.4% from 1.7%.
-
Adjusted EBITDA climbed 47% to a record $9.9 million, with its margin reaching 8.8%, up from 6.2%.
-
Service and installation work drove much of the improvement. EVI said commercial laundry growth was led by parts, service and installations—activities that support customers throughout the life of their equipment. The stronger revenue mix and improved profitability in field service accounted for most of the increase in gross profit.
-
Commercial laundry operating income rose 38% to $11.3 million, equal to 10.2% of segment revenue. Segment EBITDA increased 33% to $13.4 million, and its margin widened to 12.1% from 9.3%. That margin included about $500,000 of tariff refunds received during the quarter.
-
EVI acquired Sudsies on September 1, entering the consumer garment care services industry. The company described the acquisition as a new business area and said it welcomed the Sudsies team.
-
Equipment demand indicators remained constructive. EVI’s equipment order backlog at September 30 was higher than at June 30. The company said customers are increasingly choosing higher-capacity machines, sometimes buying fewer, larger units. The timing of large projects and those purchasing choices can affect quarterly unit volumes, equipment revenue and gross margin.
-
Operating cash flow increased to $7.8 million, from $1.0 million a year earlier. Net debt, however, stood at $76.7 million at September 30, compared with $44.2 million at June 30.
-
The company highlighted improved operating leverage. Of the $4.1 million year-over-year increase in gross profit, about $2.7 million flowed through to operating income and $3.2 million to adjusted EBITDA.
What changes for investors
The quarter shows EVI generating more earnings from its existing commercial laundry business, particularly through service, parts and installation activity—not just equipment sales. Sudsies extends the company into consumer garment care, while the higher net debt balance is a notable change in its financial position during the quarter.