EVI's Q4 Earnings Flat Y/Y, Revenues Grow 22% YoY on Acquisition Gains

Shares of EVI Industries, Inc. EVI have inched up 0.4% since the company reported its earnings for the quarter ended June 30, 2025. This compares to the S&P 500 index’s 1.5% growth over the same time frame. Over the past month, the stock has gained 12.6% compared with the S&P 500’s 3.6% growth.

In the fourth quarter, EVI reported earnings per share (EPS) of 14 cents, which remained unchanged from the same period last year.

Quarterly revenues surged 22% year over year to a record $110 million, while gross profit rose 24% to $33.9 million, with margins expanding to 30.8%. Net income for the quarter was $2.1 million, up 1% year over year. 

EVI Industries, Inc. Price, Consensus and EPS Surprise

EVI Industries, Inc. price-consensus-eps-surprise-chart | EVI Industries, Inc. Quote

Fiscal 2025 Update

For fiscal 2025, revenues grew 10% to a record $390 million, driven by organic growth and acquisitions. Gross profit rose 12% to $118 million, representing a 30.4% margin. Operating income advanced 18% to $13.8 million, and net income jumped 33% to $7.5 million. EPS came in at 49 cents, up from 37 cents in fiscal 2024, a 32% increase. 

Operational Highlights and Other Key Metrics

EVI’s gross profit margin expansion and EBITDA growth were underpinned by continued execution of its long-term buy-and-build strategy. The company maintained a three-year compounded annual growth rate of 7% in organic revenue, while strengthening its operational capabilities and modernizing its infrastructure. The number of business units using EVI’s ERP platform rose to 28 out of 31, enhancing data visibility and decision-making across the enterprise.

The company also made significant progress in field service optimization. In July 2024, only two business units were live on the platform, but by June 2025, that number increased to 27, enabling over 8,500 service appointments in that month alone. These service calls also serve as sales touchpoints, feeding a pipeline of qualified leads to EVI’s 200-person sales force.

Despite a year-over-year decline in operating cash flow to $21.3 million from $32.7 million, this was attributed to deliberate increases in working capital, including $66.1 million in inventory and $60.5 million in accounts receivable. The company ended the year with net debt of $44.1 million, up from $8.3 million, reflecting continued investment in growth initiatives.

Management Commentary

Chairman and CEO Henry Nahmad described fiscal 2025 as a “defining year” in EVI’s evolution. He emphasized the company’s dual focus on long-term growth and conservative financing. Over 60% of EVI’s stock remains owned by executives and former business owners, aligning interests across stakeholders. Nahmad reiterated EVI’s commitment to its decentralized operating model, which empowers local leadership while leveraging enterprise-scale resources for areas like procurement, technology, and finance.

He also highlighted the essential and recurring nature of commercial laundry services, particularly across sectors like healthcare, hospitality, and government institutions. According to Nahmad, the company's strategic positioning, combined with technology-driven efficiency gains, gives it a competitive edge in an otherwise fragmented market.

Factors Influencing Performance

Favorable demand conditions across EVI’s end markets — particularly in healthcare, hospitality, and vended laundry — contributed to the record revenue performance. Additionally, strategic hiring in the company’s sales and technical workforce helped capture market share in target regions.

On the cost side, EVI faced increased expenses related to acquisition integration and technology deployments. These investments are designed to support long-term goals of achieving double-digit operating margins. While these costs tempered near-term profitability, management views them as foundational for future gains.

Tariff-related pressures from OEM suppliers were also cited as a challenge. However, EVI responded by adjusting its pricing and pursuing supply chain diversification, mitigating the impact of trade uncertainties.

Guidance and Outlook

EVI’s leadership conveyed optimism about the company’s trajectory. A solid backlog of customer orders, which increased over 10% during the year, combined with a robust acquisition pipeline and upcoming e-commerce platform launch in fiscal 2026, signals sustained momentum.

Management reaffirmed its commitment to scaling operations while delivering enhanced margins and customer value. Investments in ERP systems, business intelligence tools, and field service technologies are expected to bolster execution consistency and operational efficiency in the years ahead.

Other Developments

A key milestone during the quarter was the acquisition of Girbau North America, rebranded as Continental Laundry Solutions. This marked the largest acquisition in the company’s history and is expected to contribute approximately $50 million in annual revenues. The deal brought with it a distributor support platform and relationships with over 80 independent distributors across North America. EVI plans to use Continental as a master distributor, enhancing its sourcing capabilities and expanding its reach to OEM partners.

In addition, EVI’s Board declared a special cash dividend of 33 cents per share, payable on Oct. 6, 2025. This follows a 31 cents per share special dividend in the prior year, signaling confidence in the company’s financial health and its ability to return value to shareholders.

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