EVI Industries' Q2 Earnings Rise Y/Y on Tech-Driven Operational Gains

Shares of EVI Industries, Inc. EVI have declined 10.4% since the company reported its earnings for the quarter ended Dec. 31, 2025, underperforming the S&P 500 index, which slipped just 0.1% over the same period. Over the past month, EVI stock has declined 17.1%, again lagging the broader market’s modest 0.4% decline, reflecting a sharply negative investor reaction despite what the company described as record quarterly results.

For the second fiscal quarter, EVI Industries reported earnings per share of 15 cents, which rose from 7 cents in the prior-year period. 

Revenues increased 24% year over year to a record $115.3 million. Gross profit jumped 29% to $35.5 million, translating to a record gross margin of 30.8% compared to 29.7% a year earlier.

Operating income surged 78% year over year to $4.2 million, while net income more than doubled, rising 110% to $2.4 million.

Adjusted EBITDA for the quarter came in at $7.7 million, up 49% from $5.1 million, representing 6.6% of revenues.

EVI Industries, Inc. Price, Consensus and EPS Surprise

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

Management Commentary

CEO Henry M. Nahmad emphasized the long-term vision and transformation of EVI into a national leader in the commercial laundry space. He credited strategic investments in people, technology and operational efficiency for strengthening the company’s foundation. 

He also reiterated the company’s commitment to its buy-and-build strategy, highlighting a 10-year track record of 30% compound annual revenue growth and 16% net income growth. Nahmad described EVI’s approach as “disciplined execution and thoughtful capital deployment,” reflecting confidence in the company's scalability and resilience.

Technology and Efficiency Initiatives

EVI continued to advance modernization efforts during the quarter, particularly in its service operations. The company reported a 13% improvement in average service response time over the past year, driven by field service technology that facilitated nearly 9,000 service appointments during the quarter. Expanded technician utilization analytics and real-time remote support tools were also cited as contributors to improved service consistency and margins.

Additionally, analytics-driven inventory and procurement tools are being deployed across over 15,000 SKUs, aimed at improving demand planning and reducing order latency. Management sees these systems as critical to enhancing operating efficiency and managing working capital as the business scales further.

Balance Sheet Data

As of Dec. 31, 2025, EVI Industries reported cash of $4.3 million, down from $8.9 million as of June 30, 2025. Total assets stood at $315.6 million, while total liabilities were $171.7 million, including $58 million in long-term debt.

Shareholders’ equity totaled $144 million, reflecting a stable capital base amid continued investment and acquisition activity

Other Developments

EVI reported continued activity on the acquisition front, reinforcing its role as a consolidator in the fragmented commercial laundry distribution industry. Although no new acquisitions were announced during the quarter, the company noted it is actively evaluating additional targets and exploring partnerships aimed at expanding Continental’s product offerings.

Cash flow from operations was positive at $5.1 million for the six-month period ended Dec. 31, 2025, despite a planned $12 million inventory buildup linked to customer sales orders in backlog. The company also paid a $5 million dividend and made the final payment on the Continental acquisition. Liquidity remains solid, with access to low-cost capital and working capital strength supporting future investments and acquisition efforts.

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