Alliance Laundry 2025 Q3 Earnings Record $32.9M Net Income, 620.3% Turnaround

Alliance Laundry Holdings (ALH) reported Q3 2025 earnings on Nov 13, 2025, with revenue rising 13.9% to $437.61 million and net income surging 620.3% to $32.90 million. The company exceeded revenue estimates ($423.5M vs. actual $437.6M) and delivered a record net income, reversing a $6.32M loss in 2024 Q3. Management guided for Q4 2025 revenue growth of mid-single digits, with deleveraging goals and capital discipline emphasized.

Revenue

Alliance Laundry’s Q3 2025 revenue reached $437.61 million, driven by robust demand across its core segments. Equipment revenue led the way with $369.27 million, followed by service parts contributing $44.71 million. Equipment financing added $12.61 million, while other revenue streams totaled $11.01 million. The growth was fueled by volume increases, pricing adjustments, and favorable foreign exchange impacts, with North America and International segments both posting double-digit growth.

Earnings/Net Income

Alliance Laundry returned to profitability with Q3 2025 EPS of $0.19, reversing a $0.04 loss in 2024 Q3. Net income soared to $32.90 million, a historic turnaround and the highest Q3 net income in two years. The company’s adjusted EBITDA rose 16% to $110.8 million, with margins expanding to 25.3%, underscoring operational efficiency and disciplined cost management.

Price Action

The stock price of ALH declined 7.61% in the latest trading day, 3.79% in the week, and 1.89% month-to-date, reflecting short-term volatility ahead of the earnings report.

Post-Earnings Price Action Review

The strategy of buying ALH shares following a Q3 2025 revenue miss proved profitable, as the stock price rebounded 14% over 30 days post-earnings. While the analysis focused on price appreciation, total returns—including potential dividends—could enhance outcomes. The market’s stabilization and subsequent recovery suggest strong fundamentals and adjusted expectations, validating the approach for investors seeking to capitalize on overreactions to earnings misses. This strategy demonstrates risk management efficacy and could apply to similar scenarios.

CEO Commentary

CEO Mike Shabe emphasized Alliance Laundry’s leadership in a resilient industry, highlighting growth drivers like replacement demand, aftermarket services, and expansion in mature and emerging markets. Strategic priorities include innovation (e.g., ScanPayWash, Stax X), scale optimization, and disciplined capital allocation. Shabe expressed confidence in executing amid macroeconomic challenges, with a focus on organic growth and long-term value creation.

Guidance

Alliance Laundry expects Q4 2025 revenue growth to moderate to mid-single digits, with $16 million in non-cash stock compensation charges impacting adjusted metrics. The company aims to reduce net leverage by 0.5–1.0x annually, maintain CapEx at ~3% of revenue, and prioritize free cash flow for debt reduction and shareholder returns. Full-year 2025 will mark consecutive low-double-digit growth, with 2026 guidance to be provided in Q4 2025.

Additional News

Alliance Laundry completed a $525 million debt repayment using IPO proceeds, lowering its leverage ratio to 3.1x and securing $46 million in annualized interest savings. Credit agencies upgraded the company’s ratings to B+ (S&P) and B2 (Moody’s) with positive outlooks. Key innovations included the 55-lb stack tumbler and new payment technology for the vended market. The acquisition of Metropolitan Laundry Machinery Sales in Q3 further strengthened distribution capabilities.