Alliance Laundry 2025 Q3 Earnings Record Net Income of $32.9M, 620% YoY Turnaround

Alliance Laundry (ALH) reported its fiscal 2025 Q3 earnings on Nov 13, 2025, with $437.61 million in revenue, a 13.9% increase from 2024 Q3. The company returned to profitability with net income of $32.9 million, a dramatic reversal from a $6.32 million loss in the prior-year period.

Revenue

Alliance Laundry’s revenue growth was driven by strong performance across all segments. Equipment sales led the charge, contributing $369.27 million, while service parts added $44.71 million. Equipment financing and other revenue streams rounded out the breakdown at $12.61 million and $11.01 million, respectively. The 14% year-over-year increase reflects broad-based demand across North America and international markets.

Earnings/Net Income

The company’s net income surged 620.3% to $32.9 million in 2025 Q3, marking a record high for fiscal Q3. This turnaround was underpinned by a 16% rise in adjusted EBITDA to $110.8 million and a 25.3% margin expansion. The EPS improved from a loss of $0.04 to $0.19, demonstrating robust operational leverage and disciplined cost management.

Price Action

ALH’s stock price declined 7.61% in the latest trading day, 3.79% in the week, and 1.89% month-to-date. However, post-earnings analysis suggests a potential recovery.

Post-Earnings Price Action Review

Buying ALH shares following the Q3 2025 revenue miss—actual revenue of $437.6 million vs. estimates of $423.5 million—proved advantageous. The initial dip in stock price provided a favorable entry point, followed by a swift recovery and sustained outperformance over 30 days. This momentum was supported by the company’s 14% revenue growth, $32.9 million net income, and positive market sentiment from its successful IPO and debt reduction. Strategic positioning in risk management and growth investments further reinforced long-term confidence.

CEO Commentary

CEO Mike Shabe highlighted Alliance Laundry’s resilience as a global commercial laundry leader, emphasizing steady demand and innovation in digital solutions like ScanPayWash and Laundry IQ. He underscored deleveraging efforts, local manufacturing, and M&A opportunities for urban expansion, while acknowledging challenges like tariffs.

Guidance

Alliance expects Q4 2025 revenue growth to moderate to mid-single digits. A $16M non-cash stock compensation charge will impact Q4 results but will be excluded from adjusted metrics. The company remains focused on deleveraging and organic growth, with 2026 guidance to follow post-Q4.

Additional News

Alliance Laundry completed its IPO on Oct 9, 2025, using proceeds to repay $525M in debt, reducing leverage to 3.1x. This action secured credit rating upgrades and $46M in annualized interest savings. The company also acquired Metropolitan Laundry Machinery Sales, expanding its Northeast distribution network. Management reiterated plans for shareholder returns via buybacks or dividends, supported by robust free cash flow generation.