EVI Industries (EVI) Q1 Earnings call transcript Nov 12, 2025

EVI Industries, a leading player in the North American commercial laundry distribution and service industry, reported record-breaking financial results for the first quarter of the fiscal year ended June 30, 2025. In an earnings call led by Chairman and CEO, Henry Nahmad, the company highlighted significant achievements and outlined its strategic plans for continued growth and innovation.

Financial Highlights and Growth Strategies

EVI Industries reported record revenues of $94 million, up 6% from the same period last year. This revenue growth was driven by a combination of customer sales orders, equipment sales, and service and maintenance contracts. Gross profit for the quarter hit a record $29 million, reflecting a 12% increase from the previous year, while gross margin improved to a record 30.8%. Operating income and net income also saw impressive gains, with records of $5 million and $3.2 million, respectively. These financial milestones were achieved amidst strategic investments in technology and operational efficiencies.

Acquisition Strategy and Technological Advancements

The earnings call underscored EVI Industries' acquisition strategy, with the successful completion of two significant acquisitions during the quarter. The acquisition of Laundry Pro of Florida and O'Dell Equipment and Supply in Jeffersonville, Indiana, is part of a larger plan to consolidate the industry and enhance customer value. The company's technology initiatives, which include the implementation of end-state enterprise resource planning systems, field service technologies, and the launch of an e-commerce site, are designed to accelerate sales growth and improve operational efficiency. Despite the near-term financial impact of these investments, EVI Industries remains optimistic about their long-term potential to drive profitability and expand market reach.

Financial Strength and Dividend Strategy

EVI Industries' financial health is a testament to its strategic investments and operational excellence. The company's cash flow and balance sheet position, coupled with a record-breaking dividend of $0.31 per share, underscore its commitment to sharing cash flow with shareholders while maintaining a conservative financial stance. Future dividends will be considered in light of investment opportunities, cash flow, and overall financial condition.

A Look Ahead

With a solid financial foundation, a robust acquisition strategy, and a commitment to technological advancements, EVI Industries is well-positioned for continued growth and success in the commercial laundry distribution and service industry. The company's entrepreneurial culture, growing technology advantage, and strategic acquisitions make it a formidable player in the sector. As EVI Industries continues to pursue its long-term growth strategy, it remains committed to its core values of customer satisfaction and operational excellence.

In conclusion, EVI Industries' first quarter earnings call painted a picture of a company on the rise. With record-breaking financial results, strategic acquisitions, and a clear vision for the future, EVI Industries is poised to continue its growth trajectory and solidify its position as a leader in the commercial laundry industry.