Evi Industries Revenue Jumps 22% in Q4

Key Points

• Revenue for Q4 FY2025 rose 22% year over year to $110 million, setting a company record for the period.

• Gross profit and margin expanded in FY2025, driven by both organic growth and contributions from acquisitions.

• The board declared a special cash dividend of $0.33 per share for FY2025, up from $0.31 per share in FY2024.

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Evi Industries (NYSEMKT:EVI), a leading distributor and service provider in the North American commercial laundry sector, reported its financial results for the quarter ended June 30, 2025, on September 11, 2025. The most important news was its record quarterly revenue of $110 million in Q4 FY2025, fueled by strategic acquisitions and ongoing investments in technology and operations. The results highlighted strong top-line and gross profit growth. but also showed slower net income improvement. Overall, the period reflected meaningful strategic progress, with investments in new technology and the largest acquisition in company history.

About Evi Industries and Its Priorities

Evi Industries is a distributor of commercial and industrial laundry equipment and provider of related services. It serves over 55,000 customers across industries such as healthcare, hospitality, and vended laundry. The company’s core offerings span sales of commercial washers, dryers, parts, and maintenance support.

The company’s recent focus centers on a "buy-and-build" strategy—acquiring and integrating smaller distributors to expand its national reach. It also prioritizes technology upgrades, workforce expansion, and building strong supplier relationships. Success factors include disciplined acquisition, operational integration, diverse customers, and improvements to efficiency through digital platforms.

Quarter Highlights and Financial Developments

During the period, Evi Industries completed four acquisitions, including the purchase of Girbau North America, now called Continental Laundry Solutions. This marks the largest acquisition in the company’s history and is expected to add roughly $50 million in annual revenue (after intercompany eliminations). These deals have expanded Evi’s distribution footprint and enhanced its support and purchasing power with manufacturers.

Revenue for Q4 FY2025 grew 22% compared to the prior year, largely due to acquisitions and steady demand across end-markets. The company pointed to growth in healthcare, hospitality, and vended laundry segments as particularly resilient drivers. Gross profit margin improved by 0.8 percentage points to 30.4% in FY2025, reflecting benefits of scale and operational enhancements.

Operating income increased 13% from the prior-year period, indicating that Evi was able to manage its core costs even as spending on technology and integration grew. Adjusted EBITDA—a measure that excludes the effects of interest, taxes, depreciation, amortization, and stock-based compensation—rose 17% in Q4 FY2025, showing improvement in underlying profitability.

Net income for Q4 FY2025 increased 1% compared to the previous year. Diluted earnings per share remained at $0.14 in Q4 FY2025. This was partly the result of higher costs tied to acquisition integration, technology implementation, and an expanded workforce. Management identified supplier pricing pressures and tariffs as ongoing headwinds, but responded with select price increases and efforts to strengthen and diversify sourcing partners.

During FY2025, the company made significant progress rolling out its enterprise technology initiatives, including expanding its field service technology from two to 27 business units. This technology platform now coordinates and schedules more than 8,500 service appointments per month as of June 2025, up from about 1,000 per month in July 2024. By the end of fiscal 2025, 28 of Evi’s 31 business units were operating on a single enterprise resource planning (ERP) system, supported by new business intelligence (BI) tools that provide leadership with real-time, data-driven insights. The development of a new e-commerce platform for around-the-clock customer ordering is on schedule for launch in fiscal 2026, which management expects to drive even more convenient purchasing and enhanced visibility into inventory and pricing.

While the company posted record revenue and gross profit, its operating cash flow decreased in FY2025 due to increased working capital needs. Accounts receivable and inventory balances both jumped sharply in FY2025, reflecting new business from acquisitions and the need to support higher sales volumes. Net debt increased substantially due to acquisition spending and technology investments, rising from $8.3 million as of June 30, 2024, to $44.1 million as of June 30, 2025.

On the shareholder returns front, the board declared a special cash dividend of $0.33 per share for FY2025, up from $0.31 per share in FY2024. No regular quarterly dividend was declared; Evi has favored special dividends paid from time to time, rather than recurring payouts.

Looking Forward

Management indicated that a significant increase in revenue and operating profit is expected as a result of the GNA acquisition. Management commentary instead focused on qualitative goals—integrating acquisitions, furthering technological modernization, launching the new e-commerce platform, and maintaining discipline as cost pressures persist.

Because no explicit forward guidance was given, investors may want to watch closely for updates on the integration of Continental and other acquisitions. Key metrics in coming periods will likely include operating cash flow trends, supplier relationships, and any incremental margin improvement from enhanced technology use and sales process upgrades. The special cash dividend was raised this year, reflecting recent performance, but the company did not announce plans for recurring dividends going forward.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

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