Alliance Laundry (ALH) Q2 2026 earnings summary

Executive summary

• Net revenue rose 7% year-over-year to $477 million in Q2 2026, with broad-based growth across North America and strength in Asia Pacific, driven by pricing actions, volume/mix improvements, and digital innovation adoption.

• Adjusted EBITDA increased 12% to $134 million, with margin expansion from pricing, operational excellence, and supply chain efficiency.

• Net income increased 121% to $69 million; adjusted net income up 55% to $83 million, reflecting higher operating earnings and $22 million lower interest expense from significant debt reduction.

• Net leverage reduced to 2.4x, with $115 million of debt repaid year-to-date and credit upgrades lowering cost of debt.

• Digital innovation and connected equipment adoption continue to drive value and customer relationships.

Financial highlights

• Gross profit increased 9% to $190 million, with gross margin up 90 basis points to 39.8%.

• Adjusted EBITDA margin expanded to 28.1%, up 135 basis points year-over-year.

• Adjusted net income increased 55% year-over-year to $83 million; adjusted EPS up 32% to $0.41.

• Operating cash flow was $66 million; $50 million of debt repaid in the quarter, $115 million year-to-date.

• Interest expense fell 54.8% to $17.8 million due to lower debt balances and improved credit rating.

Outlook and guidance

• Full-year 2026 revenue growth guidance maintained at 6%-7%, with equal contribution from volume and price.

• Adjusted EBITDA growth guidance raised to 8%-10%.

• Net leverage target improved to 2.0x by year-end 2026; interest expense forecast at ~$80 million; effective tax rate at 23%.

• Margin expansion expected to be weighted toward Q4 due to geographic mix and seasonality.

• Capex for 2026 expected at ~$60 million, with sufficient liquidity for ongoing operations and debt service.