Alliance Laundry Reports Third Quarter 2026 Results

RIPON, Wis.--(BUSINESS WIRE)--Alliance Laundry Holdings Inc. (NYSE: ALH) (“Alliance” or the “Company”), the global leader in commercial laundry equipment, today announced results for its third quarter ended September 30, 2026 and updated full-year guidance.

“Our third quarter results reflect our deep commitment to customers and the strength, resilience and non-discretionary nature of our business model,” said Michael Schoeb, CEO of Alliance. “We continue to invest in our business by expanding our connected equipment platform, deepening our distributor partnerships, and supporting the businesses, operators and people who count on our products every day. In the quarter, North America delivered strong growth, and our International segment expanded profitability with mixed top-line performance across regions. Demand for our laundry solutions remains durable, and diversity by product, end market, and geography helps to drive long term consistent results. Our focus on operational excellence and disciplined capital allocation positions us well to compound value for shareholders over the long term. Additionally, we are raising our full-year Adjusted EBITDA guidance to the high end of our previous range and pleased to be approaching our year-end Net Leverage target even when factoring in the share repurchase completed in the third quarter.”

THIRD QUARTER 2026 CONSOLIDATED RESULTS

Net revenues increased 5% to $461 million compared to $438 million in the prior year quarter. Volume and mix benefits accounted for half of this increase in the quarter with pricing contributing to the balance. Growth in North America was slightly offset by lower International segment revenue. The majority of international markets performed as expected, with particular strength in the Latin America region. Foreign currency fluctuation had an approximate one percent negative impact on International revenue compared to the prior year.

Gross profit increased 12% to $182 million, representing a gross margin of 39.4%, which is an approximate 240 basis points increase from the prior year quarter. Volume and mix provided a meaningful benefit, helping to offset ongoing inflationary pressures, alongside pricing actions already in place. A discrete benefit from tariff refunds in the quarter also helped absorb higher current year inflationary cost increases. Our local-for-local manufacturing footprint continues to provide a meaningful structural cost advantage, particularly given the tariff environment.

Net income was $65 million compared to $33 million in the prior year quarter, with Net income margin of 14.1%. Adjusted Net income increased approximately 57% to $76 million versus $48 million in the prior year quarter, reflecting the growth in operating earnings and approximately $20 million in lower interest expense.

Adjusted EBITDA increased 14% to $127 million, with Adjusted EBITDA Margin of 27.5%, an increase of approximately 220 basis points versus the prior year quarter. Volume leverage, operational excellence, and supply chain efficiency drove the margin expansion, as well as the discrete benefit from tariff refunds in the quarter.

CASH FLOW AND BALANCE SHEET

Operating cash flow for the quarter was $84 million, up from $66 million in the prior year quarter, reflecting strong operating cash conversion and continued working capital efficiency, consistent with the Company’s historical performance. During the quarter, the Company paid down $45 million of debt, bringing total year-to-date debt reduction to $160 million, and repurchased $75 million of common stock. As of September 30, 2026, total debt was $1.21 billion and net debt was $1.07 billion. Net Leverage decreased to 2.25x, down from approximately 2.4x at June 30, 2026, and approximately 2.8x as of the prior year end.

THIRD QUARTER 2026 RESULTS BY REPORTABLE SEGMENT

North America revenues increased 8% to $356 million, with Adjusted EBITDA of $115 million and Adjusted EBITDA margin increasing over 300 basis points versus the prior year. North America revenue growth was led by Commercial In-Home and On-Premise Laundry, both driven by higher volume. Commercial In-Home results were driven by consumers choosing the reliability, longevity, and durability that our commercial heritage delivers. On-Premise Laundry had a strong quarter, reflecting the nature of its steady, replacement-driven demand. In Vended, which includes laundromat and multi-housing customers, results reflected the timing of new store projects, including longer permitting and construction lead times, while customers continued the trend of retooling with larger-capacity machines. Significant cost pressures persisted during the quarter, led by steel and freight, but a tariff refund and pricing actions taken late last year helped to offset that inflation, and our U.S. manufacturing footprint and supply chain remain a structural advantage.

International revenues decreased 1% to $105 million, mainly due to foreign currency, and Adjusted EBITDA increased to $27 million with Adjusted EBITDA margin of 25.3%. International grew profitability despite varied top-line performance across regions. Europe was steady, with continued support from the ongoing replacement and upgrade cycle, plus vended growth across its end markets. Latin America showed solid growth while Asia Pacific results reflect timing of projects following strength in prior quarters, with year-to-date revenue up versus the prior year. Middle East & Africa stabilized in the quarter, supported by the hospitality market and growth in areas not directly affected by the conflict in the Middle East. Adjusted EBITDA and margin expansion reflected favorable product and end market mix and positive price versus cost, net of inflation and tariffs. Our local-for-local manufacturing model also helped mitigate the impact of currency on profitability. While regional and product mix will continue to make international results variable from quarter to quarter, underlying financial trends have been positive beyond a single quarter even as we continue to invest in people and products in emerging markets to support future growth.

UPDATED 2026 FULL YEAR GUIDANCE

The Company’s outlook includes Adjusted EBITDA and Net Leverage, which are non-GAAP measures. The Company does not provide certain estimated future results for Adjusted EBITDA and Net Leverage on a GAAP basis because the Company is unable to predict, with reasonable certainty, certain items that are excluded from Adjusted EBITDA, including but not limited to stock-based compensation, strategic transaction costs, refinancing and debt-related costs, foreign exchange gain/loss on intercompany loans, plus interest, taxes, and depreciation and amortization. These items are uncertain and will depend on several factors, including industry conditions, and could be material to the Company’s results computed in accordance with GAAP. The Company has not provided reconciliations between the Company’s 2026 guidance and the most directly comparable GAAP measures because it would be too difficult to prepare a reliable U.S. GAAP quantitative reconciliation without unreasonable effort.

Based on the strength of our year-to-date performance and our visibility into the balance of the year, the Company is raising Adjusted EBITDA guidance for 2026 to the high end of the previous range and firming up its Net Leverage guidance. Revenue guidance remains unchanged.

Revenue growth guidance versus prior year remains at +6% to 7%. Adjusted EBITDA growth has been increased to ~10%, the high end of the prior range of +8% to 10%, as the Company realizes the benefit of volume and mix contributions as well as pricing impact alongside the realization of continued cost-down initiatives and tariff refunds that have helped address the rising input cost environment. The Company anticipates Net Leverage of approximately 2.1x by the end of 2026, absent any other capital allocation opportunities, and includes the $75 million share repurchase completed during the third quarter. Interest is now expected to total approximately $75 million for 2026 and share count is now expected to be approximately 203 million for fiscal year 2026. Our Capital Expenditures and Effective Tax Rate assumptions remain unchanged.

CONFERENCE CALL INFORMATION

Alliance will host a conference call to discuss these results at 8:00 a.m. Eastern Time today, November 10, 2026.

A live audio webcast will be available on Alliance’s Investor Relations website at https://ir.alliancelaundry.com/news-events/ir-calendar. A replay of the webcast will be available after the call.

ABOUT ALLIANCE LAUNDRY

Alliance Laundry makes the world cleaner as a provider of the highest quality commercial laundry systems. Our laundry solutions are available under five respected brands, sold and supported by a global network of select distributors. We serve approximately 150 countries with a team of more than 4,000 employees. Our brands include Speed Queen®, UniMac®, Huebsch®, Primus® and IPSO®. Together, they present a full line of commercial washing machines, dryers, and ironers (with load capacities from 20–400 lb. or 9–180 kg.) and support service. You can also enjoy the superior wash and fabric care of commercial-grade laundry equipment in your home through our legendary Speed Queen® washers and dryers.

For more information, visit www.alliancelaundry.com.

NON-GAAP FINANCIAL MEASURES

We regularly review non-GAAP measures to evaluate our business, measure our performance and manage our operations, including identifying trends affecting our business, formulating business plans and making strategic decisions. We believe that non-GAAP measures provide an additional way of viewing aspects of our operations that, when viewed together with our GAAP results, provide a more complete understanding of our results of operations and the factors and trends affecting our business. These non-GAAP financial measures are also used by our management to evaluate financial results and to plan and forecast future periods. Non-GAAP financial measures should be considered a supplement to, and not a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. Non-GAAP financial measures used by us may differ from the non-GAAP measures used by other companies, including our competitors.

“Adjusted EBITDA” represents Net income before provision for income taxes, interest expense, depreciation and amortization and is further adjusted to exclude certain expenses not representative of our ongoing operations and other charges not involving cash outlays and “Adjusted EBITDA Margin” represents Adjusted EBITDA divided by Net revenues.

“Adjusted Net income” represents Net income adjusted to exclude certain expenses not representative of our ongoing operations and other charges. These adjustments include, but are not limited to, refinancing and debt related costs, stock-based compensation, strategic transaction costs, intangible amortization, foreign exchange on intercompany loans and other non-recurring items.

“Net Debt” represents our total debt less Cash and cash equivalents.

“Net Debt to Adjusted EBITDA” or “Net Leverage” represents total debt less Cash and cash equivalents divided by Adjusted EBITDA for the relevant period.

SEGMENT INFORMATION

Our business is organized into two reportable segments, North America and International. The Company uses Segment net revenues, Segment Adjusted EBITDA and Segment Adjusted EBITDA Margin as its measures of performance. The Company allocates certain costs including manufacturing variances, customer support expenses and selling and general expenses which are incurred in our global operations to the reportable segments in determining Segment Adjusted EBITDA.

We define “Segment Adjusted EBITDA” as, on a segment basis, net income excluding interest income/expense, income taxes, depreciation and amortization. Segment Adjusted EBITDA is also adjusted for the discrete items that management excluded in analyzing the segments’ operating performance, such as refinancing and debt related costs, stock-based compensation, strategic transaction costs, foreign exchange on intercompany loans and other non-recurring items which management believes are not indicative of the Company’s ongoing operating performance. Segment Adjusted EBITDA is a measure of operating performance of our reportable segments and may not be comparable to similar measures reported by other companies.

FORWARD-LOOKING STATEMENTS

This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. In some cases, you can identify these forward-looking statements by the use of terms such as “expect,” “will,” “continue,” or similar expressions, and variations or negatives of these words, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements represent our management’s beliefs and assumptions only as of the date of this press release. You should read this press release with the understanding that our actual future results may be materially different from what we expect. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, which include but are not limited to: expectations relating to revenues and other financial or business metrics; statements regarding the Company’s plans, guidance, growth, execution, costs and cost savings and any other statements of expectation or belief. These statements are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or implied in this press release. Such risk factors include, but are not limited to, those related to: the high degree of competition in the markets in which we operate; our reliance on the performance of distributors, route operators, suppliers, retailers and servicers; our ability to achieve and maintain a high level of product and service quality; fluctuations in the cost and availability of raw materials; our exposure to international markets, particularly emerging markets; our exposure to costs and difficulties of acquiring and integrating complementary businesses and technologies; and our exposure to worldwide economic conditions and potential global economic downturns.

Additional information concerning these and other risks and uncertainties are contained in the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. Additional information will be made available in our quarterly reports on Form 10-Q, and other filings and reports that we may file from time to time with the SEC. Except as required by law, we assume no obligation, and do not intend to, update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.