Alliance Laundry Systems (NYSE:ALH) on Thursday reported fourth-quarter results that matched analyst forecasts, posting adjusted earnings per share of $0.24 on revenue of $435 million.
The company’s shares were largely unchanged in after-hours trading following the announcement.
The commercial laundry equipment manufacturer recorded a 10% increase in quarterly revenue compared with the same period last year, supported by solid performance across its Vended, On-Premise Laundry and Commercial-In-Home segments.
For the full year, revenue rose 13% year-over-year to $1.7 billion. Adjusted EBITDA for the fourth quarter increased 17% to $107 million, resulting in a margin of 24.5%, up 140 basis points from the previous year’s quarter.
Looking ahead to fiscal 2026, Alliance expects revenue to grow between 5% and 7%, while adjusted EBITDA is projected to rise between 6% and 8%. At the midpoint, the guidance implies revenue of roughly $1.81 billion and adjusted EBITDA of approximately $467 million.
The company also said it plans to reduce net leverage to the low 2x range by the end of the year, down from its current level of 2.8x.
“2025 was a landmark year for Alliance,” said Michael Schoeb, CEO. “We delivered our second consecutive year of double-digit growth on both the top and bottom line, significantly strengthened our balance sheet, and continued to invest in the innovation and market expansion that we believe will drive our next chapter of growth.”
Gross margin expanded by 190 basis points to 37.0% in the quarter, reflecting higher volumes and cost-reduction initiatives, with pricing actions largely offsetting about $5 million in tariff-related impacts.
For the full year, gross margin improved by 100 basis points to 37.6%.
Alliance generated $212 million in operating cash flow during the year, up 46% from 2024, and reduced net leverage by 2.2 turns to 2.8x through a combination of operating cash flow and proceeds from its IPO.