Full year net income of $102 million, up 3% versus prior year; with net income margin of 6.0%
Full year Adjusted EBITDA of $436 million, up 14% versus prior year, with record Adjusted EBITDA Margin of 25.5%
Q4 revenue of $435 million, up 10% versus prior year
Net Leverage reduced by 2.2x to 2.8x in a single year through operations and IPO proceeds
Introduces 2026 annual guidance: revenue growth of +5 to 7%, Adjusted EBITDA growth of +6 to 8%, continued margin expansion and deleveraging to the low 2x range Net Leverage1
RIPON, Wis., March 12, 2026 /PRNewswire/ -- Alliance Laundry Systems (NYSE:ALH) ("Alliance" or the "Company"), the global leader in commercial laundry equipment, today announced results for its fourth quarter and full year ended December 31, 2025, and introduced its 2026 annual guidance.
"2025 was a landmark year for Alliance. Our full year and fourth quarter results demonstrated our ability to deliver very strong outcomes driven by our market leading position and commitment to operational excellence as we serve customers across this resilient, essential industry," said Michael Schoeb, CEO of Alliance Laundry. "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."
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1 Refer to the "2026 Full Year Guidance" and "Non-GAAP Financial Measures" sections below for additional information regarding forward-looking non-GAAP financial measures.
FULL YEAR 2025 CONSOLIDATED RESULTS
Net revenues increased 13% to $1.7 billion, compared to $1.5 billion in the prior year. The increase was driven by both strong volume performance and mid-single digit price increases. Growth was broad-based across both the North America and International reportable segments, with strong performance across the Vended, On-Premise Laundry, and Commercial-In-Home end markets. Full year net revenue growth was driven predominantly by volume, which contributed roughly 70% of the increase, with price realization accounting for the remainder, a mix that reflects the strength of underlying demand and the ongoing competitive differentiation of Alliance's total cost of ownership value proposition.
Gross profit increased 16% to $642 million, compared to $551 million in the prior year. Gross margin expanded 100 basis points to 37.6%, driven by cost-down initiatives, operational leverage, and disciplined pricing, with the Company's local-for-local manufacturing strategy providing structural tariff protection.
Net income increased 3% to $102 million, compared to $98 million in the prior year. Adjusted net income increased 11% to $185 million versus the prior year driven by higher earnings. Net income margin was 6.0% in the current year.
Adjusted EBITDA increased 14% to $436 million, compared to $383 million in the prior year, driven by volume gains, cost-down initiatives, and pricing actions that more than offset input cost increases. This improvement was achieved while maintaining disciplined operating cost management and continuing to invest strategically in innovation and public company infrastructure. Adjusted EBITDA margin expanded to a record 25.5%, demonstrating the Company's ability to drive profitable growth.
FOURTH QUARTER 2025 CONSOLIDATED RESULTS
Net revenues increased 10% to $435 million compared to $395 million in the prior year quarter. This result reinforces Alliance's pattern of durable, demand-driven growth and the resilience of its end-market positioning.
Gross profit increased 16% to $161 million, or 37.0% of revenue, an increase of 190 basis points of margin expansion versus the prior year quarter. The improvement reflects the combined benefit of volume leverage and cost-down initiatives, with pricing actions largely offsetting the approximate $5 million tariff impact in the quarter.
Net income decreased 44% to $21 million compared to $37 million in the prior year quarter, primarily due to a one-time share based compensation expense associated with the Company's IPO, partially offset by significantly lower interest expense following debt reduction actions. Adjusted Net Income increased 18% to $49 million versus $41 million in the prior year quarter, reflecting strong operating performance including significantly lower interest expense.
Adjusted EBITDA increased 17% to $107 million, or 24.5% of revenue, an increase of 140 basis points versus the prior year quarter. Revenue grew 10% while Adjusted EBITDA grew 17% over the prior year quarter, demonstrating the operating leverage inherent in Alliance's business model and its continuing focus on driving profitable growth.
FULL YEAR 2025 RESULTS BY REPORTABLE SEGMENT
North America revenue increased 14% to $1.3 billion, compared to $1.1 billion in the prior year, with double-digit growth across the Vended and Commercial-in-Home end markets and high single digit growth in the On-Premise market. Equipment revenue increased 15% year over year, driven by particularly strong performance in the Vended and Commercial-In-Home end markets. North America Adjusted EBITDA increased 14% to $361 million, compared to $318 million in the prior year. Adjusted EBITDA margin was 28.5%. The Company's local-for-local manufacturing strategy provided significant structural protection from tariffs, with approximately $12 million in cost increase largely offset on both a dollar and margin basis through pricing actions.
International revenue increased 10% to $440 million, compared to $399 million in the prior year driven by strong performance in Europe and Asia Pacific, where expanding Vended end markets are driving growth. International Adjusted EBITDA increased 17% to $121 million, compared to $103 million in the prior year. Adjusted EBITDA margin expanded 160 basis points to 27.4%, driven by Speed Queen licensed stores in Europe, first-mover advantage in nascent vended markets across Asia and Latin America, and continued focus on profitable growth across all regions.
FOURTH QUARTER 2025 RESULTS BY REPORTABLE SEGMENT
North America revenue increased 9% to $317 million in the fourth quarter, with Adjusted EBITDA growing 15% to $88 million, and margin expanding to 27.9%. Growth was broad-based across all end markets, with pricing actions largely offsetting modest tariff impacts and margin expansion driven by cost-down initiatives and strong incremental margins on volume growth.
International revenue increased 12% to $118 million, with Adjusted EBITDA growing 25% to $29 million, and margin expanding 260 basis points to 24.8%. Revenue growth was driven by particularly strong performance in Europe, underpinned by the continued success of Speed Queen Licensed Stores, and solid demand across Asia Pacific markets.
CASH FLOW AND BALANCE SHEET
Operating cash flow for the year increased 46% to $212 million, versus $145 million in 2024. This robust cash generation reflects the Company's business model, effective working capital management, and strong earnings growth.
The Company significantly strengthened its balance sheet in 2025, reducing Net Leverage from 5.0x to 2.8x, a reduction of 2.2x in a single year. Debt declined to $1.4 billion from $2.1 billion at the start of the year, with cash of $123 million resulting in Net Debt of $1.2 billion at year end. Approximately one full turn of that deleveraging was funded entirely by cash generated from operations, with the balance driven by proceeds from the October 2025 IPO. This demonstrates the Company's strong free cash flow generation capability and its ability to delever independent of capital markets activity.
Capital expenditures were $54 million as the Company invested across its global manufacturing facilities. This represents approximately 3% of revenue, directed at capacity expansion, automation, new product development, plus expanded testing capabilities in Thailand and the Czech Republic.
FULL YEAR 2025 BUSINESS HIGHLIGHTS
Innovation Leadership, Alliance continued to invest at scale in 2025:
Extended ProCapture lint filtration technology across a broader range of products
Launched the T55 stack tumbler, the industry's largest at 55 pounds
Introduced Scan-Pay-Wash, the industry's first app-less cashless payment solution
Launched the Stax-X stacked washer-dryer unit for laundromats, the first product fully developed at Alliance's Thailand engineering facility
Conducted over five million hours of physical product testing in 2025, reflecting the depth of investment and rigor behind innovation pipeline
Commercial and Operational Execution, Alliance delivered strong commercial and operational results across products, end markets and geographies in 2025:
Europe continued to gain traction, contributing to international growth and further establishing our brands' premium positioning in key markets
North America demand for commercial-grade product in the home accelerated meaningfully, with Commercial-In-Home revenue growing over 20%
Disciplined pricing actions largely offset tariff headwinds while preserving margins and cost-down initiatives contributed to 80 basis points of gross margin expansion
Acquisition of Metropolitan Laundry Machinery Sales expanded Alliance's direct distribution footprint in the high-density Northeast market
Delivered approximately $46 million in annualized interest savings through a combination of debt paydown and term loan repricing, meaningfully improving ongoing cost of capital and financial flexibility
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 restructuring and acquisition-related charges, non-cash asset impairment charges and gains or losses from dispositions and foreign exchange gains/losses on intercompany loans. 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.
The Company is introducing its first full-year annual guidance. In 2026, Alliance expects:
2026 Guidance
Revenue Growth
+5% to 7%
Adjusted EBITDA Growth
+6% to 8%
Net Leverage
Low 2x by end of year
Capex (% of Revenue)
~3%
Effective Tax Rate
~23.5%
Interest Expense
~$85 million
Diluted Share Count
~205 million
CONFERENCE CALL INFORMATION
Alliance will host a conference call to discuss these results at 8:00 a.m. Eastern Time today, March 12, 2026.
To listen to the conference call, 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.
To participate in the conference call, analysts and investors can dial 1 (800) 267-6316 and international participants can dial 1 (203) 518-9783. The Conference ID is ALHQ4FY25. Participants should dial in at least 10 minutes prior to 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. Adjusted EBITDA is also adjusted for items that management excluded in analyzing the segments' operating performance, such as refinancing and debt related costs, share-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. "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, share-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, share-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 final prospectus filed October 9, 2025, which forms part of the Registration Statement on Form S-1 declared effective as of September 30, 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.
ALLIANCE LAUNDRY SYSTEMS CONTACTS
Investor Contact:Bob CalverVice President, Investor Relations[email protected]
Media Contact:Randy RadtkeSenior Manager of Content and Creative Services[email protected]
ALLIANCE LAUNDRY HOLDINGS INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(unaudited)
(in thousands, except per share amounts)
Three Months Ended December 31,
Year Ended December 31,
2025
2024
2025
2024
Net revenues:
Equipment, service parts and other
$ 422,215
$ 383,106
$ 1,659,680
$ 1,459,746
Equipment financing
12,659
12,030
49,557
48,694
Net revenues
434,874
395,136
1,709,237
1,508,440
Costs and expenses:
Cost of sales
263,973
244,682
1,028,073
914,655
Cost of sales - related parties
2,290
1,574
7,322
6,218
Equipment financing expenses
7,670
10,319
31,738
36,316
Gross profit
160,941
138,561
642,104
551,251
Selling, general, and administrative expenses
97,345
70,678
324,458
266,444
Selling, general, and administrative expenses - related parties
55
75
280
300
Other costs
—
494
—
494
Total operating expenses
97,400
71,247
324,738
267,238
Operating income
63,541
67,314
317,366
284,013
Interest expense, net
29,261
31,231
150,501
132,001
Other expenses, net
2,317
(13,734)
28,831
23,376
Other expenses, net - related parties
—
5,187
—
5,187
Income before taxes
31,963
44,630
138,034
123,449
Provision for income taxes
11,367
7,566
36,279
25,130
Net income
$ 20,596
$ 37,064
$ 101,755
$ 98,319
Comprehensive income:
Net income
$ 20,596
$ 37,064
$ 101,755
$ 98,319
Foreign currency translation adjustment
(33)
(29,207)
59,122
(27,439)
Change in pension liability and other post-retirement benefits, net of taxes of $0 and $0 at December 31, 2025 and 2024, respectively
(192)
71
(192)
71
Total other comprehensive (loss)/income
(225)
