EVI Industries Reports Record Q4 FY2025 Revenue, Continues Investment in Growth

EVI Industries Achieves Record Revenue in Q4 FY2025

EVI Industries (EVI 2.10%), 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 highlight was its record quarterly revenue of $110 million in Q4 FY2025, driven by strategic acquisitions and ongoing investments in technology and operations. The results showcased robust top-line and gross profit expansion but indicated a slower pace of net income improvement. The period underscored significant strategic progress, marked by investments in innovative technologies and the most substantial acquisition in the company's history.

Key Financial Highlights

About EVI Industries and Its Priorities

EVI Industries operates as a prominent distributor of commercial and industrial laundry equipment and delivers related services. Serving over 55,000 customers across diverse sectors such as healthcare, hospitality, and vended laundry, the company's core offerings include the sales of commercial washers, dryers, parts, and comprehensive maintenance support.

The company’s strategic focus has recently emphasized a "buy-and-build" approach—acquiring and integrating smaller distributors to enhance its nationwide presence. It also prioritizes advanced technology upgrades, workforce enlargement, and cultivating robust supplier relationships. Key success factors encompass disciplined acquisition strategies, efficient operational integration, diverse customer base, and leveraging digital platforms for efficiency improvements.

Quarter Highlights and Financial Developments

During the reported period, EVI Industries successfully completed four strategic acquisitions, notably including the acquisition of Girbau North America, now known as Continental Laundry Solutions. This acquisition represents the largest in the company’s history and is projected to contribute approximately $50 million in annual revenue (after intercompany eliminations). These strategic deals have expanded EVI’s distribution reach and strengthened its support and purchasing power with manufacturers.

Revenue for Q4 FY2025 demonstrated a substantial 22% increase compared to the previous year, largely attributed to strategic acquisitions and consistent demand across various end-markets. The company specifically highlighted robust growth in the healthcare, hospitality, and vended laundry segments as particularly resilient drivers. Furthermore, the gross profit margin improved by 0.8 percentage points, reaching 30.4% in FY2025, reflecting the benefits of economies of scale and enhanced operational efficiencies.

Operating income experienced a 13% increase from the prior-year period, indicating EVI’s ability to effectively manage its core costs despite increased spending on technology initiatives and integration efforts. Adjusted EBITDA—a metric excluding the effects of interest, taxes, depreciation, amortization, and stock-based compensation—rose by 17% in Q4 FY2025, demonstrating improvement in underlying profitability.

Net income for Q4 FY2025 witnessed a marginal increase of 1% compared to the previous year. Diluted earnings per share remained consistent at $0.14 in Q4 FY2025. This was partly due to higher costs associated with acquisition integration, technology implementation, and workforce expansion. Management identified supplier pricing pressures and tariffs as ongoing challenges, responding with selective price adjustments and efforts to fortify and diversify sourcing partnerships.

Throughout FY2025, the company made significant strides in deploying its enterprise technology initiatives, including expanding its field service technology from two to 27 business units. This advanced technology platform now effectively coordinates and schedules over 8,500 service appointments monthly as of June 2025, a substantial increase from approximately 1,000 per month in July 2024. By the conclusion of fiscal 2025, 28 of EVI’s 31 business units were operating on a unified enterprise resource planning (ERP) system, bolstered by innovative business intelligence (BI) tools providing leadership with real-time, data-driven insights. The development of a new e-commerce platform for around-the-clock customer ordering is progressing on schedule for launch in fiscal 2026, with management expecting to drive more convenient purchasing and enhanced visibility into inventory and pricing.

While the company reported record revenue and gross profit, its operating cash flow decreased in FY2025 due to increased working capital needs. Accounts receivable and inventory balances both increased 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.

Shareholder Returns

Regarding shareholder returns, the board announced a special cash dividend of $0.33 per share for FY2025, an increase from $0.31 per share in FY2024. No regular quarterly dividend was declared; EVI has historically favored special dividends paid on an ad-hoc basis, rather than recurring payouts.

Looking Forward

Management anticipates a significant increase in revenue and operating profit as a result of the GNA acquisition. However, management commentary primarily focused on qualitative goals—integrating acquisitions, advancing technological modernization, launching the new e-commerce platform, and maintaining fiscal discipline amidst persistent cost pressures.

Given the absence of explicit forward guidance, investors may want to closely monitor updates regarding the integration of Continental and other acquisitions. Key performance indicators (KPIs) in upcoming periods will likely include operating cash flow trends, supplier relationships, and any incremental margin improvement resulting from enhanced technology utilization and sales process upgrades. The special cash dividend was increased this year, reflecting recent performance, but the company has not announced any plans for recurring dividends moving forward.

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