Alliance Laundry Raises 2026 Adjusted EBITDA Growth Outlook
Second-quarter Adjusted EBITDA reached $134 million, up 12%, as the company lifted full-year growth guidance to 8% to 10%.
Alliance Laundry Holdings Inc. (ALH), the commercial laundry equipment maker, raised its 2026 Adjusted EBITDA growth outlook to 8% to 10% after second-quarter profit growth accelerated even as top-line growth slowed.
Net revenue was $477 million, up 7% from a year earlier, after 10% growth in the first quarter. Adjusted EBITDA rose 12% to $134 million, faster than the 9% increase in the prior quarter, and Adjusted EBITDA margin expanded to 28.1%.
The company said pricing actions contributed slightly more than half of the revenue benefit, with the balance from unit volume and mix. Gross profit increased 9% to $190 million, and gross margin reached 39.8%, about 90 basis points higher than a year earlier.
North America carried the quarter. Segment revenue increased 9% to $359 million, matching the first-quarter pace, while Adjusted EBITDA rose 17% to $114 million after an 8% increase in the prior quarter. Adjusted EBITDA margin in the region reached 31.6%. Growth was broad-based across end markets, with a demand mix shift toward larger-capacity machines in the Vended market and strong growth in Commercial-in-Home. Multi-Housing and On-Premise delivered solid results on replacement demand.
International revenue was approximately flat at $117 million after broad-based growth in the first quarter. International Adjusted EBITDA decreased 8% to $34 million, and the segment margin was 28.9%. Asia Pacific continued to see strong growth, particularly in burgeoning markets, and Europe delivered steady performance on the replacement and upgrade cycle. The Middle East & Africa region, which makes up less than 2% of global revenue, continued to experience reduced activity due to the ongoing conflict in the Middle East. The EBITDA impact reflected geographic mix and ongoing investment in people and products in emerging international markets.
Net income was $69 million, compared with $31 million a year earlier, for a net income margin of 14.4%. Adjusted net income increased about 55% to $83 million. The year-over-year change reflected growth in operating earnings plus about $22 million in lower interest expense following $825 million of debt reduction over the past twelve months.
Operating cash flow for the quarter was $66.3 million. Alliance paid down $50 million of debt in the second quarter. Combined with $65 million repaid in the first quarter, total debt stood at $1.25 billion and net debt at $1.09 billion as of June 30, 2026. Net leverage decreased to 2.4x, a reduction of 0.2 turns from March 31.
Chief executive Michael Schoeb said the company’s strong first-half performance and visibility into the remainder of the year provided the foundation to raise earnings guidance and firm up its deleveraging target.
Revenue growth guidance versus the prior year remains at 6% to 7%. The company expects revenue performance to be fairly consistent between quarters across the second half of 2026 and margin expansion to be weighted more toward the fourth quarter given geographic mix and normal seasonal patterns.
Alliance now anticipates achieving net leverage of 2.0x in fiscal 2026, absent any other capital allocation opportunities, down from a prior disclosure of the low 2x range. Interest is now expected to total approximately $80 million for 2026, and the company forecasts a lower effective tax rate of 23.0%. Capital expenditures and share-count guidance assumptions remain unchanged, with capital expenditures still assumed at about 3% of revenue and diluted share count at about 205 million.