Alliance Laundry Raises 2026 EBITDA Outlook to High End

The Tip Desk · November 12, 2026 · 3 min read

Third-quarter net income was $65 million as the company lifted Adjusted EBITDA growth to about 10% and kept revenue growth at 6% to 7%.

Alliance Laundry Holdings Inc. (ALH), the commercial laundry equipment maker, reported net income of $65 million for the third quarter ended September 30, 2026, compared with $33 million a year earlier, and raised its full-year Adjusted EBITDA growth outlook to about 10%, the high end of a prior range of 8% to 10%.

Net revenues rose 5% to $461 million from $438 million in the year-ago quarter. The company said volume and mix accounted for half of that increase, with pricing contributing the rest. Growth in North America was slightly offset by lower International revenue.

Adjusted EBITDA increased 14% to $127 million, and the Adjusted EBITDA margin rose to 27.5%, up about 220 basis points from the prior-year quarter. Gross profit increased 12% to $182 million, for a 39.4% gross margin, an approximate 240-basis-point increase. The company attributed the margin expansion to volume leverage, operational excellence, supply-chain efficiency, and a discrete benefit from tariff refunds that helped absorb higher current-year inflation.

Adjusted net income rose about 57% to $76 million from $48 million, reflecting growth in operating earnings and approximately $20 million in lower interest expense. Net income margin was 14.1%.

North America, the larger of the two reportable segments, generated $356 million of revenue, up 8%, with Adjusted EBITDA of $115 million and a margin that increased more than 300 basis points versus the year-ago period. The company said Commercial In-Home and On-Premise Laundry led the increase on higher volume. Vended results reflected the timing of new store projects, including longer permitting and construction lead times, while customers continued retooling with larger-capacity machines. Significant cost pressures persisted, led by steel and freight, but a tariff refund and pricing actions taken late last year helped offset inflation, the company said.

International revenue decreased 1% to $105 million, mainly due to foreign currency, which had an approximate one-percent negative impact on International revenue versus the prior year. Adjusted EBITDA in the segment increased to $27 million, with a 25.3% margin. Europe was described as steady, Latin America showed solid growth, Asia Pacific results reflected project timing after strength in prior quarters, and Middle East & Africa stabilized, supported by hospitality and areas not directly affected by the conflict in the Middle East.

Operating cash flow was $84 million, up from $66 million a year earlier. The company paid down $45 million of debt in the quarter, bringing year-to-date debt reduction to $160 million, and repurchased $75 million of common stock. As of September 30, total debt was $1.21 billion and net debt was $1.07 billion. Net leverage decreased to 2.25x, from about 2.4x at June 30 and about 2.8x at the prior year-end.

Revenue growth guidance versus the prior year remains at 6% to 7%. The company said it is raising 2026 Adjusted EBITDA growth to about 10% as it realizes volume and mix contributions, pricing, cost-down initiatives, and tariff refunds. It anticipates net leverage of approximately 2.1x by year-end 2026, absent other capital-allocation opportunities, and includes the $75 million third-quarter repurchase. Interest is now expected to total about $75 million for 2026, and the diluted share count is now expected to be about 203 million. Capital-expenditure and effective-tax-rate assumptions were unchanged.