Second Quarter 2026 Highlights:
All results are for the second quarter of fiscal 2026, and comparisons are year-over-year unless otherwise noted
-- Net revenue of $477 million, up 7%
-- Net income of $69 million, an increase of 121%; Adjusted Net income of
$83 million, an increase of 55%
-- Adjusted EBITDA of $134 million, up 12%
-- Repaid $50 million in debt; Net Leverage reduced to 2.4x
-- Raises full year 2026 Adjusted EBITDA guidance to +8% to 10% growth
versus prior year 1
RIPON, Wis.--(BUSINESS WIRE)--August 13, 2026--
Alliance Laundry Holdings Inc. (NYSE: ALH) ("Alliance" or the "Company"), the global leader in commercial laundry equipment, today announced results for its second quarter ended June 30, 2026.
"Our performance this quarter, including the revenue growth and profitability we delivered, demonstrates the strength and durability of our business model that is rooted in diversification across all three dimensions: product, end markets and geography," said Michael Schoeb, CEO of Alliance. "The resilient, replacement-driven nature of demand in our industry, combined with our market-leading product solutions and several compelling growth drivers, underpins our optimism for the years ahead and our commitment to long-term shareholder value. Our strong first half performance, combined with our visibility into the remainder of the year, provides the foundation to raise our earnings guidance and firm up our deleveraging target."
(1) Refer to the "Non-GAAP Financial Measures" section for additional information regarding forward-looking non-GAAP financial measures. A reconciliation of non-GAAP measures is contained in the appendix to this press release.
SECOND QUARTER 2026 CONSOLIDATED RESULTS
Net revenue increased 7% to $477 million compared to $447 million in the prior year quarter. Pricing actions to offset cost increases contributed slightly more than half of the benefit, with the balance driven by unit volume and mix. Broad-based growth in North America was slightly offset by flat International Segment results. The majority of international markets performed as expected, with particular strength in the Asia Pacific region.
Gross profit increased 9% to $190 million, representing a gross margin of 39.8%, and an approximate 90 basis points increase from the prior year quarter. Pricing actions already in place continue to offset the Company's tariff exposure and other inflationary increases, with our local-for-local manufacturing footprint continuing to provide a meaningful structural advantage.
Net income was $69 million compared to $31 million in the prior year quarter, with Net income margin of 14.4%. Adjusted Net income increased approximately 55% to $83 million versus $53 million in the prior year quarter. The year-over-year change reflects the growth in operating earnings plus approximately $22 million in lower interest expense following significant debt reduction of $825 million over the past twelve months.
Adjusted EBITDA increased 12% to $134 million, with Adjusted EBITDA Margin of 28.1%, representing an approximate 135 basis point increase in profitability versus the prior year quarter. Margin expansion from volume leverage, operational excellence, and supply chain efficiency was partially offset by legal expense and incremental public company costs net of discrete benefits in the quarter from tariff refunds and insurance proceeds.
CASH FLOW AND BALANCE SHEET
Operating cash flow for the quarter was $66.3 million, up from $5.3 million in the prior year quarter, reflecting strong operating cash conversion and continued working capital discipline, consistent with the Company's historical performance. The Company paid down $50 million in debt during the second quarter. This coupled with the $65 million paid down in the first quarter resulted in total debt of $1.25 billion and net debt of $1.09 billion as of June 30, 2026. Net Leverage decreased to 2.4x, a reduction of 0.2 turns from March 31, 2026, and down 0.4 turns from prior year end.
SECOND QUARTER 2026 RESULTS BY REPORTABLE SEGMENT
North America revenue increased 9% to $359 million, with Adjusted EBITDA up 17% to $114 million and Adjusted EBITDA Margin of 31.6%. Growth was broad-based across all end markets, supported by demand mix shift toward larger-capacity machines in the Vended market. Multi-Housing and On-Premise delivered solid results, reflecting the continued predictable replacement demand of this end-market. Commercial-in-Home posted strong growth as consumers continue to seek products with higher reliability, longer life and durability consistent with our commercial customers. Pricing actions offset cost inflation and tariff exposure, with the Company's in-market manufacturing footprint and supply chain providing structural protection.
International revenue was approximately flat at $117 million, and Adjusted EBITDA decreased by 8% to $34 million resulting in an Adjusted EBITDA Margin of 28.9%. Asia Pacific continued to see strong growth, particularly in burgeoning markets. Europe delivered steady performance across all end markets, powered by the ongoing 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 on-going conflict in the Middle East. The EBITDA impact reflects the geographic mix of the business, as well as the ongoing investment in people and products in emerging international markets to enable future growth.
UPDATED 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.
Based on the strength of our second quarter performance and our visibility into the second half of the year, the Company is raising the range of Adjusted EBITDA guidance for 2026 and firming up its Net Leverage guidance. Revenue guidance remains unchanged.
Revenue growth guidance versus prior year remains at +6% to 7%. Adjusted EBITDA growth has been raised to +8% to 10%, from the prior range of +7% to 8%, as the Company realizes the benefit of price and volume increases alongside the realization of continued cost-down initiatives. The Company also expects revenue performance to be fairly consistent between quarters across the second half of 2026. We expect margin expansion will be weighted more towards the fourth quarter given the geographic mix of business and normal seasonal patterns. The Company now anticipates achieving net leverage of 2.0x in fiscal year 2026, absent any other capital allocation opportunities, down from the prior disclosure of low 2x range. Interest is now expected to total approximately $80 million for 2026, and we forecast a lower effective tax rate of 23.0%. Capital Expenditures and share count guidance assumptions remain unchanged.
Updated 2026 Guidance (Previous)
Revenue Growth +6% to 7%
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Adjusted EBITDA Growth +8% to 10% (+7% to 8%)
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Net Leverage 2.0x by year end (Low 2x)
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Capital Expenditures (% of Revenue) 3%
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Effective Tax Rate 23.0% (23.5%)
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Interest Expense $80 million ($85 million)
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Diluted Share Count 205 million
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CONFERENCE CALL INFORMATION
Alliance will host a conference call to discuss these results at 8:00 a.m. Eastern Time today, August 13, 2026.
A live audio webcast will be available on Alliance's Investor Relations website at https://ir.alliancelaundry.com/news-events/ir-calendar. A replay of the webcast will be available after the call.
ABOUT ALLIANCE LAUNDRY
Alliance Laundry makes the world cleaner as a provider of the highest quality commercial laundry systems. Our laundry solutions are available under five respected brands, sold and supported by a global network of select distributors. We serve approximately 150 countries with a team of more than 4,000 employees. Our brands include Speed Queen$(R)$, UniMac(R), Huebsch(R), Primus(R) and IPSO(R). 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(R) washers and dryers.
For more information, visit www.alliancelaundry.com.
NON-GAAP FINANCIAL MEASURES