Alliance Laundry Holdings Inc. Q4 FY2025 earnings call

• Mike emphasized the strong full-year performance, industry being essential and non-cyclical, leadership position with scale and global footprint. - Key initiatives in 2025 included launching industry-leading products like T55 stack tumbler, ScanPay Wash, StaxX, over 5 million hours of product testing, expanding direct business, investing $54 million in capacity etc. - Culture focused on pure play commercial laundry, delivering total cost of ownership, high-quality distributors, and mission-critical nature of commercial laundry.

For Q4 2025, North America revenue was up 9% to $317 million, adjusted EBITDA up 15% to $88 million, margin 27.9%. International Q4 revenue up 12% to $118 million, adjusted EBITDA up 25% to $29 million, margin 24.8%. For full year 2025, North America delivered revenue of $1.3 billion and adjusted EBITDA of $361 million, both up 14%. International full year revenue up 10% to $440 million, adjusted EBITDA up 17% to $121 million, adjusted EBITDA margin 27.4%.

Expect revenue growth of between 5 and 7 percent, roughly evenly between volume and price, adjusted EBITDA growth of between 6 and 8 percent. Anticipate year-over-year revenue growth stronger in first half of 2026 due to pricing carryover, adjusted EBITDA growth driven by gross margin expansion, etc. Target net leverage in low two times range by year end 2026, CapEx as % of revenue ~3%, effective tax rate ~23.5%, total interest expense ~$85 million, diluted share count ~205 million shares.

Q: Given trends in Q4, do you expect notable differences in demand strengths between North America and international business or key segments as targeting 5%-7% top line growth for 2026?

A: Mike said see strong demand across all parts, no particular area giving pause, strong opportunities across the business.

Q: How are you factoring in outlook for steel costs, pricing power, potential changes in tariff policy for 2026 guidance?

A: Locked in steel costs, offset cost increases with pricing actions last year, expect no change in tariff policy, ready to react if something changes.

Q: Following up on last comment, what are you seeing from competitors facing more tariff impact versus Alliance and how tailwind unfolds in 2026?

A: Mike said competitors beginning to take action, Alliance thought this would happen, still see tariff as a tailwind for Alliance in 2026