Alliance Laundry (NYSE:ALH – Get Free Report) announced its earnings results on Thursday. The company reported $0.41 earnings per share for the quarter, beating analysts’ consensus estimates of $0.35 by $0.06, FiscalAI reports. The business had revenue of $476.75 million during the quarter.
Here are the key takeaways from Alliance Laundry’s conference call:
- Q2 results exceeded expectations, with revenue up 7% year over year, adjusted EBITDA up 12%, and adjusted net income up 54%. Gross margin expanded to 39.8%, while adjusted EBITDA margin increased 135 basis points to 28.1%.
- Management raised full-year adjusted EBITDA growth guidance to 8%–10% while maintaining revenue growth guidance of 6%–7%. The company expects pricing and volume to contribute roughly equally to revenue growth.
- Alliance continued to strengthen its balance sheet, repaying $50 million of debt in Q2 and $825 million over the past 12 months. Net leverage fell to 2.4 times adjusted EBITDA, and debt-rating upgrades are expected to reduce borrowing costs by 25 basis points.
- North America remained broadly strong, with revenue up 9% and adjusted EBITDA up 17%, supported by demand across end markets, pricing, operational improvements, and larger-capacity vended equipment. Management described commercial laundry demand as resilient and said customer demand currently exceeds its ability to deliver some products.
- International revenue was approximately flat, with Middle East and Africa affected by the regional conflict and Europe facing higher energy costs and some demand pauses. Management expects international performance to remain lumpy, with no recovery in Saudi Arabia and the UAE anticipated this year.
Alliance Laundry Trading Down 2.2%
Shares of Alliance Laundry stock traded down $0.56 during trading on Friday, reaching $25.20. 422,045 shares of the company were exchanged, compared to its average volume of 806,025. The business has a 50-day moving average price of $26.07 and a 200-day moving average price of $24.16. The firm has a market capitalization of $5.00 billion and a price-to-earnings ratio of 30.37. The company has a quick ratio of 1.05, a current ratio of 1.37 and a debt-to-equity ratio of 4.00. Alliance Laundry has a twelve month low of $18.64 and a twelve month high of $28.23.
Key Alliance Laundry News
- Positive Sentiment: Analysts raised targets and maintained bullish ratings. JPMorgan lifted its target from $31 to $32 and assigned an “overweight” rating, while Robert W. Baird raised its target from $32 to $34 and reiterated an “outperform” rating. The new targets imply approximately 27.5% and 35.5% upside, respectively, from the cited $25.09 price. Benzinga analyst rating report The Fly analyst rating report
- Positive Sentiment: Second-quarter earnings exceeded expectations. ALH reported adjusted earnings of $0.41 per share, above the $0.35 analyst consensus, on approximately $476.8 million in revenue. The earnings beat provides evidence of resilient operating performance. Alliance Laundry second-quarter earnings report
- Positive Sentiment: Operating trends and the outlook improved. North American revenue increased 9%, while pricing and margin gains supported a higher 2026 adjusted EBITDA growth outlook of 8%-10%. Management also indicated a goal of reducing net leverage to approximately 2.0 times by year-end, which could improve financial flexibility and equity value. Zacks Alliance Laundry earnings analysis Seeking Alpha Alliance Laundry outlook
- Neutral Sentiment: Fiscal 2026 revenue guidance was maintained near $1.8 billion, broadly in line with consensus. This indicates stable expectations, while the raised EBITDA outlook is the more significant positive catalyst.
Analyst Ratings Changes
Several analysts have recently commented on ALH shares. Weiss Ratings reissued a “hold (c)” rating on shares of Alliance Laundry in a research note on Friday, August 7th. Morgan Stanley upped their price target on Alliance Laundry from $27.00 to $28.00 and gave the company an “equal weight” rating in a research note on Friday, May 29th. JPMorgan Chase & Co. boosted their price objective on Alliance Laundry from $31.00 to $32.00 and gave the stock an “overweight” rating in a report on Friday. Citigroup upped their target price on shares of Alliance Laundry from $30.00 to $31.00 and gave the company a “buy” rating in a research report on Tuesday, July 14th. Finally, Zacks Research cut shares of Alliance Laundry from a “strong-buy” rating to a “hold” rating in a research report on Monday, July 27th. Three research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, Alliance Laundry currently has a consensus rating of “Moderate Buy” and an average price target of $31.25.
View Our Latest Stock Report on ALH
Insider Buying and Selling
In other news, CAO Brian Christopher Sikora sold 17,500 shares of the business’s stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $26.15, for a total transaction of $457,625.00. Following the completion of the transaction, the chief accounting officer directly owned 13,951 shares in the company, valued at approximately $364,818.65. The trade was a 55.64% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jan Gommaar M. Vleugels sold 75,000 shares of the company’s stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $25.64, for a total value of $1,923,000.00. Following the completion of the sale, the chief operating officer directly owned 599,563 shares of the company’s stock, valued at approximately $15,372,795.32. This trade represents a 11.12% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 137,528 shares of company stock worth $3,583,271 in the last ninety days. 7.60% of the stock is currently owned by corporate insiders.
Institutional Investors Weigh In On Alliance Laundry
Several hedge funds have recently bought and sold shares of the company. BDT Capital Partners LLC acquired a new stake in Alliance Laundry during the 4th quarter worth $2,864,297,000. Capital International Investors acquired a new position in Alliance Laundry in the fourth quarter valued at about $101,498,000. Vanguard Group Inc. acquired a new stake in shares of Alliance Laundry during the fourth quarter worth about $76,161,000. BlackRock Inc. acquired a new stake in shares of Alliance Laundry during the second quarter worth about $85,422,000. Finally, Norges Bank bought a new position in shares of Alliance Laundry during the 4th quarter valued at about $55,962,000.
Alliance Laundry Company Profile
Alliance Laundry Systems (NYSE: ALH) is a manufacturer and distributor of commercial and residential laundry equipment and related services. The company designs, produces and sells a range of coin-operated and vended machines, on-premises washers and dryers, and allied equipment for laundromats, multi-housing, hospitality, healthcare and other institutional customers. Alliance’s product strategy emphasizes durable, high-throughput machines for professional laundry operators as well as appliances geared to self-service and multi-dwelling applications.
Its product portfolio includes coin-operated and card-operated washers and dryers, stacked and single-pocket models, industrial-grade on-premises equipment, and parts and accessories.
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