Executive Summary

Q4 FY2025 delivered record quarterly revenue of $109.956M (+22% YoY) and record gross profit of $33.916M with gross margin at 30.8% (+40 bps YoY); adjusted EBITDA rose 17% to $7.202M (6.5% margin) while diluted EPS was $0.14, flat YoY .
Management highlighted continued momentum from the buy-and-build strategy (four FY25 acquisitions including the largest in company history, Girbau North America, now “Continental Laundry Solutions”), technology investments (field service, ERP/BI), and a solid order backlog; Continental is expected to add approximately $50M of annual revenue (after intercompany eliminations) .
Balance sheet funded growth: operating cash flow was $21.265M in FY25; net debt increased to $44.1M as EVI deployed $46.925M on acquisitions and invested in working capital and technology; Board declared a special cash dividend of $0.33/share (prior year $0.31) .
No formal quantitative guidance or Street consensus estimates were available for Q4; potential stock catalysts include continued margin progress from technology/BI, integration benefits from Continental, and capital returns via special dividends .

What Went Well and What Went Wrong

What Went Well
- Record quarterly and annual results: Q4 revenue $109.956M (+22% YoY), gross profit $33.916M (+24% YoY), and adjusted EBITDA $7.202M (+17% YoY); FY25 revenue $389.830M (+10% YoY) and gross margin 30.4% (record) .
- Strategic M&A scaled the platform: four acquisitions in FY25 including Continental (largest ever), expected to add ~$50M annual revenue and broaden distribution/sourcing capabilities across ~80 independent distributors .
- Technology adoption advancing: field service platform expanded from 2 to 27 business units (July 2024 to June 2025), monthly service appointments increased from ~1,000 to >8,500; 28 of 31 units on ERP and enterprise BI to drive operational discipline .
What Went Wrong
- Operating leverage tempered by elevated SG&A: Q4 SG&A rose to $29.802M (from $23.717M), reflecting integration costs and strategic investments; operating income grew 13% but lagged revenue growth .
- Net debt rose to $44.1M as the Company invested $46.925M in acquisitions and increased working capital (AR $60.494M; inventory $66.059M) to support growth .
- Tariff/macro headwinds persist; management is adjusting pricing and diversifying sourcing, but notes ongoing uncertainty around trade policy and cost inflation .

Financial Results

Sequential performance (oldest → newest)

Metric	Q2 FY2025 (3 months ended 12/31/24)	Q3 FY2025 (3 months ended 3/31/25)	Q4 FY2025 (3 months ended 6/30/25)
Revenue ($USD Millions)	$92.711	$93.538	$109.956
Gross Profit ($USD Millions)	$27.522	$28.055	$33.916
Gross Margin (%)	29.7%	30.0%	30.8%
Operating Income ($USD Millions)	$2.390	$2.275	$4.114
Adjusted EBITDA ($USD Millions)	$5.143	$5.067	$7.202
Adjusted EBITDA Margin (%)	5.5%	5.4%	6.5%
Net Income ($USD Millions)	$1.129	$1.041	$2.097
Diluted EPS ($)	$0.07	$0.07	$0.14

Year-over-year (Q4 FY2025 vs Q4 FY2024)

Metric	Q4 FY2024 (3 months ended 6/30/24)	Q4 FY2025 (3 months ended 6/30/25)	YoY Change
Revenue ($USD Millions)	$90.146	$109.956	+22%
Gross Profit ($USD Millions)	$27.369	$33.916	+24%
Gross Margin (%)	30.4% (calc)	30.8%	+40 bps
Operating Income ($USD Millions)	$3.652	$4.114	+13%
Adjusted EBITDA ($USD Millions)	$6.161	$7.202	+17%
Net Income ($USD Millions)	$2.067	$2.097	+1%
Diluted EPS ($)	$0.14	$0.14	Flat

KPIs and operating metrics

KPI	Value	Context
Sales Professionals	~200	Pipeline from service to sales; qualified leads passed to ~200 sales pros
Service Professionals	>425	Largest service org in North American commercial laundry
FSM Rollout	2 → 27 business units (Jul’24 → Jun’25)	Appointments ~1,000 → >8,500/month over same period
ERP/BI Adoption	28 of 31 business units	Real-time, data-driven insights to manage performance
Continental (GNA) Impact	~$50M annual revenue (ex-elims)	Adds master distribution and sourcing capability
FY25 Operating Cash Flow	$21.265M	Down YoY on working capital investments
Net Debt (6/30/25)	$44.1M	Up due to $46.925M M&A and WC/tech investments

Note: EVI does not disclose segment financials.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue / EPS / Margin	FY2026 / FY2025 exit	None issued	None issued	Maintained: No formal guidance
Special Dividend per Share	FY2024 vs FY2025	$0.31 (declared 9/11/2024; paid 10/7/2024)	$0.33 (declared 9/11/2025; payable 10/6/2025)	Raised

Management reiterated focus on growth, innovation, and operating leverage but provided no quantitative outlook ranges .

Earnings Call Themes & Trends

Note: No Q4 FY2025 transcript was available; company provided a pre-recorded call accessible via its website . Themes below reflect Q2/Q3 calls and Q4 press/8-K.

Topic	Previous Mentions – Q2 FY2025	Previous Mentions – Q3 FY2025	Current Period – Q4 FY2025	Trend
Technology (FSM, ERP/BI, CRM, e-commerce)	FSM deployed to >70% of service org; e-commerce milestones achieved	Continued deployment; strong operating cash flow supporting tech	FSM live in 27 units; >8,500 monthly service appointments; 28/31 on ERP; BI at scale; e-commerce targeted for FY2026	Accelerating adoption; preparing for digital commerce
M&A / Integration	2 acquisitions in Q2; first Midwest acquisition post-quarter	Closed GNA on 4/1/25; transformational master distributor platform	4 acquisitions in FY25 including largest ever; Continental expected ~$50M annual revenue; ASN acquired Aug’25	Scaling platform; synergy potential building
Demand / Backlog	>$100M equipment order backlog; irregular industrial cadence	Steady growth in OPL/Vended; industrial mix lighter, signed large deals remain strong	Solid backlog; favorable healthcare/hospitality/vended markets	Backdrop supportive; mix still a watch item
Margins / Operating Leverage	Six-month gross margin record (30.3%); SG&A investments weighing near term	Gross margin 30.0%; SG&A up on integration and tech	Q4 gross margin 30.8% (record); SG&A elevated; margin goal reiterated	Gradual improvement; leverage to scale/BI
Tariffs / Macro	Inflation, supply chain, rates flagged	Similar macro risks; credit facility expanded	Tariff monitoring; pricing actions and sourcing diversification	Managed with pricing/sourcing; persistent risk

Management Commentary

“Fiscal 2025 was a defining year for our Company. We delivered record financial results, successfully completed the Company’s largest acquisition, and made meaningful progress on our technology roadmap.” — Henry Nahmad, Chairman & CEO .
“Continental is expected to add approximately $50 million in annual revenue… and brings a comprehensive distributor support platform… EVI plans to leverage Continental as a master distributor… and to develop it into a strategic sourcing division—delivering stronger purchasing power, improved product availability, and a more competitive value proposition.” .
“We will continue to execute on our long-term strategy and advance our key initiatives with a focus on growth, innovation, and achieving operating leverage.” .
“Supported by more than 425 service professionals, EVI today operates the largest service organization in the North American commercial laundry industry.” .

Q&A Highlights

No Q4 FY2025 live Q&A transcript available; EVI provided a pre-recorded call accessible via its website, and did not issue quantitative forward guidance .
Prior quarters emphasized: timing variability in industrial projects, strong OPL/Vended unit trends, and near-term SG&A investments in technology and integration that constrain operating leverage—points consistent with Q4 commentary and results .

Estimates Context

S&P Global consensus for Q4 FY2025 revenue, EPS, and EBITDA was unavailable; therefore, no vs-consensus comparisons can be presented for this quarter. As a result, we cannot classify beats/misses relative to Street expectations [functions.GetEstimates output for Q4 2025 showed no data].

Key Takeaways for Investors

Q4 inflection on scale: revenue +22% YoY and gross margin at 30.8% reflect a healthier mix and pricing discipline; adjusted EBITDA margin improved sequentially to 6.5% .
Operating leverage is emerging but still partially offset by integration and tech investments (SG&A up); BI/ERP and FSM adoption should support margin expansion as these costs moderate and scale benefits accrue .
Continental (GNA) provides a structural channel/sourcing advantage and ~$50M annual revenue vector; watch for synergy capture and contribution consistency into FY2026 .
Capital allocation remains balanced: $21.265M FY25 operating cash flow, $46.925M deployed for acquisitions, net debt to $44.1M, and a higher special dividend ($0.33/share) .
Demand drivers remain resilient across healthcare, hospitality, and vended laundry; backlog commentary stays constructive though industrial project timing can affect quarterly cadence .
Risk watchlist: tariffs/cost inflation and broader macro; management pursuing pricing and sourcing actions to mitigate .
Near-term setup: integration updates and technology-driven productivity (FSM, ERP/BI, e-commerce launch in FY2026) are likely narrative drivers; absence of formal guidance and limited sell-side coverage could amplify reaction to operational milestones and capital return announcements .

Citations

Q4/FY25 8-K Press Release and financials: .
Q4 press release (duplicate content and layout): .
Q3 FY2025 8-K/press: .
Q2 FY2025 8-K/press: .
Additional Q4-period press release (ASN acquisition): .

EVI INDUSTRIES, INC. (EVI)·Q4 2025 Earnings Summary