Debt and Interest Management - The Company reported total borrowings under the Term Loan of $1,365.0 million as of December 31, 2025, with interest rates of 1.25% for adjusted base rate loans and 2.25% for Term SOFR loans[442]. - An assumed 10% increase/decrease in the current interest rate would result in an annual interest expense change of $2.3 million on the non-hedged portion of the borrowing[442]. - The Company entered into a $600.0 million interest rate swap agreement effective September 3, 2024, paying a fixed rate of 3.61%[444]. - The Company also entered into a $150.0 million interest rate swap agreement effective April 1, 2025, paying a fixed rate of 3.36%[445]. - The company’s long-term debt decreased to $1,354,636 thousand from $2,034,545 thousand, indicating a reduction in leverage[469]. - The total liabilities decreased to $2,493,770 thousand from $3,109,433 thousand, reflecting improved financial health[469]. Financial Performance - The company's net revenues for the year ended December 31, 2025, were $1,709,237 thousand, an increase from $1,508,440 thousand in 2024, representing a growth of approximately 13.3%[470]. - Gross profit for the year was $642,104 thousand, up from $551,251 thousand in the previous year, indicating a gross margin improvement[470]. - Net income for the year was $101,755 thousand, compared to $98,319 thousand in 2024, reflecting a year-over-year increase of about 2.5%[470]. - The company reported a comprehensive income of $160,685 thousand for the year, significantly higher than $70,951 thousand in 2024[470]. - Cash flows from operating activities for 2025 were $211,685,000, compared to $145,460,000 in 2024, indicating a significant increase of 45.4%[476]. - The company reported foreign exchange losses on intercompany loans of $25.2 million in 2025, compared to losses of $(4.7) million in 2024 and gains of $0.5 million in 2023, indicating significant fluctuations in currency exchange rates[526]. Assets and Liabilities - The company's total assets as of December 31, 2025, were $2,885,888 thousand, an increase from $2,832,105 thousand in 2024[469]. - The total amount of stock repurchased in 2025 was $6,205,000, compared to $1,445,000 in 2024, indicating a significant increase in share buybacks[478]. - The total allowance for credit losses as of December 31, 2025, was $6.4 million, representing 1.1% of the total gross portfolio balance, unchanged from 2024[503]. - The Company’s residual interest in securitized accounts receivable was $28.8 million as of December 31, 2025, down from $36.3 million in 2024[593]. - The total securitization debt as of December 31, 2025, was $618.6 million, which includes $113.2 million related to trade receivables and $505.4 million related to equipment financing receivables[596]. Expenses and Costs - Selling, general, and administrative expenses rose to $324,458 thousand from $266,444 thousand, marking an increase of approximately 21.8%[470]. - The company experienced a non-cash stock-based compensation expense of $19,519,000 in 2025, up from $3,263,000 in 2024[476]. - The provision for credit losses was $3,622,000 in 2025, a decrease from $7,145,000 in 2024, reflecting improved credit quality[476]. - Advertising expenses for the year ended December 31, 2025, were approximately $16.0 million, an increase from $14.1 million in 2024 and $12.2 million in 2023, reflecting a growth trend in marketing investment[517]. - Research and development costs increased to $29.7 million in 2025, up from $22.8 million in both 2024 and 2023, indicating a focus on innovation and product development[527]. Foreign Currency and Risk Management - The Company has manufacturing and sales facilities in multiple countries, including the Czech Republic, China, and Thailand, exposing it to foreign currency risks[446]. - The Company does not designate its foreign currency contracts as hedge transactions, impacting current earnings based on mark-to-market adjustments[447]. - The company’s international sales are primarily denominated in U.S. dollars, but it faces transactional and translational foreign exchange risks related to its foreign operations[446]. - Foreign exchange transaction losses recorded in earnings were $1.2 million in 2025, compared to $0.7 million in 2024 and a gain of $(0.3) million in 2023, highlighting currency volatility impacts[526]. - The company recognized foreign exchange losses of $25,152 in 2025, compared to gains of $4,654 in 2024[567]. Acquisitions and Growth - The company acquired net assets of Metropolitan Laundry Machinery Sales Inc. for a total purchase price of $11,447 in 2025, with goodwill recognized at $8,180[563]. - From acquisitions completed in 2025, the company reported approximately $4.3 million in net revenues from these entities[565]. Stock and Shareholder Actions - The board of directors approved a 142-for-1 stock split on September 25, 2025, which was effective on September 26, 2025, impacting the share structure significantly[483]. - The Company closed its IPO on October 10, 2025, selling 43,195,120 shares at a public price of $22.00 per share, resulting in net proceeds of approximately $505.7 million after deducting offering expenses of about $39.5 million[485]. Inventory and Capital Expenditures - Total inventories as of December 31, 2025, amounted to $146,860 thousand, up from $134,483 thousand in 2024, which is a 9.2% increase[606]. - Capital expenditures for 2025 were $53,668,000, an increase from $43,485,000 in 2024, showing a growth of 27.5%[478]. Impairment and Depreciation - The Company did not record an impairment charge for the years ended December 31, 2025, 2024, and 2023, as the fair values of the Speed Queen, UniMac, and Huebsch trademarks exceeded their carrying values[621]. - Depreciation expense for the year ended December 31, 2025, was $42.0 million, compared to $39.7 million in 2024, marking an increase of 5.8%[608].

Core Viewpoint - Alliance Laundry Holdings (ALH) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Company Performance and Outlook - The upgrade for Alliance Laundry reflects an improvement in the company's underlying business, which is expected to drive stock appreciation [5]. - Analysts have raised their earnings estimates for Alliance Laundry, with the Zacks Consensus Estimate increasing by 1.7% over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks which have averaged a +25% annual return since 1988 [7]. - Alliance Laundry's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

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Core Insights - Alliance Laundry reported a strong financial performance for 2025, with total revenue of $1.7 billion, reflecting a 13% year-over-year increase, and an Adjusted EBITDA margin reaching a record 25.5% [3][7][4] - The company achieved significant deleveraging, reducing total debt from $2.1 billion to $1.4 billion, resulting in a net leverage ratio of 2.8x Adjusted EBITDA, a reduction of 2.2 turns in one year [1][4][7] - Management provided guidance for 2026, expecting revenue growth of approximately 5-7% and Adjusted EBITDA growth of 6-8%, while prioritizing further deleveraging [6][18][20] Financial Performance - For the fourth quarter, net revenue increased by 10% year-over-year to $435 million, with unit volumes contributing about half of the growth [8] - Fourth-quarter gross profit rose 16% to $161 million, with gross margin expanding by 190 basis points to 37% [8] - Operating expenses were $97 million, or 22.4% of revenue, including a $16 million non-cash charge related to performance-based options [9] Segment Performance - North America revenue for the fourth quarter increased by 9% to $317 million, with Adjusted EBITDA rising 15% to $88 million [11] - International revenue grew by 12% to $118 million, with Adjusted EBITDA increasing 25% to $29 million, and margin expanding by 260 basis points to 24.8% [12] - For the full year, North America revenue was $1.3 billion, and Adjusted EBITDA was $361 million, both up 14% year-over-year [13] Strategic Initiatives - The company is investing in innovation and digital capabilities, with initiatives such as ProCapture and Scan-Pay-Wash, and has ramped up new test labs and manufacturing [5][15] - Alliance has made targeted distributor acquisitions in the New York market to enhance its direct presence [17] - Management emphasized ongoing investment in manufacturing efficiency and digital capabilities to support future growth [4][6] 2026 Guidance - Management anticipates continued margin expansion despite incremental public company costs, with revenue growth expected to be evenly split between volume and price [18] - The company aims to reduce leverage by approximately 0.75 turns, targeting a net leverage ratio in the low 2x range by year-end 2026 [20] - Executives noted strong demand across markets, while also preparing for potential volatility in the Middle East [20]

Exhibit 99.1 Alliance Reports Fourth Quarter and Full Year 2025 Results Ripon, WI, March 12, 2026 – Alliance Laundry Systems (NYSE: ALH) ("Alliance" or the "Company"), the global leader in commercial laundry equipment, today announced results for its fourth quarter and full year ended December 31, 2025, and introduced its 2026 annual guidance. "2025 was a landmark year for Alliance. Our full year and fourth quarter results demonstrated our ability to deliver very strong outcomes driven by our market leading ...

Alliance Laundry (NYSE:ALH) Q4 2025 Earnings call March 12, 2026 08:00 AM ET Company ParticipantsAndrew Obin - Managing Director of Equity ResearchBob Calver - VP of Investor RelationsDean Nolden - CFOKetan Mamtora - Director of Building Products Equity ResearchMike Schoeb - CEOTomo Sano - Managing DirectorConference Call ParticipantsAmit Mehrotra - Managing Director and Senior Equity AnalystKyle Menges - VP and Equity Research AnalystSusan Maklari - Senior Equity Research AnalystOperatorGood morning, and w ...

Financial Data and Key Metrics Changes - In Q4, revenue increased by 10% year-over-year, with full-year revenue reaching $1.7 billion, up 13% compared to the previous year [7][20] - Adjusted EBITDA grew by 14%, achieving a record full-year adjusted EBITDA margin of 25.5% [8] - Net leverage was reduced to 2.8 times, a decrease of 2.2 turns, attributed to operational de-leveraging and successful IPO [8][23] Business Line Data and Key Metrics Changes - North America revenue rose by 9% to $317 million in Q4, with adjusted EBITDA up 15% to $88 million, maintaining a margin of 27.9% [24] - International revenue increased by 12% to $118 million in Q4, with adjusted EBITDA up 25% to $29 million, reflecting a margin of 24.8% [25] - For the full year, North America delivered revenue of $1.3 billion and adjusted EBITDA of $361 million, both up 14% year-over-year [28] Market Data and Key Metrics Changes - The commercial laundry industry is characterized as non-cyclical and essential, providing consistent growth and downside protection [5][10] - The company expects to continue compounding above the market with a revenue growth forecast of 5% to 7% for 2026, driven by balanced contributions from volume and price [16][30] Company Strategy and Development Direction - The company emphasizes its leadership position as the number one pure play commercial laundry manufacturer, focusing on operational excellence and innovation [6][10] - Strategic priorities for 2026 include investing in innovation, driving manufacturing excellence, and maintaining disciplined capital allocation [17][33] - The company plans to enhance its digital capabilities and expand its connected equipment base, which grew to 245,000 machines, up 25% year-over-year [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong demand across all business segments, despite potential volatility in specific regions like the Middle East [42] - The company anticipates continued growth driven by replacement demand rather than new construction cycles, with a focus on quality and durability [66] - Management highlighted the importance of maintaining a strong balance sheet and the potential for shareholder returns as leverage decreases [95][97] Other Important Information - The company invested $54 million in capital expenditures for capacity expansion, automation, and new product development [9][15] - The launch of innovative products, such as the T55 Stacked Tumbler and Scan-Pay-Wash, has seen strong initial demand [13][14] Q&A Session Summary Question: Demand differences between North America and international business for 2026 - Management sees strong demand across all parts of the business, with some potential weakness in the Middle East due to current volatility [42] Question: Outlook for steel costs, pricing power, and tariff policy - The company has offset steel cost increases with pricing actions and expects no significant changes in tariff policy [44][49] Question: Competitors facing tariff impacts - Management noted that competitors are beginning to take action regarding tariffs, which could provide a competitive advantage [54] Question: Strength of commercial and home segment in 2025 - The unique distribution strategy and high product quality have driven strong performance, with expectations to continue outgrowing the industry [63][66] Question: Guidance approach as a new public company - Management emphasized a prudent approach to guidance, focusing on the replacement-driven nature of the business and opportunities for margin expansion [76][78] Question: M&A pipeline and growth opportunities - The company does not require acquisitions to grow but remains opportunistic in pursuing selective opportunities [101][102]

Financial Data and Key Metrics Changes - In Q4 2025, revenue increased by 10% year-over-year to $435 million, with full-year revenue reaching $1.7 billion, up 13% from the previous year [6][19] - Adjusted EBITDA for Q4 rose 17% to $107 million, representing 24.5% of revenue, while full-year adjusted EBITDA margin reached a record 25.5% [6][21] - Net leverage ratio improved to 2.8x Adjusted EBITDA, down from 5.0x at the start of the year, reflecting a reduction of 2.2 turns [7][23] Business Line Data and Key Metrics Changes - North America revenue grew by 9% to $317 million in Q4, with adjusted EBITDA up 15% to $88 million and a margin of 27.9% [24] - International revenue increased by 12% to $118 million in Q4, with adjusted EBITDA up 25% to $29 million, resulting in a margin of 24.8% [25] - For the full year, North America delivered revenue of $1.3 billion and adjusted EBITDA of $361 million, both up 14% year-over-year [27] Market Data and Key Metrics Changes - The commercial laundry industry is characterized by consistent growth, with Alliance Laundry positioned as the number one pure play manufacturer globally [5][9] - The company noted strong demand across all geographic markets, particularly in North America and Europe, with emerging markets in Asia Pacific also showing promise [16][28] Company Strategy and Development Direction - The company aims for revenue growth of 5%-7% in 2026, with a focus on balanced contributions from volume and price [16][30] - Continued investment in innovation and new product development is a priority, with plans to allocate approximately 3% of revenue to capital expenditures [17][32] - The company emphasizes its competitive advantage through a strong distribution network and a focus on high-quality, durable products [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic cycles, citing the essential nature of the commercial laundry industry [5][35] - The outlook for 2026 remains positive, with expectations of continued demand and a focus on operational excellence and margin expansion [16][31] Other Important Information - The company successfully completed its IPO in October 2025, which contributed to a strengthened balance sheet and capital allocation flexibility [7][15] - Significant investments were made in capacity expansion, automation, and product development, totaling $54 million [8][15] Q&A Session Summary Question: Demand differences between North America and international markets for 2026 - Management sees strong demand across all business segments, with some potential weakness in the Middle East due to current volatility [41] Question: Impact of steel costs, pricing power, and tariff policy on guidance - The company has locked in steel prices and offset cost increases with pricing actions, expecting no significant changes in tariff policy [43][47] Question: Strength of commercial and home segment in 2025 - The strong performance is attributed to a unique distribution strategy and high product quality, with expectations of continued growth without forecasting double-digit growth for 2026 [63][66] Question: M&A pipeline and growth opportunities - Management emphasized that acquisitions are not necessary for continued growth, but they remain open to selective opportunities [99][100] Question: Supply chain disruptions in the Middle East - The company does not foresee any significant supply chain disruptions due to its local-for-local manufacturing strategy [102]

Alliance (NYSE: ALH) Full Year & Q4 2025 Earnings Presentation March 12, 2026 Forward-Looking Statements & Non-GAAP Financial Measures Forward-Looking Statements This earnings presentation includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. In some cases, you can identify these forward-looking statements by the use of terms such as "expect," "will," "continue," or similar expressions, and variations o ...

Core Insights - Alliance Laundry Systems reported strong financial results for Q4 and full year 2025, with significant revenue and EBITDA growth, reflecting its market leadership and operational excellence [1][2][3] Full Year 2025 Results - Net revenues increased by 13% to $1.7 billion, driven by strong volume performance and mid-single digit price increases [1][2] - Adjusted EBITDA rose by 14% to $436 million, achieving a record margin of 25.5% [1][2] - Net income for the year was $102 million, up 3% from the previous year, with a net income margin of 6.0% [1][2] Fourth Quarter 2025 Results - Q4 net revenues increased by 10% to $435 million, reinforcing durable demand-driven growth [1][2] - Gross profit for Q4 rose by 16% to $161 million, with a gross margin of 37.0% [1][2] - Adjusted EBITDA for Q4 increased by 17% to $107 million, with a margin of 24.5% [1][2] Segment Performance - North America revenue increased by 14% to $1.3 billion, with strong growth in Vended and Commercial-in-Home markets [1][2] - International revenue grew by 10% to $440 million, driven by strong performance in Europe and Asia Pacific [2][3] Cash Flow and Balance Sheet - Operating cash flow increased by 46% to $212 million, reflecting effective working capital management [2][3] - Net leverage was reduced from 5.0x to 2.8x, with total debt declining to $1.4 billion [2][3] 2026 Guidance - The company expects revenue growth of 5% to 7% and Adjusted EBITDA growth of 6% to 8% for 2026 [1][2] - Net leverage is projected to be in the low 2x range by the end of the year [1][2]