EVI's Q4 Earnings Flat Y/Y, Revenues Grow 22% YoY on Acquisition Gains

Core Insights - EVI Industries, Inc. reported a 22% year-over-year revenue increase to a record $110 million for the quarter ended June 30, 2025, with a gross profit rise of 24% to $33.9 million, resulting in a gross margin of 30.8% [2][3] - The company achieved a fiscal 2025 revenue growth of 10% to $390 million, with net income increasing by 33% to $7.5 million and EPS rising to 49 cents, a 32% increase from the previous fiscal year [3][6] - EVI's operational strategy focused on long-term growth through acquisitions and organic growth, with a compounded annual growth rate of 7% in organic revenue over three years [4][9] Financial Performance - The company reported net income of $2.1 million for the quarter, a 1% increase year-over-year, despite a decline in operating cash flow to $21.3 million due to increased working capital investments [2][6] - EVI's gross profit margin expanded to 30.4% for fiscal 2025, with operating income advancing 18% to $13.8 million [3][4] Operational Highlights - EVI's ERP platform usage increased significantly, with 27 out of 31 business units utilizing it by June 2025, enhancing operational efficiency [4][5] - The company optimized field service operations, enabling over 8,500 service appointments in June 2025, which also served as sales touchpoints [5] Strategic Initiatives - EVI's acquisition of Girbau North America, rebranded as Continental Laundry Solutions, is expected to contribute approximately $50 million in annual revenues and enhance sourcing capabilities [14] - The company declared a special cash dividend of 33 cents per share, reflecting confidence in its financial health and ability to return value to shareholders [15] Market Positioning - EVI's strategic focus on essential commercial laundry services across sectors like healthcare and hospitality positions it favorably in a fragmented market [8][9] - The company is optimistic about future growth, supported by a solid backlog of customer orders and a robust acquisition pipeline [12][13]