Financial Data and Key Metrics Changes - The company reported revenue of $438 million for Q3 2025, representing a 14% year-over-year increase, with year-to-date revenue of $1.27 billion also up 14% [19] - Adjusted EBITDA for Q3 was $111 million, a 16% increase year-over-year, while year-to-date adjusted EBITDA reached $330 million, up 13% [20] - Net income for Q3 was $33 million, a significant improvement from a loss of $6 million in the prior year, with adjusted net income for the quarter at $48 million, up 47% [21] Business Line Data and Key Metrics Changes - North America revenue in Q3 was $331 million, an increase of 14%, driven by robust growth across all three end markets [22] - International revenue was $107 million, a 12% increase, with growth balanced across mature and developing markets [24] - Adjusted EBITDA in North America grew to $95 million, or 13% year-over-year, while international adjusted EBITDA rose to $26 million, reflecting a 9% increase [23][25] Market Data and Key Metrics Changes - The U.S. commercial laundry market is estimated to be a $6 billion market, with over 20,000 retail locations [7] - The company holds approximately 40% market share in North America, making it the number one pure-play commercial laundry manufacturer globally [8] - Emerging markets are seen as having significant growth potential, with the company leveraging its first-mover advantage [15] Company Strategy and Development Direction - The company focuses on producing high-quality, reliable commercial laundry systems that drive repeat business and market share gains [14] - A commitment to innovation is emphasized, with recent product launches including a cashless payment technology for laundromats [17] - The company aims to maintain a disciplined approach to capital allocation, prioritizing deleveraging and investing in growth initiatives [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the laundry industry, noting its essential nature and ability to provide downside protection during economic downturns [6] - The company anticipates a moderation in growth for Q4 2025, projecting mid-single-digit revenue growth, but remains optimistic about long-term prospects [29] - Management highlighted the importance of digital solutions and service-based revenue as key areas for future growth [46] Other Important Information - The company successfully reduced its net leverage ratio to approximately 3.1x following the IPO, enhancing its financial flexibility [22][27] - A one-time non-cash charge of approximately $16 million is expected in Q4 related to stock compensation from the IPO [30] Q&A Session Summary Question: How have competitors responded to the tariffs? - Management noted that one small Asian competitor increased prices by 16.5%, but overall, there has been little notable activity in response to tariffs [36] Question: What are the strategic benefits of acquiring distributors? - The company highlighted that acquiring distributors allows for closer customer relationships and opportunities for outsized growth in dense urban markets [38] Question: How is the company managing supply chain challenges? - Management reported no significant supply chain issues, maintaining sufficient inventory and alternate sources of supply [45] Question: What is the outlook for the CIH segment given consumer spending headwinds? - Management indicated strong demand for their commercial-grade products, with no changes in delivery timelines [52] Question: What are the plans for further deleveraging? - The company aims to continue deleveraging through strong free cash flow and will provide more guidance in early 2026 [80] Question: What are the margin drivers moving into 2026? - Management emphasized the importance of product mix and ongoing cost-down initiatives as key margin drivers [84] Question: What is the M&A pipeline looking like? - The company remains capable of pursuing M&A opportunities but is currently focused on organic growth [90]

Financial Performance - Alliance reported Q3 2025 revenue of $438 million, a 14% year-over-year increase[41] - Adjusted EBITDA for Q3 2025 was $111 million, up 16% year-over-year[41] - The Adjusted EBITDA margin was 253% in Q3 2025, a 40 bps increase year-over-year[41] - Adjusted net income for Q3 2025 increased by 47% year-over-year to $48 million[41] - For the first nine months of 2025, revenue reached $1274 billion, a 14% increase compared to the same period in 2024[41] - Adjusted EBITDA for the first nine months of 2025 was $330 million, a 13% increase year-over-year, with a margin of 259%[41] Segment Performance - North America's Q3 revenue grew by 14% year-over-year, reaching $331 million, with an Adjusted EBITDA of $95 million, a 13% increase[43, 45] - International Q3 revenue increased by 12% year-over-year to $107 million, with Adjusted EBITDA growing by 9% to $26 million[51] - For the first nine months of 2025, North America's revenue was $952 million, a 16% increase, and International revenue was $322 million, a 10% increase[47, 53] Balance Sheet and Capital Allocation - The company deleveraged to 31x IPO adjusted net leverage[41, 58] - IPO proceeds of $506 million were used to repay $525 million of debt, with an additional $135 million voluntary paydown in Q3[40, 59] - Debt repricing and paydowns are expected to deliver approximately $46 million in annualized interest savings[40, 59]

Core Insights - Alliance Laundry's shares increased by 11.4% during their debut in New York, leading to a market valuation of $4.83 billion [1] Company Summary - Alliance Laundry specializes in manufacturing commercial laundry systems [1]