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The call communicated a largely positive operational and financial performance: double‑digit revenue growth (10%), mid‑single‑digit adjusted EBITDA improvement (9%), a pronounced increase in adjusted net income (+85%), strong cash flow ($80M) and tangible deleveraging progress (net leverage down to 2.6x). Management raised full‑year guidance and highlighted growth drivers including volume, pricing, a >250k connected base, and a manufacturing footprint that helps mitigate tariffs. Headwinds were acknowledged but portrayed as manageable: tariff exposure, incremental public company costs, supply‑chain/permitting and geopolitical/energy uncertainty in Europe, and early-stage monetization of digital offerings. Overall, positives (strong growth, margin recovery, cash generation, guidance raise, digital adoption and deleveraging) materially outweigh the cautions, which are characterized as manageable risks rather than critical threats.
Alliance raised its full‑year 2026 outlook, increasing revenue growth to 6–7% and adjusted EBITDA growth to 7–8%, with roughly a 50/50 split between volume and price and an expectation of adjusted EBITDA margin expansion; management also reaffirmed other guidance items as unchanged. The company expects to reduce net leverage by ~0.75x in 2026 to the low‑2x net debt/adjusted‑EBITDA range by year‑end (Q1 net leverage 2.6x after a $65M Q1 debt paydown; total debt $1.3B, net debt $1.2B) and to continue generating strong free cash flow (Q1 operating cash flow $80M) to fund deleveraging, organic investment, tuck‑in M&A and potential near‑term buybacks/longer‑term dividends. For context, Q1 results underpinning the raise were: revenue $427M (+10% YoY), adjusted EBITDA $109M (+9%), adjusted net income $63M (+85%), and management noted pricing actions largely offset an approximate $20M annualized tariff exposure (Q1 tariff headwind ~$4.5–5M).
Q1 net revenue grew 10% year-over-year to $427.0M. Company raised full-year 2026 revenue guidance to +6% to +7% (increasing the low end by 1 percentage point) with ~50/50 expected contribution from volume and price.
Adjusted EBITDA rose 9% to $109.0M with an adjusted EBITDA margin of 25.5%. Adjusted net income increased ~85% year-over-year to $63.0M, driven by operating performance and lower interest expense.
North America revenue up 9% to $320.0M; adjusted EBITDA up 8% to $87.0M with a margin of 27.2%. Growth broad-based across vended, On‑Premise, and Commercial‑in‑Home (Commercial‑in‑Home outpaced industry).
International revenue up 10% to $107.0M; adjusted EBITDA up 13% to $33.0M with a 30.4% margin. Europe and Asia Pacific were primary drivers (Europe strong across end markets; APAC, including Thailand, strong in vended and On‑Premise).
Operating cash flow of $80.0M in Q1 and $65.0M of debt paid in the quarter. Total debt $1.3B, net debt $1.2B and net leverage reduced by 0.2x to 2.6x adjusted EBITDA. Company reaffirmed plan to reduce leverage ~0.75x in 2026 to low-2x range.
Connected installed base exceeds 250,000 machines and continues growing month-over-month. Scan/Pay/Wash processed over 100,000 transactions in March and Q1 transactions doubled the entirety of Q4 2025, demonstrating meaningful early adoption.
Company cites a local-for-local manufacturing footprint and pricing actions that continue to offset approximately $20M annualized tariff exposure; Q1 tariff headwind noted but management expects to manage through price and localization.
Continued investments in digital, engineering and commercial capabilities; testing capacity nearly doubled with labs in the U.S., Thailand and Czech Republic to accelerate reliable product launches.
Good morning, and welcome to Alliance Laundry's First Quarter 2026 Earnings Conference Call. With us today are Mike Schoeb, Chief Executive Officer; Dean Nolden, Chief Financial Officer; and Bob Calver, Vice President of Investor Relations. [Operator Instructions] With that, it is my pleasure to turn the program over to the team. Bob, please go ahead.
Thank you, operator, and good morning, everyone. Along with today's call, you can find our earnings press release and presentation on our Investor Relations website at ir.alliancelaundry.com. A replay will also be available on our website following the call. As a reminder, today's earnings release, presentation and statements made during the call include forward-looking statements under federal securities laws. These statements are subject to risks and uncertainties that could cause actual results to differ materially from our expectations and projections. Such risks and uncertainties include factors set forth in the earnings release and in our filings with the SEC, including the Risk Factors section of our 10-K filing and subsequent 10-Q filings. We assume no obligation to update or revise any forward-looking statements, except as required by law. Additionally, during today's call, we'll discuss certain non-GAAP financial measures outlined in our earnings presentation.
We believe these measures are important indicators of our operations as they exclude items that may not be indicative of ongoing business performance. Reconciliations to the most directly comparable GAAP measures can be found in our earnings release and present...