Alliance Laundry (NYSE:ALH – Get Free Report) issued its quarterly earnings data on Thursday. The company reported $0.41 earnings per share for the quarter, topping the consensus estimate of $0.35 by $0.06, FiscalAI reports. The company had revenue of $476.75 million for the quarter. Alliance Laundry had a net margin of 10.08% and a return on equity of 106.46%.
Here are the key takeaways from Alliance Laundry’s conference call:
- Q2 results exceeded expectations, with revenue up 7% year over year, adjusted EBITDA up 12%, and adjusted net income up 54%. Gross margin expanded to 39.8%, while adjusted EBITDA margin increased 135 basis points to 28.1%.
- Management raised full-year adjusted EBITDA growth guidance to 8%–10% while maintaining revenue growth guidance of 6%–7%. The company expects pricing and volume to contribute roughly equally to revenue growth.
- Alliance continued to strengthen its balance sheet, repaying $50 million of debt in Q2 and $825 million over the past 12 months. Net leverage fell to 2.4 times adjusted EBITDA, and debt-rating upgrades are expected to reduce borrowing costs by 25 basis points.
- North America remained broadly strong, with revenue up 9% and adjusted EBITDA up 17%, supported by demand across end markets, pricing, operational improvements, and larger-capacity vended equipment. Management described commercial laundry demand as resilient and said customer demand currently exceeds its ability to deliver some products.
- International revenue was approximately flat, with Middle East and Africa affected by the regional conflict and Europe facing higher energy costs and some demand pauses. Management expects international performance to remain lumpy, with no recovery in Saudi Arabia and the UAE anticipated this year.
Alliance Laundry Trading Down 1.0%
ALH traded down $0.27 during trading on Friday, reaching $25.50. 944,127 shares of the stock traded hands, compared to its average volume of 533,726. The company has a quick ratio of 1.05, a current ratio of 1.37 and a debt-to-equity ratio of 4.00. The stock’s 50-day moving average is $26.08 and its 200 day moving average is $24.17. Alliance Laundry has a 12 month low of $18.64 and a 12 month high of $28.23. The stock has a market capitalization of $5.06 billion and a PE ratio of 28.02.
Alliance Laundry News Summary
- Positive Sentiment: Analysts raised price targets. JPMorgan increased its target from $31 to $32 and assigned an “overweight” rating, implying approximately 25.5% upside from the referenced $25.50 price. Robert W. Baird raised its target from $32 to $34 and reiterated an “outperform” rating, implying roughly 33.4% upside. Benzinga analyst ratings article The Fly analyst ratings article
- Positive Sentiment: Second-quarter earnings exceeded expectations. Alliance Laundry reported adjusted EPS of $0.41, above the $0.35 consensus estimate, on revenue of approximately $476.8 million. North American revenue increased 9%, while pricing and margin improvements helped strengthen the profit outlook. Zacks Q2 earnings article
- Positive Sentiment: Management raised its profitability outlook. Alliance Laundry indicated 2026 adjusted EBITDA growth of 8% to 10% and expects net leverage to decline to approximately 2.0 times, suggesting stronger cash generation and balance-sheet improvement. Seeking Alpha outlook article
- Neutral Sentiment: Revenue guidance remained broadly in line with expectations. The company projected fiscal 2026 revenue of approximately $1.8 billion, matching the consensus estimate, so the primary upside is coming from earnings quality, margins and deleveraging rather than higher sales guidance.
Analysts Set New Price Targets
Several brokerages recently issued reports on ALH. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Alliance Laundry in a research report on Friday, August 7th. Citigroup increased their price target on Alliance Laundry from $30.00 to $31.00 and gave the company a “buy” rating in a research note on Tuesday, July 14th. Robert W. Baird raised their price objective on Alliance Laundry from $32.00 to $34.00 and gave the stock an “outperform” rating in a research report on Friday. JPMorgan Chase & Co. lifted their price objective on Alliance Laundry from $31.00 to $32.00 and gave the stock an “overweight” rating in a research note on Friday. Finally, Zacks Research cut Alliance Laundry from a “strong-buy” rating to a “hold” rating in a report on Monday, July 27th. Three analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $31.25.
Read Our Latest Stock Report on Alliance Laundry
Insiders Place Their Bets
In other Alliance Laundry news, insider Amanda Brooke Kopetsky sold 13,472 shares of Alliance Laundry stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $27.00, for a total value of $363,744.00. Following the completion of the sale, the insider directly owned 7,331 shares in the company, valued at approximately $197,937. The trade was a 64.76% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Samantha Leigh Hannan sold 6,000 shares of the business’s stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $26.80, for a total value of $160,800.00. Following the completion of the transaction, the insider directly owned 286,066 shares in the company, valued at approximately $7,666,568.80. This trade represents a 2.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 137,528 shares of company stock valued at $3,583,271. Insiders own 7.60% of the company’s stock.
Institutional Inflows and Outflows
Several institutional investors and hedge funds have recently bought and sold shares of the stock. BDT Capital Partners LLC acquired a new stake in Alliance Laundry in the fourth quarter worth $2,864,297,000. Capital International Investors acquired a new position in shares of Alliance Laundry during the fourth quarter valued at about $101,498,000. Vanguard Group Inc. bought a new position in shares of Alliance Laundry during the 4th quarter worth about $76,161,000. BlackRock Inc. acquired a new stake in shares of Alliance Laundry in the 2nd quarter valued at about $85,422,000. Finally, Norges Bank acquired a new stake in shares of Alliance Laundry in the 4th quarter valued at about $55,962,000.
About Alliance Laundry
Alliance Laundry Systems (NYSE: ALH) is a manufacturer and distributor of commercial and residential laundry equipment and related services. The company designs, produces and sells a range of coin-operated and vended machines, on-premises washers and dryers, and allied equipment for laundromats, multi-housing, hospitality, healthcare and other institutional customers. Alliance’s product strategy emphasizes durable, high-throughput machines for professional laundry operators as well as appliances geared to self-service and multi-dwelling applications.
Its product portfolio includes coin-operated and card-operated washers and dryers, stacked and single-pocket models, industrial-grade on-premises equipment, and parts and accessories.
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