10-Q · May 12, 2026
Alliance Laundry Holdings reported Q1 2026 net revenues of $426.9 million, marking a 9.6% increase year-over-year. EPS surged to $0.28, significantly exceeding estimates and up from $0.10 in the previous year. The…
Earnings analysis · 10-Q
ALH earnings analysis
Filed August 13, 2026 · Our reading of the company's report
The latest report
Alliance delivered solid second-quarter execution, with revenue up 6.6% year over year, gross margin rising to 39.8%, operating margin improving to 22.2%, and diluted EPS increasing to $0.34 from $0.18. North America…
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Alliance delivered solid second-quarter execution, with revenue up 6.6% year over year, gross margin rising to 39.8%, operating margin improving to 22.2%, and diluted EPS increasing to $0.34 from $0.18. North America was the principal growth engine, while International profitability weakened amid regional mix and geopolitical pressure. Cash generation and deleveraging were strong, with $146.139 million of first-half operating cash flow and $115.0 million of Term Loan prepayments, although the company retains substantial debt and working-capital exposure.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.34
What stood out
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Revenue Growth Accelerated Sequentially
Net revenue increased to $476.755 million, up 6.6% from $447.184 million in the prior-year quarter and approximately 11.6% from $427 million in Q1 2026. Management attributed the year-over-year increase to price increases and volume growth, with price contributing approximately half of the increase.
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Gross Margin Expansion
Gross margin expanded to 39.8% from 39.0% year over year and 36.8% in Q1 2026. Gross profit increased 9.0% to $189.896 million, supported by production-volume absorption, cost reductions, and $3.8 million of insurance proceeds and tariff refunds.
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Operating Leverage Lifted EPS
Operating income rose 12.6% year over year to $105.648 million, implying a 22.2% operating margin versus approximately 21.0% a year earlier and 19.6% in Q1 2026. Diluted EPS increased to $0.34 from $0.18 year over year and $0.28 sequentially.
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North America Drove Performance
North America revenue grew 9.2% to $359.258 million, while Adjusted EBITDA increased 17.4% to $113.632 million and margin expanded to 31.6% from 29.4%. Commercial In-Home equipment revenue increased 19%, and management cited broad-based demand and a mix shift toward larger-capacity Vended machines.
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Strong Cash Generation
Net cash provided by operating activities increased to $146.139 million from $50.697 million in the first half of 2025. Capital expenditures were $13.873 million, versus $16.597 million in the prior-year period, and management expects approximately $60.0 million of 2026 capital expenditures.
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Deleveraging and Lower Funding Cost
The company reduced Term Loan borrowings by $115.0 million during the first six months, leaving $1.250 billion outstanding at June 30, 2026. Moody’s upgraded the company from B2 to B1, reducing the Term Loan margin to SOFR plus 2.00%, while cash and cash equivalents increased to $159.467 million from $123.102 million at year-end.
What to watch
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International Profitability Pressure
International Adjusted EBITDA fell 8.0% to $33.948 million and margin contracted to 28.9% from 31.2%. Management cited regional customer and product mix, while Middle East and Africa equipment revenue declined 35% because of heightened geopolitical tensions.
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Material Debt and Rate Exposure
Total Term Loan borrowings were $1.250 billion and total securitization-related debt was $641.0 million at June 30, 2026. The Term Loan carries a 5.66% interest rate, and a 10% change in SOFR would affect annual interest expense by $1.8 million on the non-hedged portion.
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Working Capital Absorption
Working capital reduced operating cash flow by $19.8 million in the first half, including a $57.6 million increase in receivables and equipment-financing receivables held for securitization investors. Inventories increased to $149.936 million from $146.860 million at December 31, 2025, while accounts payable increased to $169.813 million from $128.662 million.
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Higher Warranty Obligations
Product warranty liability increased to $75.884 million from $56.228 million in the prior-year period. First-half warranty accruals charged to earnings were $22.673 million versus $18.587 million a year earlier, indicating rising warranty-related obligations alongside higher sales volume.
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No Formal Risk-Factor Updates
The filing states that there were no material changes to the risk factors disclosed in the 2025 Form 10-K. Nonetheless, the company remains exposed to raw-material volatility and was managing $2.3 million of nickel forward contracts at June 30, 2026.
Management's outlook
The 10-Q does not provide numeric revenue or EPS guidance. Management expects 2026 capital expenditures of approximately $60.0 million and states that liquidity will be adequate for anticipated requirements over the next twelve months. Revenue and Adjusted EBITDA outlook was addressed in the August 13, 2026 8-K/earnings materials rather than quantified in this filing.
Earlier filings 2
10-K · March 13, 2026
Alliance Laundry positions itself as the world’s largest designer and manufacturer of commercial laundry systems, emphasizing product quality, durability and a recurring replacement cycle. For the twelve months ended…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.