Alliance Laundry Holdings Q3 2026: EPS Beats, Guidance Raised

Alliance Laundry Holdings reported adjusted EPS of $0.38 for Q3 2026, clearing the consensus estimate of $0.32 by nearly 19%. Revenue came in at $461 million, essentially in line with the $461 million estimate, and grew 5.3% from the same quarter a year ago. Gross margin expanded roughly 240 basis points to 39.4%, driven by pricing actions, favorable volume and mix, and a discrete tariff refund that helped absorb steel and freight inflation.

North America was the clear engine of growth, with segment revenue climbing 8% to approximately $356 million and segment margin widening more than 300 basis points. The International segment brought in roughly $105 million, slipping about 1% as currency headwinds offset profitability gains from favorable product and end-market mix. Latin America was a bright spot internationally, while Europe held steady on the replacement and upgrade cycle.

Adjusted EBITDA rose 14% to approximately $127 million, translating to a 27.5% margin, up roughly 220 basis points year over year. The company also repaid $45 million of debt during the quarter, putting net leverage at 2.25 times, and separately completed a $75 million share repurchase. Those two capital actions together signal that management is confident the guidance raise is backed by real cash generation.

Full-year 2026 adjusted EBITDA growth guidance was raised to approximately 10%, the top of the prior 8% to 10% range, while revenue growth guidance was left unchanged at 6% to 7%. Net leverage is now expected to reach approximately 2.1 times by year end. With the revenue target unchanged, management is signaling margin and earnings quality improvement.