EVI Industries Drives Growth with 'Buy-and-Build' Strategy

TL;DR

**EVI is aggressively consolidating the commercial laundry market through acquisitions, making it a compelling long-term play despite integration risks.**

AI Summary

EVI Industries, Inc. reported a robust fiscal year ended June 30, 2025, driven by its 'buy-and-build' growth strategy. The company, a value-added distributor of commercial laundry equipment and services, serves approximately 55,000 customers across the United States, Canada, the Caribbean, and Latin America. While specific revenue and net income figures for fiscal 2025 are not provided in this excerpt, the filing emphasizes the company's continued pursuit of strategic acquisitions and organic growth initiatives. Key business changes include the integration of acquired businesses, which are consolidated into EVI's financial statements post-acquisition. Risks highlighted include general economic conditions, supply chain disruptions, inflation, labor shortages, and the inherent challenges of integrating acquired entities. The strategic outlook focuses on expanding market share through both acquisitions and internal investments in sales personnel, new product lines, and advanced technologies, aiming to create long-term value for shareholders and employees.

Why It Matters

EVI Industries' 'buy-and-build' strategy is crucial for investors as it signals aggressive market consolidation and potential for increased shareholder value through economies of scale and expanded market reach. For employees, this strategy can mean new opportunities within a growing organization, but also potential integration challenges. Customers benefit from a broader product and service portfolio, positioning EVI as a 'one-stop shop' in the commercial laundry sector. In a competitive landscape, EVI's disciplined acquisition approach allows it to gain market share and strengthen its position against smaller, regional distributors, potentially leading to pricing power and improved service offerings.

Risk Assessment

Risk Level: medium — The company's 'buy-and-build' strategy inherently carries medium risk due to integration challenges, potential indebtedness from financing acquisitions, and dilution from stock issuance, as explicitly stated in the 'Cautionary Note Regarding Forward Looking Statements'. While the company aims for disciplined acquisitions, the success of integrating new businesses and realizing anticipated benefits is not guaranteed, impacting future financial performance.

Analyst Insight

Investors should monitor EVI's acquisition pipeline and integration success closely, as these are primary drivers of future growth and profitability. Evaluate the company's debt levels and any potential dilution from stock-based acquisitions to assess the impact on per-share earnings. Consider EVI as a long-term hold given its stated commitment to a growth culture and strategic market consolidation.

Key Numbers

• $95.9M — Market Value (Non-Affiliate) (Aggregate market value of common stock held by non-affiliates as of December 31, 2024, indicating significant public float.)
• 12.76M — Outstanding Shares (Number of outstanding shares of common stock as of September 5, 2025, relevant for per-share metrics.)
• 55,000 — Customer Base (Approximate number of customers, demonstrating broad market reach across multiple geographies.)
• 10% — Customer Concentration (No single customer accounted for more than 10% of revenues for fiscal 2025 or 2024, indicating diversified revenue streams.)
• June 30, 2025 — Fiscal Year End (The reporting period for this 10-K, providing the latest financial snapshot.)

Key Players & Entities

• EVI Industries, Inc. (company) — Registrant and parent company
• NYSE American (regulator) — Exchange where EVI Common Stock is registered
• SEC (regulator) — Securities and Exchange Commission
• Delaware (regulator) — State of incorporation for EVI Industries, Inc.
• $95,922,785 (dollar_amount) — Aggregate market value of common stock held by non-affiliates as of December 31, 2024
• 12,761,993 (dollar_amount) — Number of outstanding shares of common stock as of September 5, 2025
• June 30, 2025 (date) — End of the fiscal year for this 10-K filing
• Private Securities Litigation Reform Act of 1995 (regulator) — Legislation referenced for forward-looking statements
• $250,000 (dollar_amount) — Maximum FDIC insurance coverage
• FDIC (regulator) — Federal Deposit Insurance Corporation

FAQ

Risk Factors

• General Economic Conditions [high — market]: Downturns in general economic conditions could adversely affect the Company's business, financial condition, and results of operations. This includes reduced demand for commercial laundry equipment and services due to decreased consumer spending and business investment.
• Supply Chain Disruptions [medium — operational]: The Company is subject to risks associated with disruptions in its supply chain, which could impact its ability to procure necessary equipment, parts, and accessories. This could lead to delays in fulfilling customer orders and increased costs.
• Inflationary Pressures [medium — market]: Inflation can increase the cost of goods sold, operating expenses, and capital expenditures. The Company may not be able to pass these increased costs on to its customers, which could negatively impact its profit margins.
• Labor Shortages [medium — operational]: The Company's operations rely on a skilled workforce, including sales personnel and technicians. Labor shortages could impact the Company's ability to service its customers, execute its growth strategies, and maintain operational efficiency.
• Integration of Acquired Businesses [high — operational]: The Company's 'buy-and-build' strategy involves integrating acquired businesses. Challenges in integrating these entities, including cultural differences, IT systems, and operational processes, could disrupt business and negatively impact financial performance.

Industry Context

EVI Industries operates within the commercial laundry equipment and services distribution sector. This industry is characterized by a need for specialized technical expertise and a robust service network to support equipment sales and maintenance. Key trends include the adoption of advanced technologies for efficiency, water conservation, and automation, as well as consolidation through acquisition strategies.

Regulatory Implications

While no specific regulatory risks are detailed in this excerpt, companies in the distribution and service sectors are generally subject to regulations concerning product safety, environmental compliance (e.g., water usage, energy efficiency), and labor laws. Compliance with these regulations is crucial for maintaining operational licenses and avoiding penalties.

What Investors Should Do

1. Monitor acquisition pipeline and integration success.
2. Assess impact of macroeconomic factors.
3. Evaluate organic growth drivers.

Glossary

value-added distributor

A distributor that provides additional services beyond basic product delivery, such as technical support, installation, consulting, or customization. (EVI Industries operates as a value-added distributor, indicating its business model includes providing services alongside equipment sales, which can lead to higher margins and customer loyalty.)

buy-and-build growth strategy

A corporate strategy focused on acquiring and integrating multiple smaller companies within a specific industry to create a larger, more dominant entity. (This is EVI's core growth strategy, implying a focus on strategic acquisitions and subsequent integration to expand market share and operational capabilities.)

organic growth initiatives

Growth achieved through increasing output and sales from existing business operations, rather than through mergers and acquisitions. (EVI pursues both acquisitions and organic growth, suggesting a balanced approach to expansion, including investments in sales, products, and technology.)

restricted stock

Shares of stock granted to employees or executives that have restrictions on their sale or transfer for a specified period or until certain performance conditions are met. (EVI uses restricted stock as part of its equity compensation plan to incentivize long-term performance, retention, and align management interests with shareholder value.)

Year-Over-Year Comparison

Specific comparative financial data from the previous fiscal year is not available in this excerpt. However, the filing indicates a continued focus on the 'buy-and-build' strategy and organic growth initiatives, suggesting ongoing efforts to expand market share and customer base. Key risks such as economic conditions, supply chain issues, inflation, and integration challenges remain relevant, with their impact likely influencing year-over-year performance.

Key Financial Figures

• $0.025 — ange on which registered Common Stock, $0.025 par value EVI NYSE American Securitie
• $250,000 — in depositary accounts in excess of the $250,000 in maximum Federal Deposit Insurance Co

Filing Documents

• ea0255001-10k_eviindus.htm (10-K) — 941KB
• ea025500101ex21_eviindus.htm (EX-21) — 9KB
• ea025500101ex23_eviindus.htm (EX-23) — 2KB
• ea025500101ex31a_eviindus.htm (EX-31.A) — 9KB
• ea025500101ex31b_eviindus.htm (EX-31.B) — 9KB
• ea025500101ex32a_eviindus.htm (EX-32.A) — 3KB
• ea025500101ex32b_eviindus.htm (EX-32.B) — 3KB
• 0002077096-25-000107.txt ( ) — 6356KB
• evi-20250630.xsd (EX-101.SCH) — 51KB
• evi-20250630_cal.xml (EX-101.CAL) — 79KB
• evi-20250630_def.xml (EX-101.DEF) — 294KB
• evi-20250630_lab.xml (EX-101.LAB) — 528KB
• evi-20250630_pre.xml (EX-101.PRE) — 329KB
• ea0255001-10k_eviindus_htm.xml (XML) — 668KB

Risk Factors

Item 1A Risk Factors 12

Unresolved Staff Comments

Item 1B Unresolved Staff Comments 23

Cybersecurity

Item 1C Cybersecurity 24

Properties

Item 2 Properties 24

Legal Proceedings

Item 3 Legal Proceedings 24

Mine Safety Disclosures

Item 4 Mine Safety Disclosures 25 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 25

[Reserved]

Item 6 [Reserved] 26

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7 Management's Discussion and Analysis of Financial Condition and Results of Operations 26

Quantitative and Qualitative Disclosures About Market Risk

Item 7A Quantitative and Qualitative Disclosures About Market Risk 35

Financial Statements and Supplementary Data

Item 8 Financial Statements and Supplementary Data 37

Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

Item 9 Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 72

Controls and Procedures

Item 9A Controls and Procedures 72

Other Information

Item 9B Other Information 76

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 76 PART III

Directors, Executive Officers and Corporate Governance

Item 10 Directors, Executive Officers and Corporate Governance 77

Executi ve Compensation

Item 11 Executi ve Compensation 77

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 77

Certain Relationships and Related Transactions, and Director Independence

Item 13 Certain Relationships and Related Transactions, and Director Independence 78 -i- TABLE OF CONTENTS (continued) Page

Principal Accountant Fees and Services

Item 14 Principal Accountant Fees and Services 78 PART IV

Exhibits and Financial Statement Schedules

Item 15 Exhibits and Financial Statement Schedules 78

Form 10-K Summary

Item 16 Form 10-K Summary 82

SIGNATURES

SIGNATURES 83 -ii- TERMS USED IN THIS REPORT Unless the context otherwise requires, references to the "Company" or "EVI" in this Annual Report on Form 10-K (this "Report") refer to EVI Industries, Inc., collectively with its subsidiaries. References in this Report to "fiscal 2025" or any period thereof refer to the Company's fiscal year ended June 30, 2025 or the applicable period thereof, as the case may be. References in this Report to "fiscal 2024" or any period thereof refer to the Company's fiscal year ended June 30, 2024 or the applicable period thereof, as the case may be. CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS Certain statements in this Report are "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this Report, words such as "may," "should," "could," "seek," "believe," "expect," "anticipate," "estimate," "project," "intend," "strategy" and similar expressions are intended to identify forward looking statements. Forward looking statements may relate to, among other things, events, conditions and trends that may affect the future plans, operations, business, strategies, operating results, financial position and prospects of the Company. Forward looking statements are subject to a number of known and unknown risks and uncertainties that may cause actual results, trends, performance or achievements of the Company, or industry trends and results, to differ materially from the future results, trends, performance or achievements expressed or implied by such forward looking statements. These risks and uncertainties include, among others, those associated with: general economic and business conditions in the United States and other countries where the Company operates or where the Company's customers and suppliers are located; economic uncertainty, including as it relates to governmental measures such as the imposition of tariffs and their effect on global trading markets, the avai

Business

Item 1. Business. General The Company was incorporated under the laws of the State of Delaware on June 13, 1963. The Company, through its wholly-owned subsidiaries, is a value-added distributor, and provides advisory and technical services. Through its vast sales organization, the Company provides its customers with planning, designing, and consulting services related to their commercial laundry operations. The Company sells and/or leases its customers commercial laundry equipment, specializing in washing, drying, finishing, material handling, water heating, power generation, and water reuse applications. In support of the suite of products it offers, the Company sells related parts and accessories. Additionally, through the Company's robust network of commercial laundry technicians, the Company provides its customers with installation, maintenance, and repair services. The Company's customers include government, institutional, industrial, commercial and retail customers. Product purchases made by customers range from parts and accessories, to single or multiple units of equipment, to large complex systems. The Company also provides its customers with the services described above. The Company's growth strategy includes the pursuit of organic growth initiatives and a "buy-and-build" growth strategy. The Company's "buy-and-build" growth strategy includes (i) the consideration and pursuit of acquisitions and other strategic transactions which management believes may complement the Company's existing business or otherwise offer growth opportunities for, or benefit, the Company and (ii) the implementation of a growth culture at acquired businesses based on the exchange of ideas and business concepts among the management teams of the Company and the acquired businesses as well as through certain additional initiatives, which may include investments in additional sales and service personnel, new product lines, enhanced service operations and capabilities, new and impr

View Full Filing

View this 10-K filing on SEC EDGAR