EVI Industries, Inc. (EVI): BCG Matrix [Dec-2025 Updated]

You're looking for a clear-eyed view of EVI Industries, Inc.'s portfolio, and honestly, their aggressive buy-and-build strategy makes for a fascinating BCG Matrix, especially with the $390 million in fiscal 2025 revenue. We've mapped out where their established market leadership in distribution (Stars) and steady service cash flow (Cash Cows) meets the high-cost uncertainty of new digital platforms and recent expansions (Question Marks), all while managing legacy units (Dogs). This analysis cuts right to the strategic trade-offs EVI is making right now-balancing 10% growth against integration costs that saw Q1 2026 net income dip to $1.8 million. Dive in to see exactly where you should focus your attention on this dynamic business.

Background of EVI Industries, Inc. (EVI)

You're looking at EVI Industries, Inc. (EVI), which is really the only pure-play name left in the U.S. commercial laundry equipment distribution and service space right now. EVI Industries, Inc. operates by distributing, selling, and leasing a full suite of commercial and industrial laundry gear-think washers, dryers, finishing equipment, and water heating systems-across the United States, Canada, the Caribbean, and Latin America. The company has built its reputation since 2016 on a disciplined 'buy-and-build' strategy, consolidating this highly fragmented industry through acquisitions.

This growth strategy has been quite successful over the long haul. Since the strategy started in 2016, EVI Industries, Inc. has achieved compounded annual growth rates of 30% in revenue, 18% in net income, and 28% in adjusted EBITDA, driven by the acquisition of 31 businesses. That inorganic growth is supported by a solid organic foundation, showing a 7% compounded annual growth rate in organic revenue over the same period.

Looking at the most recent full fiscal year, which ended June 30, 2025, EVI Industries, Inc. posted record results. Revenue hit $390 million, a 10% increase year-over-year, with gross profit reaching a record $118 million, translating to a gross margin of 30.4%. Net income saw a big jump, up 33% to $7.5 million for the full year.

The biggest strategic move recently was closing the acquisition of Girbau North America (GNA), now called Continental Laundry Solutions, on April 1, 2025; this was the largest deal in the company's history. Management estimates this acquisition alone will add about $50 million in annual revenue. To support this scale, EVI Industries, Inc. has also been pouring resources into technology, like expanding its field service platform, which supported about 9,000 appointments in September 2025, up from just 1,000 a year prior.

For a very recent snapshot, the first quarter of fiscal 2026 (ending September 30, 2025) showed continued top-line momentum. Revenue grew 16% year-over-year to a record $108 million, and the gross margin actually improved slightly to 31.3%. However, you'll note that net income for that quarter was $1.8 million, down from $3.2 million in the prior year's first quarter, which often happens when you're heavily investing in integration and working capital to fuel that aggressive growth strategy. The balance sheet remains strong, with total available liquidity exceeding $175 million following a credit facility amendment that extends maturity to March 2030.

EVI Industries, Inc. (EVI) - BCG Matrix: Stars

You're looking at the engine of EVI Industries, Inc.'s current momentum, which we map here as the Stars quadrant. These are the business units or products with the best market share in markets that are still expanding rapidly, requiring significant cash to maintain that leadership position.

The overall North American commercial laundry distribution platform is definitely the leader in this fragmented market. This leadership was significantly solidified during fiscal 2025 through strategic moves. The company closed four deals in fiscal 2025, with the largest being the Continental Laundry Solutions acquisition. This single transaction is expected to add approximately $50 million in annual revenue, which is a major boost to the segment's market share.

The growth story for fiscal 2025 is clear: the strategic acquisitions completed during the year were the primary driver, resulting in a 10% total revenue growth for the year, pushing total revenue to a record $389.8 million. That 10% growth rate in a market where EVI Industries is already the established leader signals a Star's profile-high share in a growing space. Honestly, this growth isn't just organic; it's fueled by aggressive, successful M&A.

Here are the key metrics that define this high-growth, high-share positioning:

• Fiscal 2025 total revenue reached $389.8 million.
• The Continental Laundry Solutions acquisition is projected to add $50 million in annual revenue.
• The company achieved a 7% compounded annual growth rate in organic revenue since 2016.
• EVI Industries has acquired 31 businesses since 2016.

The near-term demand confirms this market is still hot. EVI Industries ended the fiscal year with a 10% increase in its backlog of confirmed customer sales orders. This backlog growth is a direct indicator of high near-term demand and the company's success in capturing that market expansion. For instance, as of March 31, 2025, confirmed customer sales order contracts actually exceeded the value of those fulfilled during the period.

To support this growth and maintain leadership, EVI Industries is pouring cash into infrastructure, which is typical for a Star. The technology investments are substantial, designed to make the platform scalable. Here's a quick look at the technology deployment supporting this segment:

The Continental Laundry Solutions acquisition itself is a Star move because it brings a powerful new platform, giving EVI Industries relationships with more than 80 independent distributor customers across North America. This expands purchasing power and strengthens the overall distribution network, which is the core of the Star business unit. If EVI Industries sustains this success as the high-growth North American commercial laundry market eventually slows, these units are set to transition into Cash Cows. The current strategy is definitely to invest heavily here.

EVI Industries, Inc. (EVI) - BCG Matrix: Cash Cows

The Cash Cow quadrant for EVI Industries, Inc. (EVI) is anchored by its established position in the North American commercial laundry distribution and service industry, a market characterized by high market share and mature, steady growth prospects.

The foundation of this segment is the recurring revenue from the sale of replacement parts and accessories. This revenue stream is inherently sticky because commercial laundry operations-serving essential sectors like healthcare and hospitality-cannot afford downtime; therefore, parts and accessories are essential and non-discretionary for customers. This provides a highly predictable cash flow base.

This high-share position is cemented by the company's aggressive, disciplined acquisition strategy. Since 2016, EVI Industries, Inc. has welcomed 31 acquired businesses into the EVI family, creating an extensive, mature distribution footprint across North America. In Fiscal 2025 alone, the company completed four acquisitions, including the largest in its history, Continental Laundry Solutions (formerly Girbau North America).

The core maintenance and repair services segment is a significant generator of steady, high-margin cash flow, which directly funds the company's ongoing acquisition strategy. The overall financial performance for the fiscal year ending June 30, 2025, reflects this strength:

The Gross Profit of $118.3 million, representing a 30.4% margin for Fiscal 2025, demonstrates the high profitability derived from this mature distribution business. This margin is a direct result of achieving market leadership and operational efficiency, allowing EVI Industries, Inc. to generate more cash than it consumes in this segment.

The focus for these Cash Cows is not aggressive market expansion spending but rather efficiency improvements to further bolster cash flow. EVI Industries, Inc. is actively investing in infrastructure to support this: by the end of Fiscal 2025, 28 of its 31 business units were operating on a standardized enterprise resource planning (ERP) platform, supported by business intelligence (BI) tools.

• The field service platform expanded to 27 business units by June 2025.
• These systems provide real-time insights into job costing and technician efficiency.
• The company is developing an e-commerce platform set for a Fiscal 2026 launch.
• The company also declared a special cash dividend of $0.33 per share on September 11, 2025.

EVI Industries, Inc. (EVI) - BCG Matrix: Dogs

Dogs are units or products with a low market share and low growth rates. They frequently break even, neither earning nor consuming much cash. Dogs are generally considered cash traps because businesses have money tied up in them, even though they bring back almost nothing in return. These business units are prime candidates for divestiture.

For EVI Industries, Inc., the Dog quadrant likely houses the operational remnants or product lines that have not yet been fully absorbed by the aggressive buy-and-build strategy or the technology modernization effort. These areas require capital and management focus without yielding commensurate returns, fitting the profile of assets to be minimized or divested.

The following characteristics align with potential Dogs within the EVI Industries, Inc. portfolio as of fiscal year 2025:

• Small, legacy regional distribution units that are not yet integrated onto the new enterprise resource planning (ERP) platform.
• Older, less efficient equipment models, which are being de-emphasized as the market shifts to labor- and energy-saving systems.
• Certain non-core product lines or services inherited through smaller acquisitions that lack significant market share or growth potential.
• Any business units struggling to fully pass on tariff-related cost increases to customers, which pressures margins.

Regarding the ERP integration, EVI Industries, Inc. reported that by the end of fiscal 2025, 28 of its 31 business units were operating on the end-state enterprise resource planning (ERP) platform. This leaves 3 units still reliant on legacy systems, representing a clear operational drag and a candidate for the Dog category until integration is complete. The process of consolidating these systems is described as lengthy and expensive, diverting resources.

The shift away from older technology is implied by the rapid adoption of new systems. For instance, the new field service platform supported approximately 1,000 service appointments a year ago (fiscal 2024), but this grew to over 8,500 appointments by June 2025, and further to approximately 9,000 appointments in September 2025. This rapid adoption suggests that equipment models not yet supported or integrated into these new, efficient service protocols are likely underperforming.

In terms of cost management, EVI Industries, Inc. stated in fiscal 2025 that it was collaborating with suppliers to manage tariff-related cost pressures while adjusting its own pricing. Units unable to execute this pricing adjustment effectively would see margin compression, placing them squarely in the Dog quadrant where cash generation is minimal.

The overall financial context for EVI Industries, Inc. for the fiscal year ended June 30, 2025, shows significant growth, which can mask the underperformance of specific units:

The largest acquisition in history, Continental Laundry Solutions, was expected to add about $50 million in annual revenue. While this acquisition is a Star or Question Mark depending on its current market share, the smaller, less strategic acquisitions inherited previously may represent the non-core lines that lack significant market share or growth potential, fitting the Dog profile until they are either integrated or divested.

The company's net debt increased to $44.1 million as of June 30, 2025, reflecting investment across acquisitions and technology. Money tied up in these low-return Dog assets prevents faster debt reduction or funding for higher-potential Stars.

EVI Industries, Inc. (EVI) - BCG Matrix: Question Marks

You're looking at new growth vectors for EVI Industries, Inc. that are currently burning cash to secure future market share-classic Question Marks. These are the areas where the market is growing fast, but EVI's current foothold is small, demanding heavy capital allocation now for a potential Star position later.

The new e-commerce platform is a prime example of this high-growth, zero-share initiative. While the company has surpassed planned milestones in the development and deployment of this digital commerce solution as of the period ending March 31, 2025, the actual revenue generation from this high-growth digital commerce channel is effectively zero today, as the launch is targeted for fiscal 2026. This initiative requires significant upfront investment in technology infrastructure and integration, consuming cash without immediate return.

The Field Service Management (FSM) technology rollout is another major cash drain, even though adoption is accelerating. This represents a significant investment in efficiency across the platform. We see the deployment translating into real usage: FSM platform supported approximately 9,000 appointments in September 2025, a substantial increase from only 1,000 appointments in September 2024. This rapid scaling across the platform, which includes 27 business units as part of the deployment phase, requires ongoing capital for training, integration, and support, fitting the profile of a heavy cash consumer.

The financial impact of these strategic investments is clearly visible in the first quarter of fiscal 2026. For the quarter ended September 30, 2025, EVI Industries, Inc. reported a net income of $1.84 million, a sharp decline from $3.23 million in the first quarter of fiscal 2025. This drop in profitability, despite revenue growing 16% year-over-year to $108.2 million, directly reflects the high SG&A costs associated with these strategic investments and integration efforts, which is precisely what happens when you fund Question Marks.

Geographic expansion also falls into this quadrant. The push into new areas, like the reported expansion into the Midwest, requires heavy, immediate investment to establish a dominant share against entrenched competitors. EVI Industries has expanded into new geographies since 2016, but establishing a foothold in a new region demands marketing spend, new service personnel, and inventory positioning before the returns materialize. This is the necessary gamble to prevent these new markets from becoming Dogs later.

Here's a quick look at the Q1 2026 financial snapshot that illustrates the cash consumption from these growth bets:

These Question Marks are consuming capital, evidenced by the drop in Net Income from $3.23 million to $1.84 million year-over-year for the quarter. The company is betting that the 30% revenue CAGR since 2016, fueled by acquisitions and organic growth, will eventually transition these high-growth initiatives into Stars, but it requires you to fund the burn rate now.

The key actions for these units are clear:

• Invest heavily to rapidly gain market share in e-commerce.
• Continue deployment and integration of FSM technology for efficiency gains.
• Monitor Midwest expansion investment versus initial market penetration rates.
• Aggressively manage SG&A costs not directly tied to revenue generation.

Finance: draft the Q2 2026 cash flow projection incorporating the current burn rate from strategic investments by next Tuesday.