Factor Model (net -2.6)
Factor Model
net -2.6 5.2 / 1024% Revenue Growth, 49% EBITDA Jump on Acquisitions
Watch: Q3 2026 earnings will reveal whether the $12 million inventory build converts to accelerating revenue. Backlog stall-out would signal demand headwinds and turn the inventory into a margin drag; strong conversion validates the margin expansion thesis and the effectiveness of field service modernization.
EVI Industries posted fiscal Q2 2026 revenue of $115.3 million, up 24% year-over-year, driven primarily by the Continental acquisition (formerly Girbau North America). Adjusted EBITDA accelerated 49% to $7.7 million, showing margin expansion as acquired operations integrate. The company added $12 million to inventory to fulfill confirmed customer backlog and deployed new field service technology that cut technician response times by 13%, suggesting confidence in near-term demand conversion. Trailing twelve-month revenue now exceeds $425 million, with the company operating 31 businesses and 900+ employees across North America.
EBITDA growth of 49% outpacing revenue growth of 24% indicates successful integration and operational leverage from the buy-and-build strategy. The inventory build and tech investment suggest EVI is betting that backlog will convert to higher-margin sales—if execution holds, Q3 results should show revenue acceleration and tighter margins. This is structural, not just cyclical, given the company's 10-year track record scaling from one location to 31 operating businesses.
Evidence
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