EVI Industries delivered a positive QQ1 2025 performance with momentum across revenue and profitability metrics, supported by a favorable mix and disciplined cost management. Total revenue for QQ1 2025 reached $93.63 million, up 6.30% year over year and 3.86% quarter over quarter, while gross profit rose to $28.86 million for a gross margin of 30.82%. Operating income of $4.99 million expanded 90.6% year over year, driving net income to $3.23 million and EPS of $0.25, up 178.7% and 78.6% respectively on a YoY and QoQ basis. Despite a higher absolute earnings level, free cash flow remained negative at $(1.05) million, reflecting ongoing investment activity and working capital dynamics as the company advances its growth initiatives.
From a balance sheet perspective, EVI carried total assets of $245.5 million against total liabilities of $109.5 million and stockholders’ equity of $136.1 million. The company maintains modest liquidity with cash and cash equivalents of $4.37 million and a current ratio of 1.44. Net debt stood at approximately $29.4 million, with total debt at $29.44 million (short-term debt $3.33 million and long-term debt $26.11 million). Goodwill and intangible assets remain a meaningful component of the asset base (Goodwill $77.60 million; intangible assets $22.95 million, total $100.54 million), presenting impairment risk if operating conditions deteriorate.
Relative to peers in industrials distribution, EVI trades at a plausible multiple profile for a small-cap distributor with improving margins and a shift toward higher-return activities. While the business shows earnings resilience and margin expansion, the stock’s sensitivity to working capital and acquisition-related cash outlays suggests a measured risk-reward profile. Investors should monitor balance sheet flexibility, ongoing integration of any acquisitions, commodity and HVAC cycle dynamics, and the pace of organic revenue growth as catalysts for sustained performance.