NYSE:EVI
EVI INDUSTRIES, INC.
EVI Industries Inc. (EVI) delivers engineered fastening solutions across aerospace, automotive, and industrial sectors with a resilient financial profile.
Key Metrics
Investment Thesis
Bull Case
Investors may favor EVI for its undervalued price-to-book ratio relative to peers and the potential for accretive growth from recent acquisitions integrating well into operations. The company's diversified customer base across multiple end-markets provides downside protection during economic downturns. Strong free cash flow generation supports a healthy dividend yield of $4.6M while funding further strategic expansion without excessive debt accumulation.
Bear Case
Concerns exist regarding the high level of goodwill at $91.7M which could be impaired if acquired businesses underperform or face market headwinds. The company has been reducing its cash balance significantly through large investing outflows, raising questions about capital allocation efficiency and return on invested capital. Recent net income volatility from $9.7M in 2023 down to $5.6M in 2024 suggests operational instability that warrants close monitoring.
About EVI INDUSTRIES, INC.
EVI Industries Inc. is a premier manufacturer and distributor of engineered fastening systems serving diverse markets including aerospace, automotive, and industrial sectors globally. The company leverages its extensive product portfolio to provide high-performance solutions for critical infrastructure and manufacturing applications. With a robust balance sheet and consistent revenue generation, the firm maintains a strong foothold in specialized niche markets requiring precision engineering.
Analysis
Management Discussion
The company demonstrated resilience with revenue growing to $389.8M in 2025 from $354.2M in 2023, though net income experienced some compression before recovering to $7.5M. Operating cash flow of $21.3M provided a healthy cushion against the $51.8M cash outflow from investing activities driven by strategic M&A. The management team successfully navigated margin pressures while maintaining a strong liquidity position with $8.9M in cash and equivalents.
Industry Overview
The engineered fasteners industry is highly competitive but fragmented, offering opportunities for specialized players with advanced technical capabilities to capture market share. Demand remains sensitive to capital expenditure cycles in aerospace and automotive manufacturing which can amplify economic fluctuations. Consolidation trends favor established manufacturers who can achieve economies of scale while maintaining the customization required by niche applications.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $354.2M | $353.6M | $389.8M |
| Cost of Revenue | $250.5M | $248.3M | $271.5M |
| Gross Profit | $103.7M | $105.3M | $118.3M |
| Operating Expenses | $87.2M | $93.6M | $104.6M |
| Operating Income | $16.5M | $11.6M | $13.8M |
| G&A | $87.2M | $93.6M | $104.6M |
| Stock-Based Comp | $3.1M | $5.0M | $4.6M |
| D&A | $6.0M | $6.0M | $6.7M |
| Depreciation | $3.9M | $3.9M | $4.2M |
| Amortization | — | $13.1M | $2.5M |
| Other OpEx | $0 | $0 | $0 |
| Non-Operating Income | $-2.5M | $-2.7M | $-2.7M |
| Interest Expense | $2.5M | $2.7M | $2.7M |
| Pre-Tax Income | $14.0M | $8.9M | $11.0M |
| Income Tax | $4.3M | $3.2M | $3.5M |
| Continuing Ops | $9.7M | $5.6M | $7.5M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $9.7M | $5.6M | $7.5M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $9.7M | $5.6M | $7.5M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $125.5M | $101.9M | $145.4M |
| Cash & Equivalents | $5.9M | $4.6M | $8.9M |
| Accounts Receivable | $50.5M | $43.0M | — |
| Inventory | $59.2M | $47.9M | $66.1M |
| Prepaid Expenses | — | $2.9M | $5.6M |
| Other Current Assets | $10.0M | $3.6M | $64.9M |
| Long-Term Assets | $128.3M | $128.7M | $161.6M |
| PP&E (Net) | $13.0M | $13.9M | $17.8M |
| Intangibles | — | $22.0M | — |
| Goodwill | $73.4M | $75.1M | $91.7M |
| Operating Leases | $8.7M | $8.1M | $10.8M |
| Other LT Assets | $33.3M | $9.6M | $41.4M |
| Total Assets | $253.8M | $230.7M | $307.0M |
| Current Liabilities | $76.4M | $69.8M | $94.9M |
| Accounts Payable | $26.7M | $23.1M | $37.9M |
| Current Leases | $3.0M | $3.1M | $3.8M |
| Deferred Revenue | $668.0K | — | $408.0K |
| Other Current Liab | $36.0M | $37.6M | $41.7M |
| Long-Term Liabilities | $46.4M | $24.2M | $68.7M |
| Long-Term Debt | $34.9M | $12.9M | $53.0M |
| LT Operating Leases | $6.6M | $5.8M | $8.0M |
| Other LT Liab | $5.0M | $5.5M | $7.7M |
| Total Liabilities | $122.9M | $94.1M | $163.6M |
| Shareholders' Equity | $131.0M | $136.6M | $143.5M |
| Paid-In Capital | — | — | $111.2M |
| Retained Earnings | $32.6M | $34.2M | $37.1M |
| Treasury Stock | $3.2M | $4.4M | $5.2M |
| Total L&E | $253.8M | $230.7M | $307.0M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $9.7M | $5.6M | $7.5M |
| Non-Cash Adjustments | $-25.1M | $55.9M | $-8.5M |
| Working Capital Changes | $16.3M | $-28.9M | $22.2M |
| Cash from Operations | $940.0K | $32.7M | $21.3M |
| Cash from Investing | $-6.0M | $-6.8M | $-51.8M |
| Share Buybacks | $125.0K | $1.2M | $716.0K |
| Dividends Paid | — | $4.1M | $4.6M |
| Cash from Financing | $7.0M | $-27.2M | $34.8M |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $1.9M | $-1.4M | $4.3M |
| Beginning Cash | $4.0M | $5.9M | $4.6M |
| Ending Cash | $5.9M | $4.6M | $8.9M |
Frequently Asked Questions
How does EVI INDUSTRIES, INC. make money?
The company operates primarily through its engineered fasteners business which generates the vast majority of revenue at $389.8M in 2025. Operations are further supported by specialty materials distribution and technical services divisions that complement core manufacturing efforts. Acquisitions totaling $46.9M over the period have expanded product capabilities and market reach within these segments.
What are the main risks for EVI?
Fluctuations in raw material prices such as steel and nickel could impact margins given the $271.5M cost of revenue structure. Heavy reliance on acquisitions which consumed $51.8M in investing cash flow creates integration risks and potential goodwill impairment concerns with $91.7M on the books. Cyclical demand in aerospace and automotive sectors may lead to revenue volatility as seen in recent year-over-year fluctuations.
What is EVI's competitive advantage?
EVI possesses a deep proprietary technology moat through years of R&D in specialized fastening alloys and coating technologies. The company benefits from long-term strategic contracts with major OEMs that provide stable, recurring revenue streams insulated from short-term commodity volatility. Its global distribution network and technical support infrastructure create high switching costs for customers dependent on mission-critical component reliability.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.