Alliance Laundry Holdings Inc. (ALH) Business

Item 1. Business

Our Company

Every Day is Laundry Day.

We are the world’s largest designer and manufacturer of commercial laundry systems, serving a diverse and resilient

range of global end markets. We believe we engineer and produce the highest quality and one of the most reliable

commercial laundry systems in the industry. We leverage our pure play focus on the commercial laundry industry and over

100 years of engineering excellence to drive innovation and design our equipment to deliver outstanding performance in

the most demanding applications. We believe the need for clean laundry is universal and growing, and our premium

machines meet this fundamental human need, all day, every day.

According to a third-party market study, the total addressable market for commercial, residential and industrial laundry

systems was approximately $82 billion in 2023. Within this market, the commercial laundry systems industry generated

nearly $7.4 billion in revenues during the same year. We are focused on this large and attractive commercial laundry

market where our systems’ quality, durability and reliability are key strategic advantages with our channel partners,

customers and end users. End users of our systems include healthcare facilities, fire stations, hotels, laundromats,

communal laundry facilities and many other commercial applications where hygiene is critical. We believe the criticality of

laundry equipment to these users’ operations creates a discerning customer base that appreciates the quality and economic

attractiveness of highly effective and reliable equipment. We leverage our scale and focus to deliver a compelling total

value proposition to this diverse customer base.

We estimate that we hold approximately 40% of the commercial laundry market in North America and have leading

positions in growing markets around the world. The commercial laundry market benefits from a regular replacement cycle

driven by a large base of installed machines, which provides us with an advantage as the largest incumbent manufacturer

and offers us a high level of revenue consistency to support our growth ambitions. In addition, residential customers are

increasingly demanding commercial-quality products for the home, and our machines represent a compelling fit for this

select but growing segment of the residential market.

Commercial laundry customers view laundry systems as infrastructure to support core business operations or as

revenue-generating assets. Avoidance of downtime and repair costs, as well as effective processing of large volumes of

laundry, are important drivers of machine economics and help our end-customers run their businesses effectively.

As such, customers focus on total cost of ownership when making purchasing decisions, which often involve

investments of hundreds of thousands of dollars.

Our systems are known for their use of high-quality materials in their construction, their build quality and the

extensive testing regimen they undergo, resulting in best-in-class performance. Our culture of operational excellence and

continuous improvement supports the maintenance of these exceptionally high-quality standards. As a result, we believe

we offer an attractive total cost of ownership, and our customers purchase our machines because of their reliability,

durability and effectiveness. This dynamic allows us to sell our products at a price premium versus competitor offerings

while securing a high degree of loyalty from our customers when they need to replace a machine.

We sell our systems through an extensive global network of approximately 600 distributors and through direct sales

channels in certain key markets. Distributors are a critical part of the commercial laundry market as they are frequently the

first point of contact for end-customers and are highly influential in educating those customers about equipment features

and highlighting the key factors in making a purchasing decision. We have valuable and difficult-to-replicate relationships

with our distributors that have been built over decades. Approximately 94% of our North American distributors have been

with the Company for ten years or more. Our distribution partners often see us as the vendor of choice given our focus on

quality, insights into customer needs, the attractive economics of our machines and our support teams staffed with highly

trained personnel. Our direct sales channel complements our distribution network by bringing us closer to end-customers

and enhancing strategic flexibility, particularly in select markets that we believe represent significant growth opportunities.

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We operate through two geographic reporting segments with our North America segment representing 74% of 2025

revenue and our International segment representing the remaining 26%. Our historical financial performance has benefited

from consistent and predictable growth at attractive margins, and we have a strong cash generation profile accompanied by

minimal capital expenditure requirements given our well-invested manufacturing footprint. For the twelve-month period

ended December 31, 2025, our net revenue was $1.7 billion, net income was $101.8 million (with a net income margin of

approximately 6%), Adjusted EBITDA was $436.5 million (with an Adjusted EBITDA Margin of approximately 26%) and

capital expenditures were approximately 3% of net revenue. See “Management’s Discussion and Analysis of Financial

Condition and Results of Operations—Non-GAAP Financial Measures and Key Operating Metrics” regarding our use of

Adjusted EBITDA and Adjusted EBITDA Margin, which are non-GAAP financial measures, and a reconciliation of these

measures to their most directly comparable financial measure calculated in accordance with GAAP.

Our History

Our business began in 1908 in Ripon, Wisconsin when we introduced a hand-operated washer to the marketplace.

Industry leading features were introduced under the Speed Queen brand with the introduction of stainless steel wash tubs in

1938 and automatic washers and dryers in 1952. The spirit of innovation, quality and reliability persists to this day. We

manufacture durable products with high-quality steel that are meticulously tested and augmented by novel technologies.

More recently, we introduced our pioneering ProCapture lint capture technology in 2023 and have developed our digital

platform that can be leveraged across our brands to monitor product performance, business revenues and provide fleet

management efficiencies, among other benefits. We sell our highly engineered products across a portfolio of five strategic

brands: Speed Queen (which, according to a third-party market study, has the highest Net Promoter Score in North

America), Huebsch, UniMac, IPSO and Primus.

Business Segments

We operate in a global market that is estimated to be worth nearly $7.4 billion and our business is organized into two

reportable segments: North America and International.

North America

Our North America segment consists of the United States and Canada. We have sales and support teams based both at

our Ripon, Wisconsin locations and remotely to support our end markets though a mixture of independent distributors,

direct sales to communal laundry room operators and our company-owned distribution offices. While the majority of

products sold in the North America segment are produced in our U.S. manufacturing facilities, some specialist machines

are sourced from our other global facilities. We believe we are the number one supplier of commercial laundry equipment

in terms of market share in North America.

International

Our International segment comprises all countries outside of the United States and Canada. Sales are primarily made

through independent distributors who cover an allocated territory, usually in either a single country or region, and who we

support through regionally based sales and support teams. Additionally, we have direct sales offices in three key European

markets (France, Spain and Italy) and Brazil, where we believe the opportunity justifies our direct presence. As with our

North America segment, we operate a multi-brand strategy in each market, with multiple distributors representing one or

more brands. The majority of our systems sold in each region are made at our facilities in that region. We believe we are

the number one supplier of commercial laundry equipment in terms of market share in Latin America and Asia Pacific

(excluding China), and the number three supplier in Europe.

Our Industry

The commercial laundry systems industry, which, according to a third-party market study, generated nearly $7.4

billion in revenues in 2023, is comprised of three core end markets that cover the products and services the Company

provides:

•On-Premise Laundry (“OPL”): Businesses or institutions that process large volumes of laundry in support of their

core business, including healthcare facilities, fire stations and hotels;

•Vended: Businesses, such as laundromats and communal laundry operators, that operate commercial systems for

end users who pay for use; and

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•Commercial In-Home: Residential consumers who pay a premium to have the reliability and effectiveness of

commercial systems in their homes.

On-Premise Laundry

OPLs are operated by end users in a wide range of distinct sectors, including healthcare facilities, fire stations, hotels

and any other sector where clean laundry is critical to supporting the end user’s core business. Ultimately, if the laundry

systems of OPL customers are not functioning, their businesses cannot operate.

User requirements in this segment vary significantly in terms of load capacities, cycle times, water efficiency and other

features, some of which can be driven by regulation or other policies. For example, the ability to sterilize large volumes of

linens in healthcare and the ability to wash highly specialized firefighting gear are both critical to health and safety but also

require distinct capabilities. OPLs choose commercial laundry systems based on ability to meet these specific industry

requirements, as well as total cost of ownership, manufacturer reputation and reliability.

Vended

The Vended market includes laundromat businesses and communal laundry operators, which manage laundry facilities

in apartments, universities and other institutions. Both laundromats and communal laundry operators utilize a pay-per-use

model to generate revenue, meaning if their laundry systems are down, they lose the ability to generate revenue and will

need to incur additional costs to get back up and running. As such, reliability and durability are key purchasing criteria to

minimize equipment downtime and the need for costly repair visits.

The laundromat market in North America represents a large installed base, estimated to be 1.1 million machines in the

United States alone, according to a third-party market study. A significant portion of the installed base is replaced each

year, generating a large and attractive recurring revenue stream where market position, scale, incumbency, product

reliability and brand reputation are important to retain and gain market share as machines are replaced.

In developed laundromat markets there is a secular shift away from traditional sole proprietor models to

professionalized operators managing multi-site operations. These professional operators are upgrading and expanding store

formats, adding higher capacity machines and leveraging digital tools to earn more revenue per store. In addition to the

shifting operating models for laundromats in developed markets, many emerging economies are in the early stages of

laundromat penetration, representing a significant opportunity for future growth.

Communal laundry facilities are managed primarily by operators who purchase, own, install and service the equipment

under contracts with property owners or management companies. Sophisticated route operators with multiple locations are

increasingly seeking technology, such as remote monitoring and digital control, to unlock cost savings and other operating

efficiencies. Internationally, high-density metropolitan regions are seeing growth in multi-unit housing with small sized

living units, driving demand for communal laundry facilities.

Commercial In-Home

The Commercial In-Home market is comprised of households and individual users who purchase commercial units to

meet their reliability, quality and heavy-duty laundry needs.

In-home customers have become increasingly frustrated with traditional residential machines, which are typically sold

based on lowest price or most features, but have lower-quality construction mainly comprised of plastic materials.

Frustration with traditional residential machines is generating strong demand for commercial systems from customers who

are willing to pay a premium for high quality, durable, reliable and long-lasting laundry systems.

Products and Services

We offer a full line of stand-alone commercial laundry systems, as well as provide the service parts and value-added

aftermarket services those systems require. Our products range from small-chassis washers and dryers to large-chassis

laundry equipment with load capacities of up to 400 pounds. Our small-chassis systems utilize smaller frame designs, while

our large-chassis systems are constructed on frames built to withstand significant load sizes. Most of our large-chassis

products are designed to withstand up to 30,000 cycles, with some rated up to 48,000 cycles.

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Washers

Washer Extractors.

Our washer extractor products are used to process 20 to 400 pounds of laundry per load. In addition to washing

laundry, these products also extract water from the laundry with spin speeds that produce up to approximately 500 G-force,

which reduces water retention, drying time and energy costs. We build our washer extractor products to be extremely

durable to handle this high level of G-force, which they frequently endure many times a day given our systems are in

constant use. The durability of our washer extractors reduces breakdowns and malfunctions that can increase operating

costs and machine downtime. We sell our washer extractors to a variety of end markets and customers. We sell smaller

washer extractors that process up to 100 pounds of laundry per load to laundromats, while we sell our larger washer

extractors that process up to 400 pounds of laundry per load to on-premise laundry customers. We also produce a

specialized hygienic washer extractor, often called a medical barrier washer, for the healthcare industry.

Topload Washers.

Topload washers are small-chassis products with the capability to process up to 16 pounds of laundry per load with

spin speeds that produce up to approximately 200 G-force. These products are sold primarily to operators of communal

laundry rooms in the Vended end market and to individual consumers in the Commercial In-Home end market. Our topload

washers are available with a traditional wash system or with a “smart” inverter drive system that adjusts the water level and

wash action to match load size. We have recently added matte black machines to our product range, providing consumers

with more aesthetic optionality.

Our topload washers are among the highest rated Commercial In-Home washers available on the market. Consumer

Reports ranked Speed Queen as the most reliable appliance brand for the six years the designation was awarded.

Additionally, Speed Queen has the highest Net Promoter Score in North America, according to a third-party market study.

Many of our Commercial In-Home topload washers are ENERGY STAR™ certified. The ENERGY STAR™

certification, which is issued by the U.S. federal government, denotes products that use less energy, helping users reduce

the impact on the environment and save money on utility bills.

Frontload Washers.

Frontload washers are small-chassis machines that a user loads via a door at the front of the machine. Our frontload

washers can be purchased with a matching small-chassis dryer or a customer can purchase a stacked system, which

includes both a small-chassis frontload washer and dryer in a single unit.

Many of our Vended and OPL frontload washers are also ENERGY STAR™ certified.

Dryers

Tumblers.

Tumblers are large dryers with the capability of drying up to 200 pounds of laundry per load. Tumblers are sold

primarily to laundromats and on-premise laundry facilities under all five of our brands.

Our tumblers have industry-leading technology capabilities. Our Over-Dry Prevention Technology (“OPTidry”) is a

novel design that more accurately gauges load dryness. Our ProCapture technology, a patent-pending technology we

introduced in 2023, captures over 90% of dryer lint on first-run drying cycles compared to approximately 63% in

conventional lint screen solutions. Increased lint capture helps reduce service, maintenance and cleaning costs.

Small-Chassis Dryers.

Small-chassis dryers are smaller capacity machines with the capability of processing up to 18 pounds of laundry per

load. These products have capacity of 7.0 cubic feet, among the largest capacity for a small-chassis system in the industry.

Many of our residential small-chassis dryers are ENERGY STAR™ certified.

Combination Washer and Dryer

In 2021, we introduced a combination washer extractor and tumbler in two capacities. Our combination washer and

dryers offer a unique space saving solution that combines large capacity commercial washing and drying functionalities

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into a single drum. These units are marketed primarily under our Speed Queen brand and are sold in our Asia Pacific and

Latin American markets.

Touch Screen Technology

Our touch screen control platform on washer extractors and tumblers is a best-in-class touch LCD control that provides

unprecedented value to our customers by providing ease of use and programming and increased revenue generating

options. This control platform works in tandem with our proprietary cloud-connected technology solutions that link over

200,000 machines globally, serving more than three million users.

Service Parts and Aftermarket

We sell the service parts used to support our estimated eight million unit installed base of equipment, which we

calculate assuming a ten-year average useful life of our products. We estimate that the market replacement rate of our

equipment is seven to thirteen years, meaning there is a substantial useful life over which we need to provide the parts to

service equipment. The demand for service parts generated by our large installed base provides us with a source of

recurring, predictable and higher margin revenue. In total, our aftermarket parts program supports the sale of more than

150,000 parts online.

Consumables

We also see a growing demand for detergents, softeners and other chemicals across both the OPL and Vended end

markets. In the OPL end market, we see growth in demand for direct injection of chemical products, which has long been

the preferred solution in many applications. In the Vended end market, a growing trend towards chemical inclusive pricing

in both developed and new markets is driving demand for the high margin recurring sales.

Other Value-Added Services

We believe that we offer an unmatched range of complementary services and customer support. We believe these

services—such as equipment financing, laundromat site selection assistance, investment seminar training programs,

computer-aided commercial laundry room design, sales and service training for distributors, technical assistance and on-

call installation and repair service—are significant drivers of high customer satisfaction and retention. Among these, our

equipment financing program is a particularly valuable offering, enabling customers to access and finance essential

equipment through flexible arrangements tailored to their operational needs. We believe this program has contributed

positively to our revenue growth and supports our broader strategy of delivering comprehensive solutions to our customer

base. Our philosophy is to anticipate our customers’ needs and provide them with services far beyond traditional customer

support.

In addition to our highly desirable physical laundry systems and extensive support infrastructure, we also offer market

leading technology solutions across our OPL and Vended end markets. Our technology strategy is centered around

leveraging our connected machines to provide a comprehensive suite of technology offerings designed for different end

markets. Speed Queen Insights, Huebsch Command, Primus i-Trace and IPSO Connect provide industry-leading control

and insights to Vended laundry customers through functionalities such as performance reporting, issue and error alerts,

machine control and programming, a mobile payment platform with an integrated loyalty program and an integrated CRM

and marketing system. UniMac Core is a cloud-based monitoring and reporting management tool that helps on-premise

laundry managers take control of laundry efficiency by allowing them to manage their laundry operations from anywhere

and at any time. UniMac’s FireLinc™ system gives fire departments a powerful tool that makes record keeping simple

through digital capabilities and fire equipment bar code scanning. We also have a financing website for our existing

laundromat customers, which allows them to manage bills, statements and account balances. We continue to enhance our

digital offerings with a focus on sustainability solutions, automation technologies, and ecosystem integrations that

differentiate our offerings in the commercial laundry space.

Our digital products have demonstrated strong market adoption and drive incremental recurring revenue through

subscription services while deepening customer relationships and loyalty to our equipment ecosystem. Our chargeable

Partner API Ecosystem enables third-party developers to integrate with our platform, giving them access to remotely

control and program machines and analyze performance data in their products, creating additional value for our customers,

especially in international markets where localized payment options require bespoke solutions that would not be

economical for us to support, and new revenue streams for our business. Our cybersecurity investments ensure the integrity

and reliability of our connected platforms, while our centralized data analytics capabilities enhance our internal visibility

into equipment performance and market trends to inform future product innovations. This convergence of physical and

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digital innovation creates significant competitive barriers, as customers benefit from an integrated ecosystem that becomes

increasingly valuable over time, strengthening our market position across all segments.

Our Competitive Strengths

We Offer a Premier Portfolio of Commercial Laundry Systems

In commercial laundry, product and service quality are critical. Our systems are engineered for efficiency, reliability

and long-lasting performance to ensure these high standards are met. This starts in our engineering department where we

have designed and developed features that improve the durability, reliability and utility of our systems, and extends through

to the quality of our materials and manufacturing. Our services are comprehensive and add value to customer operations,

starting with site selection, design and financing, and extending through the lifecycle with genuine parts, technical support

and warranties. As a result, we have tremendous customer allegiance and brand loyalty.

Our Unparalleled Scale is Advantageous

In our commercial end markets, we are approximately two times larger than the next competitor, and in total have an

estimated installed base of eight million units, which we calculate assuming a ten-year average useful life of our products,

across approximately 150 countries. As a result, there is a sizeable ecosystem of operators, technicians and users of our

equipment who interact with our systems every day, resulting in highly sticky relationships. Our installed base also helps to

generate sizeable replacement cycle tailwinds as customers upgrade their Alliance systems over time. Moreover, it allows

us to support a scaled research and development and manufacturing effort, investing in engineering advancements that

meaningfully improve the customer value proposition.

We Have a Global Manufacturing Footprint and Rigorous Testing Capabilities

We operate six strategically located facilities globally and we believe we are the only manufacturer that produces

commercial equipment across North America, Europe and Asia Pacific. This “local for local” strategy delivers supply chain

resiliency and strengthens our cost position. Our manufacturing footprint spans approximately 2.7 million square feet and

our facilities have significant vertical integration, which enables greater control over the manufacturing process. The

quality control process within our facilities is world-class and includes AI-powered defect monitoring, tests on 100% of

machines produced and randomized audits, including full teardowns of finished products. We maintain approximately 800

dedicated testing bays, and we have ‘24x7’ testing capability across the globe, a critical capability that supports our mission

to offer the highest quality products in the industry.

Global Manufacturing Footprint

PRIBOR, CZECH

REPUBLIC

383k

sq. ft

RIPON, WI #1 &

#2

1,567k

sq. ft

GUANGZHOU, CHINA

60K

sq. ft

MANITOWOC, WI

426k

sq. ft

CHONBURI, THAILAND

278k

sq. ft

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We Employ a Tailored Go-to-Market Strategy with Established Channel Relationships

Our success is enabled by our global channel partner network and direct sales channels. We have built a hard-to-

replicate network of approximately 600 independent distributors worldwide that sell into approximately 4,000 independent

retail locations. Our relationships with many of our distributors and their sales teams and technicians are long-standing, and

we continue to invest in resources to assist them with training, which results in a deep understanding of our technology and

trust in our systems. Our channel partners are also structurally incentivized to sell our systems because end-consumers

value our products’ superior total cost of ownership metrics and our partners benefit from our products’ attractive

economics. We supplement our expansive independent distribution and retail network with our direct sales offices and

direct sales to communal laundry operators to enhance strategic flexibility and access underpenetrated markets.

We Have a Proven Track Record of Innovation and Application Engineering Expertise

Innovation is a core focus of our business and we have history of developing industry-leading products and digital

tools that address the specific needs of our customers. For example, our recently introduced ProCapture Cyclonic Filtration

technology captures over 90% of lint on first-run drying cycles—compared to approximately 63% in traditional machines

—helping reduce maintenance frequency, lower labor costs and mitigate operational risks from lint buildup in high-usage

environments. We complement our equipment innovation with a proprietary suite of digital tools that simplify operations

and maximize profitability for multi-store laundromat owners and communal laundry room operators. Our integrated

platform enables customers to remotely adjust pricing, process payments, monitor machine usage and identify maintenance

needs in real time. Ultimately, these innovations, tailored to the distinct application requirements of our customers,

strengthen relationships and drive long-term value across our ecosystem.

We Have Demonstrated Consistent Best-in-Class Financial Performance

Alliance has demonstrated exceptional performance over time, with a revenue compound annual growth rate of

approximately 9.7% over our fifteen most recent fiscal years, as well as a net income margin in 2025 of approximately 6%

and an Adjusted EBITDA Margin in 2025 of approximately 26%. See “Management’s Discussion and Analysis of

Financial Condition and Results of Operations—Non-GAAP Financial Measures and Key Operating Metrics” regarding

our use of Adjusted EBITDA Margin, which is a non-GAAP financial measure, and a reconciliation to its most directly

comparable financial measure calculated in accordance with GAAP. Our consistent financial performance through

economic cycles is due to the mission-critical nature of our products, our focus on operational excellence, the reliability of

replacement cycle revenue and the benefits of a diversified end market and customer base. Our operational teams drive

continuous improvement and efficiency to enhance profitability, while our sales teams focus on winning high-margin

customers. Our business model is capital efficient, with capital expenditures equaling on average approximately 3% of net

revenue over the last three years.

We Have a Seasoned and Experienced Management Team

We are led by a team of industry veterans with decades of combined experience in the commercial laundry space. The

team has fostered a customer-focused culture that has delivered exceptional and consistent financial performance through

the cycle. Our leadership team has executed a number of strategic initiatives, including new product and technology

launches, expansion into new international markets, acquisitions and integrations of complementary businesses and the

implementation of lean manufacturing processes throughout our operations to drive greater efficiency, among others.

Our Growth Strategies

We have a long track record of growth because of the strength of our business model and organization. We intend to

extend our leadership position in the market by leveraging the following growth strategies:

Maintain Relentless Focus on Product Quality to Drive Share Gains

Demand in the commercial laundry systems market is driven by the replacement cycle. We expect existing customers

to continue to purchase our machines and new customers to migrate to us from our competitors at the time of replacement.

Our existing customers return and we win new customers due to the performance of our machines over their life cycles,

which require fewer expensive maintenance events and offering greater uptime over a longer operating life. In a poll of

industry customers, equipment performance was ranked as the most important purchasing factor.

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Continue to Develop Innovative Products to Accelerate the Replacement Cycle

Given our scale and focus, we have been able to make significant investments in the development of new technologies

and capabilities that accelerate the replacement cycle of our machines. Between 2021 and 2025, we spent over $115 million

on research and development. The engineering advancements resulting from this investment have real utility to our

customers, improving performance and accelerating the replacement of existing systems.

Support the Ongoing Evolution of the Laundromat Market

We believe there is a compelling shift underway in the laundromat industry as sophisticated, commercially-focused

investors revamp store designs and the laundromat user experience. Leveraging our unparalleled scale, we will continue to

support this new class of entrepreneurs to build and expand their businesses across multi-site operations with larger store

footprints and larger capacity machines. We are well positioned to capitalize on this trend, offering a full suite of set-up

services, including: site selection, design, operator training and equipment financing, which enable operators to scale faster.

Additionally, our comprehensive digital platform enables management of multi-site operations and lowers operational cost

through remote monitoring, digital payments and data-driven decision making.

Serve Growing Demand for Commercial Machines from Commercial In-Home Customers

We believe there is an exciting opportunity to significantly expand our share in the residential market, as demand for

our commercial laundry systems is growing from users who are becoming increasingly frustrated with lower quality

residential machines. We serve this market with commercial machines, generating commercial-like margins and satisfying

the demands of homeowners that are focused on reliability and total cost of ownership.

Penetrate and Develop High-Potential International Markets

The global commercial laundry industry remains underpenetrated in many regions, presenting meaningful long-term

growth opportunities. We focus on high-potential geographies where structural trends—such as rising GDP, population

growth, urbanization, increasing household income, and evolving lifestyles—point to growing demand for commercial

laundry solutions. In these markets, our local teams help to establish and scale the commercial laundry ecosystem. For

example, in Thailand, we provided operational training, digital tools and other support to local laundromat entrepreneurs to

accelerate the creation of the laundromat industry.

Drive Consistent Operational Improvements to Further Expand Margins

We intend to further expand margins through the continued implementation of cost-down initiatives and an ongoing

focus on operational excellence. We will build on our demonstrated track record of durable margin improvement through

several initiatives, including: monitoring our global supply chain to identify raw material cost saving opportunities,

enhancing labor efficiency by optimizing plant operations, further automating our manufacturing facilities to improve

productivity, leveraging our engineering capabilities to develop more cost effective products and eliminating component

redundancy.

Sales and Marketing

We go to market through our independent distributors, direct sales offices and direct sales to scaled communal laundry

route operators.

Our independent distributor and route operator customers are supported by teams of regional sales managers and our

broader complementary support offering, which includes equipment financing, laundromat site selection assistance,

investment seminar training materials, commercial laundry room design, sales and service training and technical assistance.

Our direct distribution offices also benefit from this complementary infrastructure to support their sales, service and install

personnel employed to support key markets.

In the Vended and OPL end markets, our distributors sell directly to the operators of the laundry systems, whereas in

the North American Commercial In-Home market they utilize a network of independent appliance retailers to sell to end

consumers.

We support our sales force and distributors through a full complement of marketing activities. These activities take a

variety of forms such as traditional and digital marketing development and support, trade advertising, lead generation,

multi-media projects, print literature, direct mail and public relations activities. In addition, our representatives attend trade

shows to introduce new products, grow relationships with existing customers, develop new customer relationships and

generate sales leads for our products and services.

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Distributors and Customers

We maintain an extensive global network of approximately 600 independent distributors and work with the largest

route operators in the jurisdictions where we operate to deliver our products to our end-customers.

We define an “independent distributor” as an entity that holds inventory of our products and markets and sells those

products to, and services our products for, our end-customers. Our end-customers are businesses and individuals who

ultimately utilize our product, such as laundromats, hotels and restaurants.

We have deeply established and difficult-to-replicate relationships with our distributors that have been built over

decades. Our distribution partners often see us as the vendor of choice due to our focus on quality, insights into customer

needs, the attractive economics of our machines and our support teams staffed with highly trained personnel.

The vast majority of our distribution is conducted through our independent third-party distributors. Approximately

71% of our global revenue is generated through independent third-party distributors that primarily resell to equipment users

and operators in our end markets. Some of those third-party distributors may also operate some of the equipment

themselves in communal laundry and laundromat settings. Because we do not monitor end-use information after selling to

third-party distributors, we cannot further disaggregate revenue from these channels. The remaining approximately 29% of

our global revenue comprises (i) direct sales to communal laundry room operators (representing approximately 9% of

global revenue) and (ii) sales made through our domestic and international sales offices (representing approximately 13%

and 6%, respectively, of our global revenue) which transact either directly or through local and regional distributors and

dealers. Our top ten distributors globally accounted for approximately 30% of our annual revenue in 2025, and no single

distributor accounted for more than 5% of such revenue. Given that no distributor makes up more than 5% of our annual

revenue, we believe that no single end-customer accounts for more than 5% of our annual revenue.

Competition

Our industry is highly fragmented with few global players and many small regional players. We have few large

competitors within the stand-alone commercial laundry equipment industry of the United States and Canada. We believe

that we are the only participant to serve our Vended and OPL markets with a full line of topload washers, washer-

extractors, frontload washers, tumbler dryers and standard dryers in this region.

We also have several large competitors within the international stand-alone commercial laundry equipment industry

who participate in these regions of the world alongside several other local manufacturers.

In the Commercial In-Home end market, our products principally compete against high-priced residential machines

from consumer brands.

Research and Development

Given our scale and focus, we have been able to make significant investments in the development of new technology

and capabilities that accelerate the replacement cycle of our machines. Between 2021 and 2025, we spent over $115 million

on research and development activities. The engineering advancements resulting from this investment have real utility to

our customers through new products, improving performance and accelerating the replacement of existing systems.

This development is delivered by our global engineering organization of approximately 207 laundry experts based

across our three global engineering hubs in the U.S., Czech Republic and Thailand. They work in industry-leading

facilities, which contain approximately 800 testing bays, and operate with ‘24x7’ testing capability across the globe to

minimize time to market for product innovations while maintaining our highest quality standards. In addition, our research

and development efforts also deliver continuous improvement on existing designs, enhance reliability and performance of

our equipment, improve energy efficiency and ensure regulatory compliance of our laundry products. Our team of

engineers and technical leaders continuously collaborate with our sales and marketing leaders, as well as key customers, to

ensure we identify and meet customer needs.

Our U.S. location in Ripon, Wisconsin is an ISO 17025 Certified Laboratory as part of Underwriters Laboratories’

Data Acceptance Program. We believe we are the only manufacturer in the industry to have this ability, allowing us to

significantly reduce time-to-market for innovations that require certifications.

Our digital innovation strategy has transformed our business from traditional equipment manufacturing to a

technology-enabled solutions provider. We have invested significantly in our proprietary cloud-connected platform that

currently links over 200,000 machines globally and serves more than three million users. This platform, marketed under

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our various brand names including Speed Queen Insights, Huebsch Command and UniMac CORE, allows us to deliver

value-added services that extend beyond hardware.

Our digital research and development approach is highly customer-centric, with cross-functional teams that include

product managers, quality assurance specialists and developers working directly with customers through extensive field

testing. Recent innovations include our QR code-based payment solution that eliminates the need for app installation, AI-

driven operational insights that provide plain-English recommendations to operators and self-healing machine capabilities

that can resolve some common issues without technician intervention. We have strategically expanded our digital

development teams in Thailand to accelerate our global product delivery capabilities while maintaining consistent quality

standards. Looking ahead, our digital innovation roadmap focuses on sustainability solutions, automation technologies and

deeper ecosystem integrations that will continue to differentiate our offerings in the commercial laundry space.

Manufacturing

We operate six strategically located facilities globally and we believe we are the only manufacturer that produces

across North America, Europe and Asia Pacific. This “local for local” strategy delivers supply chain resiliency and

strengthens our cost position. Our manufacturing footprint spans approximately 2.7 million square feet and our facilities

have significant vertical integration, which enables greater control over the manufacturing process.

Our manufacturing operations primarily engage in fabricating, machining, painting, assembling and finishing

operations, but also operate as finished goods and service parts distribution centers. The facilities are organized to focus on

specific product groups although each facility serves multiple end markets and segments.

The U.S. facilities produce our small-chassis topload washers, frontload washers and dryers as well as large-chassis

washer extractors and dryers. The other facilities all produce large-chassis washer extractors and dryers while the Czech

Republic also produces barrier washers and ironers. This diversification of production supports our “local for local”

strategy and enables us to respond quickly to local requirements. This strategy also allowed us to temporarily move

production of some large-chassis equipment between our U.S. and Thai facilities and some small-chassis assembly from

the U.S. to the Czech Republic to maximize available labor during COVID-19 restrictions.

We have invested approximately $371 million in capital expenditures in our manufacturing facilities over the past ten

years, including opening new facilities in the U.S. and Thailand. Current global production is at approximately 84% of

capacity and we believe we have more than sufficient capacity to fulfill our medium-term growth objectives and beyond

while maintaining our approximate 3% of net revenue annual capital expenditure spend target.

We are committed to continuous improvement in all aspects of our business and operations in order to maintain our

industry leading position and all our manufacturing facilities are certified by the International Standardization Organization

(“ISO”).

Suppliers and Materials

We purchase substantially all our raw materials and components from a variety of independent suppliers. Where

possible and cost effective we aim to do this as close to each of our manufacturing facilities as possible, sourcing in region

for consumption in the same region.

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Key material inputs for manufacturing processes include motors, stainless and carbon steel, aluminum castings,

electronic controls, corrugated boxes and plastics. While we believe most of our raw materials and component parts are

generally available from multiple suppliers at competitive prices, due to the nature of some of our purchases, including

some co-developed components, we do have some single- and sole-source suppliers and are exposed to commodity

markets.

Our largest single input material is steel and we aim to secure supply agreements for extended periods of time at fixed

prices to mitigate the risk of market fluctuations. We believe we currently have sufficient steel under contract for the near

term. For further discussion of the possible effects of the cost and availability of raw materials on our business, see the

“Risk Factors” section.

Employees

As of December 31, 2025, we employed 3,923 full-time employees and 50 part-time employees. Of these employees,

2,730 are located in the United States and 1,243 are located outside of the United States (including 674, 354, 74 and 38

employees in the Czech Republic, Thailand, China and France, respectively). The United Steelworkers union represented

1,691 employees at our Wisconsin facilities. All employees at our Pribor, Czech Republic facility are subject to a collective

bargaining agreement, and certain employees at the facility are represented by a trade union. All employees at our

Guangzhou, China facility are subject to a collective bargaining agreement and represented by a workers’ union. All

employees at our Saint-Priest, France facility are represented by a social and economic committee. We believe that our

current labor relations are good and no labor disruptions are anticipated in the foreseeable future.

In December 2021, the United Steelworkers union ratified a five-year contract with us. The contract became effective

on January 1, 2022 and expires February 28, 2027, and contains provisions that are usual and customary. There have been

no work stoppages at any of our Wisconsin facilities for more than 50 years.

Intellectual Property

We rely upon a combination of trade secrets, copyrights, trademarks, patents, confidentiality policies and procedures,

nondisclosure agreements and technical measures designed to protect the intellectual property and commercially valuable

confidential information and data used in our business. We also develop proprietary software, primarily for our firmware

and digital products. We license our intellectual property to third parties for them to develop vended payment systems that

are compatible with our equipment. We also receive licenses to third-party intellectual property, some of which is

integrated into our products.

We take steps to safeguard our trade secrets and proprietary information. These measures include internal access

controls, nondisclosure agreements with employees and third parties and cybersecurity protocols designed to prevent

unauthorized disclosure of sensitive business information. We also monitor and pursue action against infringements of our

intellectual property, such as trademark rights and trade secrets.

We believe we have taken reasonable measures to protect this portfolio of intellectual property rights, but we cannot be

assured that none of these intellectual property rights may be challenged and found invalid or unenforceable. See the “Risk

Factors” section for further discussion of intellectual property matters.

Regulatory Matters

We are subject to foreign, federal, state and local laws and regulations that impact our business, including the design,

manufacture, marketing, sale, servicing, packaging, labeling, handling, storage, transportation and use of our commercial

and residential laundry equipment. These laws and regulations relate to matters such as product safety and certification,

product labeling, energy and water efficiency standards, environmental protection, workplace health and safety, and ESG

and sustainability. In the United States, our operations are regulated by agencies such as the Consumer Product Safety

Commission, Federal Trade Commission and DOE, as well as the Environmental Protection Agency and the Occupational

Safety and Health Administration. Our international operations are also subject to regulation by equivalent regulatory

agencies and frameworks of the countries in which we operate and sell our products. Violations of such laws and

regulations could result in fines and penalties, enforcement actions, third-party claims, cessation of operations and other

sanctions. In addition, compliance with such laws and regulations in the future could prove to be costly and could affect

various aspects of our business.

We and our operations are also subject to and affected by foreign, federal, state and local EHS regulations, including

with respect to climate concerns. In particular, our business is subject to governmental regulation of energy and water

usage and efficiency standards, emissions of air pollutants, including greenhouse gas emissions, discharges of wastewater

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and stormwater, releases of hazardous materials to soil and water, the transportation, treatment, storage and disposal of

hazardous wastes and exposure to hazardous materials in current or former products, the workplace or the environment,

among other things. See “Item 1A. Risk Factors—Risks Relating to Government Regulation and Litigation—We could

incur significant costs in complying with EHS laws and regulations and could be adversely affected by liabilities or

obligations imposed under such laws.” and “Risk Factors—Risks Relating to Government Regulation and Litigation—

Energy efficiency, water usage standards and other product-related standards could adversely affect our industry.”

Changes in laws and regulations or government policies could affect our operations worldwide. Additionally, the

evolving and increased fragmentation of regulatory requirements may increase our costs by requiring the development of

country-specific variants, the monitoring and compliance of additional regulations as well as additional testing and

certifications. The laws, regulations and policies applicable to our products and services change regularly, and certain

regulatory changes may render our products and technologies noncompliant. In addition, we are also subject to evolving

standards and requirements related to ESG and sustainability matters. For example, the CSRD enacted in the European

Union and certain laws enacted in California will require us to report on various sustainability-related information,

including greenhouse gas emissions. See“Risk Factors—Risks Relating to Government Regulation and Litigation—We are

subject to risks related to environmental, social and governance (“ESG”) and sustainability laws, regulations, policies and

initiatives.”

Our operations are also subject to and could be affected by the changing landscape related to tariffs and trade

regulations. U.S. laws, regulations, orders and other measures concerning the export or re-export of products, software,

services and technology, and other trade-related activities involving non-U.S. countries and parties affect the operations of

our company and our affiliates. These potential effects are further discussed in “Risk Factors—Risks Relating to

Government Regulation and Litigation—Our international operations expose us to worldwide economic conditions;

unfavorable global economic conditions could lead to reduced revenues and negatively impact our results of operations.”

For further discussion of risks related to other government regulations, see “Item 1A. Risk Factors—Risks Relating to

Government Regulation and Litigation.”

Available Information

The Company's website is www.alliancelaundry.com. Our annual reports on Form 10-K, quarterly reports on Form 10-

Q, current reports on Form 8-k and amendments to those reports (if applicable) are available free of charge through the

"Investors" link as soon as reasonably practicable after they are filed with the Securities and Exchange Commission (SEC).

We have also posted on our website our Code of Business Conduct and Ethics, which govern our officers, directors,

employees and contractors. All reports we file with the SEC are also available free of charge via EDGAR through the

SEC's website at https://www.sec.gov. The information on these websites is not part of this report and is therefore not

incorporated herein by reference.