Aug 13, 2026 earnings call — Higher full-year EBITDA guidance
Raised adjusted EBITDA guidance to 8% to 10% while revenue grew 7% year-over-year.
Revenue $0.5B (est $0.5B) · EPS $0.41 (est $0.34)
Key quotes
"The event generated hundreds of qualified leads across Thailand with the opportunity extending across the region."
"Pricing contributed slightly more than half of the increase with the balance coming mainly from volume."
"We're also continuing to strengthen our balance sheet repaying $50 million of debt in the quarter, bringing year-to-date paydown to $115 million and over $800 million over the past 12 months, which has resulted in a reduction in net leverage from 4.6x to 2.4x."
Analyst Q&A 7
Middle East conflict effects on international sales
Q (Amit Mehrotra · UBS): How did the Middle East conflict affect international revenue and earnings? Also asked what continuing impacts to expect in Q3 and Q4.
A: Mike said the Middle East is small for the company—about 2% of revenue—and effects are mostly transit delays. He said Africa is included in that region and offers long-term opportunity. He called current impacts lumpy but expects things to be fine over time.
"I would say, remember, it's 2% of revenue." — Michael Schoeb (CEO)
Why larger-capacity vended machines help margins
Q (Susan Maklari · Goldman Sachs): What drove the mix shift to larger vended machines? And how are you handling cost pressures like steel and possible further price increases?
A: Mike said larger-capacity machines raise revenue per square foot, have higher engineering content, face less competition, and give better returns for consumers, store owners, and the company. On costs, he said steel is locked through the first quarter of '27, they are watching inflation, and they will get ahead of cost increases with price and cost-down efforts as needed.
"So the mix we've talked about, Susan, in the past, and I think it's pretty consistent, and that is in those -- the retail locations, right, it's all about revenue per square foot." — Michael Schoeb (CEO)
Commercial-in-Home demand and capital plan
Q (Michael Halloran · Baird): How is demand in the Commercial-in-Home channel? And once leverage is below 2x, how will you deploy cash—dividend, M&A, buybacks?
A: Mike said demand at recent shows is extraordinary and Speed Queen preference is strong, with no slowdown. Bob said first priority is to reduce leverage, then invest in the business via CapEx or M&A; M&A opportunities seen are mostly small, and it's too early to give a firm plan on dividends or buybacks.
"Primary use is to get that leverage down and we're, as you know, tracking really strongly against that." — Robert Calver (COO)
Second-half view for international markets
Q (Kyle Menges · Citi): What assumptions are embedded for international in the second half, given Q2 weakness in Middle East/Africa and flat Europe? Also asked about M&A size now that leverage will be lower.
A: Mike said international can be lumpy but they still feel pretty good. He said Europe is continuing to perform, Asia Pacific should be okay, Latin America centers on Mexico and Brazil, and Middle East/Africa will likely be down for the year. On M&A, he said only small deals are likely and they don't need large acquisitions to grow.
"What we see is Europe continuing to perform." — Michael Schoeb (CEO)
Drivers of international margin moves; leadership change
Q (Tomohiko Sano · JPMorgan): What drove international margin pressure in Q2—mix, costs, investments, staffing, pricing—and how to think about second half? Also, what will concretely change under Bob's leadership for speed and execution?
A: Mike said international margins vary by product mix: large-chassis products have higher margin and small-chassis orders can lower regional margins; manufacturing in Europe and Thailand is cost competitive. On leadership, he said Bob is experienced, already known to customers and teams, brings finance and IR background, and will add fresh perspective without starting from scratch.
"So in Europe or the Czech Republic, it is highly, highly cost competitive." — Michael Schoeb (CEO)
Plans for surcharges, pricing, and tariffs
Q (David Ridley-Lane · BofA): How has the company used surcharges historically and what are pricing plans for H2 and early thoughts on 2027? Also asked if Section 301 tariffs help in H2.
A: Mike said they have used short-term surcharges before and rolled out price increases when cost increases persisted; they are watching now and feel they can offset most cost moves with other actions and will get ahead of price changes. Bob said the second half looks very similar to the first half and the tariff impact is fairly neutral.
"We feel we can offset the majority of that with a lot of other different actions that we're taking here." — Michael Schoeb (CEO)
Europe demand trends and tariff refund outlook
Q (Patrick Beairsto · BMO): How did demand trends in Europe evolve through Q2 by end market and region? And are you expecting any tariff refunds for the rest of the year?
A: Mike said Vended continues to grow with many new storefronts and Europe remains On-premise heavy, with Eastern Europe more stressed by energy costs while France, Spain and Italy are performing very well. Bob said there was a benefit in Q2, any remaining refund is subject to confirmation and is not in guidance, so if anything else comes it would be an extra benefit.
"So if there is any, it will be additional benefit." — Robert Calver (COO)