Canada's K-Bro Q2 revenue rises on healthcare segment strength

K-Bro Linen

04/08/2026 23:40

Overview
Canada laundry and linen services firm's Q2 revenue rose 33% yr/yr, slightly missing analyst expectations
Adjusted net earnings for Q2 rose 30.3% yr/yr to C$10.1 mln
Company repurchased and cancelled 58,039 shares in Q2 under normal course issuer bid

Outlook
K-Bro expects steady healthcare activity increases and solid hospitality volumes in coming quarters
Company expects Canadian segment adjusted EBITDA margin to remain near historical levels
K-Bro anticipates UK segment adjusted EBITDA margins to be lower than historical margins

Result Drivers
HEALTHCARE SEGMENT GROWTH - Healthcare revenue rose 49.6% yr/yr, contributing significantly to overall revenue growth
STELLAR MAYAN ACQUISITION - Integration of UK-based Stellar Mayan boosted revenue but led to lower adjusted EBITDA margin due to cost structure
HOSPITALITY SEGMENT GROWTH - Hospitality revenue increased 15.4% yr/yr, reflecting solid activity levels

Company press release: ID:nCNWhpMTFa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Slight Miss*
C$150.40 mln
C$150.58 mln (6 Analysts)
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the business support services peer group is "buy"
Wall Street's median 12-month price target for K-Bro Linen Inc is C$52.00, about 9.5% above its August 4 closing price of C$47.50
The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 18 three months ago

Reuters Recommended Reads
Aug 4 - Canada's Dexterra Q2 revenue slightly misses estimates, FCF rises
Aug 4 - Canada's Sienna Senior Living Q2 revenue rises on acquisitions and occupancy growth
Aug 4 - PACS Group reports Q2 revenue beat on higher occupancy, raises outlook

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)