Canada's K-Bro Q1 revenue beats estimates, helped by healthcare segment

K-Bro Linen

05/05/2026 21:54

Overview

Canada laundry services firm's Q1 revenue rose 53%, beating analyst expectations

Adjusted net earnings for Q1 rose 35% year-over-year

Outlook

K-Bro expects steady healthcare activity and solid hospitality volumes in Canada and UK

Company anticipates Stellar Mayan integration to take 12 to 18 months, with cost synergies expected

K-Bro expects fiscal 2026 capital spending of C$20.0 mln to C$22.0 mln

Result Drivers

HEALTHCARE SEGMENT GROWTH - Healthcare revenue rose 67.4% year-over-year, supported by steady volume trends and increased activity levels

HOSPITALITY SEGMENT GROWTH - Hospitality revenue increased 34.7% year-over-year, reflecting solid activity from business and leisure travel

Company press release: ID:nCNWfjMcja

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
C$139.10 mln
C$127.45 mln (5 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "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$50.00, about 28.2% above its May 4 closing price of C$39.00

The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 16 three months ago

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.)