Laundry services firm K-Bro's Q3 revenue beats estimates

K-Bro Linen

12/11/2025 21:42

Overview

K-Bro Q3 revenue grows 49.3% yr/yr, beating analyst expectations

Adjusted EPS for Q3 missed analyst expectations

Company completed Stellar Mayan acquisition, expanding UK footprint

Outlook

K-Bro anticipates 12-18 months for Stellar Mayan integration

Company expects steady volume trends in healthcare and hospitality

K-Bro not expecting significant impact from global economic conditions

Result Drivers

STELLAR MAYAN ACQUISITION - Acquisition contributed to significant revenue growth and expanded UK footprint

HEALTHCARE AND HOSPITALITY GROWTH - Healthcare revenue increased by 66.8% and hospitality by 33.6%

MARGIN IMPACT - Adjusted EBITDA margin decreased due to Stellar Mayan cost profile

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
C$155.90 mln
C$152.60 mln (5 Analysts)
Q3 Adjusted EPS
Miss
C$0.31
C$0.81 (4 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "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$49.50, about 26.2% above its November 11 closing price of C$36.55

The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nCNWbP4ZWa

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(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.)