Q4 2025 K-Bro Linen Inc Earnings Call Transcript
Key Points
- K-Bro Linen Inc (KBRLF) reported record results for 2025 with revenue of $507 million and adjusted EBITDA of $99 million.
- The acquisition of Stellar Mayan has been highly complementary to existing UK businesses, creating a top 3 national UK health care and hospitality platform.
- Revenue increased by 36% compared to 2024, with health care revenue up by 41% and hospitality revenue by 30%.
- The company has a strong balance sheet with ample undrawn capacity on its syndicated revolving credit facility.
- K-Bro Linen Inc (KBRLF) is committed to a sustainable future and has a diverse and motivated workforce of over 4,500 employees.
- The EBITDA margin decreased from 18.5% in 2024 to 17.9% in 2025 due to the lower Stellar Mayan margin profile and transition costs.
- The UK segment's adjusted EBITDA margin decreased to 18.1% in 2025 from 19.8% in 2024.
- Net earnings decreased by $0.7 million in 2025 due to higher interest costs and increased amortization and depreciation.
- Wages and benefits as a percentage of revenue increased by 0.6% points to 38.7%, primarily due to the Stellar Mayan cost structure.
- The company faces potential exposure to escalating natural gas and diesel costs, which could impact margins.
Good morning, ladies and gentlemen, and welcome to the K-Bro Linen Systems Inc fourth quarter 2025 results conference call (Operator Instructions) . This call is being recorded on Friday, March 20, 2026.
I would now like to turn the conference over to Kristie Plaquin. Please go ahead.
Thank you, operator, and good morning, everyone. Thank you for joining us today, and welcome to our fourth quarter and annual results conference call. On the line with me today is Linda McCurdy, President and Chief Executive Officer.
Before we begin, I'd like to remind everyone that statements made during our prepared remarks or the conference with reference to management's expectations or predictions of the future are forward-looking statements. All statements made today, which are not statements of historical fact are considered to be forward-looking. Certain material factors or assumptions were applied in drawing a conclusion or making the forecast or projection as reflected in the forward-looking
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