Moody's Ratings has revised the outlook on Mister Car Wash Holdings, Inc. to positive from stable and simultaneously reaffirmed the company's B2 corporate family rating. The rating agency attributed the outlook change to recent improvements in the company's operating and credit metrics.
Moody's highlighted multiple operating trends that underpinned its decision, noting positive same-store sales growth, a rising count of wash-club members and an improving EBITDA margin. These operating gains, the agency said, have translated into measurable progress on leverage and interest coverage.
Over the 12-month period ended September 2025 Mister Car Wash made a voluntary $92 million repayment on its term loan. That repayment lowered the company's debt/EBITDA ratio to 4.3x as of September 2025, down from 4.8x at the end of 2024. Over the same timeframe the company's EBITA/interest ratio improved to 2.0x from 1.8x.
Looking forward, Moody's expects additional incremental improvement in the next 12-18 months. The agency projects the debt/EBITDA ratio to approach 4.0x and the EBITA/interest ratio to trend toward roughly 2.2x. Moody's attributed these anticipated gains to continued EBITDA expansion from existing locations, new greenfield openings, economies of scale and further increases in the company's membership base.
The B2 rating, Moody's said, reflects Mister Car Wash's scale and its leading position within the fragmented U.S. car wash market, as well as the high share of recurring revenue generated by the company's wash-club program and its track record of growth via greenfield development and acquisitions.
On liquidity, Moody's observed that Mister Car Wash had full availability on its $300 million revolving credit facility and held $36 million in cash as of September 2025. The revolving credit facility matures in March 2029, while the senior secured first lien term loan has a March 2031 maturity date.
Moody's also set out the financial thresholds that could affect the rating. An upgrade could follow if Mister Car Wash sustains a debt/EBITDA ratio below 5x and an EBITA/interest ratio above 2.25x while preserving solid liquidity. Conversely, Moody's warned that debt-funded dividends or acquisitions that move debt/EBITDA toward 6.5x or push EBITA/interest below 1.5x could lead to a downgrade.
Sectors impacted: Consumer services - specifically car wash operators - and credit markets, given the implications for corporate leverage and loan facility availability.