UniFirst Corporation Q3 Fiscal 2025 Financial Results

UniFirst Corporation, a leading provider of uniform and workwear programs, has released its financial results for the third quarter of fiscal 2025, ending May 31, 2025. The company reported a modest increase in revenue and net income, alongside a slight decrease in operating income.

Financial Highlights

For the third quarter of fiscal 2025, UniFirst reported consolidated revenues of $610.8 million, marking a 1.2% increase compared to the same period last year. Operating income saw a slight decline of 0.6%, amounting to $48.2 million. The net income for the quarter rose by 4.3% to $39.7 million, translating to diluted earnings per share (EPS) of $2.13, a 4.9% increase from the previous year's $2.03.

Adjusted EBITDA for the quarter was $85.8 million, a 1.2% increase from the prior year's $84.8 million. The quarterly tax rate increased to 25.7% from 22.9% in the previous year.

Business and Operational Highlights

UniFirst's Core Laundry Operations segment reported a revenue increase of 0.9% to $533.2 million, with an organic growth rate of 1.1%. The operating margin for this segment slightly decreased to 6.9% from 7.0%. The company's Specialty Garments and First Aid segments also showed positive performance, with revenues of $47.8 million and $29.8 million, respectively.

The company incurred $1.0 million in costs related to its Key Initiatives, which include customer relationship management (CRM) and enterprise resource planning (ERP) projects. These costs impacted the operating and Adjusted EBITDA margins for the Core Laundry Operations segment.

Strategic Initiatives and Corporate Developments

During the third quarter, UniFirst repurchased $13.6 million worth of its common stock, with $86.4 million remaining under its existing share repurchase authorization. The company also recorded a $2.8 million gain from the sale of a non-operating property, which contributed to the net income but was excluded from Adjusted EBITDA.

Management's Perspective

Steven Sintros, UniFirst's President and CEO, commented, "The results for our third quarter were largely in line with our expectations. It is rewarding to see our recent investments beginning to yield measurable returns, evidenced by gross margin improvement and more effective execution across the business."

Future Outlook

UniFirst is maintaining its annual revenue guidance within the range of $2.422 billion to $2.432 billion. However, the company has raised its diluted EPS guidance to a range of $7.60 to $8.00, reflecting an updated assumption that Key Initiative costs for fiscal 2025 will be approximately $7.5 million, revised from the previous estimate.

SEC Filing: UNIFIRST CORP [ UNF ] - 8-K - Jul. 02, 2025