Q4 2025 Financial Highlights
Consolidated revenues for the fourth quarter were $614.4 million compared to $639.9 million in the prior year.
Excluding the impact of the extra week of operations in fiscal 2024, consolidated revenues increased 3.4%.
Operating margin was 8.1% of revenues compared to 8.4% of revenues in the prior year.
The quarterly tax rate was 20.2% compared to 21.8% in the prior year.
Net income was $41.0 million compared to $44.6 million in the prior year
Diluted earnings per share decreased to $2.23 from $2.39 in the prior year.
Adjusted EBITDA margin was 14.3% of revenues compared to 14.9% of revenues in the prior year.
The Company's financial results for the fourth quarters of fiscal 2025 and 2024 included approximately $1.4 million and $1.8 million, respectively, of costs directly attributable to its customer relationship management ("CRM") computer system and enterprise resource planning ("ERP") projects. The Company refers to the CRM and ERP projects together as its "Key Initiatives". The effect of these items on the fourth quarter of fiscal 2025 and 2024 combined to decrease:
Operating income and Adjusted EBITDA by $1.4 million and $1.8 million, respectively.
Net income by $1.1 million and $1.3 million, respectively.
Diluted earnings per share by $0.05 and $0.07, respectively.
Fiscal 2025 Financial Highlights
Full year consolidated revenues were $2.432 billion, an increase of 0.2%.
Excluding the impact of the extra week of operations in fiscal 2024, full year revenues increased 2.1%.
Full year operating income was $184.5 million, an increase of 0.5%.
Net income for the year increased to $148.3 million from $145.5 million in the prior year.
Diluted earnings per share increased to $7.98 from $7.77 in the prior year.
Adjusted EBITDA margin was 13.8% of revenues as compared to 13.7% of revenues in the prior year.
The Company's financial results for the full years of fiscal 2025 and 2024 included $6.8 million and $11.8 million, respectively, of costs directly attributable to its Key Initiatives. The effect of these items on the full years of fiscal 2025 and 2024 combined to decrease:
Operating income and Adjusted EBITDA by $6.8 million and $11.8 million, respectively.
Net income by $5.1 million and $9.0 million, respectively.
Diluted earnings per share by $0.28 and $0.48, respectively.
Steven Sintros, UniFirst President and Chief Executive Officer, said, "We closed the year with a solid fourth quarter. I am proud of the Company's accomplishments during fiscal 2025 as we execute our strategic plan to drive long-term growth through investments in our people, technology and operational execution. I want to sincerely thank all of our Team Partners who continue to Always Deliver for each other and our customers as we strive towards our vision of being universally recognized as the best service provider in the industry. …all while living our mission of Serving the People Who do the Hard Work."
Changes to Operating and Reportable Segments
Beginning with the fourth quarter of 2025, we are reporting results under three operating and reportable segments. This shift in reportable segments reflects how our leadership oversees and manages the business. Our three operating and reportable segments consist of the following:
Uniform & Facility Service SolutionsFirst Aid & Safety SolutionsOther
To assist investors, we have provided certain recast unaudited historical financial and operational data that is on a basis consistent with our revised segment structure. This data can be found both in our Form 8-K filed on October 17, 2025 and on our Investor Relations webpage under "News Releases." These changes only affect segment allocation of results and do not revise or restate our previously reported consolidated financial statements.
Q4 2025 Segment Financial Highlights
Uniform & Facility Service Solutions
Revenues for the quarter were $560.1 million compared to $586.0 million in the prior year.
Organic growth, which excludes the effect of acquisitions, fluctuations in the Canadian dollar and the impact of the extra week of operations in fiscal 2024, was 2.9%. The Uniform & Facility Service Solutions' organic growth rate was primarily the result of solid new account sales and improved customer retention.
Operating margin was 8.3% compared to 8.7% in the prior year.
Adjusted EBITDA margin was 14.8% compared to 15.3% in the prior year.
The costs we incurred related to the Key Initiatives were recorded to the Uniform & Facility Service Solutions' segment, and decreased both the Uniform & Facility Service Solutions' operating and Adjusted EBITDA margins for the fourth quarters of fiscal 2025 and 2024 by 0.2% and 0.3%, respectively.
The segment's operating and Adjusted EBITDA margins in the fourth quarter of fiscal 2025 were down slightly from the fourth quarter of fiscal 2024, which benefited from the extra week of operations. In addition, the quarterly results reflect additional investments in accelerating growth, improving customer retention and our digital transformation.
First Aid & Safety Solutions
Revenues for the quarter were $31.1 million compared to $29.3 million in the prior year.
Organic growth was 12.4%, driven by strong growth in our First Aid van business.
Operating income and Adjusted EBITDA were $0.5 million and $1.5 million, respectively.
The segment's results continue to reflect the investments we are making in our First Aid van business.
Balance Sheet and Capital Allocation
Cash, cash equivalents and Short-term investments totaled $209.2 million as of August 30, 2025.
Cash flow from operating activities increased to $296.9 million in fiscal 2025, or 0.5%.
The Company had no long-term debt outstanding as of August 30, 2025.
The Company paid dividends to shareholders of $24.6 million in fiscal 2025, an increase of 5.5% from the prior year.
During fiscal 2025, the Company repurchased 402,415 shares of Common Stock for approximately $70.9 million. As of August 30, 2025, the Company had $40.6 million remaining under its existing share repurchase authorization.
Financial Outlook
Mr. Sintros continued, "For fiscal 2026, we expect our revenues to be between $2.475 billion and $2.495 billion and fully diluted earnings per share to be between $6.58 and $6.98. This guidance includes an estimated $7.0 million of costs directly attributable to our Key Initiatives that we anticipate will be expensed in fiscal 2026. Please note the following regarding our guidance:
Net income, at the midpoint of the range, is expected to be $124.1 million.
Consolidated Operating Income, at the midpoint of the range, is expected to be $158.8 million.
Consolidated Adjusted EBITDA, at the midpoint of the range, is expected to be $319.7 million.
Net income, Operating Income and Diluted earnings per share are anticipated to be impacted by higher depreciation and amortization assumptions, largely due to the projected deployment of our ongoing Oracle ERP initiative. In addition, fiscal 2026 is expected to have higher stock-based compensation expense. As a reminder, these non-cash items are excluded from Adjusted EBITDA.
Uniform & Facility Service Solutions' organic revenue growth, at the midpoint of the range, is expected to be 2.6%.
Uniform & Facility Service Solutions' operating and Adjusted EBITDA margins, at the midpoint of the range, are expected to be 6.6% and 13.3%, respectively.
Overall results are anticipated to be impacted by lower expected revenue and profitability out of our nuclear services business.
The effective tax rate is assumed to be 26.0%.
Guidance does not include the impact of any future share buybacks or unexpected events affecting the economy generally."
Conference Call Information
UniFirst Corporation will hold a conference call today at 9:00 a.m. (ET) to discuss its quarterly and full year financial results, business highlights and outlook. A simultaneous live webcast of the call will be available over the Internet and can be accessed at www.unifirst.com.
About UniFirst Corporation
Headquartered in Wilmington, Mass., UniFirst Corporation (NYSE:UNF) is a North American leader in the supply and servicing of uniform and workwear programs, facility service products, as well as first aid and safety supplies and services. Together with its subsidiaries, the Company also manages specialized garment programs for the cleanroom and nuclear industries. In addition to partnering with leading brands, UniFirst manufactures its own branded workwear, protective clothing, and floorcare products at its five company-owned ISO-9001-certified manufacturing facilities. With more than 270 service locations, over 300,000 customer locations, and 16,000-plus employee Team Partners, the Company outfits more than 2 million workers every day. For more information, contact UniFirst at 888.296.2740 or visit UniFirst.com.
Forward-Looking Statements Disclosure
This public announcement contains forward-looking statements within the meaning of the federal securities laws that reflect the Company's current views with respect to future events and financial performance, including projected revenues, operating margin and earnings per share. Forward-looking statements contained in this public announcement are subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995 and may be identified by words such as "guidance," "outlook," "estimates," "anticipates," "projects," "plans," "expects," "intends," "believes," "seeks," "could," "should," "may," "will," "strategy," "objective," "assume," "strive," "design," "assumption," "vision," "approximate," or the negative versions thereof, and similar expressions and by the context in which they are used. Such forward-looking statements are based upon our current expectations and speak only as of the date made. Such statements are highly dependent upon a variety of risks, uncertainties and other important factors that could cause actual results to differ materially from those reflected in such forward-looking statements. Such factors include, but are not limited to, uncertainties caused by an economic recession or other adverse economic conditions, including, without limitation, as a result of elevated inflation or interest rates or extraordinary events or circumstances such as geopolitical conflicts like the conflict between Russia and Ukraine and disruption in the Middle East and their impact on our customers' businesses and workforce levels, disruptions of our business and operations, including limitations on, or closures of, our facilities, or the business and operations of our customers or suppliers in connection with extraordinary events or circumstances, uncertainties regarding our ability to consummate acquisitions and successfully integrate acquired businesses, and the performance of such businesses, uncertainties regarding any existing or newly-discovered expenses and liabilities related to environmental compliance and remediation, any adverse outcome of pending or future contingencies or claims, our ability to compete successfully without any significant degradation in our margin rates, seasonal and quarterly fluctuations in business levels, our ability to preserve positive labor relationships and avoid becoming the target of corporate labor unionization campaigns that could disrupt our business, the effect of currency fluctuations on our results of operations and financial condition, our dependence on third parties to supply us with raw materials, which such supply could be severely disrupted as a result of extraordinary events or circumstances such as the conflict between Russia and Ukraine, any loss of key management or other personnel, increased costs as a result of any changes in federal, state, international or other laws, rules and regulations or governmental interpretation of such laws, rules and regulations, uncertainties regarding, or adverse impacts from continued high price levels of natural gas, electricity, fuel and labor or increases in such costs, the negative effect on our business from sharply depressed oil and natural gas prices, the continuing increase in domestic healthcare costs, increased workers' compensation claim costs, increased healthcare claim costs, our ability to retain and grow our customer base, demand and prices for our products and services, fluctuations in our nuclear business, political or other instability, supply chain disruption or infection among our employees in Mexico and Nicaragua where our principal garment manufacturing plants are located, our ability to properly and efficiently design, construct, implement and operate a enterprise resource planning computer system, interruptions or failures of our information technology systems, including as a result of cyber-attacks, additional professional and internal costs necessary for compliance with any changes in or additional Securities and Exchange Commission (the "SEC"), New York Stock Exchange and accounting or other rules, strikes and unemployment levels, our efforts to evaluate and potentially reduce internal costs, the impact of foreign trade policies and tariffs or other impositions on imported goods on our business, results of operations and financial condition, our ability to successfully implement our business strategies and processes, including our capital allocation strategies, our ability to successfully remediate the material weaknesses in internal control over financial reporting disclosed in our Annual Report on Form 10-K for the year ended August 31, 2024 and the other factors described under Part I, Item 1A. "Risk Factors" and elsewhere in our Annual Report on Form 10-K for the year ended August 31, 2024, Part II, Item 1A. "Risk Factors" and elsewhere in our subsequent Quarterly Reports on Form 10-Q and in our other filings with the SEC. We undertake no obligation to update any forward-looking statements to reflect events or circumstances arising after the date on which they are made.
Consolidated Statements of Income(Unaudited)
(In thousands, except per share data)
Thirteenweeks endedAugust 30, 2025
Fourteenweeks endedAugust 31, 2024
Fifty-twoweeks endedAugust 30, 2025
Fifty-threeweeks endedAugust 31, 2024
Revenues
$
614,447
$
639,867
$
2,432,352
$
2,427,431
Operating expenses:
Cost of revenues(1)
382,012
408,604
1,542,400
1,579,835
Selling and administrative expenses(1)
146,980
139,236
565,099
522,586
Depreciation and amortization
35,879
37,979
140,355
141,432
Total operating expenses
564,871
585,819
2,247,854
2,243,853
Operating income
49,576
54,048
184,498
183,578
Other (income) expense:
Interest income, net
(2,348
)
(2,652
)
(9,770
)
(7,242
)
Other expense (income), net
513
(372
)
(1,107
)
1,441
Total other income, net
(1,835
)
(3,024
)
(10,877
)
(5,801
)
Income before income taxes
51,411
57,072
195,375
189,379
Provision for income taxes
10,384
12,437
47,104
43,905
Net income
$
41,027
$
44,635
$
148,271
$
145,474
Income per share, Basic:
Common Stock
$
2.32
$
2.50
$
8.33
$
8.11
Class B Common Stock
$
1.86
$
2.00
$
6.66
$
6.49
Income per share, Diluted:
Common Stock
$
2.23
$
2.39
$
7.98
$
7.77
Income allocated to, Basic:
Common Stock
$
34,420
$
37,472
$
124,551
$
122,188
Class B Common Stock
$
6,607
$
7,163
$
23,720
$
23,286
Income allocated to, Diluted:
Common Stock
$
41,027
$
44,635
$
148,271
$
145,474
Weighted average shares outstanding, Basic:
Common Stock
14,823
15,018
14,961
15,073
Class B Common Stock
3,552
3,590
3,560
3,590
Weighted average shares outstanding, Diluted:
Common Stock
18,438
18,683
18,581
18,724
(1) Exclusive of depreciation on the Company's property, plant and equipment and amortization on its intangible assets.
Condensed Consolidated Balance Sheets(Unaudited)
(In thousands)
August 30,2025
August 31,2024
Assets
Current assets:
Cash and cash equivalents
$
203,501
$
161,571
Short-term investments
5,672
13,505
Receivables, net
285,297
278,851
Inventories
145,197
156,908
Rental merchandise in service
227,720
237,969
Prepaid taxes
7,708
14,893
Prepaid expenses and other current assets
49,508
51,979
Total current assets
924,603
915,676
Property, plant and equipment, net
829,622
801,612
Goodwill
657,748
