By Adriano Marchese

Shares in Vestis rose sharply Tuesday after the company lifted its targets for the year and reported better-than-expected results in its second quarter.

Shares traded 30% higher at $12.10.

The uniform rental and workplace supplies company now expects fiscal 2026 adjusted earnings before interest, taxes, depreciation and amortization to be in the range of $295 million to $325 million, up from a previous guidance of $285 million and $315 million.

Fiscal 2026 free cash flow is also expected higher, now forecasted to be in the range of $120 million to $150 million. Previously the company guided for a range of $50 million to $60 million.

Vestis continues to expect revenue to be between flat to down 2% compared with normalized fiscal 2025 revenue, excluding the impact of the additional operating week.

For the fiscal second quarter ended April 3, the company reported a 0.9% decline in revenue, to $659.4 million, avoiding the greater decline analysts had forecasted for the period.

Vestis said that volume in pounds processed declined 1.2% during the quarter when compared to the prior year, but was partly offset by improvements in strategic pricing and sales product mix.

Despite the decline in revenue, the company swung to a profit of $2.6 million, or 2 cents a share, from a loss of $27.8 million, or 21 cents, a year earlier.

Adjusted earnings, which exclude exceptional items and one-off costs, came to 16 cents a share, double what analysts expected for the quarter.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

May 12, 2026 11:56 ET (15:56 GMT)

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