Shares of UniFirst Corporation (UNF) plummeted 14.59% in pre-market trading on Wednesday following the release of its fourth quarter fiscal 2025 results and fiscal 2026 guidance. The significant drop comes as the company's outlook fell short of analyst expectations and profitability concerns emerged.

UniFirst reported fourth quarter revenue of $614.4 million, surpassing the IBES estimate of $607 million. However, the company's profitability metrics showed signs of pressure. The operating margin for Q4 decreased to 8.1% from 8.4% in the prior year, while the Adjusted EBITDA margin fell to 14.3% from 14.9%.

The most significant factor driving the stock's decline appears to be UniFirst's fiscal 2026 earnings guidance. The company expects earnings per share (EPS) for the upcoming fiscal year to be in the range of $6.58 to $6.98, substantially below the FactSet consensus estimate of $8.57. This guidance includes an estimated $7 million of costs directly attributable to key initiatives the company plans to expense in fiscal 2026.

Adding to investor concerns, UniFirst noted that its overall results were affected by lower than expected revenue and profitability from its nuclear services business. The company also reported a decrease in net income for Q4 2025, coming in at $41.0 million compared to $44.6 million in the same period last year.

As UniFirst navigates challenges in profitability and faces a potentially difficult fiscal year ahead, investors appear to be reassessing the company's near-term growth prospects, leading to the significant pre-market sell-off.