Uniform rental firm UniFirst beats Q4 revenue expectations on improved customer retention

Reuters
Oct 22
Uniform rental firm UniFirst beats Q4 revenue expectations on improved customer retention

Overview

  • UniFirst Q4 revenue beats analyst expectations despite a decline from the previous year

  • Diluted EPS for Q4 decreased to $2.23 from $2.39 in the prior year

  • Company repurchased 402,415 shares for $70.9 mln during fiscal 2025

Outlook

  • UniFirst expects fiscal 2026 revenue between $2.475 bln and $2.495 bln

  • Company sees fiscal 2026 EPS between $6.58 and $6.98

  • Uniform & Facility Service Solutions' organic growth expected at 2.6%

Result Drivers

  • REVENUE GROWTH - Excluding the extra week in fiscal 2024, consolidated revenues increased by 3.4%

  • UNIFORM & FACILITY GROWTH - Organic growth driven by new account sales and improved customer retention

  • FIRST AID GROWTH - Strong growth in First Aid van business drove organic growth of 12.4%

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Revenue

Beat

$614.44 mln

$606.97 mln (4 Analysts)

Q4 EPS

$2.23

Q4 Net Income

$41.02 mln

Q4 Operating Income

$49.57 mln

Q4 Pretax Profit

$51.41 mln

Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 4 "hold" and 2 "sell" or "strong sell"

  • The average consensus recommendation for the business support services peer group is "buy."

  • Wall Street's median 12-month price target for UniFirst Corp is $190.00, about 8.8% above its October 21 closing price of $173.37

  • The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 22 three months ago

Press Release: ID:nGNX2xvRtf

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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