Financial Data and Key Metrics Changes - For fiscal 2025, the company reported revenue of $18.5 billion, a 6% increase compared to the prior year, with organic revenue growth of 7% [16][20] - Adjusted operating income for the fourth quarter was $289 million, growing 6% on a constant currency basis, while full-year adjusted operating income was $981 million, up 12% [17][18] - The adjusted EPS for the fourth quarter was $0.57, a 6% increase, and for the full year, it was $1.82, reflecting almost 20% growth [20][21] - The consolidated leverage ratio improved to 3.25 times, the lowest level in nearly 20 years, down from 3.4 times a year ago [21][22] Business Line Data and Key Metrics Changes - The FSS US segment grew organic revenue by 14% in the fourth quarter, driven by workplace experience and collegiate hospitality [8][16] - The international segment also reported consistent double-digit organic revenue growth of 14% in the fourth quarter, with strong contributions from the U.K., Canada, and Latin America [12][13] - The healthcare segment achieved its best performance in over two years, with significant new business wins contributing to growth [9][10] Market Data and Key Metrics Changes - The company experienced an industry-leading client retention rate of 96.3%, contributing to a net new business growth of 5.6% [6][7] - The collegiate sports business saw double-digit revenue growth, with per capita rates up 14% year over year [9][10] - The global supply chain added over $1 billion in new purchasing spend for the second consecutive year, primarily from various sectors including healthcare and education [13][14] Company Strategy and Development Direction - The company is focused on delivering exceptional hospitality services and maintaining high client retention rates, with a goal of achieving net new business growth of 4-5% in fiscal 2026 [7][23] - Strategic investments are being made in advanced technologies to enhance operational efficiencies and client service capabilities [19][22] - The company aims to leverage its strong new business pipeline and expand its presence in various sectors, including healthcare and collegiate sports [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, citing strong new business wins and high retention rates as key drivers for future performance [4][25] - The company anticipates organic revenue growth of $19.45 billion to $19.85 billion for fiscal 2026, representing a growth of 7%-9% [22][23] - Management acknowledged the impact of inflation, estimating it around 3% as they continue to manage the macro environment effectively [14][21] Other Important Information - The company has taken decisive actions to reduce future medical expenses related to elective lifestyle prescriptions, which are expected to positively impact costs going forward [18][19] - The company is committed to optimizing capital allocation priorities, including increasing dividends and stock repurchases [22][23] Q&A Session Summary Question: Can you delve into the shift in timing for new account openings? - Management indicated that the shift occurred across multiple businesses, including corrections and healthcare, and was client-driven rather than company-driven [30][31] Question: What is the expected cadence for the UPenn contract in 2026? - The UPenn contract will begin operations in February and will be staged over several months, with expectations for significant new business contributions throughout the year [32][33] Question: Can you discuss the margin trajectory with new wins? - Management noted that while there may be some incremental startup costs associated with new contracts, these will be offset by productivity improvements and efficiency initiatives [37][41] Question: What is the outlook for retention rates moving forward? - Management expressed a strong commitment to maintaining a retention rate above 95%, with aspirations to achieve even higher levels [99][101] Question: Can you elaborate on the restructuring measures in the international business? - The restructuring is aimed at streamlining SG&A and optimizing operations, despite the international segment's strong growth performance [75][76]

Aramark (NYSE:ARMK) Q4 2025 Earnings Call November 17, 2025 08:30 AM ET Speaker0Good morning and welcome to Aramark's fourth quarter and full year fiscal 2025 earnings results conference call. My name is Kevin, and I'll be your operator for today's call. At this time, I'd like to inform you that this conference is being recorded for rebroadcast and that all participants are in a listen-only mode. We will open the conference call for questions at the conclusion of the company's remarks. I will now turn the c ...

Core Insights - Aramark reported quarterly earnings of $0.64 per share, slightly missing the Zacks Consensus Estimate of $0.65 per share, but showing an increase from $0.54 per share a year ago, resulting in an earnings surprise of -1.54% [1] - The company posted revenues of $5.05 billion for the quarter ended September 2025, which was 2.11% below the Zacks Consensus Estimate, and an increase from $4.42 billion year-over-year [2] - Aramark's stock has underperformed the market, gaining about 1.9% year-to-date compared to the S&P 500's gain of 14.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.58 on revenues of $4.9 billion, and for the current fiscal year, it is $2.25 on revenues of $19.58 billion [7] - The trend of estimate revisions for Aramark was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Business - Services industry, to which Aramark belongs, is currently in the top 22% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Another company in the same industry, ABM Industries, is expected to report quarterly earnings of $1.10 per share, reflecting a year-over-year increase of 22.2%, with revenues projected at $2.27 billion, up 4.4% from the previous year [9]

Full Year and Q4 Fiscal 2025 Earnings Results N O V E M B E R 1 7 , 2 0 2 5 Fiscal 2025 Earnings Results Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements reflect our current expectations as to future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. These statements include, but are not limited to, statemen ...

Financial Performance - Fiscal 2025 consolidated revenue was $18.5 billion, a 6% increase year-over-year, with organic revenue growth of 7%[8] - Annualized gross new business reached $1.6 billion, over 12% higher than fiscal 2024, with a client retention rate of 96.3%[21] - Operating income increased 12% year-over-year to $792 million, while adjusted operating income (AOI) grew 12% to $981 million[10] - Fourth quarter revenue was $5.0 billion, a 14% increase year-over-year, with organic revenue growth also at 14%[12] - GAAP EPS for fiscal 2025 was $1.22, compared to $0.99 in fiscal 2024, while adjusted EPS increased 19% to $1.82[11] - Net cash from operations rose 27% to $921 million, and free cash flow grew 41% to $454 million in fiscal 2025[17] - Revenue for the fiscal year ended October 3, 2025, increased to $18,506.3 million, up 6.4% from $17,400.7 million in the previous year[53] - Operating income for the fiscal year was $791.8 million, representing a growth of 12.1% compared to $706.5 million in the prior year[53] - Net income attributable to Aramark stockholders rose to $326.4 million, a 24.3% increase from $262.5 million year-over-year[53] - Basic earnings per share increased to $1.24, up from $1.00, reflecting a 24% growth[53] - For the three months ended October 3, 2025, revenue was $5,048.5 million, a 14.3% increase from $4,416.9 million in the same period last year[55] - Operating income for the three-month period was $217.8 million, slightly down from $218.8 million year-over-year[55] - Cash flows from operating activities for the fiscal year were $921.0 million, compared to $726.5 million in the previous year, indicating a 26.7% increase[59] - Total current assets increased to $3,522.9 million from $3,406.6 million, reflecting a growth of 3.4%[57] - Total liabilities decreased to $10,156.6 million from $10,270.0 million, a reduction of 1.1%[57] - Adjusted operating income margin for the fiscal year was 5.3%, compared to 5.1% in the previous year, indicating improved operational efficiency[61] - Total revenue for the three months ended October 3, 2025, was $5,048,464, representing a 14.3% increase compared to the same period last year[63] - Adjusted operating income for the same period was $288,552, with an adjusted operating income margin of 5.7%[63] - Adjusted net income attributable to Aramark stockholders for the three months ended October 3, 2025, was $151,715, reflecting a 5.6% growth compared to the previous year[65] - Free cash flow for the three months ended October 3, 2025, was $1,051,703, significantly higher than the $889,047 reported in the same period last year[75] - Revenue growth for FSS United States was 13.6%, while FSS International saw a growth of 16.1%[63] - Adjusted earnings per share for the three months ended October 3, 2025, was $0.57, compared to $0.54 in the same period last year, marking a 5.6% increase[65] - Operating income for the three months ended October 3, 2025, was $217,820, with a reported operating income margin of 4.3%[63] - The company reported an adjusted operating income growth of 6.3% for the three months ended October 3, 2025[63] Future Outlook - The company's leverage ratio improved to 3.25x, the lowest level in nearly 20 years[18] - Aramark repurchased over 4 million shares and raised its quarterly dividend by 14% to $0.12 per share[20] - The company anticipates achieving net new business of at least 4% to 5% of prior year revenue in fiscal 2026[22] - Significant new business opportunities are expected to drive profitability through enhanced supply chain capabilities and disciplined cost management[23] - Aramark anticipates fiscal 2026 revenue between $19,550 million and $19,950 million, representing a year-over-year organic growth of +7% to +9%[25] - Adjusted Operating Income for fiscal 2026 is projected to be between $1,100 million and $1,150 million, reflecting a year-over-year increase of +12% to +17%[25] - Adjusted EPS is expected to range from $2.18 to $2.28, indicating a year-over-year growth of +20% to +25%[25] - The company aims to reduce its leverage ratio to under 3x by fiscal 2026, down from 3.25x[25] - Fiscal 2026 revenue guidance includes approximately $100 million of expected favorability from foreign currency translation[25] - Aramark is focused on driving performance by leveraging enterprise-wide capabilities and starting operations for a record number of new clients[25] - The company is maintaining retention momentum and optimizing Global Supply Chain strategies to pursue significant growth opportunities[25] Corporate Responsibility - Aramark has been recognized for its commitment to diversity and social responsibility, appearing on several prestigious lists[27] Financial Metrics - The company uses various financial metrics, including Adjusted Revenue (Organic) and Free Cash Flow, to evaluate performance and profitability[40] Currency Impact - The effect of currency translation negatively impacted revenue by $21,674 for the three months ended October 3, 2025[63] Special Considerations - Estimated impact of the 53rd week on revenue was a reduction of $326,691[77] - Adjusted organic revenue for the fiscal year was $18,179,608[77]

Nov 17, 2025 6:33 AM Eastern Standard Time Aramark Reports Earnings Results for Fiscal 2025 Share Fourth quarter and full year 2025 results include a 53rd week of operations FISCAL 2025 YEAR-OVER-YEAR SUMMARY Q4 YEAR-OVER-YEAR SUMMARY PHILADELPHIA--(BUSINESS WIRE)--Aramark (NYSE: ARMK) today reported results for the fourth quarter and full year of fiscal 2025. "Fiscal 2025 represented many consequential milestones for the Company, contributing to the strong growth trajectory ahead,†said John Zillmer, Aramar ...

Aramark (NYSE:ARMK) will release earnings results for the fourth quarter, before the opening bell on Monday, Nov. 17.Analysts expect the Philadelphia, Pennsylvania-based company to report quarterly earnings of 65 cents per share, up from 54 cents per share in the year-ago period. The consensus estimate for Aramark's quarterly revenue is $5.16 billion. Benzinga Pro data shows $4.42 billion in quarterly revenue a year ago.On Aug. 5, Aramark posted weaker-than-expected sales for the third quarter.Shares of Ara ...

Aramark (NYSE:ARMK) will release earnings results for the fourth quarter, before the opening bell on Monday, Nov. 17.Analysts expect the Philadelphia, Pennsylvania-based company to report quarterly earnings of 65 cents per share, up from 54 cents per share in the year-ago period. The consensus estimate for Aramark's quarterly revenue is $5.16 billion. Benzinga Pro data shows $4.42 billion in quarterly revenue a year ago.On Aug. 5, Aramark posted weaker-than-expected sales for the third quarter.Shares of Ara ...

Earnings Expectations - Aramark (NYSE:ARMK) is expected to report quarterly earnings of 65 cents per share on revenue of $5.16 billion [2] - J&J Snack Foods Corp. (NASDAQ:JJSF) is anticipated to post quarterly earnings of $1.19 per share on revenue of $419.09 million [2] - Aecom (NYSE:ACM) is projected to report quarterly earnings of $1.34 per share on revenue of $4.31 billion [2] - Helmerich and Payne Inc. (NYSE:HP) is expected to post quarterly earnings of 25 cents per share on revenue of $973.68 million [2] Stock Performance - Aramark shares fell 1.3% to close at $38.03 on Friday [2] - J&J Snack Foods shares rose 0.6% to close at $83.09 on Friday [2] - Sohu.com Ltd. (NASDAQ:SOHU) reported third-quarter earnings of 33 cents per share, compared to a loss of 39 cents per share a year ago, with sales of $180.161 million, up from $151.992 million [2] - Sohu.com shares fell 3.2% to close at $14.32 on Friday [2] - Aecom shares gained 0.3% to $133.89 in after-hours trading [2] - Helmerich and Payne shares gained 3.2% to close at $27.83 on Friday [2]

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