Core Insights - Cintas reported fiscal 2025 fourth-quarter results with an 8% year-over-year revenue increase to $2.67 billion and a 9% rise in diluted EPS to $1.09, achieving record full-year revenue of $10.34 billion and EPS growth of 16.1% [1] - The company projects fiscal 2026 revenue between $11 billion and $11.15 billion, reflecting a growth rate of 6.4% to 7.8%, and EPS between $4.71 and $4.85, indicating a growth of 7% to 10.2% [1][9] Revenue and Margin Performance - The Uniform Rental and Facility Services segment's gross margin increased by 40 basis points to 49%, while the First Aid and Safety Services segment saw a 140 basis point margin increase to 56.8% [3] - Productivity improvements are attributed to the adoption of SAP enterprise systems, auto sortation in plants, and the SmartTruck platform, enhancing cost efficiencies and service delivery [3][4] Capital Deployment and M&A Activity - Cintas generated $1.6 billion in free cash flow in FY2025 and allocated $2.23 billion towards acquisitions, marking the largest M&A activity in nearly two decades [5][6] - Additional capital priorities included $409 million in capital expenditures, $612 million in dividends, and $935 million in share repurchases [5] Segment Growth and Diversification - The First Aid and Safety segment achieved 18.5% organic growth, driven by recurring revenue products and training-related services, with expectations for low double-digit growth rates [7][8] - The uniform direct sale business grew by 9% in the quarter, indicating strong performance despite previous challenges [8] Future Outlook - For FY2026, management anticipates revenue of $11 billion to $11.15 billion and diluted EPS of $4.71 to $4.85, with an operating margin forecast to exceed 23% [9] - The outlook assumes no significant acquisitions or share repurchases, maintaining a disciplined capital expenditure strategy of 3.5% to 4% of revenue [9]

Core Insights - Cintas Corporation (CTAS) reported Q4 fiscal 2025 earnings of $1.09 per share, exceeding the Zacks Consensus Estimate of $1.07, with a 9% year-over-year increase despite rising operating costs [1][9] - Total revenues reached $2.67 billion, surpassing the consensus estimate of $2.63 billion, marking an 8% year-over-year growth driven by higher segmental revenues [2][9] - For fiscal 2025, net revenues were $10.34 billion, a 7.7% increase year over year, with adjusted earnings of $4.40 per share, up 16.1% year over year [2] Segment Performance - The Uniform Rental and Facility Services segment generated revenues of $2.03 billion, accounting for 76.1% of net sales, reflecting a 6.3% year-over-year increase [3] - The First Aid and Safety Services segment reported revenues of $324.4 million, representing 12.2% of net sales, up 16.8% year over year [4] - Revenues from All Other businesses totaled $312.6 million, making up 11.7% of net sales, with a 10.8% year-over-year increase [4] Financial Metrics - Cintas' cost of sales increased 6.9% year over year to $1.34 billion, representing 50.3% of net sales, while gross profit rose 9.1% to $1.33 billion, resulting in a gross margin of 49.7% [5] - Selling and administrative expenses totaled $728.5 million, a 9.1% increase from the previous year, representing 27.3% of net sales [6] - Operating income increased 9.1% year over year to $597.5 million, with an operating margin of 22.4% [6] Balance Sheet & Cash Flow - At the end of fiscal 2025, Cintas had cash and cash equivalents of $264 million, down from $342 million a year ago, with long-term debt increasing to approximately $2.42 billion [7] - The company generated net cash of $2.17 billion from operating activities, a 4.7% increase year over year, while capital expenditures totaled $408.9 million, down 0.1% [8] - Free cash flow increased 5.9% year over year to $1.76 billion [8] Future Guidance - For fiscal 2026, Cintas expects revenues between $11 billion and $11.15 billion, with an EPS estimate of $4.71 to $4.85, indicating a midpoint of $4.78, which is below the consensus estimate of $4.87 [11] - The company anticipates net interest expenses of approximately $98 million, down from $101.1 million in fiscal 2025, with an effective tax rate expected at 20% [12]

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Financial Data and Key Metrics Changes - In Q4 2025, total revenue grew by 8% to $2.67 billion, with an organic growth rate of 9% [6][9] - For the full year, fiscal 2025 revenue reached a record $10.34 billion, an increase of 7.7%, with organic growth at 8% [9] - Gross margin for Q4 increased from 49.2% to 49.7%, while operating income as a percentage of revenue rose by 9.1% [8] - Diluted EPS for Q4 increased by 9% to $1.09, and for the full year, diluted EPS grew by 16.1% to $4.40 [9] Business Line Data and Key Metrics Changes - Organic growth rates for business segments in Q4 were 7.2% for Uniform Rental and Facility Services, 18.5% for First Aid and Safety Services, and 12.1% for Fire Protection Services [7][14] - Uniform Direct sales grew by 9% in Q4, reflecting strong demand across all products and services [14] Market Data and Key Metrics Changes - The company reported strong retention rates and consistent pricing levels, indicating stability in customer relationships despite market uncertainties [31][32] - The customer base is diversified, with 70% in services and 30% in goods production, showing resilience across sectors [43] Company Strategy and Development Direction - The company emphasizes balanced capital allocation, investing in technology, infrastructure, and acquisitions to support growth [10][24] - Strategic investments include technology enhancements and management training to improve operational efficiency and customer service [8][10] - The company aims to maintain a growth trajectory with revenue expectations for fiscal 2026 in the range of $11 billion to $11.15 billion, reflecting a growth rate of 6.4% to 7.8% [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating uncertainties in the marketplace, citing a strong value proposition that resonates across economic cycles [31][32] - The outlook for fiscal 2026 includes expectations for diluted EPS growth of 7% to 10.2%, indicating continued operational strength [11][42] Other Important Information - The company was recognized in the Fortune 500 for the ninth consecutive year, highlighting its status among successful companies [12] - Significant capital was returned to shareholders through dividends and share repurchases, with a commitment to increasing dividends for 41 consecutive years [24] Q&A Session Summary Question: Overall selling environment and client sentiment - Management noted no significant changes in customer behavior, with strong new business and retention rates despite market uncertainties [30][31] Question: Factors affecting operating margin expansion - Management indicated that while Q4 was strong, comparisons to the previous year were tougher, but they remain confident in their margin targets [34][36] Question: Cadence of 2026 outlook - The revenue guidance for fiscal 2026 reflects a growth rate similar to fiscal 2025, with expectations for continued margin expansion [40][42] Question: Cost trajectory and tariffs impact - Management highlighted their ability to navigate cost challenges through efficient operations and strategic sourcing, with no significant impact expected from tariffs [73][75] Question: M&A prospects and pipeline - The company remains active in pursuing M&A opportunities, focusing on acquiring quality businesses that enhance their service offerings [82][84] Question: End market exposure and performance - Management reported no significant weaknesses in their broad customer base, with services sectors performing well [115][116] Question: First Aid business performance - The First Aid segment is experiencing strong growth, particularly in recurring revenue products, with expectations for continued success [102][109]

Core Insights - Cintas reported revenue of $2.67 billion for the quarter ended May 2025, reflecting an 8% increase year-over-year and a surprise of +1.57% over the Zacks Consensus Estimate of $2.63 billion [1] - Earnings per share (EPS) for the quarter was $1.09, up from $1.00 in the same quarter last year, with an EPS surprise of +1.87% compared to the consensus estimate of $1.07 [1] Revenue Breakdown - Revenue from Uniform Rental and Facility Services was $2.03 billion, slightly above the average estimate of $2.02 billion, representing a +6.3% year-over-year change [4] - Revenue from Other services reached $636.97 million, exceeding the estimated $602.77 million, marking a +13.8% increase compared to the previous year [4] - Revenue from All Other services was $312.58 million, surpassing the average estimate of $296.5 million, with a +10.8% year-over-year change [4] - Revenue from First Aid and Safety Services was $324.4 million, above the estimated $307.63 million, reflecting a +16.8% increase year-over-year [4] Operating Income Insights - Operating income for Uniform Rental and Facility Services was $465.11 million, slightly below the estimated $472.32 million [4] - Operating income for First Aid and Safety Services was $76.68 million, exceeding the average estimate of $71.85 million [4] - Operating income for All Other services was $55.66 million, above the estimated $52.88 million [4] Stock Performance - Cintas shares have returned -2.9% over the past month, contrasting with the Zacks S&P 500 composite's +4.2% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Financial Data and Key Metrics Changes - In Q4 2025, total revenue grew 8% to $2.67 billion, with an organic growth rate of 9% [5][7] - For the full year, fiscal 2025 revenue reached a record $10.34 billion, an increase of 7.7%, with organic growth of 8% [7][9] - Gross margin for Q4 increased from 49.2% to 49.7%, while diluted EPS rose 9% to $1.09 [6][7] Business Line Data and Key Metrics Changes - Uniform Rental and Facility Services segment saw organic growth of 7.2%, while First Aid and Safety segment grew by 18.5% [5][12] - Fire Protection Services grew by 12.1%, and Uniform Direct sales increased by 9% [12] - Gross margin percentages were 49% for Uniform Rental and Facility Services, 56.8% for First Aid and Safety Services, and 49.3% for Fire Protection Services [14] Market Data and Key Metrics Changes - The company reported strong retention rates and consistent pricing levels across its customer base [12][29] - The customer base is diversified, with 70% in services and 30% in goods producing sectors, showing resilience despite economic uncertainties [41][112] Company Strategy and Development Direction - The company emphasizes balanced capital allocation, investing in technology, infrastructure, and acquisitions to support growth [8][21] - The focus remains on enhancing customer experiences and expanding service offerings across various verticals, including healthcare and government [94][96] - The company aims to leverage its strong supply chain and operational efficiencies to navigate cost challenges and maintain competitive pricing [72][86] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating economic uncertainties and highlighted the strength of the company's value proposition [29][40] - The outlook for fiscal 2026 anticipates revenue growth of 6.4% to 7.8% and EPS growth of 7% to 10.2% [9][10] - The company remains focused on long-term growth and value creation through continuous improvement and strategic investments [25][40] Other Important Information - The company was recognized in the Fortune 500 for the ninth consecutive year, reflecting its strong market position [11] - Significant capital was returned to shareholders through dividends and share repurchases, with a commitment to increasing dividends for 41 consecutive years [22] Q&A Session Summary Question: Overall selling environment and client sentiment - Management noted no significant changes in customer behavior, with strong new business and retention rates [28][29] Question: Factors affecting operating margin expansion - Management indicated that while operating margins are strong, tougher year-over-year comparisons are influencing growth rates [32][33] Question: 2026 outlook cadence and revenue growth - The company expects revenue growth to be consistent with previous years, with a focus on maintaining strong performance [39][40] Question: Cost changes and tariff impacts - Management highlighted their ability to navigate cost challenges through effective supply chain management and operational efficiencies [70][72] Question: M&A prospects and pipeline - The company remains active in pursuing M&A opportunities, focusing on acquiring strong businesses that enhance their service offerings [79][81] Question: Pricing strategy and competitive landscape - Management confirmed that pricing strategies are aligned with historical levels, and they are well-positioned to manage competitive pressures [86][89] Question: Updates on strategic verticals - The company is optimistic about growth in key verticals like healthcare and government, leveraging industry-specific knowledge to drive innovation [94][96] Question: First Aid business performance - The First Aid segment is experiencing strong demand, particularly for recurring revenue products, although some training spikes are not expected to continue [98][100]

分组1 - Cintas reported quarterly earnings of $1.09 per share, exceeding the Zacks Consensus Estimate of $1.07 per share, and up from $1 per share a year ago, representing an earnings surprise of +1.87% [1] - The company achieved revenues of $2.67 billion for the quarter ended May 2025, surpassing the Zacks Consensus Estimate by 1.57%, and an increase from $2.47 billion year-over-year [2] - Cintas has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] 分组2 - Cintas shares have increased approximately 17.1% year-to-date, outperforming the S&P 500's gain of 6.5% [3] - The company's earnings outlook is crucial for investors, with current consensus EPS estimates of $1.20 for the next quarter and $4.87 for the current fiscal year [7] - The Zacks Industry Rank places the Business - Services sector in the top 28% of over 250 Zacks industries, indicating a favorable environment for Cintas [8]

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) Cintas achieved strong fiscal 2025 Q4 and full-year growth, marked by increased revenue, EPS, and significant capital returns Q4 Fiscal 2025 Performance vs. Q4 Fiscal 2024 | Metric | Q4 FY2025 | Q4 FY2024 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $2.67 billion | $2.47 billion | 8.0% | | Organic Revenue Growth | 9.0% | N/A | N/A | | Gross Margin | 49.7% | 49.2% | +50 bps | | Operating Income | $597.5 million | $547.6 million | 9.1% | | Net Income | $448.3 million | $414.3 million | 8.2% | | Diluted EPS | $1.09 | $1.00 | 9.0% | Full Year Fiscal 2025 Performance vs. Full Year Fiscal 2024 | Metric | FY2025 | FY2024 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $10.34 billion | $9.60 billion | 7.7% | | Organic Revenue Growth | 8.0% | N/A | N/A | | Operating Income | $2.36 billion | $2.07 billion | 14.1% | | Operating Margin | 22.8% | 21.6% | +120 bps | | Diluted EPS | $4.40 | $3.79 | 16.1% | - In fiscal 2025, Cintas demonstrated a strong commitment to shareholder returns and strategic growth[7](index=7&type=chunk) - **Capital Expenditures:** Spent **$408.9 million** (4.0% of revenue) - **Acquisitions:** Acquired businesses for a total of **$232.9 million** - **Dividends:** Paid **$611.6 million** in cash dividends, a **15.2% increase** over fiscal 2024 - **Share Buybacks:** Purchased **3.8 million shares** for **$679.3 million** at an average price of **$179.07 per share** [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Todd M. Schneider attributed strong results to strategic investments and operational excellence, with a future focus on customer service and sustainable growth - The CEO emphasized that strong organic revenue growth and record-high gross and operating margins were achieved through strategic investments and the dedication of employee-partners[8](index=8&type=chunk) - The company's focus for fiscal 2026 is on providing unmatched customer service, leveraging its unique culture, and delivering sustainable long-term results[9](index=9&type=chunk) [Fiscal 2026 Guidance](index=2&type=section&id=Fiscal%202026%20Guidance) Cintas projects fiscal 2026 revenue between $11.00 billion and $11.15 billion, with diluted EPS of $4.71 to $4.85, based on specific assumptions Fiscal 2026 Full-Year Guidance | Metric | Guidance Range | | :--- | :--- | | Revenue | $11.00 billion to $11.15 billion | | Diluted EPS | $4.71 to $4.85 | - Key assumptions for the fiscal 2026 guidance include[12](index=12&type=chunk) - Same number of workdays as fiscal 2025 - No future acquisitions - Constant foreign currency exchange rates - Net interest expense of approximately **$98.0 million** - Effective tax rate of **20.0%** - No future share buybacks or significant economic disruptions [Financial Statements](index=4&type=section&id=Financial%20Statements) The consolidated financial statements detail the company's strong revenue and profit growth, increased assets and equity, and robust operating cash flow allocation [Consolidated Condensed Statements of Income](index=4&type=section&id=Consolidated%20Condensed%20Statements%20of%20Income) Fiscal 2025 saw total revenue increase by 7.7% to $10.34 billion, with operating income up 14.1% to $2.36 billion, reflecting strong profit growth Q4 Income Statement Highlights (in thousands) | Account | Q4 FY2025 | Q4 FY2024 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $2,667,652 | $2,470,935 | 8.0% | | Operating Income | $597,452 | $547,594 | 9.1% | | Net Income | $448,256 | $414,315 | 8.2% | | Diluted EPS | $1.09 | $1.00 | 9.0% | Full Year Income Statement Highlights (in thousands) | Account | FY2025 | FY2024 | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $10,340,181 | $9,596,615 | 7.7% | | Operating Income | $2,359,726 | $2,068,633 | 14.1% | | Net Income | $1,812,281 | $1,571,592 | 15.3% | | Diluted EPS | $4.40 | $3.79 | 16.1% | [Consolidated Condensed Balance Sheets](index=9&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) As of May 31, 2025, Cintas's balance sheet strengthened with total assets increasing to $9.83 billion and shareholders' equity growing to $4.68 billion Balance Sheet Summary (in thousands) | Account | May 31, 2025 | May 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $3,436,169 | $3,185,207 | | Total Assets | $9,825,241 | $9,168,817 | | Total Current Liabilities | $1,644,502 | $1,828,519 | | Total Liabilities | $5,140,760 | $4,852,445 | | Total Shareholders' Equity | $4,684,481 | $4,316,372 | [Consolidated Condensed Statements of Cash Flows](index=10&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) Cintas generated $2.17 billion in operating cash flow for fiscal 2025, primarily used for capital expenditures, acquisitions, share repurchases, and dividends Cash Flow Summary for Fiscal Year 2025 (in thousands) | Activity | FY2025 | FY2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $2,165,905 | $2,068,500 | | Net Cash used in Investing Activities | ($623,638) | ($603,334) | | Net Cash used in Financing Activities | ($1,619,011) | ($1,247,506) | | Net (Decrease) Increase in Cash | ($78,042) | $217,866 | | Cash at End of Year | $263,973 | $342,015 | [Supplemental and Segment Data](index=6&type=section&id=Supplemental%20and%20Segment%20Data) This section provides deeper insights into Cintas's performance, highlighting improved margins, strong non-GAAP free cash flow, and robust segment-level growth [Margin Analysis](index=6&type=section&id=Margin%20Analysis) Cintas demonstrated improved profitability in fiscal 2025, with total gross margin expanding to 50.0% and net income margin increasing to 17.5% Margin Performance | Margin Type | FY2025 | FY2024 | Change (bps) | | :--- | :--- | :--- | :--- | | Uniform rental gross margin | 49.3% | 48.2% | +110 bps | | Other gross margin | 52.4% | 51.0% | +140 bps | | Total gross margin | 50.0% | 48.8% | +120 bps | | Net income margin | 17.5% | 16.4% | +110 bps | [Non-GAAP Financial Measures Reconciliation](index=6&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) The company reconciled GAAP to non-GAAP measures, showing fiscal 2025 free cash flow increased to $1.76 billion and full-year organic revenue growth was 8.0% - Free cash flow for the twelve months ended May 31, 2025, was **$1.757 billion**, an increase from **$1.659 billion** in the prior year[24](index=24&type=chunk) Organic Revenue Growth Reconciliation | Period | Reported Revenue Growth (%) | Workday Adjustment (%) | Organic Revenue Growth (%) | | :--- | :--- | :--- | :--- | | Q4 FY2025 | 8.0% | +1.6% | 9.0% | | Full Year FY2025 | 7.7% | +0.9% | 8.0% | [Segment Performance](index=8&type=section&id=Segment%20Performance) For fiscal 2025, the Uniform Rental and Facility Services segment saw revenue grow to $7.98 billion, while First Aid and Safety Services showed robust growth to $1.22 billion Full Year Segment Performance (in thousands) | Segment | Revenue FY2025 | Revenue FY2024 | % Change | Operating Income FY2025 | Operating Income FY2024 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Uniform Rental & Facility Services | $7,976,073 | $7,465,199 | 6.8% | $1,873,390 | $1,659,501 | 12.9% | | First Aid & Safety Services | $1,218,090 | $1,067,334 | 14.1% | $294,728 | $239,153 | 23.2% | | All Other | $1,146,018 | $1,064,082 | 7.7% | $191,608 | $169,979 | 12.7% |

Stock Performance & Earnings Growth - Cintas' shares experienced an explosion in 2023 and 2024 due to consistent earnings growth [4] - Cintas' year-to-date performance is up 179%, outperforming the S&P 500 [5][13] - Netflix's stock performance lagged behind Cintas over the past five years, with a 156% increase compared to Cintas' 206% [14][15] - Netflix's 2025 earnings are expected to be up 281%, with 2026 showing a 219% increase [10][11] Company Specifics - Cintas is a uniform company that has consistently met or exceeded earnings expectations [3][4] - Cintas acquired Unif, a competitor in the uniform sector, which is expected to further strengthen its market position [5] - Netflix was previously part of the "Fang Man" group but was later excluded from the "Magnificent Seven" [1][2] Valuation & Market Outlook - Cintas' PE ratio is 443%, considered stretched despite double-digit earnings growth [7] - Netflix's PE ratio is 49 times, which is considered expensive but justified by its growth trajectory [11] - The analysis encourages investors to look beyond the major tech stocks ("Fang Man", "Magnificent Seven") to identify well-performing companies like Cintas [16]

Core Viewpoint - Cintas Corporation (CTAS) is set to release its fourth-quarter fiscal 2025 results on July 17, with expectations of strong revenue growth and margin improvement despite rising costs [1][6]. Group 1: Revenue Expectations - The Uniform Rental and Facility Services segment is projected to generate revenues of $2.02 billion, reflecting a 5.7% increase year-over-year [2]. - The First Aid and Safety Services segment is expected to achieve revenues of $313.1 million, indicating a 12.8% increase from the previous year [3]. - Overall, the Zacks Consensus Estimate for total revenues is $2.63 billion, which represents a 6.3% increase compared to the same quarter last year [6]. Group 2: Margin and Cost Analysis - Cintas is anticipated to show an improvement in operating margin by 50 basis points from the prior year, driven by operational execution and pricing strategies [5]. - Selling, general and administrative (SG&A) expenses are expected to rise to $714.4 million, marking a 7% increase from the year-ago level, which may impact overall profitability [7]. Group 3: Acquisitions Impact - The acquisitions of Paris Uniform Services and SITEX are expected to contribute positively to revenues and enhance market presence in key regions [4][9].