Financial Data and Key Metrics Changes - Consolidated revenues for Q3 2025 were $610.8 million, an increase of 1.2% from $603.3 million in Q3 2024 [6][12] - Consolidated operating income decreased to $48.2 million from $48.5 million, a decline of 0.6% [12] - Net income increased to $39.7 million or $2.13 per diluted share, up from $38.1 million or $2.03 per diluted share [12] - Consolidated adjusted EBITDA increased to $85.8 million from $84.8 million, reflecting a 1.2% growth [12] - Effective tax rate increased to 25.7% compared to 22.9% in the prior year [12] Business Line Data and Key Metrics Changes - Core Laundry operations revenues were $533.2 million, an increase of 0.9% from the previous year [13] - Core Laundry organic growth was 1.1%, adjusting for acquisitions and currency fluctuations [14] - Specialty Garments segment revenues increased to $47.8 million from $47.6 million, a growth of 0.5% [15] - First Aid segment revenues increased to $29.8 million from $27.3 million, reflecting a 9% growth [17] Market Data and Key Metrics Changes - Customer retention improved compared to Q3 2024, although there was some softness in customer wearer levels [8] - Direct sales revenues were lower compared to the same quarter last year, impacting overall growth [9][66] Company Strategy and Development Direction - The company is focused on enhancing customer experience and operational execution through investments in people, technology, and infrastructure [5][10] - The ongoing ERP project is expected to drive long-term benefits, with current costs being capitalized rather than expensed [41][42] - The company aims to improve strategic pricing, procurement sourcing, and inventory management [10] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious mood among existing customers regarding investments, particularly in manufacturing sectors [21] - The pricing environment remains challenging, with potential future impacts from tariffs on vendor costs [24][45] - The company maintains its annual revenue guidance between $2.422 billion and $2.432 billion, while increasing diluted earnings per share guidance to $7.6 to $8 [18] Other Important Information - The company incurred approximately $5.7 million in advisory and legal costs during the quarter, with some related to prior strategic discussions [17][58] - Cash, cash equivalents, and short-term investments totaled $211.9 million, with no long-term debt [17] Q&A Session Summary Question: Can you unpack organic growth further? - Management characterized the existing customer base as cautious, with some targeted reductions in employment levels impacting growth [21][22] Question: Can you provide insight into pricing dynamics? - Management noted a fluid situation regarding pricing, with companies recovering from high inflation and potential tariff impacts [24][25] Question: How is the new sales environment today? - Management indicated that new sales have shown incremental positive momentum compared to six months ago, but not dramatically different [31] Question: What is the status of key initiatives and cost reductions? - Key initiative costs are primarily related to the ongoing ERP implementation, which is progressing well [40][41] Question: What impact are tariffs expected to have on costs? - Management explained that tariffs could impact garment sourcing costs, but the situation remains fluid [45][47] Question: How are labor costs currently? - Labor costs are stable, with improvements in execution and efficiency noted [55] Question: Can you clarify the strategic advisory and legal expenses? - The costs were related to prior strategic discussions and an ongoing legal matter, with an increased reserve built for the latter [58]

[Financial Performance Summary](index=1&type=section&id=Financial%20Performance%20Summary) [Q3 2025 Financial Highlights](index=1&type=section&id=Q3%202025%20Financial%20Highlights) UniFirst's Q3 2025 results showed a 1.2% revenue increase and 4.9% diluted EPS growth, supported by a property sale gain and reduced Key Initiative costs | Financial Metric | Q3 2025 | Q3 2024 | Change | | :--- | :--- | :--- | :--- | | **Consolidated Revenues** | $610.8M | $603.3M | +1.2% | | **Operating Income** | $48.2M | $48.5M | -0.6% | | **Net Income** | $39.7M | $38.1M | +4.3% | | **Diluted EPS** | $2.13 | $2.03 | +4.9% | | **Adjusted EBITDA** | $85.8M | $84.8M | +1.2% | - Net income and diluted EPS for Q3 2025 were positively affected by a **$2.8 million** gain on the sale of a non-operating property[1](index=1&type=chunk) - Costs directly attributable to the company's CRM and ERP projects (Key Initiatives) were **$1.0 million** in Q3 2025, a significant reduction from **$3.9 million** in Q3 2024[1](index=1&type=chunk) [Segment Performance](index=1&type=section&id=Segment%20Performance) UniFirst's Core Laundry Operations grew 0.9%, First Aid led with 9.1% revenue growth, and Specialty Garments increased 0.5%, with Key Initiative costs impacting only Core Laundry margins [Core Laundry Operations](index=1&type=section&id=Core%20Laundry%20Operations) Core Laundry Operations revenue grew 0.9% with 1.1% organic growth, while operating margin slightly declined to 6.9% due to higher costs, though Adjusted EBITDA margin remained stable at 13.5% | Metric | Q3 2025 | Q3 2024 | | :--- | :--- | :--- | | **Revenues** | $533.2M | $528.5M | | **Revenue Growth** | 0.9% | - | | **Organic Growth** | 1.1% | - | | **Operating Margin** | 6.9% | 7.0% | | **Adjusted EBITDA Margin** | 13.5% | 13.5% | - Margins were negatively impacted by approximately **$5.7 million** in advisory and legal costs during the quarter[4](index=4&type=chunk)[6](index=6&type=chunk) - Costs related to Key Initiatives reduced the segment's operating and Adjusted EBITDA margins by **0.2%** in Q3 2025, compared to a **0.7%** reduction in Q3 2024[3](index=3&type=chunk)[16](index=16&type=chunk) [Specialty Garments & First Aid](index=7&type=section&id=Specialty%20Garments%20%26%20First%20Aid) Specialty Garments revenue grew 0.5% to $47.8 million with a margin decline, while First Aid revenue surged 9.1% to $29.8 million, significantly improving its operating margin to 1.8% | Segment | Metric | Q3 2025 | Q3 2024 | | :--- | :--- | :--- | :--- | | **Specialty Garments** | Revenue | $47.8M | $47.6M | | | Revenue Growth | 0.5% | - | | | Operating Margin | 22.8% | 23.9% | | **First Aid** | Revenue | $29.8M | $27.3M | | | Revenue Growth | 9.1% | - | | | Operating Margin | 1.8% | 0.5% | [Balance Sheet and Capital Allocation](index=2&type=section&id=Balance%20Sheet%20and%20Capital%20Allocation) As of May 31, 2025, UniFirst maintained strong liquidity with $211.9 million in cash, generated $196.5 million in operating cash flow, and repurchased $13.6 million in stock - Cash, cash equivalents, and short-term investments totaled **$211.9 million** as of May 31, 2025[11](index=11&type=chunk) - For the first nine months of fiscal 2025, cash flows from operating activities were **$196.5 million**[11](index=11&type=chunk)[19](index=19&type=chunk) - The company repurchased **$13.6 million** of its Common Stock in Q3 2025, with **$86.4 million** remaining under the current share repurchase authorization[11](index=11&type=chunk) [Fiscal 2025 Outlook](index=2&type=section&id=Financial%20Outlook) UniFirst reaffirmed its FY2025 revenue guidance while raising diluted EPS forecast, primarily due to a revised, lower estimate for Key Initiative costs | Guidance Metric | FY 2025 Range/Estimate | Previous Estimate | | :--- | :--- | :--- | | **Annual Revenue** | $2.422B - $2.432B | Maintained | | **Diluted EPS** | $7.60 - $8.00 | Raised | | **Key Initiative Costs** | ~$7.5M | Not specified (revised down) | - The fiscal year 2025 guidance reflects one less week of operations compared to fiscal year 2024[7](index=7&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) UniFirst's Q3 2025 revenue reached $610.8 million with $39.7 million net income, while nine-month revenues hit $1.82 billion, yielding $107.2 million net income Thirteen Weeks Ended (Q3) | (In thousands) | May 31, 2025 | May 25, 2024 | | :--- | :--- | :--- | | **Revenues** | $610,778 | $603,328 | | **Operating Income** | $48,177 | $48,450 | | **Net Income** | $39,680 | $38,057 | | **Diluted EPS (Common)** | $2.13 | $2.03 | Thirty-Nine Weeks Ended (YTD) | (In thousands) | May 31, 2025 | May 25, 2024 | | :--- | :--- | :--- | | **Revenues** | $1,817,905 | $1,787,564 | | **Operating Income** | $134,922 | $129,530 | | **Net Income** | $107,244 | $100,839 | | **Diluted EPS (Common)** | $5.76 | $5.38 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of May 31, 2025, total assets increased to $2.76 billion, total liabilities decreased to $585.2 million, and shareholders' equity grew to $2.17 billion | (In thousands) | May 31, 2025 | August 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $937,874 | $915,676 | | **Total Assets** | $2,760,027 | $2,696,413 | | **Total Current Liabilities** | $266,949 | $281,437 | | **Total Liabilities** | $585,236 | $587,902 | | **Total Shareholders' Equity** | $2,174,791 | $2,108,511 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended May 31, 2025, operating cash flow was $196.5 million, with $98.5 million used in investing and $48.3 million in financing, resulting in a $50.3 million net cash increase Nine Months Ended | (In thousands) | May 31, 2025 | May 25, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $196,481 | $193,012 | | **Net cash used in investing activities** | ($98,460) | ($124,293) | | **Net cash used in financing activities** | ($48,348) | ($36,126) | | **Net increase in cash and cash equivalents** | $50,339 | $32,803 | | **Cash and cash equivalents at end of period** | $211,910 | $112,246 | [Non-GAAP Financial Measures](index=9&type=section&id=Non-GAAP%20Financial%20Measures) [Reconciliation of GAAP to Non-GAAP Measures](index=9&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) The company's Q3 2025 consolidated Adjusted EBITDA was $85.8 million with a 14.1% margin, while the nine-month Adjusted EBITDA increased to $248.7 million with a 13.7% margin - The company defines Adjusted EBITDA as net income before interest, income taxes, depreciation and amortization, further adjusted for share-based compensation and other items to improve comparability[20](index=20&type=chunk) Adjusted EBITDA Reconciliation - Q3 | (In thousands) | Q3 2025 | Q3 2024 | | :--- | :--- | :--- | | **Net Income** | $39,680 | $38,057 | | **Adjustments** | $46,146 | $46,734 | | **Adjusted EBITDA** | $85,826 | $84,791 | | **Adjusted EBITDA Margin** | 14.1% | 14.1% | Adjusted EBITDA Reconciliation - YTD | (In thousands) | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | | **Net Income** | $107,244 | $100,839 | | **Adjustments** | $141,460 | $137,476 | | **Adjusted EBITDA** | $248,704 | $238,315 | | **Adjusted EBITDA Margin** | 13.7% | 13.3% |

Core Financial Highlights - UniFirst Corporation reported consolidated revenues of $610.8 million for Q3 2025, an increase of 1.2% compared to $603.3 million in Q3 2024 [7] - Operating income decreased slightly by 0.6% to $48.2 million, while net income increased by 4.3% to $39.7 million from $38.1 million in the prior year [7][13] - Diluted earnings per share rose to $2.13, up 4.9% from $2.03 in the previous year [7][13] Key Initiatives and Costs - The company incurred approximately $1.0 million in costs related to its Key Initiatives in Q3 2025, compared to $3.9 million in Q3 2024 [3][18] - These costs negatively impacted the operating and Adjusted EBITDA margins of Core Laundry Operations by 0.2% and 0.7%, respectively, for both fiscal years [3][18] Segment Performance - Core Laundry Operations generated revenues of $533.2 million, reflecting a 0.9% increase, while the Adjusted EBITDA margin remained unchanged at 13.5% [8][17] - Specialty Garments and First Aid segments also showed revenue growth of 0.5% and 9.1%, respectively, contributing to the overall revenue increase [17] Financial Outlook - The company maintains its annual revenue guidance between $2.422 billion and $2.432 billion, while raising its diluted earnings per share guidance to a range of $7.60 to $8.00 [5] - The updated guidance reflects an assumption that Key Initiative costs will be approximately $7.5 million for fiscal 2025, revised from previous estimates [5] Balance Sheet and Cash Flow - As of May 31, 2025, cash, cash equivalents, and short-term investments totaled $211.9 million, up from $161.6 million at the end of the previous fiscal year [9][15] - Cash flows from operating activities for the first nine months of fiscal 2025 were $196.5 million, indicating strong operational performance [9][22]

UniFirst Corporation UNF will release earnings results for the third quarter, before the opening bell on Wednesday, July 2.Analysts expect the Wilmington, Massachusetts-based company to report quarterly earnings at $2.09 per share, down from $2.20 per share in the year-ago period. UniFirst projects to report quarterly revenue of $614.5 million, compared to $603.33 million a year earlier, according to data from Benzinga Pro.On April 8, Unifirst disclosed a new $100 million share repurchase authorization.UniF ...

Company Overview - UniFirst Corporation is a North American leader in the supply and servicing of uniform and workwear programs, facility service products, and first aid and safety supplies and services [3] - The company manages specialized garment programs for the cleanroom and nuclear industries and manufactures its own branded workwear and protective clothing at five ISO-9001-certified manufacturing facilities [3] - UniFirst operates more than 270 service locations and serves over 300,000 customer locations, outfitting more than 2 million workers daily with a workforce of over 16,000 employees [3] Upcoming Financial Reporting - UniFirst Corporation will report its Fiscal 2025 third quarter results on July 2, 2025, before the market opens [1] - A conference call will be held at 9:00 a.m. Eastern Time on the same day to discuss quarterly financial results, business highlights, and outlook [1] - The company may address questions regarding business and financial developments, earnings forecasts, and other relevant matters, potentially including undisclosed information [1]

Company Performance - Fanuc Corp. has returned approximately 3.1% since the beginning of the calendar year, outperforming the average loss of 2.6% in the Industrial Products sector [4] - The Zacks Consensus Estimate for Fanuc's full-year earnings has increased by 1.4% over the past quarter, indicating improved analyst sentiment and a stronger earnings outlook [3] - Fanuc Corp. is currently ranked 2 (Buy) in the Zacks Rank system, which emphasizes earnings estimates and revisions [3] Industry Comparison - Fanuc Corp. belongs to the Industrial Automation and Robotics industry, which is currently ranked 2 in the Zacks Industry Rank [5] - The average performance of stocks in the Industrial Automation and Robotics industry has seen a significant decline of 54.7% this year, highlighting Fanuc's relative strength [5] - In contrast, another stock in the Industrial Products sector, UniFirst, has achieved a year-to-date return of 10.4% and is also ranked 2 (Buy) [4][5] Sector Overview - The Industrial Products sector, which includes 190 individual stocks, is currently ranked 10 in the Zacks Sector Rank [2] - The Uniform and Related industry, to which UniFirst belongs, is ranked 89 and has experienced a decline of 17.1% this year [6]

Core Insights - UniFirst Corporation has achieved significant safety milestones at its Owensboro Distribution and Fulfillment Center, receiving the OSHA VPP Star certification and the Governor's Safety and Health Award [1][3][4] Safety Achievements - The VPP Star certification is OSHA's highest recognition for workplace safety, awarded to organizations with exceptional safety practices [3] - The Governor's Safety and Health Award is given to workplaces that have exceeded 1,000,000 hours without a lost time incident, highlighting a strong safety culture [3][4] - This marks the fourth time UniFirst has received the Governor's Safety and Health Award, with previous recognitions in 2010, 2020, and 2022 [4] Commitment to Safety - The safety achievements are attributed to the efforts of the dedicated Team Partners at UniFirst, emphasizing teamwork and a strong safety culture [5][6] - The VPP certification process includes thorough evaluations and on-site audits by Kentucky OSHA experts, along with employee surveys to ensure a safety-first culture [5] - The facility has implemented ongoing bi-weekly plant audits and quarterly evaluations across 25 operational areas to maintain high safety standards [6] Expansion and Investment - UniFirst is also undertaking a 109,000-square-foot expansion project at the Owensboro Distribution Center, increasing its total footprint to nearly half a million square feet [7] - This expansion has received recognition and support from the Governor, reflecting the company's commitment to investing in its operations and workforce [7]

Core Insights - UniFirst Corporation will participate in the Baird 2025 Global Consumer, Technology & Services Conference on June 4, 2025, with a presentation scheduled for 9:40am Eastern Time [1] - The presentation will cover business highlights and recent trends affecting UniFirst [1] Company Overview - UniFirst Corporation is a North American leader in uniform and workwear supply and servicing, as well as facility service products and first aid supplies [2] - The company operates five ISO-9001-certified manufacturing facilities and manages specialized garment programs for cleanroom and nuclear industries [2] - UniFirst has over 270 service locations, serves more than 300,000 customer locations, and employs over 16,000 Team Partners, outfitting over 2 million workers daily [2]

Company Overview - UniFirst is part of the Industrial Products group, which consists of 190 companies and is currently ranked 7 in the Zacks Sector Rank [2] - The company has a Zacks Rank of 2 (Buy), indicating a favorable outlook based on earnings estimates and revisions [3] Performance Analysis - Over the past three months, the Zacks Consensus Estimate for UniFirst's full-year earnings has increased by 4.1%, reflecting improved analyst sentiment [4] - Year-to-date, UniFirst has achieved a return of approximately 7.3%, while the average return for the Industrial Products group has declined by about 5.5%, indicating that UniFirst is outperforming its sector [4] Industry Context - UniFirst belongs to the Uniform and Related industry, which includes only 2 stocks and is currently ranked 20 in the Zacks Industry Rank [6] - Stocks in the Uniform and Related industry have experienced an average loss of 18.4% year-to-date, further highlighting UniFirst's superior performance within this group [6] Comparative Analysis - Wartsila (WRTBY) is another stock in the Industrial Products sector that has outperformed, with a year-to-date return of 9.8% and a Zacks Rank of 2 (Buy) [5] - Wartsila is part of the Manufacturing - Electronics industry, which has a lower ranking (87) and has seen a year-to-date decline of 9.6% [6]

Company Performance - UniFirst (UNF) has gained approximately 1.1% year-to-date, outperforming the average loss of 13.5% in the Industrial Products sector [4] - The Zacks Consensus Estimate for UniFirst's full-year earnings has increased by 4.1% over the past quarter, indicating improved analyst sentiment and a more positive earnings outlook [3] - UniFirst is currently ranked 2 (Buy) in the Zacks Rank system, which emphasizes earnings estimates and revisions [3] Industry Context - UniFirst is part of the Uniform and Related industry, which consists of 2 companies and is currently ranked 11 in the Zacks Industry Rank [5] - Stocks in the Uniform and Related industry have experienced an average loss of 17.7% year-to-date, indicating that UniFirst is performing better than its immediate industry peers [5] - In contrast, Wartsila (WRTBY), another stock in the Industrial Products sector, has a year-to-date return of 9% and is also ranked 2 (Buy) [4][5] Sector Overview - The Industrial Products sector, which includes 192 individual stocks, is ranked 10 in the Zacks Sector Rank [2] - The Manufacturing - Electronics industry, to which Wartsila belongs, has seen a decline of 20.3% year-to-date and is ranked 83 [6]