Aramark(ARMK) - 2025 Q2 - Quarterly Results

Revenue Growth - Revenue increased by 2% year-over-year to $4.3 billion, with organic revenue growth of 3%[7] - FSS International revenue grew by 6% year-over-year, driven by strong performance in the U.K., Spain, Chile, and Canada[8] - Revenue for the three months ended March 28, 2025, was$ 4,279,298, an increase from $4,199,913 for the same period in 2024, representing a growth of approximately 1.9%[46] - Total revenue for the three months ended March 28, 2025, was reported at$ 4,279,298 thousand, reflecting a 1.9% increase compared to $4,199,913 thousand for the same period in 2024[54] Operating Performance - Operating income rose by 9% to$ 174 million, and adjusted operating income (AOI) grew by 11% to $205 million, reflecting improved operational efficiency[9] - Operating income for the six months ended March 28, 2025, was$ 391,439, compared to $326,036 for the same period in 2024, reflecting an increase of about 20.0%[48] - Adjusted operating income for the six months ended March 28, 2025, was$ 462,387 thousand, up from $418,005 thousand in the prior year, indicating a growth of 10.6%[56] - The operating income margin for the three months ended March 28, 2025, was 4.1%, compared to 3.8% for the same period in 2024, showing an improvement of 0.3 percentage points[54] Earnings and Profitability - GAAP EPS increased by 15% to$ 0.23, while adjusted EPS rose by 22% to $0.34[2] - Basic earnings per share for the six months ended March 28, 2025, was$ 0.63, compared to $0.31 for the same period in 2024, representing a significant increase of 103.2%[48] - Net income attributable to Aramark stockholders for the three months ended March 28, 2025, was$ 61,854, up from $53,449 in the same period of 2024, indicating a growth of approximately 15.0%[46] - Adjusted net income for the three months ended March 28, 2025, was$ 91.794 million, up 19.8% from $76.599 million in the prior year[58] - The company experienced a significant increase in adjusted net income (constant currency) to$ 93.846 million for the three months ended March 28, 2025, compared to $76.599 million in the prior year, reflecting a growth of 22.5%[58] Cash Flow and Liquidity - Free cash flow for the second quarter was$ 141 million, with net cash provided by operating activities at $256 million[12] - Cash and cash equivalents increased to$ 920,455 as of March 28, 2025, from $672,483 as of September 27, 2024, reflecting a growth of about 36.8%[49] - Cash and cash equivalents at the end of the period increased to$ 974,006 thousand from $414,141 thousand year-over-year, marking a significant increase of 134.0%[52] - The company reported a net cash used in operating activities of$ (331,204) thousand for the six months ended March 28, 2025, an improvement from $(435,797) thousand in the same period last year[52] Debt and Financial Position - The company extended$ 1.8 billion of debt maturities to 2030 and beyond, maintaining comparable interest rates[5] - The company’s total long-term borrowings increased to $6.533 billion as of March 28, 2025, from$ 5.921 billion as of March 29, 2024[60] - Net debt to covenant adjusted EBITDA ratio improved to 3.9 for the twelve months ended March 28, 2025, down from 4.2 in the previous year[60] Future Outlook - The company anticipates organic revenue growth of 9.5% for fiscal 2025, with adjusted operating income growth of 18% and adjusted EPS growth of 28%[20] - The company expects to achieve net new business growth of 4% to 5% of prior year revenue in fiscal 2025[15] - The company anticipates continued growth and improvement in operational performance, despite potential risks from economic conditions and geopolitical events[42]