Cintas(US:CTAS)2026-01-07 19:19Revenue Growth - Total revenue increased by 9.3% to $2,800.0 million for the three months ended November 30, 2025, compared to $2,561.8 million for the same period in 2024[72] - Organic revenue growth rate was 8.6%, with acquisitions contributing an additional 0.7% to revenue growth[73] - Uniform Rental and Facility Services segment revenue rose by 8.3% to $2,155.4 million, with an organic growth rate of 7.8%[74] - Other revenue, including First Aid and Safety Services, increased by 12.8% to $644.6 million, with an organic growth rate of 11.6%[75] - Total revenue for the six months ended November 30, 2025, increased by 9.0% to $5,518.1 million, with organic growth at 8.2%[90] - Uniform Rental and Facility Services segment revenue for the six months was $4,246.5 million, an increase of 8.2%[91] - First Aid and Safety Services segment revenue increased by 14.3% to $342.2 million, with an organic growth rate of 14.1%[86] - Cintas reported net sales of $5,238,743,000 for the six months ended November 30, 2025, an increase of 9.1% compared to $4,800,309,000 for the same period in 2024[125] Income and Earnings - Operating income was $655.7 million, representing 23.4% of revenue, an increase from 23.1% in the prior year[79] - Net income for the three months ended November 30, 2025, was $495.3 million, a 10.4% increase compared to the same period in 2024[82] - Diluted earnings per share increased by 11.0% to $1.21 for the three months ended November 30, 2025[82] - Operating income was $1,273.6 million, or 23.1% of revenue, for the six months ended November 30, 2025, an increase from $1,152.4 million, or 22.8% of revenue, in the prior year[96] - Net income increased by $86.0 million, or 9.5%, for the six months ended November 30, 2025, with diluted earnings per share rising to $2.41, a 10.0% increase compared to the same period in 2024[99] - Operating income for the same period was $1,181,458,000, up 11.5% from $1,059,568,000 year-over-year[125] - Net income increased to $908,692,000, representing a 10.2% rise from $824,734,000 in the prior year[125] Expenses and Cash Flow - Selling and administrative expenses increased by $129.1 million, or 9.4%, for the six months ended November 30, 2025, compared to the same period in 2024, representing 27.3% of revenue[95] - Net cash provided by operating activities was $945.7 million for the six months ended November 30, 2025, compared to $905.1 million in the prior year, primarily due to an increase in net income[111] - Capital expenditures were $208.2 million for the six months ended November 30, 2025, compared to $194.3 million in the same period of 2024[112] - Net cash used in financing activities improved to $699.0 million for the six months ended November 30, 2025, from $773.9 million in the prior year[113] Debt and Liquidity - The company has access to $2.0 billion of debt capacity from its amended revolving credit facility, ensuring sufficient liquidity for at least the next 12 months[110] - As of November 30, 2025, Cintas had total outstanding senior notes amounting to $2,436,600,000, which are unconditionally guaranteed by Cintas Corporation and its subsidiaries[123] - The company had $550,750,000 in commercial paper outstanding with a weighted average interest rate of 4.09% as of November 30, 2025[118] - Cintas maintained compliance with all debt covenants during the reported periods, which include maintaining certain debt to EBITDA and interest coverage ratios[119] - The company has a revolving credit facility with a capacity of $2.0 billion, with no borrowings as of November 30, 2025[120] - The total debt due after one year was reported at $2,426,529,000 as of November 30, 2025[118] Credit Ratings and Risks - Cintas' credit ratings as of November 30, 2025, were A-2 for commercial paper and A for long-term debt from Standard & Poor's, and P-2 and A3 from Moody's Investors Service, respectively[120] - Cintas is exposed to foreign currency risk primarily related to the Canadian dollar due to its foreign operations[133] Stock Repurchase - Total repurchase of Cintas common stock amounted to 901,667 shares for the six months ended November 30, 2025, at an average price of $195.10 per share[115]