UniFirst Announces Financial Results for the First Quarter of Fiscal 2026

Core Insights - UniFirst Corporation reported a first quarter revenue increase of 2.7% to $621.3 million compared to $604.9 million in the same period last year, driven by organic growth in its core Uniform & Facility Service Solutions segment [6][22] - The company experienced a decline in operating margin to 7.3% from 9.2% in the prior year, attributed to planned investments in growth and digital transformation initiatives [6][22] - Net income decreased to $34.4 million from $43.1 million year-over-year, with diluted earnings per share dropping to $1.89 from $2.31 [6][22] Financial Performance - Consolidated revenues for the first quarter of fiscal 2026 were $621.3 million, a 2.7% increase from $604.9 million in fiscal 2025 [6][22] - Operating margin fell to 7.3% from 9.2% in the previous year, reflecting the impact of growth investments [6][22] - Net income was reported at $34.4 million, down from $43.1 million, with diluted earnings per share at $1.89 compared to $2.31 [6][22] Segment Performance - The Uniform & Facility Service Solutions segment generated revenues of $565.9 million, reflecting a 2.4% organic growth [7][22] - The First Aid & Safety Solutions segment saw a revenue increase of 15.3% to $30.2 million, while the Other segment's revenue decreased by 2.9% to $25.2 million [7][22] - Operating income for the Uniform & Facility Service Solutions segment was $41.8 million, with an operating margin of 7.4% [22][29] Capital Allocation and Shareholder Returns - The company repurchased $31.7 million of its common stock in the first quarter and declared a quarterly cash dividend of $0.365 per share, marking the eighth consecutive year of dividend growth [3][14] - As of November 29, 2025, UniFirst had cash and cash equivalents of $129.5 million and no long-term debt [14][20] Financial Outlook - UniFirst reaffirmed its full-year fiscal 2026 guidance, projecting consolidated revenues between $2.475 billion and $2.495 billion and fully diluted earnings per share between $6.58 and $6.98 [9][10]