Unifirst Q1 Earnings Call Highlights

Core Financial Performance - UniFirst reported Q1 revenue of $621.3 million, an increase of 2.7% from $604.9 million a year earlier [3][7] - Operating income declined to $45.3 million from $55.5 million, and net income fell to $34.4 million, or $1.89 per diluted share, compared to $43.1 million, or $2.31 per diluted share, in the prior-year period [3][7] - Adjusted EBITDA was $82.8 million, down from $94.0 million last year [3] Segment Performance - In the Uniform and Facility Service Solutions segment, revenue increased to $565.9 million from $552.8 million, with organic growth of 2.4% driven by strong new account sales and improved customer retention [1] - The segment's operating margin declined to 7.4% from 8.8% year-over-year, with Adjusted EBITDA margin at 13.6% compared to 15.4% in the prior-year quarter [8] - First Aid and Safety Solutions revenue rose 15.3% to $30.2 million, attributed to investments in the First Aid van business and small acquisitions [9] Investment and Strategic Initiatives - The company is investing in sales, service, and digital initiatives, including a multi-year ERP rollout, to drive mid-single-digit organic growth and higher adjusted EBITDA margins [6][12] - Management highlighted the importance of building a stronger sales organization and improving account management to enhance customer retention and sales [12][14] - Capital expenditures for the quarter were $38.9 million, with stock repurchases totaling approximately $32 million [19] Guidance and Future Outlook - UniFirst reaffirmed fiscal 2026 guidance for revenue between $2.475 billion and $2.495 billion, with diluted earnings per share projected between $6.58 and $6.98 [20] - Management expects steady improvement in profitability through 2027 and 2028, with potential inflection points from technology projects [15][16] - The company is currently evaluating an unsolicited non-binding proposal from Cintas with independent advisors [22]