Part I – Financial Information [Financial Statements (Unaudited)](index=3&type=section&id=Item%201%20%E2%80%93%20Financial%20Statements%20(unaudited)) The unaudited financial statements present the company's performance for the thirteen and thirty-nine weeks ended May 31, 2025, highlighting revenue and net income growth, increased total assets and shareholders' equity, and strong operating cash flow [Consolidated Statements of Income](index=3&type=section&id=Consolidated%20Statements%20of%20Income) For the third quarter of fiscal 2025, revenues increased by 1.2% to $610.8 million, while net income grew by 4.3% to $39.7 million compared to the same period last year, with year-to-date revenues rising 1.7% to $1.82 billion and net income increasing by 6.4% to $107.2 million Financial Performance Summary | Financial Metric | Thirteen Weeks Ended May 31, 2025 | Thirteen Weeks Ended May 25, 2024 | Thirty-Nine Weeks Ended May 31, 2025 | Thirty-Nine Weeks Ended May 25, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $610.8M | $603.3M | $1,817.9M | $1,787.6M | | **Operating Income** | $48.2M | $48.5M | $134.9M | $129.5M | | **Net Income** | $39.7M | $38.1M | $107.2M | $100.8M | | **Diluted EPS (Common Stock)** | $2.13 | $2.03 | $5.76 | $5.38 | [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of May 31, 2025, total assets increased to $2.76 billion from $2.70 billion at August 31, 2024, driven by a rise in cash and cash equivalents, while total liabilities remained stable and shareholders' equity grew to $2.17 billion Consolidated Balance Sheet Highlights | Balance Sheet Item | May 31, 2025 | August 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $937.9M | $915.7M | | **Total Assets** | $2,760.0M | $2,696.4M | | **Total Current Liabilities** | $266.9M | $281.4M | | **Total Liabilities** | $585.2M | $587.9M | | **Total Shareholders' Equity** | $2,174.8M | $2,108.5M | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the thirty-nine weeks ended May 31, 2025, the company generated $196.5 million in cash from operating activities, with cash used in investing activities primarily for capital expenditures and financing activities mainly for share repurchases and dividends, resulting in a net cash increase of $50.3 million Consolidated Cash Flow Summary | Cash Flow Activity (Thirty-Nine Weeks Ended) | May 31, 2025 | May 25, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $196.5M | $193.0M | | **Net cash used in investing activities** | ($98.5M) | ($124.3M) | | **Net cash used in financing activities** | ($48.3M) | ($36.1M) | | **Net increase in cash and cash equivalents** | $50.3M | $32.8M | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Key notes detail revenue disaggregation, commitments, debt facilities, and segment performance, highlighting Core Laundry Operations as the largest revenue source, a significant but not probable tax assessment in Mexico, and the company's credit facility and share repurchase program - Core Laundry Operations constituted **87.8% of total revenues** for the thirty-nine weeks ended May 31, 2025, followed by Specialty Garments (**7.6%**) and First Aid (**4.6%**)[35](index=35&type=chunk) - The company is challenging a tax assessment from Mexican authorities totaling over **$84.7 million**, though management believes a loss is neither probable nor remote[93](index=93&type=chunk) - As of May 31, 2025, the company had **no outstanding borrowings** under its credit facility and **$168.3 million available** for borrowing[103](index=103&type=chunk) - A new share repurchase program of up to **$100.0 million** was authorized on April 8, 2025, with **$86.4 million remained available** for repurchases as of May 31, 2025[116](index=116&type=chunk)[117](index=117&type=chunk) [Management's Discussion and Analysis (MD&A)](index=24&type=section&id=Item%202%20%E2%80%93%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 1.2% quarterly revenue growth primarily to organic growth in Core Laundry Operations, noting a slight decrease in operating margin due to higher healthcare claims and advisory costs, while liquidity remains strong, funding capital expenditures, share repurchases, and dividends [Results of Operations](index=26&type=section&id=Results%20of%20Operations) For Q3 2025, consolidated revenue grew 1.2% to $610.8 million, driven by increases in Core Laundry Operations and First Aid, with operating income nearly flat, while the 39-week period saw revenue growth of 1.7% to $1.82 billion and operating income increase of 4.2% to $134.9 million Quarterly Revenue by Segment | Revenue by Segment (Q3) | May 31, 2025 | May 25, 2024 | % Change | | :--- | :--- | :--- | :--- | | Core Laundry Operations | $533.2M | $528.5M | 0.9% | | Specialty Garments | $47.8M | $47.6M | 0.5% | | First Aid | $29.8M | $27.3M | 9.1% | | **Total** | **$610.8M** | **$603.3M** | **1.2%** | - Cost of revenues as a percentage of revenue decreased from **64.8% to 63.1%** in Q3 2025, primarily due to lower merchandise and production payroll costs[144](index=144&type=chunk) - Selling and administrative expenses increased by **10.5%** in Q3 2025, driven by higher healthcare claims and approximately **$5.7 million** in advisory and legal costs for strategic and employee matters[145](index=145&type=chunk) Year-to-Date Operating Income by Segment | Operating Income by Segment (YTD) | May 31, 2025 | May 25, 2024 | % Change | | :--- | :--- | :--- | :--- | | Core Laundry Operations | $104.0M | $98.1M | 6.1% | | Specialty Garments | $30.5M | $33.4M | (8.6)% | | First Aid | $0.4M | ($1.9M) | 119.7% | | **Total** | **$134.9M** | **$129.5M** | **4.2%** | [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity remains strong, with cash and equivalents increasing by $50.3 million to $211.9 million during the first thirty-nine weeks of fiscal 2025, driven by $196.5 million in operating cash flow, while major uses of cash included capital expenditures, share repurchases, and dividends Cash Flow Summary (Thirty-Nine Weeks Ended) | Cash Flow Summary (Thirty-Nine Weeks Ended) | May 31, 2025 | May 25, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $196.5M | $193.0M | | Net cash used in investing activities | ($98.5M) | ($124.3M) | | Net cash used in financing activities | ($48.3M) | ($36.1M) | - The increase in operating cash flow was primarily due to improved profitability and positive working capital changes, including better management of inventories and receivables[166](index=166&type=chunk)[167](index=167&type=chunk) - The increase in cash used for financing activities was driven by a **$9.6 million increase** in share repurchases compared to the prior year period[171](index=171&type=chunk) [Market Risk Disclosures](index=34&type=section&id=Item%203%20%E2%80%93%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to foreign currency exchange risk and interest rate risk, with approximately 7.1% of Q3 2025 revenues denominated in foreign currencies, and mitigates some currency risk using forward contracts while interest rate risk exists through potential borrowings under its variable-rate credit facility - Revenues denominated in foreign currencies represented approximately **7.1% of total consolidated revenues** for the thirteen weeks ended May 31, 2025[186](index=186&type=chunk) - The company has forward contracts to sell approximately **14.1 million CAD** through fiscal 2026 to manage exposure from a subsidiary's CAD-denominated sales, with **2.3 million CAD** notional value outstanding as of May 31, 2025[187](index=187&type=chunk)[188](index=188&type=chunk) [Controls and Procedures](index=35&type=section&id=Item%204%20%E2%80%93%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were not effective as of May 31, 2025, solely due to previously identified material weaknesses in IT general controls, with ongoing remediation efforts including redesigning IT processes, enhancing oversight, strengthening policies, and implementing a new Identity and Access Management system - The CEO and CFO concluded that disclosure controls and procedures were **not effective** as of the end of the period, solely due to material weaknesses in IT general controls identified in the fiscal 2024 Annual Report[192](index=192&type=chunk) - Ongoing remediation actions include: - Reassessing and redesigning IT 'manage change' and 'manage access' processes - Enhanced oversight from the new Business Processes, Risk and Controls group - Implementing an Identity and Access Management (IAM) system - Oversight from the new Chief Information and Technology Officer hired in Q1 2025[196](index=196&type=chunk) Part II – Other Information [Risk Factors](index=36&type=section&id=Item%201A%20%E2%80%93%20Risk%20Factors) The company highlights a risk related to U.S. and foreign trade policies, where new or increased tariffs on imported goods could materially and adversely impact the business if these costs cannot be mitigated - A key risk is that new or increased tariffs on imported goods by the U.S. and other countries could materially and adversely impact the business if the company is unable to mitigate the increased costs of raw materials or products[202](index=202&type=chunk) [Share Repurchases](index=36&type=section&id=Item%202%20%E2%80%93%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the third quarter of fiscal 2025, the company repurchased 75,973 shares of its Common Stock for approximately $13.6 million, and on April 8, 2025, the Board authorized a new $100.0 million share repurchase program, with $86.4 million remaining available as of May 31, 2025 Common Stock Repurchases | Period (2025) | Total Shares Purchased | Average Price Paid per Share | Approx. Value Remaining under Program | | :--- | :--- | :--- | :--- | | Mar 2 - Mar 29 | 0 | $— | $63.7M | | Mar 30 - Apr 26 | 24,000 | $173.65 | $95.8M | | Apr 27 - May 31 | 51,973 | $182.10 | $86.4M | | **Total for Q3** | **75,973** | **N/A** | **$86.4M** | - On April 8, 2025, the Board of Directors authorized a new share repurchase program for up to **$100.0 million** of its outstanding Common Stock, inclusive of amounts remaining under the prior program[116](index=116&type=chunk)[203](index=203&type=chunk)

Core Insights - The article does not provide specific insights or analysis regarding any companies or industries, focusing instead on disclosures and disclaimers related to investment positions and advice [1][2]. Group 1 - There is no stock, option, or similar derivative position held by the analyst in any mentioned companies, nor plans to initiate such positions in the next 72 hours [1]. - The article expresses personal opinions of the author and does not reflect the views of Seeking Alpha as a whole [2]. - Seeking Alpha clarifies that past performance is not indicative of future results and does not provide specific investment recommendations [2].

Company Performance - UniFirst reported quarterly earnings of $2.17 per share, exceeding the Zacks Consensus Estimate of $2.12 per share, but down from $2.19 per share a year ago, representing an earnings surprise of +2.36% [1] - The company posted revenues of $610.78 million for the quarter ended May 2025, missing the Zacks Consensus Estimate by 0.36%, compared to $603.33 million in the same quarter last year [2] - Over the last four quarters, UniFirst has surpassed consensus EPS estimates four times and topped consensus revenue estimates two times [2] Stock Performance - UniFirst shares have increased approximately 11.3% since the beginning of the year, outperforming the S&P 500's gain of 5.4% [3] - The current consensus EPS estimate for the upcoming quarter is $2.02 on revenues of $605 million, and for the current fiscal year, it is $7.94 on revenues of $2.43 billion [7] Industry Outlook - The Zacks Industry Rank indicates that the Uniform and Related industry is currently in the bottom 5% of over 250 Zacks industries, which may negatively impact stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [5]

Company Performance - UniFirst Corporation reported quarterly earnings of $2.17 per share, exceeding the analyst consensus estimate of $2.09 per share, but quarterly sales of $610.778 million fell short of the consensus estimate of $614.510 million [2] - UniFirst raised its FY2025 GAAP earnings guidance from a range of $7.30-$7.70 per share to a new range of $7.60-$8.00 per share [2] Market Trends - U.S. stocks showed mixed trading, with the Dow down 0.22% to 44,398.83, the NASDAQ up 0.25% to 20,252.83, and the S&P 500 down 0.02% to 6,196.53 [1] - In commodity news, oil prices increased by 0.5% to $65.75, while gold prices decreased by 0.1% to $3,347.00 [3] - Asian markets closed lower, with Japan's Nikkei down 0.56%, China's Shanghai Composite down 0.09%, and India's BSE Sensex down 0.34% [5] Sector Performance - Materials shares increased by 0.5%, while health care stocks fell by 0.6% on the same trading day [1] - In equities, CID HoldCo, Inc. saw a significant increase in shares, rising 154% to $11.73, while Mogo Inc. surged 138% to $2.8748 after announcing a $50 million bitcoin treasury authorization [7]

Financial Data and Key Metrics Changes - Consolidated revenues for Q3 fiscal 2025 were $610.8 million, an increase of 1.2% from $603.3 million in the same quarter of fiscal 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% increase [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, a 0.5% rise from the prior year [16] - First Aid segment revenues increased to $29.8 million, a 9% increase driven by growth in van operations [17] Market Data and Key Metrics Changes - Customer retention improved compared to Q3 fiscal 2024, but there was softness in customer wearer levels [9] - Direct sales revenues were lower compared to the same quarter last year, impacting overall growth [10][62] Company Strategy and Development Direction - The company is focused on investing in people, technology, and infrastructure to enhance growth and profitability [6][10] - The strategy includes improving operational execution, strategic pricing, procurement sourcing, and inventory management [11] - The company is implementing a new ERP system to enable better operational efficiencies [11][41] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious mood among existing customers regarding investments and employment levels, particularly in manufacturing sectors [21] - The pricing environment remains challenging, with potential impacts from tariffs and vendor cost increases [24][25] - The company maintains its annual revenue guidance between $2.422 billion and $2.432 billion, while increasing diluted earnings per share guidance to $7.60 to $8.00 [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 [15][56] - 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 noted improvements in new business and customer retention but highlighted softness in wearer levels impacting overall growth [20][21] Question: What insights can you provide on pricing dynamics? - Management indicated a fluid situation with pricing, impacted by inflation recovery and potential tariff effects [24][25] Question: How is the environment for new sales? - Management observed incremental positive momentum in new sales compared to six months ago, but not dramatically different [30] Question: What is the status of key initiatives and cost reductions? - Key initiative costs are primarily related to the ongoing ERP implementation, with costs currently being capitalized [38][41] Question: How are labor costs trending? - Labor costs are stable, with improvements in execution and efficiency noted [52][53] Question: What is the impact of strategic advisory and legal expenses? - The costs were related to prior strategic discussions and ongoing legal matters, with an accrual built for the latter [56]

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]

Core Insights - UniFirst Corporation is set to release its third-quarter earnings results on July 2, with expected earnings of $2.09 per share, a decrease from $2.20 per share in the same period last year [1] - The company anticipates quarterly revenue of $614.5 million, an increase from $603.33 million a year earlier [1] - UniFirst announced a new $100 million share repurchase authorization on April 8 [1] Analyst Ratings - Barclays analyst downgraded UniFirst from Equal-Weight to Underweight, reducing the price target from $180 to $152 [4] - UBS analyst maintained a Neutral rating and raised the price target from $194 to $196 [4] - Baird analyst kept a Neutral rating but cut the price target from $218 to $197 [4] - JP Morgan analyst maintained an Underweight rating and raised the price target from $170 to $175 [4] Stock Performance - UniFirst shares increased by 0.2%, closing at $186.32 [2]

Group 1: Earnings Performance - Graham reported quarterly earnings of $0.43 per share, exceeding the Zacks Consensus Estimate of $0.26 per share, and up from $0.12 per share a year ago, representing an earnings surprise of 65.39% [1] - The company has surpassed consensus EPS estimates in all four of the last quarters [2] - Revenue for the quarter ended March 2025 was $59.35 million, surpassing the Zacks Consensus Estimate by 5.97%, compared to $49.07 million in the same quarter last year [2] Group 2: Stock Performance and Outlook - Graham shares have declined approximately 5.6% since the beginning of the year, while the S&P 500 has gained 2% [3] - The company's earnings outlook is mixed, with a current Zacks Rank of 3 (Hold), indicating expected performance in line with the market in the near future [6] - Current consensus EPS estimate for the upcoming quarter is $0.25 on revenues of $54 million, and for the current fiscal year, it is $1.18 on revenues of $226 million [7] Group 3: Industry Context - The Manufacturing - General Industrial industry, to which Graham belongs, is currently in the bottom 44% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]