Core Insights - Cintas Corporation (CTAS) reported Q4 fiscal 2025 earnings of $1.09 per share, exceeding the Zacks Consensus Estimate of $1.07, with a 9% year-over-year increase despite rising operating costs [1][9] - Total revenues reached $2.67 billion, surpassing the consensus estimate of $2.63 billion, marking an 8% year-over-year growth driven by higher segmental revenues [2][9] - For fiscal 2025, net revenues were $10.34 billion, a 7.7% increase year over year, with adjusted earnings of $4.40 per share, up 16.1% year over year [2] Segment Performance - The Uniform Rental and Facility Services segment generated revenues of $2.03 billion, accounting for 76.1% of net sales, reflecting a 6.3% year-over-year increase [3] - The First Aid and Safety Services segment reported revenues of $324.4 million, representing 12.2% of net sales, up 16.8% year over year [4] - Revenues from All Other businesses totaled $312.6 million, making up 11.7% of net sales, with a 10.8% year-over-year increase [4] Financial Metrics - Cintas' cost of sales increased 6.9% year over year to $1.34 billion, representing 50.3% of net sales, while gross profit rose 9.1% to $1.33 billion, resulting in a gross margin of 49.7% [5] - Selling and administrative expenses totaled $728.5 million, a 9.1% increase from the previous year, representing 27.3% of net sales [6] - Operating income increased 9.1% year over year to $597.5 million, with an operating margin of 22.4% [6] Balance Sheet & Cash Flow - At the end of fiscal 2025, Cintas had cash and cash equivalents of $264 million, down from $342 million a year ago, with long-term debt increasing to approximately $2.42 billion [7] - The company generated net cash of $2.17 billion from operating activities, a 4.7% increase year over year, while capital expenditures totaled $408.9 million, down 0.1% [8] - Free cash flow increased 5.9% year over year to $1.76 billion [8] Future Guidance - For fiscal 2026, Cintas expects revenues between $11 billion and $11.15 billion, with an EPS estimate of $4.71 to $4.85, indicating a midpoint of $4.78, which is below the consensus estimate of $4.87 [11] - The company anticipates net interest expenses of approximately $98 million, down from $101.1 million in fiscal 2025, with an effective tax rate expected at 20% [12]