Cintas (NasdaqGS:CTAS) Q1 2026 Earnings Call September 24, 2025 10:00 AM ET Speaker3Good day, everyone, and welcome to the Cintas Corporation Announces Fiscal 2026 First Quarter Results Conference Call. Today's call is being recorded. At this time, I would like to turn the call over to Mr. Jared Mattingly, Vice President, Treasurer, and Investor Relations. Please go ahead, sir.Speaker4Thank you, Ross. Thank you for joining us. With me are Todd Schneider, President and Chief Executive Officer; James Rozakis, ...

Core Insights - Cintas Corporation (CTAS) is set to release its first-quarter fiscal 2026 results on September 24, with expected revenues of $2.69 billion, reflecting a 7.7% growth year-over-year, and earnings per share (EPS) of $1.19, indicating an 8.2% increase from the previous year [1][10] Revenue Performance - The Uniform Rental and Facility Services segment is projected to generate revenues of $2.07 billion, representing a 7.3% increase from the prior year [3] - The First Aid and Safety Services segment is expected to see revenues of $336.6 million, which is a 15.1% increase compared to the same quarter last year [4] Acquisitions Impact - Recent acquisitions, including Paris Uniform Services and SITEX, are anticipated to enhance Cintas' market presence and contribute positively to revenue growth [5] Margin Expectations - The operating margin is expected to improve by 100 basis points from the previous year, supported by operational execution and pricing strategies [6] Cost Considerations - Selling, general and administrative (SG&A) expenses are projected to rise to approximately $746 million, an 8% increase from the prior year, which may impact overall profitability [7] Earnings Prediction - The current Earnings ESP for CTAS is 0.00%, indicating no clear prediction for an earnings beat this quarter, with both the Most Accurate Estimate and the Zacks Consensus Estimate at $1.19 per share [9]

Group 1 - Cintas Corporation (NASDAQ:CTAS) is recognized as a long-term growth opportunity, endorsed by Jim Cramer, ahead of its Q1 fiscal year 2026 results announcement [1][2][3] - In Q4 2025, Cintas reported revenue of $2.67 billion, reflecting an 8% increase, and a total revenue of $10.34 billion for the full year 2025, marking a 7.7% increase with organic growth at 8% [2][3] - The company has been included in the Fortune 500 for the ninth consecutive year, indicating its strong market position [2] Group 2 - Cintas Corporation specializes in uniform rental and facility services, providing products such as uniforms, mats, mops, and first aid supplies to businesses across North America [4] - The company is headquartered in Ohio and has been operational since 1968, serving a diverse range of clients [4] - Institutional confidence is strong, with 57 hedge funds currently invested in Cintas stock, suggesting robust investor interest [3]

Core Insights - Cintas reported fiscal 2025 fourth-quarter results with an 8% year-over-year revenue increase to $2.67 billion and a 9% rise in diluted EPS to $1.09, achieving record full-year revenue of $10.34 billion and EPS growth of 16.1% [1] - The company projects fiscal 2026 revenue between $11 billion and $11.15 billion, reflecting a growth rate of 6.4% to 7.8%, and EPS between $4.71 and $4.85, indicating a growth of 7% to 10.2% [1][9] Revenue and Margin Performance - The Uniform Rental and Facility Services segment's gross margin increased by 40 basis points to 49%, while the First Aid and Safety Services segment saw a 140 basis point margin increase to 56.8% [3] - Productivity improvements are attributed to the adoption of SAP enterprise systems, auto sortation in plants, and the SmartTruck platform, enhancing cost efficiencies and service delivery [3][4] Capital Deployment and M&A Activity - Cintas generated $1.6 billion in free cash flow in FY2025 and allocated $2.23 billion towards acquisitions, marking the largest M&A activity in nearly two decades [5][6] - Additional capital priorities included $409 million in capital expenditures, $612 million in dividends, and $935 million in share repurchases [5] Segment Growth and Diversification - The First Aid and Safety segment achieved 18.5% organic growth, driven by recurring revenue products and training-related services, with expectations for low double-digit growth rates [7][8] - The uniform direct sale business grew by 9% in the quarter, indicating strong performance despite previous challenges [8] Future Outlook - For FY2026, management anticipates revenue of $11 billion to $11.15 billion and diluted EPS of $4.71 to $4.85, with an operating margin forecast to exceed 23% [9] - The outlook assumes no significant acquisitions or share repurchases, maintaining a disciplined capital expenditure strategy of 3.5% to 4% of revenue [9]

Core Viewpoint - Cintas Corporation (CTAS) is set to release its fourth-quarter fiscal 2025 results on July 17, with expectations of strong revenue growth and margin improvement despite rising costs [1][6]. Group 1: Revenue Expectations - The Uniform Rental and Facility Services segment is projected to generate revenues of $2.02 billion, reflecting a 5.7% increase year-over-year [2]. - The First Aid and Safety Services segment is expected to achieve revenues of $313.1 million, indicating a 12.8% increase from the previous year [3]. - Overall, the Zacks Consensus Estimate for total revenues is $2.63 billion, which represents a 6.3% increase compared to the same quarter last year [6]. Group 2: Margin and Cost Analysis - Cintas is anticipated to show an improvement in operating margin by 50 basis points from the prior year, driven by operational execution and pricing strategies [5]. - Selling, general and administrative (SG&A) expenses are expected to rise to $714.4 million, marking a 7% increase from the year-ago level, which may impact overall profitability [7]. Group 3: Acquisitions Impact - The acquisitions of Paris Uniform Services and SITEX are expected to contribute positively to revenues and enhance market presence in key regions [4][9].