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]