Aramark (ARMK) Q4 2025 earnings summary

Executive summary

• Achieved record annualized gross new wins of $1.6 billion, up over 12% year-over-year, including the largest contract in FSS U.S. history and a 96.3% retention rate, the highest in company history.

• Organic revenue grew 14% in Q4 and 7% for the full year, driven by net new business, base business growth, and a 53rd week benefit.

• Net new business represented 5.6% of prior year revenue, with a significant new business pipeline and robust early fiscal 2026 performance.

• Notable operational achievements include technology investments, supply chain expansion, and successful integration of acquisitions.

• Over 4 million shares were repurchased, and the quarterly dividend was raised by 14%.

Financial highlights

• GAAP revenue for fiscal 2025 was $18.5 billion, up 6% year-over-year; organic revenue up 7%.

• Adjusted operating income (AOI) for the year was $981 million, up 12% on a constant currency basis, with AOI margin expanding by nearly 25 basis points.

• Adjusted EPS for the year was $1.82, up 19% year-over-year; GAAP EPS was $1.22, up 23%.

• Free cash flow grew 41% to $454 million, with net cash from operations at $921 million.

• Leverage ratio improved to 3.25x, the lowest in nearly 20 years; over $2.4 billion in cash availability at year-end.

Outlook and guidance

• Fiscal 2026 guidance: organic revenue of $19.55–$19.95 billion (7–9% growth), AOI of $1.1–$1.15 billion (12–17% growth), adjusted EPS of $2.18–$2.28 (20–25% growth), and leverage ratio below 3x.

• Net new contribution expected at 4–5.6% of prior year revenue, with retention levels above 95%.

• Margin improvement of 30–40 basis points expected, with normalized opening costs and some startup costs for large contracts included.

• Q1 2026 expected to show lower growth due to calendar shift, with recovery in Q2; full-year guidance unaffected.