Cintas (CTAS) Q2 2025 earnings summary

Executive summary

• Quarterly revenue reached $2.56 billion, up 7.8% year-over-year, with organic growth of 7.1% and positive acquisition impact.

• Net income rose 19.7% to $448.5 million, and diluted EPS increased 21.1% to $1.09, reflecting a recent four-for-one stock split.

• Operating income margin improved to 23.1%, driven by operational excellence, technology investments, and efficiency gains.

• Strong demand across all business lines, especially in healthcare, hospitality, education, and government verticals.

• A four-for-one stock split was completed in September 2024, retroactively reflected in all share data.

Financial highlights

• Six-month revenue grew 7.3% to $5.06 billion, with net income up 18.5% to $900.5 million and diluted EPS up 19.7% to $2.19 year-over-year.

• Gross margin rose 11.8% to $1.28 billion, reaching 49.8% of revenue, up 180 basis points year-over-year.

• Operating income for the six months was $1.15 billion, or 22.8% of revenue, up from 21.2% in the prior year period.

• Free cash flow for the first six months rose 34.9% year-over-year.

• Cash flow from operations was $908.1 million for the six months, up from $729.6 million year-over-year.

Outlook and guidance

• Fiscal 2025 revenue guidance updated to $10.255–$10.32 billion, reflecting 6.9%–7.5% growth.

• Annual diluted EPS guidance raised to $4.28–$4.34, up 12.9%–14.5% year-over-year.

• Organic growth expected at 7.0%–7.7% for the year.

• Effective tax rate for fiscal 2025 expected at 20.2%.

• Guidance assumes no future acquisitions, constant FX rates, and no major economic disruptions.