Cintas (CTAS) Q3 2025 earnings summary

Executive summary

• Third quarter revenue grew 8.4% year-over-year to $2.61 billion, with organic growth at 7.9%.

• Net income increased 16.6% to $463.5 million, and diluted EPS rose 17.7% to $1.13, reflecting a stock split.

• Operating income increased 17.1% to $609.9 million, with a margin of 23.4%, aided by a $15 million gain on asset sales.

• Nine-month revenue reached $7.67 billion, up 7.7% year-over-year, with net income up 17.9% to $1.36 billion and diluted EPS up 18.6% to $3.31.

• Quarterly dividend paid was $158.1 million, up 14.9% from last year.

Financial highlights

• Gross margin for Q3 was $1.32 billion (50.6% of revenue), up from $1.19 billion (49.4%) a year ago.

• Net income margin for Q3 was 17.8%, up from 16.5% last year.

• Free cash flow for the nine months ended Feb 28, 2025 was $1.24 billion, up from $1.08 billion.

• Net cash provided by operating activities for nine months: $1.53 billion, up from $1.39 billion year-over-year.

• Selling and administrative expenses as a percent of revenue decreased to 27.2% from 27.7% for the quarter.

Outlook and guidance

• FY25 revenue guidance updated to $10.28–$10.305 billion, reflecting 7.1–7.4% growth vs. FY24.

• Organic revenue growth guidance set at 7.4–7.7%.

• Annual diluted EPS guidance raised to $4.36–$4.40, implying 15%–16.1% growth.

• Guidance assumes no major acquisitions or economic disruptions; foreign currency expected to negatively impact revenue by 0.4% in H2.

• Fourth quarter expected to see a normal seasonal pattern, but with a headwind from one less workday.