Cintas (CTAS) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 revenue reached $9.6 billion, up 8.9% year-over-year, with Q4 revenue at $2.47 billion, an 8.2% increase and a new quarterly record.

• Net income for fiscal 2024 was $1.57 billion, up 16.6%; Q4 net income was $414.3 million, up 19.7%.

• Diluted EPS for fiscal 2024 was $15.15, up 16.6%; Q4 diluted EPS was $3.99, up 19.8%.

• Strong cash generation enabled $530.9 million in dividends (up 18%) and $1 billion in share repurchases.

• All operating segments performed strongly, with First Aid and Safety Services surpassing $1 billion in annual revenue for the first time.

Financial highlights

• Fiscal 2024 gross margin was 48.8%, up from 47.3% in 2023; Q4 gross margin reached 49.2%.

• Fiscal 2024 operating income rose 14.8% to $2.07 billion; Q4 operating income was $547.6 million, up 16.3%.

• Fiscal 2024 operating margin was a record 21.6%; Q4 operating margin was 22.2%.

• Net income margin for fiscal 2024 was 16.4%, up from 15.3% in 2023.

• Cash flow from operations exceeded $2 billion for the first time; free cash flow was $1.67 billion.

Outlook and guidance

• Fiscal 2025 revenue expected between $10.16 billion and $10.31 billion, a growth rate of 5.9%-7.4%.

• Organic growth for 2025 projected at 6.4%-8%, adjusting for two fewer workdays.

• Diluted EPS guidance for 2025 is $16.25-$16.75, representing 7.3%-10.6% growth.

• Net interest expense expected to rise to $106 million due to higher variable rate debt.

• Effective tax rate for 2025 expected to remain at 20.4%.