UniFirst (UNF) Q2 2025 earnings summary

Executive summary

• Q2 2025 consolidated revenues rose 1.9% year-over-year to $602.2 million, driven by growth in Core Laundry Operations and First Aid segments.

• Net income increased 19.6% year-over-year to $24.5 million, with operating income up 11.7% to $31.2 million.

• Operating margin improved to 5.2% from 4.7% in the prior year quarter.

• Results reflect ongoing investments in CRM and ERP projects, with related costs reducing operating income and adjusted EBITDA by $1.9 million in Q2.

• Customer retention improved, and new business installations increased year-over-year.

Financial highlights

• Quarterly revenue was $602.2 million, up from $590.7 million year-over-year; six-month revenue reached $1.21 billion, up 1.9%.

• Net income for the quarter was $24.5 million ($1.31 per diluted share), up from $20.5 million ($1.09 per share) last year; six-month net income was $67.6 million.

• Operating income for the quarter was $31.2 million, up from $27.9 million; adjusted EBITDA increased 6.3% to $68.9 million.

• Cash flow from operating activities for the first half of fiscal 2025 increased 20.2% to $128.3 million.

• Cash, cash equivalents, and short-term investments totaled $201 million at quarter end; no long-term debt outstanding.

Outlook and guidance

• Fiscal 2025 revenue expected between $2.422 billion and $2.432 billion, reflecting negative FX and Canadian dollar impact.

• Diluted EPS guidance raised to $7.30–$7.70, driven by improved core laundry margins and lower Key Initiative costs.

• Guidance excludes future share buybacks, potential tariff impacts, and other unexpected events.

• Fiscal 2025 includes one less week of operations than 2024.

• Sufficient liquidity is anticipated to meet working capital and capital expenditure needs for at least the next 12 months.