UniFirst (UNF) Q2 2026 earnings summary

Executive summary

• Revenue for the quarter ended February 28, 2026, increased 3.4% year-over-year to $622.5 million, driven by growth in Uniform & Facility Service Solutions and First Aid & Safety Solutions segments.

• Net income for the quarter was $20.5 million, down 16.3% from $24.5 million in the prior year, reflecting higher selling and administrative expenses, lower operating income, and increased investments.

• Operating income declined to $26.0 million from $31.2 million, reflecting planned investments in growth, digital transformation, and one-time costs.

• On March 10, 2026, a definitive merger agreement was signed with Cintas Corporation, offering shareholders $155.00 in cash and 0.7720 shares of Cintas stock per share; the transaction is expected to close in the second half of 2026, pending approvals.

Financial highlights

• Operating income for the quarter was $26.0 million, a 16.7% decrease year-over-year; operating margin declined to 4.2% from 5.2%.

• Adjusted EBITDA was $66.8 million, down from $68.9 million year-over-year; margin decreased to 10.7% from 11.4%.

• Diluted EPS for the quarter was $1.13, compared to $1.31 in the prior year; for the half-year, diluted EPS was $3.02, down from $3.62.

• Cash and cash equivalents at quarter-end were $151.8 million, down from $203.5 million at the start of the period; cash, cash equivalents, and short-term investments totaled $157.5 million.

• No long-term debt outstanding.

Outlook and guidance

• Management expects continued margin pressure from inflation and wage increases, though recent inflation moderation is noted.

• No financial guidance or quarterly conference calls provided due to the pending Cintas transaction.

• The merger with Cintas is subject to regulatory and shareholder approvals, with completion targeted before January 2027.