UniFirst (UNF) Q3 2026 earnings summary

Executive summary

• Revenue for the quarter ended May 30, 2026, increased 3.9% year-over-year to $634.4 million, driven by organic growth and improved customer retention in Uniform & Facility Service Solutions.

• Net income for the quarter was $19.9 million, down from $39.7 million in the prior year, primarily due to higher selling and administrative expenses, including $20.7 million in merger-related costs and $5.2 million in ERP project costs.

• The company entered into a merger agreement with Cintas, with shareholders approving the deal; regulatory review is ongoing following a Second Request from the FTC.

Financial highlights

• Quarterly revenue rose to $634.4 million from $610.8 million year-over-year; nine-month revenue reached $1.88 billion, up 3.3%.

• Operating income for the quarter fell to $23.0 million from $48.2 million, with operating margin dropping to 3.6% from 7.9%.

• Adjusted EBITDA was $82.6 million, down from $85.8 million; margin decreased to 13.0% from 14.1%.

• Net income for the quarter was $19.9 million, with diluted EPS of $1.09, compared to $2.13 in the prior year.

• Cash and cash equivalents at quarter-end were $163.2 million, down from $203.5 million at the prior fiscal year-end; cash, cash equivalents, and short-term investments totaled $168.9 million as of May 30, 2026.

Outlook and guidance

• Management expects continued growth in Uniform & Facility Service Solutions and First Aid & Safety Solutions, but notes that inflation, labor costs, and regulatory uncertainties could pressure margins.

• No financial guidance or quarterly calls are being provided due to the pending merger with Cintas, which is expected to close in the second half of calendar 2026, pending regulatory approval.