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• Revenue: $602.2 million, up 1.9% from $590.7 million a year ago.

• Operating Income: Increased to $31.2 million from $27.9 million, up 11.7%.

• Net Income: Increased to $24.5 million or $1.31 per diluted share from $20.5 million or $1.09 per diluted share.

• Adjusted EBITDA: Increased to $68.9 million from $64.8 million, up 6.3%.

• Core Laundry Revenue: $530.4 million, an increase of 1.5% from the prior year.

• Core Laundry Operating Margin: Increased to 4.6% from 0.6% in the prior year.

• Specialty Garments Revenue: Increased to $44.4 million from $43.5 million, up 2.2%.

• First Aid Segment Revenue: Increased to $27.5 million from $24.8 million, up 10.6%.

• Operating Cash Flow: Increased 20.2% to $128.3 million year-to-date.

• Cash and Short-term Investments: Totaling $201 million with no long-term debt.

• Capital Expenditures: $66.1 million.

• Stock Repurchase: $12.5 million worth of common stock.

• Fiscal 2025 Revenue Outlook: Expected between $2.422 billion and $2.432 billion.

• Fiscal 2025 EPS Outlook: Expected between $7.30 and $7.70.

• Warning! GuruFocus has detected 5 Warning Signs with UNF.

Release Date: April 02, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• UniFirst Corp (NYSE:UNF) reported a 1.9% increase in consolidated revenues to $602.2 million, with a 2.3% increase on an organic basis.

• Operating income and adjusted EBITDA increased by 11.7% and 6.3% respectively, compared to the second quarter of fiscal 2024.

• The company saw a 20.2% increase in operating cash flow year-to-date, indicating improved profitability and lower working capital needs.

• UniFirst Corp (NYSE:UNF) reported notable improvements in customer retention and positive trends in revenue-related leading indicators.

• The company is making strategic investments, such as the expansion of its distribution center in Owensboro, Kentucky, to improve speed and efficiency in direct sales.

Negative Points

• Higher healthcare costs partially offset the improvements in operating income and adjusted EBITDA during the quarter.

• Net wear levels for existing customers declined, indicating some incremental weakness compared to the same quarter last year.

• The Specialty Garments segment's operating margin decreased to 16.7% from 22.8% in the prior year, due to seasonality and timing of nuclear reactor outages.

• The First Aid segment experienced a nominal operating loss of $0.5 million, reflecting ongoing investments in the First Aid van business.

• The company faces uncertainty regarding potential impacts from tariffs and the Canadian dollar exchange rate, which are not fully reflected in the current guidance.