UniFirst Q2 revenue beats on organic growth in Uniform & Facility Service Solutions

Overview

• US uniform supplier's fiscal Q2 revenue grew 3.4%, beating analyst expectations

• Adjusted EBITDA declined year-over-year due to planned investments and one-time costs

• Company previously announced agreement to be acquired by Cintas, closing expected in H2 2026

Outlook

• Company is no longer providing financial guidance due to pending acquisition by Cintas

Result Drivers

• ORGANIC GROWTH - Revenue increase was driven by organic growth in Uniform & Facility Service Solutions segment

• INVESTMENT IMPACT - Operating margin declined due to planned investments in growth and digital transformation initiatives

• ONE-TIME COSTS - Results were impacted by costs related to shareholder engagement, proxy matters, and legal expenses

Company press release: ID:nGNX4Wy4JC

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the business support services peer group is "buy."

• Wall Street's median 12-month price target for UniFirst Corp is $280.00, about 11.3% above its March 31 closing price of $251.59

• The stock recently traded at 34 times the next 12-month earnings vs. a P/E of 26 three months ago

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