UNF

Interested in Cintas Corporation? Here are five stocks we like better. Cintas posted strong fiscal Q4 results, with revenue up 8.9% to $2.91 billion and diluted EPS up 15.6% to $1.26. Gross margin hit an all-time high of 51%, and full-year revenue rose 8.9% to about $11.26 billion. Growth was broad-based across key segments, led by First Aid and Safety Services (+13.2%) and Fire Protection Services (+10.7%), while Uniform Rental and Facility Services grew 7.9%. Management said retention remains very high and new-customer conversions are strong. Fiscal 2027 guidance points to continued expansion, with revenue projected at $12.1 billion to $12.25 billion and adjusted EPS of $5.36 to $5.50. The company also said it remains optimistic about closing its pending UniFirst acquisition, though regulatory review is still ongoing. Cintas Corporation: The Deep Value Opportunity in Plain Sight Cintas (NASDAQ:CTAS) said it ended fiscal 2026 with strong fourth-quarter revenue growth, record profitability metrics and a fiscal 2027 outlook that calls for continued gains in sales and adjusted earnings. President and Chief Executive Officer Todd Schneider said fourth-quarter revenue rose 8.9% to $2.91 billion, while organic revenue growth, excluding acquisitions and foreign currency effects, was 8.4%. Gross margin was 51%, matching the company’s third-quarter level, which Schneider described as an all-time high, and up about 130 basis points from the prior year. → 3 Space Stocks That Could Outshine SpaceX After Its IPO MarketBeat Week in Review – 03/09 - 03/13 Operating income increased 12.7% to $673 million, or 23.2% of revenue. Excluding transaction expenses related to the company’s pending acquisition of UniFirst, adjusted operating margin was 23.6%, up about 120 basis points year over year. Diluted earnings per share rose 15.6% to $1.26, while adjusted diluted EPS increased 18.3% to $1.29. For the full fiscal year, Cintas reported revenue of about $11.26 billion, up 8.9% from fiscal 2025. Organic revenue growth was 8.3%. Schneider said the results marked the 55th year out of the past 57 in which Cintas grew both its top and bottom lines. → The SK Hynix IPO and 2027’s AI Memory Squeeze Building a Juggernaut: The Cintas-UniFirst Merger “Our strong top-line performance highlights the durability of our business model in all macro environments,” Schneider said. He added that the company continues to see a “massive” total addressable market across customers of all sizes and industries. Full-year gross margin was 50.7%, up 70 basis points from the prior year. Schneider said Cintas has expanded gross margin by 450 basis points over the past four years. Fiscal 2026 operating margin was 23.1%, or 23.3% on an adjusted basis excluding UniFirst-related transaction expenses, which Schneider said was an all-time high for the company. Adjusted diluted EPS for the year was $4.94, above the company’s March guidance range of $4.86 to $4.90, which also excluded UniFirst transaction costs. → Meta Platforms Stock Rises as Muse Spark 1.1 AI Model Debuts Executive Vice President and Chief Operating Officer Jim Rozakis said Cintas saw “strong results across all of our business segments” in the fourth quarter. Organic growth in Uniform Rental and Facility Services was 7.9%, while First Aid and Safety Services grew 13.2% and Fire Protection Services grew 10.7%. Uniform Direct Sales declined 4%. Within the Uniform Rental and Facility Services segment, Rozakis said fourth-quarter revenue mix included 47% from uniform rental, 20% from dust control, 16% from hygiene services, 11% from linen, 3% from shop towels and 3% from catalog sales. Gross margin by business was 50.2% for Uniform Rental and Facility Services, 57.9% for First Aid and Safety Services, 50.8% for Fire Protection Services and 42% for Uniform Direct Sales. Rozakis said Fire Protection’s gross margin was an all-time high, though he cautioned that margins in that business can vary by quarter due to revenue mix and ongoing acquisition integration. Rozakis said Cintas continues to win new customers, with about two-thirds of new customers transitioning to a managed program after previously handling related services on their own. He said retention rates remained “very attractive,” while pricing was close to historical levels. Cintas guided for fiscal 2027 revenue of $12.1 billion to $12.25 billion, implying total growth of 7.4% to 8.7%. The company expects adjusted diluted EPS of $5.36 to $5.50, representing growth of 8.5% to 11.3%. Executive Vice President and Chief Financial Officer Scott Garula said fiscal 2027 will include one more workday than fiscal 2026, which should add about 40 basis points to total revenue growth. The guidance assumes constant foreign exchange rates, no additional acquisitions, net interest expense of about $105 million and an effective tax rate similar to fiscal 2026’s 20.2% rate. The outlook excludes future share repurchases, significant economic disruptions or downturns, and non-recurring transaction costs tied to UniFirst. In response to analyst questions, Garula said the fiscal 2027 guidance implies adjusted incremental margins in the 30% to 32% range, within Cintas’ stated long-term range of 25% to 35%. He also said the outlook implies operating margin expansion of 10 to 60 basis points across the guidance range. Garula noted that higher energy costs affected fourth-quarter results by about 20 basis points year over year and sequentially. He said the company’s fiscal 2027 guidance assumes an uptick in energy expenses roughly on par with the fourth-quarter impact. Garula said Cintas generated $709.1 million in operating cash flow in the fourth quarter, its strongest cash flow quarter of the year. During the quarter, the company made $96 million in capital expenditures, completed $61.9 million of acquisitions and paid $180.6 million in dividends. For fiscal 2026, Cintas invested $395.1 million in capital expenditures, equal to 3.5% of revenue, and deployed $164.5 million toward acquisitions in route-based businesses. The company returned $1.7 billion to shareholders through dividends and share repurchases, which Garula said was its second-largest annual return of capital. Schneider also provided a brief update on Cintas’ pending acquisition of UniFirst. He said UniFirst shareholders approved the merger in June, while regulatory review remains ongoing in the U.S. and Canada. Cintas received a second request from the Federal Trade Commission, which Schneider said was expected and similar to the process the company experienced with its G&K Services acquisition. He said Cintas remains optimistic the deal will close during the second half of calendar 2026, but added that the company would not provide further commentary to avoid speculation. Analysts asked management about the macroeconomic environment, customer budgets and hiring trends. Schneider said Cintas has operated amid uncertainty for several years and remains focused on factors it can control, including investments in employees, technology and products. Rozakis said customers remained responsive to Cintas’ value proposition and that all four of the company’s growth levers are performing well: new business, retention, pricing and penetration of current customers through cross-selling and upselling. He said retention rates are at all-time highs and pricing is “right at historical levels,” possibly slightly above historical levels but immaterial in nature. Management pointed to healthcare, hospitality, education and state and local government as strategic vertical markets that continue to contribute to growth. Rozakis said these verticals are performing above overall company growth, reflecting how Cintas organizes not only sales but also products and service models around those markets. Schneider said Cintas is not dependent on employment growth, though it benefits from strong GDP and hiring trends. He said the company has a little over 1 million business customers compared with an estimated 16 million to 20 million businesses in North America. Garula added that there are roughly 180 million people going to work in North America, while Cintas serves about 5 million wearers. “We remain encouraged by the momentum in our business,” Schneider said in closing. “Our results demonstrate the power of our strategy and the critical value we provide in addressing customers’ image, safety, cleanliness, and compliance needs.” Cintas Corporation (NASDAQ: CTAS) is a provider of business services and products focused on workplace appearance, safety and facility maintenance. The company is best known for its uniform rental and corporate apparel programs, which include rental, leasing and direct-purchase options, laundering and garment repair. Cintas markets its services to a wide range of end-users, including manufacturing, food service, healthcare, hospitality, retail and government customers. Beyond uniforms, Cintas offers a suite of facility services and products designed to help organizations maintain clean, safe and compliant workplaces. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Cintas Q4 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

WILMINGTON, Mass., July 01, 2026 (GLOBE NEWSWIRE) -- UniFirst Corporation (NYSE: UNF) (“UniFirst” or the “Company”) today reported results for its fiscal 2026 third quarter ended May 30, 2026. Third Quarter 2026 Consolidated Results Consolidated revenues increased 3.9% to $634.4 million compared to $610.8 million in the third quarter of fiscal 2025, driven by organic growth in the core Uniform & Facility Service Solutions segment. Operating income and Adjusted EBITDA were $23.0 million and $82.6 million, respectively, compared to $48.2 million and $85.8 million, respectively, in the third quarter of fiscal 2025. Operating margin was 3.6% compared to 7.9% in the prior year period. Net income was $19.9 million compared to $39.7 million in the prior year period and diluted earnings per share was $1.09 compared to $2.13 in the prior year period. Adjusted EBITDA margin was 13.0% compared to 14.1% in the prior year period. The quarterly tax rate was 18.5% compared to 25.7% in the prior year period. The Company’s results for the third quarter of fiscal 2026 included approximately $20.7 million of costs associated with the proposed merger with Cintas Corporation (“Cintas”), consisting primarily of legal, advisory and other professional service fees (“Transaction-related Costs”). In addition, the Company’s results for the third quarter of fiscal 2026 and 2025 included approximately $5.2 million and $1.0 million, respectively, of costs related to its enterprise resource planning project (“Key Initiative”). In the third quarter of fiscal 2026 and 2025, these costs decreased: Operating income by $26.0 million and $1.0 million, respectively. Adjusted EBITDA by $5.2 million and $1.0 million, respectively. Net income by $19.6 million and $0.7 million, respectively. Diluted earnings per share by $1.08 and $0.04, respectively. Steven Sintros, UniFirst President and Chief Executive Officer, said, “We delivered solid growth and profitability in the third quarter, reflecting the continued strength of our service-driven business and the disciplined execution of our team. Our focus remains on taking great care of our customers and communities, supporting our Team Partners, and winning new business by demonstrating UniFirst’s compelling value proposition.” Mr. Sintros continued, “I am grateful to our thousands of Team Partners for their unwavering dedication to serving our customers with excellence and for living our Core Values – Customer Focus, Respect for Others, and Commitment to Quality – every day.” As previously announced on March 11, 2026, UniFirst and Cintas have entered into a definitive agreement under which Cintas will acquire UniFirst. Under the terms of the agreement, UniFirst shareholders will receive $155.00 in cash and 0.7720 shares of Cintas stock for each UniFirst share they own. On June 11, 2026, UniFirst shareholders approved the proposed merger at a special meeting of shareholders. On June 11, 2026, UniFirst and Cintas each received a Second Request for additional information from the Federal Trade Commission ("FTC") as part of its review of the proposed merger. The companies are cooperating with the FTC and continue to work through the regulatory review process. The transaction is expected to close in the second half of calendar 2026, subject to satisfaction or waiver of customary closing conditions and receipt of required regulatory approvals. Segment Reporting Results Uniform & Facility Service Solutions Revenues increased 3.9% to $575.7 million compared to $554.3 million in the prior year period. Organic growth, which excludes the effect of acquisitions and fluctuations in the Canadian dollar, was 3.6%. New customer account acquisitions were solid during the quarter and customer retention rates continued to improve, building on the year-to-date progress that the Company has seen in these areas. Operating margin was 3.4% compared to 7.8% in the prior period and Adjusted EBITDA margin was 13.4% compared to 14.3% in the prior period. The Key Initiative and Transaction-related Costs were both recorded to this segment and decreased operating and Adjusted EBITDA margins in the third quarter of fiscal 2026 by 4.5% and 0.9%, respectively. Key Initiative costs in prior year period decreased both operating and Adjusted EBITDA margins by 0.2%. The segment's operating and Adjusted EBITDA margin comparison in the third quarter of fiscal 2026 benefited from lower merchandise costs as well as elevated expense in prior year due to advisory costs for a strategic matter and legal costs related to an employee matter. These benefits were offset by higher healthcare claims and fuel costs. Other Revenues for the quarter increased 4.4% to $27.8 million compared to $26.7 million in the prior year period. The segment had strong growth in its European operations which was partially offset by the continued wind-down of a large refurbishment project and fewer reactor outages. Operating income and Adjusted EBITDA were $4.9 million and $5.8 million, respectively. This segment consists of the Company’s nuclear solutions. Given the cyclical and seasonal nature of the nuclear industry, this segment’s results are often affected by seasonality, the timing and duration of power reactor outages and project-based activities. Balance Sheet and Capital Allocation Cash, cash equivalents and short-term investments were $168.9 million, and the Company had no long-term debt outstanding as of May 30, 2026. The Company did not repurchase any shares of its Common Stock in the third quarter of fiscal 2026. The Company declared a quarterly cash dividend of $0.365 per Common Stock share and $0.292 per Class B Common Stock on April 14, 2026. As previously announced, due to the pending transaction with Cintas, UniFirst is no longer providing financial guidance or hosting quarterly conference calls regarding its financial results. About UniFirst Corporation Headquartered in Wilmington, Mass., UniFirst Corporation (NYSE: UNF) is a North American leader in the supply and servicing of uniform and workwear programs, facility service products, as well as first aid and safety supplies and services. Together with its subsidiaries, the Company also manages specialized garment programs for the cleanroom and nuclear industries. In addition to partnering with leading brands, UniFirst manufactures its own branded workwear, protective clothing, and floorcare products at its five company-owned ISO-9001-certified manufacturing facilities. With more than 270 service locations, over 300,000 customer locations, and 16,000-plus employee Team Partners, the Company outfits more than 2 million workers every day. For more information, contact UniFirst at 888.296.2740 or visit UniFirst.com. Forward-Looking Statements Disclosure This public announcement contains forward-looking statements within the meaning of the federal securities laws that reflect the Company's current views with respect to future events and financial performance, including statements regarding the transaction between UniFirst and Cintas (the “Transaction”). Forward-looking statements contained in this public announcement are subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995 and may be identified by words such as “guidance,” “outlook,” “estimates,” “anticipates,” “projects,” “plans,” “expects,” “intends,” “believes,” “seeks,” “could,” “should,” “may,” “will,” “strategy,” “objective,” “assume,” “strive,” “design,” “assumption,” “vision,” “approximate,” or the negative versions thereof, and similar expressions and by the context in which they are used. Such forward-looking statements are based upon our current expectations and speak only as of the date made. Such statements are highly dependent upon a variety of risks, uncertainties and other important factors that could cause actual results to differ materially from those reflected in such forward-looking statements. The following Transaction-related factors, among others, could cause actual results to differ materially from those expressed in or implied by forward-looking statements: the occurrence of any event, change, or other circumstance that could give rise to the right of one or both of the parties to terminate the definitive merger agreement between Cintas and UniFirst; the outcome of any legal proceedings that may be instituted against Cintas or UniFirst; the possibility that the Transaction does not close when expected or at all because required regulatory, shareholder, or other approvals and other conditions to closing are not received or satisfied on a timely basis or at all (and the risk that seeking or obtaining such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the Transaction); the risk that the benefits from the Transaction may not be fully realized or may take longer to realize than expected, including as a result of changes in, or problems arising from, general economic and market conditions, interest and exchange rates, monetary policy, trade policy (including tariff levels), laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which Cintas and UniFirst operate; any failure to promptly and effectively integrate the businesses of Cintas and UniFirst; the possibility that the Transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; reputational risk and potential adverse reactions of Cintas’ or UniFirst’s customers, employees or other business partners, including those resulting from the announcement, pendency or completion of the Transaction; the dilution caused by Cintas’ issuance of additional shares of its capital stock in connection with the Transaction; changes in the trading price of Cintas’ or UniFirst’s capital stock; and the diversion of management’s attention and time to the Transaction from ongoing business operations and opportunities. Additional factors include, but are not limited to, uncertainties caused by an economic recession or other adverse economic conditions, including, without limitation, as a result of elevated inflation or interest rates or extraordinary events or circumstances such as geopolitical conflicts like the conflicts between Russia and Ukraine and the United States and Iran and other disruption in the Middle East and their impact on our customers' businesses and workforce levels, disruptions of our business and operations, including limitations on, or closures of, our facilities, or the business and operations of our customers or suppliers in connection with extraordinary events or circumstances, uncertainties regarding our ability to consummate acquisitions and successfully integrate acquired businesses and the performance of such businesses, uncertainties regarding any existing or newly-discovered expenses and liabilities related to environmental compliance and remediation, any adverse outcome of pending or future contingencies or claims, our ability to compete successfully without any significant degradation in our margin rates, seasonal and quarterly fluctuations in business levels, our ability to preserve positive labor relationships and avoid becoming the target of corporate labor unionization campaigns that could disrupt our business, the effect of currency fluctuations on our results of operations and financial condition, our dependence on third parties to supply us with raw materials, which such supply could be severely disrupted as a result of extraordinary events or circumstances such as the conflict between Russia and Ukraine and the United States and Iran, any loss of key management or other personnel, increased costs as a result of any changes in federal, state, international or other laws, rules and regulations or governmental interpretation of such laws, rules and regulations, uncertainties regarding, or adverse impacts from continued high price levels of natural gas, electricity, fuel and labor or increases in such costs, the negative effect on our business from sharply depressed oil and natural gas prices, the continuing increase in domestic healthcare costs, increased workers' compensation claim costs, increased healthcare claim costs, our ability to retain and grow our customer base, demand and prices for our products and services, fluctuations in our nuclear business, political or other instability, supply chain disruption or infection among our employees in Mexico and Nicaragua where our principal garment manufacturing plants are located, our ability to properly and efficiently design, construct, implement and operate a new enterprise resource planning computer system, interruptions or failures of our information technology systems, including as a result of cyber-attacks, additional professional and internal costs necessary for compliance with any changes in or additional Securities and Exchange Commission (the “SEC”), New York Stock Exchange and accounting or other rules, strikes and unemployment levels, our efforts to evaluate and potentially reduce internal costs, the impact of U.S. and foreign trade policies and tariffs or other impositions on imported goods on our business, results of operations and financial condition, our ability to successfully implement our business strategies and processes, including our capital allocation strategies, our ability to successfully remediate the material weakness in internal control over financial reporting disclosed in our Annual Report on Form 10-K for the year ended August 30, 2025 and the other factors described under Part I, Item 1A. “Risk Factors” and elsewhere in our Annual Report on Form 10-K for the year ended August 30, 2025, Part II, Item 1A. “Risk Factors” and elsewhere in our subsequent Quarterly Reports on Form 10-Q and in our other filings with the SEC. We undertake no obligation to update any forward-looking statements to reflect events or circumstances arising after the date on which they are made. Consolidated Statements of Income(Unaudited) Condensed Consolidated Balance Sheets(Unaudited) Detail of Operating Results(Unaudited) Consolidated Statements of Cash Flows(Unaudited) Reconciliation of GAAP to Non-GAAP Financial Measures The Company reports its consolidated financial results in accordance with generally accepted accounting principles (“GAAP”). To supplement the Company’s consolidated financial results in this press release, the Company also presents Adjusted EBITDA and Adjusted EBITDA margin, which are non-GAAP financial measures. The Company defines Adjusted EBITDA as net income before interest, income taxes, depreciation and amortization, further adjusted for share-based compensation expense and other items impacting the comparability of the Company’s underlying operating performance between periods. Adjusted EBITDA margin is defined as Adjusted EBITDA for a period divided by revenue for the same period. The Company believes these non-GAAP financial measures provide useful supplemental information regarding the performance of the Company and its segments to both management and investors. In addition, by excluding certain items, these non-GAAP financial measures enable management and investors to further evaluate the underlying operating performance of the Company. Supplemental reconciliations of the Company’s consolidated net income on a GAAP basis to Adjusted EBITDA and Adjusted EBITDA margin are presented in the following table. Investors are encouraged to review the reconciliations of the non-GAAP financial measures to their most directly comparable GAAP financial measures, which are provided below. Adjusted EBITDA and Adjusted EBITDA margin should be considered in addition to, and not as substitutes for, or in isolation from, measures prepared in accordance with GAAP. The Company does not allocate its provision for income taxes to its business segments and as a result, presents it in a separate column in the following tables. Investor Relations ContactShane O'Connor, Executive Vice President & CFOUniFirst [email protected]

UniFirst (UNF) came out with quarterly earnings of $2.17 per share, beating the Zacks Consensus Estimate of $1.93 per share. This compares to earnings of $2.17 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +12.44%. A quarter ago, it was expected that this uniform provider would post earnings of $1.21 per share when it actually produced earnings of $1.25, delivering a surprise of +3.31%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. UniFirst, which belongs to the Zacks Uniform and Related industry, posted revenues of $634.4 million for the quarter ended May 2026, surpassing the Zacks Consensus Estimate by 1.28%. This compares to year-ago revenues of $610.78 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. UniFirst shares have added about 37.1% since the beginning of the year versus the S&P 500's gain of 9.6%. While UniFirst has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for UniFirst was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.04 on $626.99 million in revenues for the coming quarter and $7.21 on $2.49 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Uniform and Related is currently in the top 11% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Proto Labs (PRLB), another stock in the broader Zacks Industrial Products sector, has yet to report results for the quarter ended June 2026. This custom parts manufacturer is expected to post quarterly earnings of $0.54 per share in its upcoming report, which represents a year-over-year change of +31.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Proto Labs' revenues are expected to be $145.36 million, up 7.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Unifirst Corporation (UNF) : Free Stock Analysis Report Proto Labs, Inc. (PRLB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research