UniFirst Corporation (UNF) Q1 2026 Financial Results Summary

2026-01-07 · Stocks · QuoteReporter

UniFirst Corporation (UNF) Q1 2026 Financial Results Summary

Wilmington, MA – January 7, 2026 – UniFirst Corporation (NYSE: UNF) today reported results for its fiscal 2026 first quarter ended November 29, 2025. The company’s consolidated results indicate both growth and areas for improvement compared to the previous year.

First Quarter 2026 Consolidated Results

Consolidated Revenues: Increased 2.7% to $621.3 million from $604.9 million in the first quarter of fiscal 2025.
Operating Margin: Registered at 7.3%, a decrease from 9.2% in the prior year period, reflecting planned investments in growth and digital transformation.
Net Income: Reported at $34.4 million, down from $43.1 million year-over-year.
Diluted Earnings Per Share (EPS): Declined to $1.89, from $2.31 in the same period last year.
Adjusted EBITDA Margin: Decreased to 13.3%, down from 15.5% in the first quarter of fiscal 2025.
Quarterly Tax Rate: Increased to 26.9%, compared to 25.6% for the same quarter a year ago.

The President and CEO, Steven Sintros, noted that the first quarter performance met expectations, influenced by strategic investments aimed at accelerating growth and enhancing operational efficiency.

Segment Reporting Results

Uniform & Facility Service Solutions

Revenues: Increased 2.4% to $565.9 million from $552.8 million year-over-year.
Operating Margin: Decreased to 7.4% from 8.8% in the prior year.
Adjusted EBITDA Margin: Declined to 13.6% down from 15.4%.
Organic growth recorded at 2.4%, mainly driven by new customer acquisitions and improved retention rates.

First Aid & Safety Solutions

Revenues: Increased significantly by 15.3% to $30.2 million compared to $26.2 million in the previous year.
Operating Loss: Reported at $0.4 million with an Adjusted EBITDA of $0.8 million.

Other Segment

Revenues: Decreased 2.9% to $25.2 million, down from $25.9 million year-over-year.
Operating Income: Recorded at $3.9 million, and Adjusted EBITDA at $4.8 million.

Balance Sheet and Capital Allocation

Cash, Cash Equivalents and Short-Term Investments: Totaled $129.5 million with no long-term debt outstanding.
Share Repurchase: The company repurchased $31.7 million of its Common Stock during the first quarter and had $8.9 million remaining under its current share repurchase authorization.
Dividend Declared: A quarterly cash dividend of $0.365 per Common Stock share was declared on October 28, 2025, marking the eighth consecutive year of dividend growth.

Fiscal 2026 Financial Outlook

UniFirst continues to reaffirm its full-year fiscal 2026 guidance previously provided:
– Consolidated Revenues: Projected to be between $2.475 billion and $2.495 billion.
– Fully Diluted EPS: Expected to be between $6.58 and $6.98.
– Guidance includes an estimated $7.0 million in costs related to the company’s Key Initiative for fiscal 2026.

Overall, UniFirst Corporation’s first quarter results demonstrate continued growth along with challenges in profitability due to investments in future operational enhancements. The company appears well-positioned for potential future growth despite recent declines in operating margins and net income.

Here are the extracted tables from the given press release:

Consolidated Statements of Income (Unaudited)

(In thousands, except per share data)

	November 29, 2025	November 30, 2024
Revenues	$621,318	$604,908
Operating expenses:
Cost of revenues (1)	$393,029	$381,054
Selling and administrative expenses (1)	$147,806	$133,515
Depreciation and amortization	$35,175	$34,808
Total operating expenses	$576,010	$549,377
Operating income	$45,308	$55,531
Other (income) expense:
Interest income, net	$(1,929)	$(2,695)
Other expense, net	$259	$290
Total other income, net	$(1,670)	$(2,405)
Income before income taxes	$46,978	$57,936
Provision for income taxes	$12,615	$14,831
Net income	$34,363	$43,105
Income per share – Basic:
Common Stock	$1.97	$2.41
Class B Common Stock	$1.58	$1.93
Income per share – Diluted:
Common Stock	$1.89	$2.31
Income allocated to – Basic:
Common Stock	$28,760	$36,213
Class B Common Stock	$5,603	$6,892
Income allocated to – Diluted:
Common Stock	$34,363	$43,105
Weighted average shares outstanding –
Basic:
Common Stock	14,597	15,012
Class B Common Stock	3,551	3,574
Weighted average shares outstanding –
Diluted:
Common Stock	18,188	18,666

Condensed Consolidated Balance Sheets (Unaudited)

(In thousands)

	November 29, 2025	August 30, 2025
Assets
Current assets:
Cash and cash equivalents	$123,977	$203,501
Short-term investments	$5,558	$5,672
Receivables, net	$293,396	$285,297
Inventories	$142,891	$145,197
Rental merchandise in service	$237,477	$227,720
Prepaid taxes	$10,330	$7,708
Prepaid expenses and other current	$59,088	$49,508
assets
Total current assets	$872,717	$924,603
Property, plant and equipment, net	$833,508	$829,622
Goodwill	$669,202	$657,748
Customer contracts and other
intangible assets, net	$104,226	$105,829
Deferred income taxes	$967	$977
Operating lease right-of-use assets,
net	$74,595	$70,110
Other assets	$197,483	$189,266
Total assets	$2,752,698	$2,778,155
Liabilities and shareholders’ equity
Current liabilities:
Accounts payable	$90,552	$94,980
Accrued liabilities	$154,414	$176,903
Accrued taxes	$—	$674
Operating lease liabilities, current	$18,987	$17,846
Total current liabilities	$263,953	$290,403
Long-term liabilities:
Accrued liabilities	$129,487	$128,554
Accrued and deferred income taxes	$138,708	$135,648
Operating lease liabilities	$57,952	$54,593
Total liabilities	$590,100	$609,198
Shareholders’ equity:
Common Stock	$1,452	$1,468
Class B Common Stock	$355	$355
Capital surplus	$107,058	$109,107
Retained earnings	$2,077,625	$2,079,812
Accumulated other comprehensive loss	$(23,892)	$(21,785)
Total shareholders’ equity	$2,162,598	$2,168,957
Total liabilities and shareholders’
equity	$2,752,698	$2,778,155