Vestis Corporation (VSTS) Q4 2025 Financial Results Summary

2025-12-02 · Stocks · QuoteReporter

Vestis Corporation (VSTS) Q4 2025 Financial Results Summary

On December 1, 2025, Vestis Corporation (NYSE: VSTS) released its financial results for the fourth quarter and full-year periods ended October 3, 2025, which reflect an additional week of operations compared to the same quarter in the previous year.

Fourth Quarter 2025 Results

Revenue: $712 million
Increase: Up 4.1% compared to $684.3 million in Q4 2024.
Adjustment: The additional week contributed $51.6 million; excluding this, revenue would have declined by 3.5%.
Operating Income: $18 million
Decrease: Down from $29.8 million in Q4 2024, a reduction of 40.9%.
Net Loss: $13 million
Per diluted share: $(0.10).
Comparison: Loss increased from $(2.3) million in Q4 2024.
Adjusted Net Income: $4 million
Per diluted share: $0.03.
Adjusted EBITDA: $65 million
Comparison: Decreased from $80.5 million in Q4 2024, indicating a decline.
Cash Flows:
Cash provided by operating activities: $31 million.
Free Cash Flow: $16 million.
Available Liquidity: $298 million
Includes cash and cash equivalents of $30 million.

Operational Insights

Management emphasized a focus on advancing strategic priorities for fiscal 2026 which include:
Commercial Excellence: Enhancing customer retention and profitability.
Operational Excellence: Boosting efficiency through standardized operations.
Asset & Network Optimization: Improving logistics and asset utilization.
A multi-year transformational restructuring plan (the “Plan”) is set to enhance long-term profitability, targeting annual operating cost savings of at least $75 million by the end of fiscal 2026. Costs associated with executing this Plan are projected between $25 million to $30 million.

Year-End Financial Overview

For the full fiscal year 2025, revenues totaled $2.73 billion, down from $2.81 billion in 2024.
The full year exhibited:
Net Loss: $40.2 million compared to net income of $21 million the previous year.
Adjusted Net Income: $32.5 million, resulting in adjusted earnings per share of $0.25.

Financial Position

Total Cash and Cash Equivalents: Decreased slightly from $31 million at year-end 2024 to $29.7 million as of October 3, 2025.
Total Debt: $1.34 billion, showing stability compared to $1.31 billion in Q4 2024.
Notably:
Net Leverage Ratio: Rose to 4.72 compared to 3.64 a year earlier.

Fiscal Year 2026 Outlook

Vestis expects fiscal 2026 revenue to be flat to decrease by 2% compared to normalized fiscal 2025.
Projected Adjusted EBITDA for fiscal 2026 is anticipated to range between $285 million to $315 million.
Expected Free Cash Flow for fiscal 2026 is in the range of $50 million to $60 million.

Dividends and Share Repurchase

Vestis did not declare any quarterly dividends in Q4 2025.
There were no share repurchase programs mentioned in the financial results.

Summary of Key Metrics

Revenue Growth: +4.1% from Q4 2024, yet -3.5% when adjusting for the additional week.
Operating Income Decline: -40.9% from Q4 2024.
Net Loss: Increased from Q4 2024.
Free Cash Flow: Noteworthy decrease of $18.9 million compared to last year.
Projected Savings: Targeted annual cost savings of $75 million by the end of fiscal 2026.
Overall Performance Improvement: Anticipated benefits from strategic initiatives targeting increased profitability and efficiency.

For further details regarding these results, Vestis will host a conference call on December 2, 2025, at 8:30 a.m. Eastern Time.

	Three Months Ended	Fiscal Year Ended
	October 3, 2025	September 27, 2024
Revenue	$712,011	$2,734,839
Operating Expenses:
Cost of services provided (exclusive of depreciation and amortization)	533,150	2,010,082
Depreciation and amortization	35,343	143,017
Selling, general and administrative expenses	125,877	517,309
Total Operating Expenses	694,370	2,670,408
Operating Income	17,641	64,431
Loss (Gain) on Sale of Equity Investment, net	634	2,784
Interest Expense, net	24,343	92,264
Other Expense (Income), net	3,569	13,689
(Loss) Income Before Income Taxes	-10,905	-44,306
(Benefit) Provision for Income Taxes	1,644	-4,083
Net (Loss) Income	-12,549	-40,223
Earnings per share:
Basic	-0.10	-0.31
Diluted	-0.10	-0.31
Weighted Average Shares Outstanding
Basic	131,840	131,751
Diluted	131,840	131,751

	October 3, 2025	September 27, 2024
ASSETS
Current Assets:
Cash and cash equivalents	29,748	31,010
Receivables (net of allowances: $32,677 and $19,804)	162,295	177,271
Inventories, net	179,020	164,913
Rental merchandise in service, net	405,625	396,094
Other current assets	73,343	43,981
Total current assets	850,031	813,269
Property and Equipment, at cost:
Land, buildings and improvements	565,677	590,972
Equipment	1,172,877	1,168,142
Total	1,738,554	1,759,114
Less – Accumulated depreciation	-1,075,092	-1,088,256
Total property and equipment, net	663,462	670,858
Goodwill	961,732	963,844
Other Intangible Assets, net	188,837	212,773
Operating Lease Right-of-use Assets	85,108	73,530
Other Assets	157,730	198,113
Total Assets	2,906,900	2,932,387
LIABILITIES AND EQUITY
Current Liabilities:
Current maturities of financing lease obligations	35,234	31,347
Current operating lease liabilities	20,189	19,886
Accounts payable	158,362	163,054
Accrued payroll and related expenses	93,897	96,768
Accrued expenses and other current liabilities	101,282	145,047
Total current liabilities	408,964	456,102
Long-Term Borrowings	1,155,143	1,147,733
Noncurrent Financing Lease Obligations	131,071	115,325
Noncurrent Operating Lease Liabilities	77,032	66,111
Deferred Income Taxes	177,337	191,465
Other Noncurrent Liabilities	91,709	52,600
Total Liabilities	2,041,256	2,029,336
Equity:
Common stock, par value $0.01 per share, 350,000,000 shares authorized, 131,859,470 and 131,481,967 shares issued and outstanding as of October 3, 2025 and September 27, 2024, respectively	1,319	1,315
Additional paid-in capital	937,531	928,082
(Accumulated deficit) retained earnings	-46,879	2,565
Net parent investment	—	—
Accumulated other comprehensive loss	-26,327	-28,911
Total Equity	865,644	903,051
Total Liabilities and Equity	2,906,900	2,932,387