Cintas Corporation Reports 7.8% Revenue Growth to $2.56 Billion in Latest Quarter

Cintas Corporation reported a total revenue of $2.56 billion for the three months ended November 30, 2024, marking a 7.8% increase from $2.38 billion in the same period last year. For the first half of the fiscal year, revenue rose to $5.06 billion, up 7.3% from $4.72 billion in the prior year. The company's net income for the quarter was $448.5 million, a 19.7% increase compared to $374.6 million in the previous year, while diluted earnings per share rose to $1.09 from $0.90. The growth in revenue and profitability was attributed to new business acquisitions, increased product penetration among existing customers, and price adjustments.

Cintas experienced notable improvements in its Uniform Rental and Facility Services segment, which generated $1.99 billion in revenue for the quarter, up 7.6% year-over-year. The segment's organic growth rate was 6.9%, driven by enhanced sales representative productivity and new business. The First Aid and Safety Services segment also saw a revenue increase of 12.4%, reaching $299.4 million, supported by strong customer retention and new business sales. Overall, the company reported an operating income of $591.4 million for the quarter, representing 23.1% of total revenue, up from 21.0% in the prior year.

In terms of operational metrics, Cintas reported a total employee headcount of 46,000 as of November 30, 2024, reflecting the company's ongoing investment in its workforce to support growth. The company also engaged in strategic acquisitions, spending $154.9 million on acquiring several businesses across its operating segments during the first half of the fiscal year. This included five acquisitions in the Uniform Rental and Facility Services segment and two in First Aid and Safety Services. The acquisitions contributed positively to revenue growth, accounting for a 0.6% increase in organic growth.

Cintas' balance sheet showed total assets of $9.37 billion as of November 30, 2024, with cash and cash equivalents decreasing to $122.4 million from $342 million at the end of the previous fiscal year. The company reported total liabilities of $5.03 billion, with current liabilities increasing to $2.01 billion. The increase in liabilities was primarily due to higher accounts payable and accrued compensation. Cintas maintained a strong liquidity position, with access to a $2 billion revolving credit facility, which it expects to utilize for future growth and acquisitions.

Looking ahead, Cintas remains optimistic about its growth trajectory, emphasizing its commitment to expanding its customer base and enhancing service offerings. The company plans to continue leveraging its strong sales force and operational efficiencies to drive revenue growth. Cintas also anticipates that cash flows from operations will remain sufficient to support its strategic objectives, including acquisitions and shareholder returns through dividends and stock repurchases.