UniFirst Corporation Reports 1.2% Revenue Growth to $610.8 Million in Latest Quarter

UniFirst Corporation reported a slight increase in revenue for the thirteen weeks ended May 31, 2025, reaching $610.8 million, compared to $603.3 million for the same period in 2024, marking a 1.2% growth. For the thirty-nine weeks ended May 31, 2025, total revenues were $1.82 billion, up from $1.79 billion in the prior year, reflecting a 1.7% increase. The company's net income for the latest quarter was $39.7 million, or $2.13 per diluted share, compared to $38.1 million, or $2.03 per diluted share, in the previous year. Year-to-date net income also rose to $107.2 million from $100.8 million, with earnings per diluted share increasing from $5.38 to $5.76.

Operating expenses for the thirteen weeks ended May 31, 2025, totaled $562.6 million, up from $554.9 million in the prior year, primarily driven by a 10.5% increase in selling and administrative expenses, which reached $142.7 million. This rise was attributed to higher healthcare claims and advisory costs related to strategic matters. The cost of revenues decreased by 1.5% to $385.2 million, contributing to a slight decline in operating income to $48.2 million from $48.5 million in the previous year. The operating income margin remained stable at 7.9%.

In terms of strategic developments, UniFirst completed four business acquisitions during the thirty-nine weeks ended May 31, 2025, with a total purchase price of approximately $6.5 million, primarily allocated to goodwill and intangible assets. The company continues to focus on enhancing its operational capabilities through ongoing investments in technology, including a multi-year ERP project aimed at improving supply chain and procurement processes. As of May 31, 2025, UniFirst had approximately 16,000 employees and served over 300,000 customer locations across North America.

The company reported a cash and cash equivalents balance of $211.9 million as of May 31, 2025, an increase from $161.6 million at the end of the previous fiscal year. This growth was largely driven by cash flows from operating activities, which totaled $196.5 million for the thirty-nine weeks ended May 31, 2025. UniFirst also authorized a new share repurchase program to buy back up to $100 million of its common stock, with $86.4 million remaining under the program as of the latest reporting date.

Looking ahead, UniFirst anticipates continued growth driven by solid new account sales and improved pricing strategies. However, the company remains cautious about potential economic challenges, including inflationary pressures and geopolitical uncertainties, which could impact its operations and margins. The effective tax rate for the latest quarter was 25.7%, up from 22.9% in the prior year, reflecting adjustments to tax reserves. The company is committed to maintaining its operational efficiency and enhancing shareholder value through strategic investments and prudent financial management.