UniFirst Corporation Reports 1.9% Revenue Growth to $602.2 Million for Quarter Ended March 1, 2025

UniFirst Corporation reported its financial results for the thirteen and twenty-six weeks ended March 1, 2025, revealing a revenue increase of 1.9% to $602.2 million for the quarter, compared to $590.7 million in the same period last year. For the first half of the fiscal year, revenues reached $1.207 billion, up from $1.184 billion. The company's net income for the quarter was $24.5 million, a 19.6% increase from $20.5 million in the prior year, while net income for the first half rose to $67.6 million from $62.8 million. Earnings per share for the common stock increased to $1.37 for the quarter and $3.78 for the first half, compared to $1.14 and $3.49, respectively, in the previous year.

The company experienced notable changes in its operating expenses, with total operating expenses rising to $571 million for the quarter, up from $562.8 million a year earlier. This increase was primarily driven by an 8% rise in selling and administrative expenses, attributed to investments in building capabilities and executing strategic initiatives. The cost of revenues decreased slightly to 65.4% of total revenues, down from 67.1%, reflecting improved operational efficiency. Operating income for the quarter was $31.2 million, representing an 11.7% increase from $27.9 million in the prior year.

In terms of strategic developments, UniFirst completed four business acquisitions during the first half of the fiscal year, totaling 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 March 1, 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 $192.2 million as of March 1, 2025, an increase from $161.6 million at the end of the previous fiscal year. This growth was driven by strong cash flows from operating activities, which totaled $128.3 million for the first half of the fiscal year. UniFirst also continued its share repurchase program, repurchasing 66,605 shares for approximately $12.5 million during the first half, with $63.7 million remaining under the current authorization.

Looking ahead, UniFirst remains optimistic about its growth prospects, citing solid new account sales and improved pricing strategies as key drivers for future revenue growth. However, the company acknowledges potential risks from economic conditions, including inflation and interest rate fluctuations, which could impact its operations and financial performance. The management is committed to addressing these challenges while continuing to enhance operational efficiencies and expand its market presence.