UniFirst Corporation Reports 3.9% Revenue Growth but Declines in Net Income for Latest Quarter

UniFirst Corporation reported its financial results for the thirteen and thirty-nine weeks ended May 30, 2026, revealing a total revenue of $634.4 million for the quarter, a 3.9% increase from $610.8 million in the same period last year. For the first nine months of the fiscal year, revenues reached $1.88 billion, up 3.3% from $1.82 billion in the prior year. However, net income for the quarter fell to $19.9 million, or $1.15 per share, compared to $39.7 million, or $2.22 per share, in the previous year. For the year-to-date period, net income was $74.8 million, down from $107.2 million in the prior year.

The decline in profitability was attributed to a significant increase in selling and administrative expenses, which rose by 23.3% to $175.9 million in the latest quarter, largely due to $20.7 million in transaction-related costs associated with the proposed merger with Cintas Corporation. Additionally, the company faced higher payroll and healthcare claims expenses, which contributed to the overall increase in costs. Operating income for the quarter decreased by 52.2% to $23.0 million, with an operating margin of 3.6%, down from 7.9% in the prior year.

In terms of operational developments, UniFirst continued to expand its customer base, serving over 300,000 customer locations across North America and Europe. The Uniform & Facility Service Solutions segment, which accounts for the majority of revenues, saw a 3.9% increase in sales driven by organic growth and improved customer retention. The First Aid & Safety Solutions segment also reported a 3.4% revenue increase, bolstered by growth in its van business. However, the Other segment's revenues were impacted by the wind-down of a large refurbishment project.

Looking ahead, UniFirst remains focused on its merger with Cintas, which was approved by shareholders on June 11, 2026. The merger is expected to enhance the company's market position, although it is subject to regulatory approvals. The company has also been investing in its ERP system to improve operational efficiency and customer service. Despite the challenges faced in the current fiscal year, UniFirst anticipates that its strategic initiatives will position it for future growth and improved financial performance.