Executive Summary

Q4 2025 revenue was $614.4M, down 4.0% y/y due to the prior-year extra week; on a comparable basis, revenue grew 3.4% y/y. Diluted EPS was $2.23, with adjusted EBITDA margin of 14.3% .
Results beat Wall Street consensus: revenue $606.98M*, EPS $2.12*, EBITDA $88.2M*; actuals were $614.45M, $2.23, and $91.26M, respectively. Bold beat on EPS, revenue, and EBITDA versus S&P Global consensus*.
FY 2026 guidance implies a transitional year: revenue $2.475–$2.495B, EPS $6.58–$6.98, consolidated operating income at midpoint $158.8M, adjusted EBITDA midpoint $319.7M, with margin headwinds from tariffs, sales/service investments, higher D&A from Oracle ERP go-live, and elevated stock-based comp .
Dividend raised to $0.365 per common share (from $0.350), and $0.292 per Class B (from $0.280), payable Jan 2, 2026, a potential near-term shareholder return catalyst .

What Went Well and What Went Wrong

What Went Well

Uniform & Facility Service Solutions delivered 2.9% organic growth in Q4 (solid new account sales and improved retention), despite the shorter quarter; First Aid & Safety Solutions grew organically 12.4% on strength in the van business .
Management cited momentum in sales effectiveness, conversion rates, and retention: “We installed more new business than we did in fiscal 2024… the year concluded with its highest quarter of new account installations” and retention “improved meaningfully in 2025” .
Strong cash generation and balance sheet: FY25 operating cash flow $296.9M and no long-term debt; $209.2M cash/short-term investments at year-end .

What Went Wrong

Consolidated operating margin fell to 8.1% (vs 8.4% prior year) and adjusted EBITDA margin to 14.3% (vs 14.9%), reflecting the extra week comp, investments to accelerate growth/retention/digital transformation, and tariff headwinds .
Nuclear services (“Other”) revenues declined 5.3% y/y in Q4 and are expected to be down ~16.3% in FY26 due to the wind-down of a large refurbishment project and fewer outages; profitability impact amplified by high fixed costs .
Pricing environment remains challenging and wearer count reductions persisted, limiting top-line momentum; management expects tariffs’ impact to build through FY26 .

Financial Results

Headline Results vs Prior Periods

Metric	Q4 2024	Q2 2025	Q3 2025	Q4 2025
Revenue ($USD Millions)	$639.9	$602.2	$610.8	$614.4
Diluted EPS (Common, $)	$2.39	$1.31	$2.13	$2.23
Operating Margin (%)	8.4%	5.2%	7.9%	8.1%
Adjusted EBITDA Margin (%)	14.9%	11.4%	14.1%	14.3%

Note: Q4 2024 included an extra week versus Q4 2025 .

Actuals vs S&P Global Consensus (Q4 2025)

Metric	Consensus	Actual
Revenue ($USD)	$606.98M*	$614.45M
EPS (Primary/Diluted, $)	$2.12*	$2.23
EBITDA ($USD)	$88.18M*	$91.26M

Values retrieved from S&P Global.

Segment Breakdown (Q4 2025 vs Prior Year)

Segment Metric	Q4 2024	Q4 2025
Uniform & Facility Service Solutions Revenue ($MM)	$586.0	$560.1
Uniform & Facility Service Solutions Operating Margin (%)	8.7%	8.3%
Uniform & Facility Service Solutions Adjusted EBITDA Margin (%)	15.3%	14.8%
First Aid & Safety Solutions Revenue ($MM)	$29.3	$31.1
First Aid & Safety Solutions Operating Income ($MM)	$0.1	$0.5
First Aid & Safety Solutions Adjusted EBITDA ($MM)	$1.0	$1.5
Other (Nuclear) Revenue ($MM)	$24.6	$23.3
Other (Nuclear) Operating Margin (%)	12.7%	10.9%
Other (Nuclear) Adjusted EBITDA Margin (%)	16.7%	14.9%

KPIs and Cash/Liquidity

KPI	Q4 2024	Q4 2025	FY 2025
Energy Costs (% of Revenue)	4.1%	4.0%	4.0% (guidance for FY26)
Uniform & Facility Organic Growth (y/y, %)	—	2.9%	—
First Aid Organic Growth (y/y, %)	—	12.4%	—
Cash + Short-Term Investments ($MM)	—	$209.2	—
Cash from Operations ($MM)	—	—	$296.9
Net Debt	—	—	No long-term debt

Non-GAAP impacts: Key Initiatives (ERP/CRM) reduced Q4 operating income/Adj. EBITDA by ~$1.4M, net income by ~$1.1M, and diluted EPS by ~$0.05 .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2026	—	$2.475B–$2.495B	New
EPS (Diluted)	FY 2026	—	$6.58–$6.98	New
Net Income (Midpoint)	FY 2026	—	$124.1M	New
Operating Income (Midpoint)	FY 2026	—	$158.8M	New
Adjusted EBITDA (Midpoint)	FY 2026	—	$319.7M	New
Uniform & Facility Organic Growth (Midpoint)	FY 2026	—	2.6%	New
Uniform & Facility Operating Margin (Midpoint)	FY 2026	—	6.6%	New
Uniform & Facility Adj. EBITDA Margin (Midpoint)	FY 2026	—	13.3%	New
Effective Tax Rate	FY 2026	—	26.0%	New
Energy Costs (% of Revenue)	FY 2026	—	4.0%	New
Other Segment Revenue	FY 2026	—	Down ~16.3% y/y	New
Dividend (Common)	Quarterly	$0.350 (Jul 2025)	$0.365 (Oct 2025)	Raised
Dividend (Class B)	Quarterly	$0.280 (Jul 2025)	$0.292 (Oct 2025)	Raised

Guidance commentary: FY26 EPS and margins are pressured by higher D&A tied to ERP deployment and elevated share-based comp; guidance excludes future buybacks/unexpected macro events .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 & Q3)	Current Period (Q4 2025)	Trend
Technology/ERP	Key initiative costs lower due to capitalization timing; finance-core go-live planned; benefits in inventory/procurement more 2027+	Mid-FY26 finance go-live; D&A up ~$4M FY26; full margin benefits post-2026	Investment peaking; benefits later
Supply chain & tariffs	Tariffs fluid; vendor price increases; limited impact to date	Tariff impact expected to build through FY26; cautious pricing environment	Headwind intensifying
Sales/Retention	Momentum improving; installs up; retention better; some direct sales timing effects	Highest quarter of installs; improved retention; tiered selling model; sales/service investments ahead of revenue	Positive but investment-heavy
Nuclear (Other)	Seasonality; variability by outage timing	Q4 down 5.3% y/y; FY26 down ~16.3%; fixed-cost sensitivity	Near-term softness
Pricing & wearer count	Challenging pricing; wearers down; cautious customers	Continued pricing pressure; wearer adds vs reductions negative; employment softness	Persistent constraint
Energy costs	4.1% in Q3 (vs 4.3% prior year)	4.0% in Q4; FY26 assumption 4%	Slightly favorable

Management Commentary

“We closed the year with a solid fourth quarter… execute our strategic plan to drive long-term growth through investments in our people, technology and operational execution.” — CEO Steven Sintros .
“Excluding the extra week in fiscal 2024, revenue growth… was ~3.4%. Q4 diluted EPS was $2.23… adjusted EBITDA $88.1M.” — CFO Shane O’Connor .
“We are laser-focused on… mid-single-digit organic growth and… EBITDA margin improvements into the high teens… fiscal 2026 is expected to reflect a temporary step back in profitability.” — CEO Steven Sintros .
“Tariffs, sales investments, service investments, and peaking digital transformation costs… contributed roughly evenly to an ~80–90 bps margin impact.” — CEO Steven Sintros .

Q&A Highlights

Organic growth outlook (2.6% midpoint for Uniform & Facility): Driven by improved retention and sales execution, partially offset by negative wearer trends amid softer employment; momentum building into back half FY26 and FY27 .
Margin headwinds quantified: Tariffs plus sales/service/digital investments each ~20 bps; offsets from operational efficiency will take time; FY26 transitional .
Clarification on costs: $7M FY26 “Key Initiatives” relates to ERP only; sales/service investments are incremental, made ahead of revenue to accelerate growth .
Pricing remains challenging; customers exhibiting inflation fatigue; tariff pass-through will be managed prudently over time .
Nuclear cadence: Wind-down of large project in Q1; seasonal strength in Q1/Q3; full-year downshift expected in FY26 .

Estimates Context

Q4 2025 actuals beat S&P Global consensus: revenue ($614.45M vs $606.98M*), EPS ($2.23 vs $2.12*), EBITDA ($91.26M vs $88.18M*). Estimate counts: revenue (4), EPS (6)*.
Implication: Consensus likely needs to reflect FY26 margin headwinds (lower EPS guide) while acknowledging operating momentum in sales/retention and First Aid growth.*

Values retrieved from S&P Global.

Key Takeaways for Investors

Near-term trading: Solid Q4 beat across revenue/EPS/EBITDA vs consensus, but FY26 EPS/margin guide frames a transition year; expect estimate cuts and multiple compression risk short term as tariff/D&A headwinds materialize .
Medium-term thesis: Investments in sales/service, ERP-driven efficiency (inventory/procurement/route optimization/telematics), and improved retention should support mid-single-digit organic growth and margin rebuild toward high-teens adjusted EBITDA longer term .
Segment mix: First Aid & Safety is a bright spot (12.4% organic in Q4); Nuclear variability adds volatility and is a drag in FY26; Uniform remains core engine with improving execution .
Balance sheet strength enables capital allocation (buybacks, tuck-ins, automation capex) through the transition; no long-term debt reduces financial risk .
Watch catalysts: Mid-FY26 ERP finance go-live (D&A step-up), tariff policy evolution (cost trajectory), retention and sales conversion metrics, nuclear outage calendar, and dividend trajectory/governance developments (preliminary proxy and board nomination dynamics) .
Non-GAAP clarity: Key Initiatives reduced Q4 EPS by ~$0.05; FY26 includes ~$7M ERP expense; adjusted EBITDA excludes non-cash D&A and elevated SBC, useful for tracking underlying operating progress .
Risk management: Pricing power constrained; wearer count sensitivity to macro employment; tariff pass-through timing; nuclear fixed-cost leverage—position sizing should reflect these factors .

UNIFIRST CORP (UNF)·Q4 2025 Earnings Summary