UniFirst 2025 Q3 Earnings Modest Growth with 4.3% Net Income Increase

UniFirst Corporation (UNF) reported a 1.2% increase in total revenue to $610.78 million for fiscal 2025 Q3, up from $603.33 million in 2024 Q3. The company’s diluted earnings per share (EPS) rose 4.9% to $2.22, exceeding the previous year's $2.12. UniFirst maintained its revenue guidance for fiscal 2025, projecting between $2.422 billion and $2.432 billion, and raised its EPS guidance to a range of $7.60 to $8.00, reflecting improved cost efficiencies. The results were in line with management's expectations, highlighting strategic investments that have begun to yield returns.

Revenue
In fiscal 2025 Q3, UniFirst recorded a total revenue of $610.78 million, marking a 1.2% increase from the previous year's $603.33 million. The Core Laundry Operations contributed $533.19 million, while the U.S. and Canadian Rental and Cleaning segment generated $521.22 million. The Manufacturing segment recorded $69.81 million, which was offset by a net intercompany manufacturing elimination of the same amount. Additionally, the Corporate segment added $11.97 million, Specialty Garments achieved $47.80 million, and the First Aid segment contributed $29.79 million.

Earnings/Net Income
UniFirst's earnings per share climbed 4.7% to $2.22 in 2025 Q3 from $2.12 in 2024 Q3, while net income rose 4.3% to $39.68 million. The steady increase in EPS reflects effective cost management and operational resilience, positioning the company well for ongoing profitability.

Post-Earnings Price Action Review
The strategy of purchasing UniFirst shares the day after earnings release and selling 30 days later yielded moderate returns but fell short of market performance. The strategy showed a compound annual growth rate of 14.53%, lagging the benchmark by 49.60 percentage points. A maximum drawdown of -14.67% and a Sharpe ratio of 0.75 highlighted the strategy's challenging risk-return profile, emphasizing the need for prudent risk management in such volatile market conditions.

CEO Commentary
Steven Sintros, President and CEO of UniFirst Corporation, expressed satisfaction with the third-quarter results, which met expectations. He noted the positive impact of recent investments on gross margin improvement and operational execution. Sintros acknowledged challenges with rising costs affecting operating margins but expressed optimism regarding initiatives to enhance efficiency and strengthen UniFirst's industry position.

Guidance
UniFirst Corporation maintained its revenue guidance for fiscal year 2025, projecting between $2.422 billion and $2.432 billion. The company increased its diluted EPS guidance to a range of $7.60 to $8.00, reflecting improved cost management and revised estimates for Key Initiative costs at approximately $7.5 million. The guidance excludes potential future share buybacks and unforeseen economic events.

Additional News
Recently, UniFirst made headlines by announcing a $100 million share repurchase authorization, reflecting its commitment to returning capital to shareholders. Additionally, UniFirst participated in the Baird 2025 Global Consumer Conference, showcasing its strategic initiatives and growth prospects. Furthermore, the company continued to expand its Owensboro Distribution and Fulfillment Center, aiming to elevate customer service and operational excellence. These developments underscore UniFirst's focus on strategic growth and shareholder value enhancement.