Did Unifirst beat or miss consensus estimates last quarter?

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What does Unifirst do and what are its main business segments?

What factors drove the changes in Unifirst's revenue and profit?

What is Unifirst's latest dividend and current dividend yield?

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What guidance did Unifirst's management provide for the next earnings period?

What is the revenue and EPS growth rate for Unifirst year over year?

- **Revenue growth modest at 1.2% YoY**, driven by new business wins (+solid margin vs. prior year) but offset by pricing challenges and wear levels decline.
- **Gross margin improvement** from lower merchandise costs, but offset by higher healthcare claims.
- **First Aid van business surging +15% QoQ**, targeting 9%+ annual growth through safety service expansion.
- **ERP project on track**, with FY25 costs reduced to $7.5M vs. prior $12M estimate.
- **Tariffs remain fluid**, with vendors signaling future price increases but no material impact yet.
- **Free cash flow up 22% YoY**, supporting $25.6M in share buybacks and $109.8M in capex.

**【CEO Summary Section】**
- Q3 2025 revenue of $610.8M (+1.2% YoY) reflects modest growth amid cautious customer spending and incremental softness in wearer levels.
- Gross margin improvement driven by lower merchandise and production costs, offset by higher healthcare claims and selling/admin expenses.
- Key initiatives: ERP project progressing on track, with $7.5M in FY25 costs vs. prior $12M estimate. First Aid van business grows 15% QoQ, targeting holistic customer penetration.
- Risks: Tariffs remain fluid, with vendors passing through sourcing costs; manufacturing sector customers reducing employment levels.

**【CFO Financial Commentary】**
- Net income $39.7M (+4.2% YoY), EPS $2.13 (+4.8% YoY), driven by cost control and $2.8M gain on property sale.
- Adjusted EBITDA $85.8M (+1.2% YoY), operating margin 7.9% vs. 8.0% prior year.
- Core Laundry segment: $533.2M (+0.9% YoY), adjusted EBITDA margin 13.5% (flat YoY). Specialty Garments $47.8M (+0.5% YoY), First Aid $29.8M (+9% YoY).
- Free cash flow $86.7M (+22% YoY), capital expenditures $109.8M, share buybacks $25.6M.

**【Q&A Key Takeaways】**
1. **Demand Environment**: 
   - Organic growth (+1.1% YoY) driven by new business wins (+solid margin vs. prior year) and improved retention, offset by pricing challenges and wear levels decline.
   - Manufacturing sector customers reducing employment levels, impacting utilization.
2. **Pricing Dynamics**: 
   - Fluid environment with vendors passing through tariff-related costs; no sector-specific impact.
3. **ERP Progress**: 
   - Finance-centric release underway, with $5.7M in advisory/legal costs for strategic matters. Capitalized costs reduce P&L impact, but future training/change management expenses expected.
4. **First Aid Growth**: 
   - Van business +15% QoQ, targeting 9%+ annual growth. Penetrating Laundry customers with safety training, AEDs, etc.
5. **Tariff Impact**: 
   - No material impact yet, but vendors signaling future price increases. Diversified supply chain mitigates risk.
6. **Labor Costs**: 
   - Stable with wage inflation stabilized; no material impact from immigration changes.
7. **Legal Matters**: 
   - $5.7M in costs related to prior Cintas discussions and ongoing legal accrual. No long-term tail expected.


UniFirst Corporation (UNF) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

UNF

UNF fundamentals

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