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Nov 29, 2025
UniFirst Q1 2026 Earnings Report
UniFirst reported its Q1 2026 results with slight revenue growth, lower margins, and continued investment in strategic initiatives.
Key Takeaways
Revenue grew modestly year-over-year, but operating income and net income declined due to strategic investments and higher costs. The company maintained a strong balance sheet and reiterated full-year guidance.
Revenue increased 2.7% year-over-year, led by organic growth in core Uniform services.
Operating margin fell to 7.3% from 9.2% due to higher investment and cost pressures.
Net income declined to $34.4M from $43.1M in Q1 2025.
Strong balance sheet with $124M in cash and no long-term debt.
Revenue by Segment
Forward Guidance
UniFirst reaffirmed its FY26 outlook, expecting revenue between $2.475B–$2.495B and EPS of $6.58–$6.98, including $7M in investment-related costs.
Positive Outlook
- Guidance reaffirmed despite cost headwinds.
- Continued focus on digital transformation and scalability.
- Strong customer retention and new customer acquisition trends.
- Increased quarterly dividend reflecting long-term confidence.
- Flexible balance sheet allows for continued shareholder returns.
Challenges Ahead
- Margin compression due to strategic investments.
- Ongoing expenses related to ERP implementation.
- Higher healthcare claims and legal costs in the quarter.
- Disproportionate EBITDA decline in Other segment due to revenue drop.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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