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Mar 01
UniFirst Q2 2025 Earnings Report
UniFirst posted modest revenue growth and improved profitability in Q2 2025.
Key Takeaways
UniFirst delivered solid Q2 2025 results with a 1.9% revenue increase and 20.2% EPS growth, driven by lower merchandise and production costs despite higher administrative expenses.
Revenue increased to $602,219,000, up 1.9% from Q2 2024.
Net income rose to $24,459,000, a 19.6% increase from the prior year.
Diluted EPS improved to $1.31 from $1.09 in Q2 2024.
Core Laundry segment margins improved due to lower production costs despite higher healthcare and admin expenses.
UniFirst
UniFirst
UniFirst Revenue by Segment
Revenue by Segment
Core Laundry Revenue
CapyFin.comSpecialty Garments Revenue
CapyFin.comFirst Aid Revenue
CapyFin.com Forward Guidance
UniFirst expects FY2025 revenue between $2.422B and $2.432B, with EPS in the range of $7.30 to $7.70, factoring in headwinds from forex and ongoing investments in ERP/CRM systems.
Positive Outlook
- Improved operating income outlook in Core Laundry Operations
- Revised lower cost expectations for Key Initiatives
- Healthy cash flow from operations in first half of FY2025
- Strong balance sheet with no long-term debt
- Continued share repurchases signaling confidence
Challenges Ahead
- Anticipated negative impact from Canadian Dollar exchange rate
- Ongoing costs related to ERP/CRM implementation
- Higher healthcare claims impacting margins
- Increased selling and admin expenses as a percentage of revenue
- Declining margins in Specialty Garments segment due to cost pressures