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Mar 01, 2025
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.
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
Historical Earnings Impact
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Avg. Return Before/After Earnings
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