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Jan 02
Vestis Q1 2026 Earnings Report
Vestis reported its first quarter 2026 results, reaffirming its fiscal 2026 outlook.
Key Takeaways
Vestis Corporation announced a solid start to fiscal 2026, with first-quarter results reflecting strong execution against its business transformation plan. The company reported revenue of $663.4 million and an operating income of $16.6 million, alongside a net loss of $6.4 million. Despite a year-over-year decrease in revenue and net income, Vestis saw sequential improvements in net loss and Adjusted EBITDA compared to the fourth quarter of fiscal 2025, driven by operational excellence initiatives.
Revenue for the first quarter was $663.4 million, a 3.0% decrease year-over-year, primarily due to a decrease in rental revenue and changes in product sales mix.
The company reported a net loss of $6.4 million, or $(0.05) per diluted share, a decrease of $7.2 million compared to net income in the prior year period.
Adjusted EBITDA for the quarter was $70.4 million, or 10.6% of revenue, showing sequential improvement from the previous quarter.
Vestis reaffirmed its fiscal 2026 outlook, expecting revenue to be flat to down 2% and Adjusted EBITDA in the range of $285 million to $315 million.
Forward Guidance
Vestis Corporation reaffirmed its fiscal year 2026 outlook, anticipating continued sequential improvements in Adjusted EBITDA and a positive Free Cash Flow range, driven by ongoing business transformation efforts and reduced operating costs.
Positive Outlook
- Fiscal 2026 revenue is expected to be between flat to down 2%.
- Adjusted EBITDA for fiscal 2026 is projected to be in the range of $285 million to $315 million.
- Fiscal 2026 Free Cash Flow is expected to be in the range of $50 million to $60 million.
- Adjusted EBITDA is anticipated to improve approximately 5% on a sequential basis for each remaining quarter of the fiscal year.
- Improvements are driven by business transformation efforts and a reduction in operating cost per pound.
Challenges Ahead
- The revenue outlook indicates a potential decrease of up to 2% for fiscal 2026.
- The company did not provide specific negative forward-looking statements in the guidance section.
- Potential macroeconomic conditions could impact performance.
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