Cintas (CTAS) Q2 2025 earnings summary

Executive summary

• Second quarter revenue reached $2.56 billion, up 7.8% year-over-year, with organic growth of 7.1% and positive acquisition impact.

• Net income rose 19.7% to $448.5 million, and diluted EPS increased 21.1% to $1.09, reflecting a recent four-for-one stock split.

• Operating income margin improved to 23.1% from 21.0% year-over-year, driven by operational excellence and efficiency gains.

• Gross margin expanded by 180 basis points to 49.8%, marking an all-time high for a quarter.

• Quarterly dividend paid increased 14.9% year-over-year to $158.0 million.

Financial highlights

• Six-month revenue grew 7.3% to $5.06 billion, with net income up 18.5% to $900.5 million and diluted EPS up 19.7% to $2.19 year-over-year.

• Gross margin for the quarter was $1.28 billion (49.8% of revenue), and net income margin for Q2 was 17.5%, up from 15.8% a year ago.

• Operating income for the six months was $1.15 billion, or 22.8% of revenue, up from 21.2% in the prior year period.

• Free cash flow for the first six months increased 34.9% year-over-year.

• Cash flow from operations was $908.1 million for the six months, up from $729.6 million year-over-year.

Outlook and guidance

• Fiscal 2025 revenue guidance updated to $10.255–$10.32 billion, reflecting 6.9%–7.5% total growth and organic growth of 7.0%–7.7%.

• Annual diluted EPS guidance raised to $4.28–$4.34, a 12.9%–14.5% increase.

• Effective tax rate for fiscal 2025 expected at 20.2%.

• Guidance assumes no future acquisitions, share buybacks, or major economic disruptions.

• Management expects continued sufficient liquidity and access to $2.0 billion in revolving credit.