Cintas (CTAS) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 revenue reached a record $9.6 billion, up 8.9% year-over-year, with Q4 revenue at $2.47 billion, up 8.2%.

• Organic growth for the year was 8%, with Q4 organic growth at 7.5%.

• Net income for fiscal 2024 increased 16.6% to $1.57 billion; Q4 net income rose 19.7% to $414.3 million.

• Diluted EPS for fiscal 2024 was $15.15, up 16.6%; Q4 diluted EPS was $3.99, up 19.8%.

• Cash flow from operations exceeded $2 billion for the first time, supporting $530.9 million in dividends and $1 billion in share repurchases.

Financial highlights

• Fiscal 2024 gross margin was 48.8%, up from 47.3% in 2023; Q4 gross margin reached 49.2%.

• Fiscal 2024 operating income rose 14.8% to $2.07 billion; Q4 operating income was $547.6 million, up 16.3%.

• Fiscal 2024 operating margin reached an all-time high of 21.6%; Q4 operating margin was 22.2%.

• Net income margin improved to 16.4% for fiscal 2024 from 15.3% in 2023.

• Quarterly dividend increased by 17.4%, marking 40 consecutive years of increases.

Outlook and guidance

• Fiscal 2025 revenue expected between $10.16 billion and $10.31 billion, growth of 5.9%-7.4%.

• Organic growth for 2025 projected at 6.4%-8%, adjusting for two fewer workdays.

• Diluted EPS guidance for 2025 is $16.25-$16.75, up 7.3%-10.6%.

• Net interest expense expected to rise to $106 million due to higher variable rate debt.

• Fiscal 2025 effective tax rate expected at 20.4%, unchanged from 2024.