UniFirst (UNF) Q1 2026 earnings summary

Executive summary

• Revenue for the quarter ended November 29, 2025, increased 2.7% year-over-year to $621.3 million, driven by growth in Uniform & Facility Service Solutions and First Aid & Safety Solutions.

• Net income declined 20.3% year-over-year to $34.4 million, with operating income margin decreasing to 7.3% from 9.2% in the prior year.

• Strategic investments in sales, service teams, and digital transformation drove improvements in account retention and product placements but pressured margins.

• The board is evaluating an unsolicited non-binding proposal from Cintas, with independent advisors engaged and updates to follow.

• The company reorganized into three reportable segments: Uniform & Facility Service Solutions, First Aid & Safety Solutions, and Other.

Financial highlights

• Revenues rose to $621.3M, up 2.7% year-over-year.

• Operating income declined to $45.3M from $55.5M; net income fell to $34.4M ($1.89/share) from $43.1M ($2.31/share).

• Adjusted EBITDA was $82.8M, down from $94M year-over-year; margin fell to 13.3% from 15.5%.

• Effective tax rate increased to 26.9% from 25.6%.

• Net cash provided by operating activities was $14.9M, down from $58.1M in the prior year.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: revenue $2.475B–$2.495B, EPS $6.58–$6.98.

• Guidance includes $7M in key initiative costs; does not assume future share buybacks.

• Management expects steady improvement toward mid-single-digit organic growth and high-teens EBITDA margins by 2027–2028.

• Management expects current cash, future operations, and credit availability to be sufficient for anticipated needs over the next 12 months.

• Inflationary pressures and economic uncertainty remain risks to future margins and growth.