Aramark (ARMK) Q4 2025 Financial Results Summary
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Aramark (ARMK) Q4 2025 Financial Results Summary
Philadelphia, PA, November 17, 2025 – Aramark (NYSE: ARMK) today reported results for the fourth quarter and full year of fiscal 2025.
Key Highlights
- Record Annualized Gross New Business: $1.6 billion, 12% increase from Fiscal 2024.
- Retention rate at 96.3%, the strongest in Company history.
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Net new business at 5.6% of prior year revenue with largest contract win in FSS United States history.
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Revenue Growth:
- Total revenue up 6% year-over-year.
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Organic revenue increased 7%, assisted by the addition of a 53rd week which contributed approximately 2% to growth.
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Operating Income:
- Increased by 12% to $792 million.
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Adjusted Operating Income (AOI) also grew 12% to $981 million.
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Earnings Per Share (EPS):
- GAAP EPS increased by 23% to $1.22.
- Adjusted EPS increased by 19% to $1.82.
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Notably, incentive-based compensation impacted both GAAP EPS and Adjusted EPS negatively by 7% and 5%, respectively.
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Cash Flow and Capital Structure:
- Net cash from operations ballooned by 27%, reaching $921 million; Free Cash Flow surged 41% to $454 million.
- Improved leverage ratio at 3.25x, the lowest in nearly 20 years.
- Repurchased over 4 million shares; announced a 14% increase in quarterly dividend.
Quarterly Overview (Q4 2025)
- Revenue: $5.0 billion, a remarkable 14% surge year-over-year.
- Organic revenue also showed a 14% increase.
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Contribution from 53rd week estimated at 7%.
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Operating Income:
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Remained unchanged at $218 million; however, AOI grew by 6% to $289 million, reflecting improved operational leverage.
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Earnings Per Share:
- GAAP EPS fell 28% to $0.33.
- Adjusted EPS climbed 6% to $0.57, despite impacts from incentive-based compensation.
Segment Performance
- FSS United States:
- Revenue of $3.6 billion, a 14% increase.
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Operating income increased by 6% to $212 million.
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FSS International:
- Revenue was $1.4 billion, a 16% growth.
- Despite challenges, operating income was strong.
Dividends and Share Repurchase
- Aramark’s Board of Directors approved a 14% increase in quarterly dividend to $0.12 per share, payable on December 17, 2025.
- The company repurchased more than 4 million shares in the fiscal year.
Full Fiscal Year 2025 Overview
- Consolidated revenue reached $18.5 billion, reflecting a 6% increase.
- Operating income surged 12% to $792 million, with AOI also up by 12%.
- Earnings per share stood at $1.22, marking a 23% growth from the previous year.
Cash Flow and Financial Outlook
- Leveraged cash availability exceeding $2.4 billion.
- Continued investment in business operations is expected to drive sustainable growth, with strong confidence in achieving significant shareholder value moving forward.
Conclusion
Aramark enters fiscal 2026 with confidence, planning to invest in growth while maintaining a commitment to operational excellence and shareholder returns. The successful onboarding of new business and strategic initiatives to optimize the supply chain further underline its positive outlook for the upcoming fiscal year.
| Fiscal Year Ended | ||
|---|---|---|
| October 3, 2025 | September 27, 2024 | |
| Revenue | $18,506,299 | $17,400,701 |
| Costs and Expenses: | ||
| Cost of services provided | 16,959,669 | 15,975,017 |
| (exclusive of depreciation | ||
| and amortization) | ||
| Depreciation and amortization | 476,345 | 435,547 |
| Selling and general corporate expenses | 278,439 | 283,627 |
| Total costs and expenses | 17,714,453 | 16,694,191 |
| Operating income | 791,846 | 706,510 |
| Loss (Gain) on Equity Investments, net | 19,465 | -25,071 |
| Interest Expense, net | 341,925 | 366,716 |
| Income Before Income Taxes | 430,456 | 364,865 |
| Provision for Income Taxes | 103,586 | 102,972 |
| Net income | 326,870 | 261,893 |
| Less: Net income (loss) attributable | 476 | -629 |
| to noncontrolling interests | ||
| Net income attributable to Aramark | $326,394 | $262,522 |
| stockholders | ||
| Earnings per share attributable to | ||
| Aramark stockholders: | ||
| Basic | $1.24 | $1.00 |
| Diluted | $1.22 | $0.99 |
| Weighted Average Shares Outstanding: | ||
| Basic | 263,863 | 263,045 |
| Diluted | 267,349 | 266,200 |
| October 3, 2025 | September 27, 2024 | |
|---|---|---|
| Assets | ||
| Current Assets: | ||
| Cash and cash equivalents | $639,095 | $672,483 |
| Receivables | 2,210,388 | 2,096,928 |
| Inventories | 418,766 | 387,601 |
| Prepayments and other | 254,642 | 249,550 |
| current assets | ||
| Total current assets | 3,522,891 | 3,406,562 |
| Property and Equipment, net | 1,734,489 | 1,573,193 |
| Goodwill | 4,874,670 | 4,677,201 |
| Other Intangible Assets | 1,874,067 | 1,804,602 |
| Operating Lease Right-of-use Assets | 701,839 | 638,659 |
| Other Assets | 596,673 | 574,154 |
| Total Assets | $13,304,629 | $12,674,371 |
| Liabilities and Stockholders’ Equity | ||
| Current Liabilities: | ||
| Current maturities of long-term | $31,543 | $964,286 |
| borrowings | ||
| Current operating lease liabilities | 60,744 | 54,163 |
| Accounts payable | 1,522,747 | 1,394,007 |
| Accrued expenses and other | 1,931,688 | 1,801,754 |
| current liabilities | ||
| Total current liabilities | 3,546,722 | 4,214,210 |
| Long-Term Borrowings | 5,374,394 | 4,307,171 |
| Noncurrent Operating Lease Liabilities | 255,305 | 241,012 |
| Deferred Income Taxes and Other | 966,019 | 865,510 |
| Noncurrent Liabilities | ||
| Commitments and Contingencies | ||
| Redeemable Noncontrolling Interest | 14,130 | 7,494 |
| Total Stockholders’ Equity | 3,148,059 | 3,038,974 |
| Total Liabilities and Stockholders’ Equity | $13,304,629 | $12,674,371 |