UniFirst Corporation (UNF) Q1 2026 Financial Results Summary
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UniFirst Corporation (UNF) Q1 2026 Financial Results Summary
Wilmington, MA – January 7, 2026 – UniFirst Corporation (NYSE: UNF) today reported results for its fiscal 2026 first quarter ended November 29, 2025. The company’s consolidated results indicate both growth and areas for improvement compared to the previous year.
First Quarter 2026 Consolidated Results
- Consolidated Revenues: Increased 2.7% to $621.3 million from $604.9 million in the first quarter of fiscal 2025.
- Operating Margin: Registered at 7.3%, a decrease from 9.2% in the prior year period, reflecting planned investments in growth and digital transformation.
- Net Income: Reported at $34.4 million, down from $43.1 million year-over-year.
- Diluted Earnings Per Share (EPS): Declined to $1.89, from $2.31 in the same period last year.
- Adjusted EBITDA Margin: Decreased to 13.3%, down from 15.5% in the first quarter of fiscal 2025.
- Quarterly Tax Rate: Increased to 26.9%, compared to 25.6% for the same quarter a year ago.
The President and CEO, Steven Sintros, noted that the first quarter performance met expectations, influenced by strategic investments aimed at accelerating growth and enhancing operational efficiency.
Segment Reporting Results
Uniform & Facility Service Solutions
- Revenues: Increased 2.4% to $565.9 million from $552.8 million year-over-year.
- Operating Margin: Decreased to 7.4% from 8.8% in the prior year.
- Adjusted EBITDA Margin: Declined to 13.6% down from 15.4%.
- Organic growth recorded at 2.4%, mainly driven by new customer acquisitions and improved retention rates.
First Aid & Safety Solutions
- Revenues: Increased significantly by 15.3% to $30.2 million compared to $26.2 million in the previous year.
- Operating Loss: Reported at $0.4 million with an Adjusted EBITDA of $0.8 million.
Other Segment
- Revenues: Decreased 2.9% to $25.2 million, down from $25.9 million year-over-year.
- Operating Income: Recorded at $3.9 million, and Adjusted EBITDA at $4.8 million.
Balance Sheet and Capital Allocation
- Cash, Cash Equivalents and Short-Term Investments: Totaled $129.5 million with no long-term debt outstanding.
- Share Repurchase: The company repurchased $31.7 million of its Common Stock during the first quarter and had $8.9 million remaining under its current share repurchase authorization.
- Dividend Declared: A quarterly cash dividend of $0.365 per Common Stock share was declared on October 28, 2025, marking the eighth consecutive year of dividend growth.
Fiscal 2026 Financial Outlook
UniFirst continues to reaffirm its full-year fiscal 2026 guidance previously provided:
– Consolidated Revenues: Projected to be between $2.475 billion and $2.495 billion.
– Fully Diluted EPS: Expected to be between $6.58 and $6.98.
– Guidance includes an estimated $7.0 million in costs related to the company’s Key Initiative for fiscal 2026.
Overall, UniFirst Corporation’s first quarter results demonstrate continued growth along with challenges in profitability due to investments in future operational enhancements. The company appears well-positioned for potential future growth despite recent declines in operating margins and net income.
Here are the extracted tables from the given press release:
Consolidated Statements of Income (Unaudited)
(In thousands, except per share data)
| November 29, 2025 | November 30, 2024 | |
|---|---|---|
| Revenues | $621,318 | $604,908 |
| Operating expenses: | ||
| Cost of revenues (1) | $393,029 | $381,054 |
| Selling and administrative expenses (1) | $147,806 | $133,515 |
| Depreciation and amortization | $35,175 | $34,808 |
| Total operating expenses | $576,010 | $549,377 |
| Operating income | $45,308 | $55,531 |
| Other (income) expense: | ||
| Interest income, net | $(1,929) | $(2,695) |
| Other expense, net | $259 | $290 |
| Total other income, net | $(1,670) | $(2,405) |
| Income before income taxes | $46,978 | $57,936 |
| Provision for income taxes | $12,615 | $14,831 |
| Net income | $34,363 | $43,105 |
| Income per share – Basic: | ||
| Common Stock | $1.97 | $2.41 |
| Class B Common Stock | $1.58 | $1.93 |
| Income per share – Diluted: | ||
| Common Stock | $1.89 | $2.31 |
| Income allocated to – Basic: | ||
| Common Stock | $28,760 | $36,213 |
| Class B Common Stock | $5,603 | $6,892 |
| Income allocated to – Diluted: | ||
| Common Stock | $34,363 | $43,105 |
| Weighted average shares outstanding – | ||
| Basic: | ||
| Common Stock | 14,597 | 15,012 |
| Class B Common Stock | 3,551 | 3,574 |
| Weighted average shares outstanding – | ||
| Diluted: | ||
| Common Stock | 18,188 | 18,666 |
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands)
| November 29, 2025 | August 30, 2025 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $123,977 | $203,501 |
| Short-term investments | $5,558 | $5,672 |
| Receivables, net | $293,396 | $285,297 |
| Inventories | $142,891 | $145,197 |
| Rental merchandise in service | $237,477 | $227,720 |
| Prepaid taxes | $10,330 | $7,708 |
| Prepaid expenses and other current | $59,088 | $49,508 |
| assets | ||
| Total current assets | $872,717 | $924,603 |
| Property, plant and equipment, net | $833,508 | $829,622 |
| Goodwill | $669,202 | $657,748 |
| Customer contracts and other | ||
| intangible assets, net | $104,226 | $105,829 |
| Deferred income taxes | $967 | $977 |
| Operating lease right-of-use assets, | ||
| net | $74,595 | $70,110 |
| Other assets | $197,483 | $189,266 |
| Total assets | $2,752,698 | $2,778,155 |
| Liabilities and shareholders’ equity | ||
| Current liabilities: | ||
| Accounts payable | $90,552 | $94,980 |
| Accrued liabilities | $154,414 | $176,903 |
| Accrued taxes | $— | $674 |
| Operating lease liabilities, current | $18,987 | $17,846 |
| Total current liabilities | $263,953 | $290,403 |
| Long-term liabilities: | ||
| Accrued liabilities | $129,487 | $128,554 |
| Accrued and deferred income taxes | $138,708 | $135,648 |
| Operating lease liabilities | $57,952 | $54,593 |
| Total liabilities | $590,100 | $609,198 |
| Shareholders’ equity: | ||
| Common Stock | $1,452 | $1,468 |
| Class B Common Stock | $355 | $355 |
| Capital surplus | $107,058 | $109,107 |
| Retained earnings | $2,077,625 | $2,079,812 |
| Accumulated other comprehensive loss | $(23,892) | $(21,785) |
| Total shareholders’ equity | $2,162,598 | $2,168,957 |
| Total liabilities and shareholders’ | ||
| equity | $2,752,698 | $2,778,155 |