Vestis Corporation (VSTS) Q4 2025 Financial Results Summary
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Vestis Corporation (VSTS) Q4 2025 Financial Results Summary
On December 1, 2025, Vestis Corporation (NYSE: VSTS) released its financial results for the fourth quarter and full-year periods ended October 3, 2025, which reflect an additional week of operations compared to the same quarter in the previous year.
Fourth Quarter 2025 Results
- Revenue: $712 million
- Increase: Up 4.1% compared to $684.3 million in Q4 2024.
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Adjustment: The additional week contributed $51.6 million; excluding this, revenue would have declined by 3.5%.
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Operating Income: $18 million
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Decrease: Down from $29.8 million in Q4 2024, a reduction of 40.9%.
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Net Loss: $13 million
- Per diluted share: $(0.10).
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Comparison: Loss increased from $(2.3) million in Q4 2024.
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Adjusted Net Income: $4 million
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Per diluted share: $0.03.
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Adjusted EBITDA: $65 million
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Comparison: Decreased from $80.5 million in Q4 2024, indicating a decline.
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Cash Flows:
- Cash provided by operating activities: $31 million.
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Free Cash Flow: $16 million.
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Available Liquidity: $298 million
- Includes cash and cash equivalents of $30 million.
Operational Insights
- Management emphasized a focus on advancing strategic priorities for fiscal 2026 which include:
- Commercial Excellence: Enhancing customer retention and profitability.
- Operational Excellence: Boosting efficiency through standardized operations.
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Asset & Network Optimization: Improving logistics and asset utilization.
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A multi-year transformational restructuring plan (the “Plan”) is set to enhance long-term profitability, targeting annual operating cost savings of at least $75 million by the end of fiscal 2026. Costs associated with executing this Plan are projected between $25 million to $30 million.
Year-End Financial Overview
- For the full fiscal year 2025, revenues totaled $2.73 billion, down from $2.81 billion in 2024.
- The full year exhibited:
- Net Loss: $40.2 million compared to net income of $21 million the previous year.
- Adjusted Net Income: $32.5 million, resulting in adjusted earnings per share of $0.25.
Financial Position
- Total Cash and Cash Equivalents: Decreased slightly from $31 million at year-end 2024 to $29.7 million as of October 3, 2025.
- Total Debt: $1.34 billion, showing stability compared to $1.31 billion in Q4 2024.
- Notably:
- Net Leverage Ratio: Rose to 4.72 compared to 3.64 a year earlier.
Fiscal Year 2026 Outlook
- Vestis expects fiscal 2026 revenue to be flat to decrease by 2% compared to normalized fiscal 2025.
- Projected Adjusted EBITDA for fiscal 2026 is anticipated to range between $285 million to $315 million.
- Expected Free Cash Flow for fiscal 2026 is in the range of $50 million to $60 million.
Dividends and Share Repurchase
- Vestis did not declare any quarterly dividends in Q4 2025.
- There were no share repurchase programs mentioned in the financial results.
Summary of Key Metrics
- Revenue Growth: +4.1% from Q4 2024, yet -3.5% when adjusting for the additional week.
- Operating Income Decline: -40.9% from Q4 2024.
- Net Loss: Increased from Q4 2024.
- Free Cash Flow: Noteworthy decrease of $18.9 million compared to last year.
- Projected Savings: Targeted annual cost savings of $75 million by the end of fiscal 2026.
- Overall Performance Improvement: Anticipated benefits from strategic initiatives targeting increased profitability and efficiency.
For further details regarding these results, Vestis will host a conference call on December 2, 2025, at 8:30 a.m. Eastern Time.
| Three Months Ended | Fiscal Year Ended | |
|---|---|---|
| October 3, 2025 | September 27, 2024 | |
| Revenue | $712,011 | $2,734,839 |
| Operating Expenses: | ||
| Cost of services provided (exclusive of depreciation and amortization) | 533,150 | 2,010,082 |
| Depreciation and amortization | 35,343 | 143,017 |
| Selling, general and administrative expenses | 125,877 | 517,309 |
| Total Operating Expenses | 694,370 | 2,670,408 |
| Operating Income | 17,641 | 64,431 |
| Loss (Gain) on Sale of Equity Investment, net | 634 | 2,784 |
| Interest Expense, net | 24,343 | 92,264 |
| Other Expense (Income), net | 3,569 | 13,689 |
| (Loss) Income Before Income Taxes | -10,905 | -44,306 |
| (Benefit) Provision for Income Taxes | 1,644 | -4,083 |
| Net (Loss) Income | -12,549 | -40,223 |
| Earnings per share: | ||
| Basic | -0.10 | -0.31 |
| Diluted | -0.10 | -0.31 |
| Weighted Average Shares Outstanding | ||
| Basic | 131,840 | 131,751 |
| Diluted | 131,840 | 131,751 |
| October 3, 2025 | September 27, 2024 | |
|---|---|---|
| ASSETS | ||
| Current Assets: | ||
| Cash and cash equivalents | 29,748 | 31,010 |
| Receivables (net of allowances: $32,677 and $19,804) | 162,295 | 177,271 |
| Inventories, net | 179,020 | 164,913 |
| Rental merchandise in service, net | 405,625 | 396,094 |
| Other current assets | 73,343 | 43,981 |
| Total current assets | 850,031 | 813,269 |
| Property and Equipment, at cost: | ||
| Land, buildings and improvements | 565,677 | 590,972 |
| Equipment | 1,172,877 | 1,168,142 |
| Total | 1,738,554 | 1,759,114 |
| Less – Accumulated depreciation | -1,075,092 | -1,088,256 |
| Total property and equipment, net | 663,462 | 670,858 |
| Goodwill | 961,732 | 963,844 |
| Other Intangible Assets, net | 188,837 | 212,773 |
| Operating Lease Right-of-use Assets | 85,108 | 73,530 |
| Other Assets | 157,730 | 198,113 |
| Total Assets | 2,906,900 | 2,932,387 |
| LIABILITIES AND EQUITY | ||
| Current Liabilities: | ||
| Current maturities of financing lease obligations | 35,234 | 31,347 |
| Current operating lease liabilities | 20,189 | 19,886 |
| Accounts payable | 158,362 | 163,054 |
| Accrued payroll and related expenses | 93,897 | 96,768 |
| Accrued expenses and other current liabilities | 101,282 | 145,047 |
| Total current liabilities | 408,964 | 456,102 |
| Long-Term Borrowings | 1,155,143 | 1,147,733 |
| Noncurrent Financing Lease Obligations | 131,071 | 115,325 |
| Noncurrent Operating Lease Liabilities | 77,032 | 66,111 |
| Deferred Income Taxes | 177,337 | 191,465 |
| Other Noncurrent Liabilities | 91,709 | 52,600 |
| Total Liabilities | 2,041,256 | 2,029,336 |
| Equity: | ||
| Common stock, par value $0.01 per share, 350,000,000 shares authorized, 131,859,470 and 131,481,967 shares issued and outstanding as of October 3, 2025 and September 27, 2024, respectively | 1,319 | 1,315 |
| Additional paid-in capital | 937,531 | 928,082 |
| (Accumulated deficit) retained earnings | -46,879 | 2,565 |
| Net parent investment | — | — |
| Accumulated other comprehensive loss | -26,327 | -28,911 |
| Total Equity | 865,644 | 903,051 |
| Total Liabilities and Equity | 2,906,900 | 2,932,387 |