UNIFIRST ANNOUNCES FINANCIAL RESULTS FOR THE FOURTH QUARTER AND FULL YEAR OF FISCAL 2026
UNIFIRST CORP (UNF) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99 Investor Relations Contact Shane O'Connor, Executive Vice President & CFO UniFirst Corporation 978-658-8888 shane_oconnor@unifirst.com UNIFIRST ANNOUNCES FINANCIAL RESULTS FOR THE FOURTH QUARTER AND FULL YEAR OF FISCAL 2026 Wilmington, MA – October 21, 2026 – UniFirst
How this was made
The 30-second read
Why it matters
The earnings release highlights slower profit growth and merger costs, which may trigger short‑term price pressure.
Market read
Primary earnings disclosure for a mid‑cap industrial service firm; relevance centered on UniFirst's stock movement.
What to watch
Cash balance of $192M and no long-term debt provide financial flexibility despite short-term earnings weakness.
UniFirst reported fourth-quarter revenue growth and higher Adjusted EBITDA, while GAAP operating income, net income and diluted EPS declined amid $14.4 million of transaction-related costs; fiscal 2026 revenue increased 3.7% to $2.523 billion and the company withdrew financial guidance due to the pending Cintas transaction.
Fourth-quarter revenue increased 5.0% and Adjusted EBITDA increased to $94.9 million, supported by organic growth in Uniform & Facility Service Solutions. However, operating income, net income, diluted EPS and operating margin declined, and full-year Adjusted EBITDA and margin were below fiscal 2025 as transaction-related and Key Initiative costs weighed on results.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Fourth quarter 2026 consolidated revenuesGAAP | $645.0M | – | 5.0% |
| Fourth quarter 2026 cost of revenuesGAAP | 403,890 | – | – |
| Fourth quarter 2026 selling and administrative expensesGAAP | 163,769 | – | – |
| Fourth quarter 2026 depreciation and amortizationGAAP | 35,654 | – | – |
| Fourth quarter 2026 total operating expensesGAAP | 603,313 | – | – |
| Fourth quarter 2026 operating incomeGAAP | $41.69M | – | – |
| Fourth quarter 2026 operating marginGAAP | 6.5% | – | – |
| Fourth quarter 2026 Adjusted EBITDAnon-GAAP | $94.86M | – | – |
| Fourth quarter 2026 Adjusted EBITDA marginnon-GAAP | 14.7% | – | – |
| Fourth quarter 2026 interest income, netGAAP | (1,950) | – | – |
| Fourth quarter 2026 other expense (income), netGAAP | 331 | – | – |
| Fourth quarter 2026 income before income taxesGAAP | 43,311 | – | – |
| Fourth quarter 2026 provision for income taxesGAAP | 8,584 | – | – |
| Fourth quarter 2026 tax rateGAAP | 19.8% | – | – |
| Fourth quarter 2026 net incomeGAAP | $34.73M | – | – |
| Fourth quarter 2026 diluted earnings per share, Common StockGAAP | $1.90 | – | – |
| Fourth quarter 2026 basic earnings per share, Common StockGAAP | $2.00 | – | – |
| Fiscal 2026 consolidated revenuesGAAP | $2.52B | – | 3.7% |
| Fiscal 2026 cost of revenuesGAAP | 1,600,281 | – | – |
| Fiscal 2026 selling and administrative expensesGAAP | 644,913 | – | – |
| Fiscal 2026 depreciation and amortizationGAAP | 141,992 | – | – |
| Fiscal 2026 total operating expensesGAAP | 2,387,186 | – | – |
| Fiscal 2026 operating incomeGAAP | $136.0M | – | – |
| Fiscal 2026 operating marginGAAP | 5.4% | – | – |
| Fiscal 2026 Adjusted EBITDAnon-GAAP | $327.1M | – | – |
| Fiscal 2026 Adjusted EBITDA marginnon-GAAP | 13.0% | – | – |
| Fiscal 2026 interest income, netGAAP | (7,234) | – | – |
| Fiscal 2026 other expense (income), netGAAP | 1,205 | – | – |
| Fiscal 2026 income before income taxesGAAP | 142,073 | – | – |
| Fiscal 2026 provision for income taxesGAAP | 32,583 | – | – |
| Fiscal 2026 net incomeGAAP | $109.5M | – | – |
| Fiscal 2026 diluted earnings per share, Common StockGAAP | $6.02 | – | – |
| Fiscal 2026 basic earnings per share, Common StockGAAP | $6.30 | – | – |
| Fourth quarter 2026 Transaction-related Costsother | approximately $14.4 million | – | – |
| Fourth quarter 2026 Key Initiative costsother | approximately $2.8 million | – | – |
| Fiscal 2026 Transaction-related Costsother | approximately $37.2 million | – | – |
| Fiscal 2026 Key Initiative costsother | approximately $13.3 million | – | – |
| Fiscal 2026 net cash provided by operating activitiesGAAP | 205,285 | – | – |
| Fiscal 2026 capital expenditures, including capitalization of software costsGAAP | (134,519) | – | – |
| Fiscal 2026 net cash used in investing activitiesGAAP | (152,537) | – | – |
| Fiscal 2026 net cash used in financing activitiesGAAP | (64,730) | – | – |
| Cash and cash equivalents as of August 29, 2026GAAP | $192.1M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Fourth quarter 2026 Uniform & Facility Service SolutionsOrganic growth was 4.6%. New customer account acquisitions were solid and customer retention rates continued to improve. Lower merchandise and selling costs as a percentage of revenues were partially offset by higher production and healthcare claims expenses. | $585.4M | – | 4.5% |
| Fourth quarter 2026 First Aid & Safety SolutionsResults reflected investments the Company has made to drive growth in its First Aid van business. | $35.18M | – | 13.0% |
| Fourth quarter 2026 OtherStrong growth in European operations was partially offset by the continued wind-down of a large refurbishment project and fewer reactor outages. | $24.47M | – | 5.3% |
| Fiscal 2026 Uniform & Facility Service SolutionsThe filing reports fiscal 2026 segment revenue growth of 3.5%. | $2.30B | – | 3.5% |
| Fiscal 2026 First Aid & Safety SolutionsThe filing reports fiscal 2026 segment revenue growth of 10.9%. | $127.0M | – | 10.9% |
| Fiscal 2026 OtherThe filing reports fiscal 2026 segment revenue growth of 1.2%. | $100.4M | – | 1.2% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- The Company paid dividends to shareholders of $25.2 million in fiscal 2026, an increase of 2.1% from the prior year.
- During fiscal 2026, the Company repurchased 194,100 shares of its Common Stock for approximately $31.7 million.
- As of August 29, 2026, the Company had $8.9 million remaining under its existing share repurchase authorization.
What drove it
- Fourth-quarter consolidated revenue growth was driven primarily by organic growth in the core Uniform & Facility Service Solutions segment.
- Uniform & Facility Service Solutions recorded 4.6% organic growth, excluding acquisitions and fluctuations in the Canadian dollar.
- Uniform & Facility Service Solutions benefited from lower merchandise and selling costs as a percentage of revenues.
- First Aid & Safety Solutions growth reflected investments to drive growth in the First Aid van business.
- Other segment revenue benefited from strong growth in European operations.
Concerns
- Fourth-quarter operating margin was 6.5% of revenues compared to 8.1% of revenues in the prior-year period.
- Fiscal 2026 operating margin was 5.4% of revenues compared to 7.6% of revenues in fiscal 2025.
- Fiscal 2026 Adjusted EBITDA margin was 13.0% of revenues compared to 13.8% of revenues in fiscal 2025.
- Higher production and healthcare claims expenses partially offset lower merchandise and selling costs in Uniform & Facility Service Solutions.
- The First Aid & Safety Solutions segment reported an operating loss of $1,533 in the fourth quarter and an operating loss of $4,589 in fiscal 2026.
- The pending Cintas transaction resulted in approximately $14.4 million of fourth-quarter Transaction-related Costs and approximately $37.2 million of fiscal 2026 Transaction-related Costs.
What to watch
- The FTC timing agreement provides that UniFirst and Cintas will not consummate the transaction prior to December 11, 2026 unless they receive written notice from the FTC before that date that the FTC has closed its investigation.
- The transaction is expected to close prior to the end of calendar year 2026, subject to customary closing conditions and required regulatory approvals.
- Customer acquisition and retention progress in Uniform & Facility Service Solutions.
- Production and healthcare claims expenses in the core segment.
- First Aid & Safety Solutions' path from investment-led growth to profitability.
- The timing and duration of power reactor outages and project-based activities in the Other segment.
Balance sheet and cash flow
- Cash and cash equivalents totaled $192.1 million as of August 29, 2026.
- The Company had no long-term debt outstanding as of August 29, 2026.
- Total assets were $2,870,374 as of August 29, 2026, compared with $2,778,155 as of August 30, 2025.
- Total liabilities were 641,249 as of August 29, 2026, compared with 609,198 as of August 30, 2025.
- Total shareholders' equity was 2,229,125 as of August 29, 2026, compared with 2,168,957 as of August 30, 2025.
- Fiscal 2026 acquisition of businesses, net of cash acquired, was (24,578), compared with (11,911) in fiscal 2025.
- Cash paid for transaction-related expense was $22,489 in fiscal 2026.
Analysis
UniFirst closed fiscal 2026 with fourth-quarter consolidated revenue of $645,005, up 5.0% from $614,447. The core Uniform & Facility Service Solutions segment generated $585,354 of revenue, up 4.5%, with 4.6% organic growth. Management cited solid new customer acquisitions and improving retention. First Aid & Safety Solutions grew 13.0% to $35,177, while Other segment revenue grew 5.3% to $24,474.
Profitability presented a more uneven picture. Fourth-quarter operating income was $41,692 versus $49,576, and operating margin was 6.5% versus 8.1%. Net income was $34,727 versus $41,027 and diluted Common Stock EPS was $1.90 versus $2.23. Adjusted EBITDA increased to $94,856 from $88,066, lifting adjusted EBITDA margin to 14.7% from 14.3%. Fourth-quarter results included approximately $14.4 million of Transaction-related Costs and approximately $2.8 million of Key Initiative costs.
For fiscal 2026, consolidated revenues were $2,523,230, up 3.7% from $2,432,352. Each segment reported revenue growth, led by First Aid & Safety Solutions at 10.9%, followed by Uniform & Facility Service Solutions at 3.5% and Other at 1.2%. Yet full-year operating income declined to $136,044 from $184,498, net income declined to $109,490 from $148,271, and diluted Common Stock EPS declined to $6.02 from $7.98. Full-year Adjusted EBITDA was $327,068, compared with $336,770, and the adjusted EBITDA margin was 13.0% compared with 13.8%.
The core segment's fourth-quarter margin comparison benefited from lower merchandise and selling costs as a percentage of revenue, though higher production and healthcare claims expenses partially offset those benefits. Transaction-related and Key Initiative costs reduced Uniform & Facility Service Solutions' fourth-quarter operating margin by 3.0% and adjusted EBITDA margin by 0.5%. The First Aid & Safety Solutions segment remained loss-making, reporting an operating loss of $1,533 for the quarter and $4,589 for the full year as it invested in the First Aid van business.
Capital allocation included $25.2 million of dividends and approximately $31.7 million of share repurchases during fiscal 2026. Cash and cash equivalents totaled $192.1 million and the company had no long-term debt outstanding at August 29, 2026. Operating cash flow was 205,285 and capital expenditures, including capitalization of software costs, were (134,519). UniFirst is no longer providing financial guidance or hosting quarterly earnings calls because of the pending Cintas transaction. The companies agreed not to consummate the transaction before December 11, 2026 unless the FTC closes its investigation earlier, and they expect closing before the end of calendar year 2026, subject to conditions and approvals.
Management, verbatim
We are pleased with how we closed the fiscal year with a solid fourth quarter delivering improved growth and profitability. We remain focused on caring for our customers and communities, supporting our Team Partners, and demonstrating UniFirst's compelling value to both new and existing customers.
Steven Sintros, UniFirst President and Chief Executive Officer
I want to thank our thousands of Team Partners for their continued commitment to Always Deliver for our customers, one another, and UniFirst.
Steven Sintros, UniFirst President and Chief Executive Officer
Not in the filing
stated, not guessed- Financial guidance was not provided because of the pending transaction with Cintas.
- Previous-period outlook was not provided, so no comparison with prior guidance is available.
- Gross margin was not reported.
- Free cash flow was not reported.
- Fiscal 2026 effective tax rate was not reported.
- Prior-quarter comparisons were not reported for the presented operating metrics.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
UniFirst disclosed its FY2026 financials via an SEC Form 8‑K, including details on a pending merger with Cintas.
Ticker impact
UniFirst Corp reported Q4 and full-year FY2026 results, including revenue growth, margin compression and transaction-related costs.
likely downside as investors price in lower profitability and merger costs
Revenue grew modestly while operating margin fell to 5.4% YoY and net income declined 26%; merger-related expenses add headwinds.
Market effects
Uniform and facility services sector may see broader scrutiny of margin pressures.
U.S. industrials could face slight pullback amid earnings disappointment.
Limited, primarily affects UniFirst and peers in the service solutions space.
Counterpoint
If the market overreacts to margin compression, a bounce could occur on the merger synergies narrative.
Key entities
- companyUniFirst Corp
Uniform and facility services provider reporting FY2026 results.
- companyCintas Corp
Merger partner; regulatory review may affect deal timing.