Cintas Corporation Delivers Record-Breaking Quarter with Strong Revenue Growth and Profitability
Cintas Corporation, a leading provider of essential services that help customers' operations run more smoothly, has delivered an outstanding third quarter in fiscal year 2025. According to the company's Q3 conference call transcript, reported on March 26, 2025, Cintas' total revenue grew a robust 8.4% to $2.61 billion, with organic growth rate of 7.9%. This impressive performance is attributed to great execution by the company's employee partners across each of its business segments.
Uniform Rental and Facility Services continues to perform well with organic growth of 7%, while First Aid and Safety Services and Fire Protection Services businesses grew double digits. These strong results underscore the comprehensive value proposition that Cintas offers to customers of all types and sizes.
The company's gross margin for the third quarter reached an all-time high of 50.6%, a significant increase of 11.1% over the prior year. Operating income also surged, reaching $23.4 million, which is also an all-time high. Excluding a one-time gain on the sale of property, operating income as a percent of revenue was 22.8%, the second highest in Cintas history.
Diluted EPS grew a robust 17.7% to $1.13, reflecting the company's continued operational excellence through sourcing and supply chain initiatives, route and energy optimization, and technology-enabled efficiency in its facilities. For example, the company continues to leverage its SAP system to standardize processes across operations, improving both the customer experience and margin profile.
Cash flow this year has been very strong, with free cash flow for the first 9 months of the year increasing 14.5% over the prior year. The company's strategic capital allocation priorities include investing back in the business, making acquisitions to support growth, returning capital to shareholders through dividend payments and share buybacks.
In fact, Cintas paid a quarterly cash dividend of $0.39 per share on March 14 and continues its opportunistic approach to share buybacks. The company has updated its financial expectations for the remainder of fiscal year 2025, reflecting continued momentum and confidence in its outlook. With revenue guidance narrowed to increase total revenue growth and organic revenue growth at the midpoint of the guide, Cintas is poised to deliver sustained growth and value creation for the rest of fiscal year 2025 and beyond.
