Cintas Corporation Posts Record-Breaking 7.8% Revenue Growth in Q2 2025, Sets New Earnings Records
Cintas Corporation, a leading provider of essential business services, has reported record-breaking revenue growth and earnings records for its fiscal second quarter 2025. The company's strong results reflect the execution of its comprehensive value proposition to customers across various industries.
In a conference call held on December 19, 2024, Cintas' management team discussed the company's impressive Q2 performance. Total revenue grew by 7.8% to $2.56 billion, marking an all-time high for revenue in a quarter. The organic growth rate, which adjusts for acquisitions and foreign currency exchange rate fluctuations, was 7.1%. This demonstrates the company's ability to deliver strong demand for its services across various markets.
Cintas' President and Chief Executive Officer, Todd Schneider, emphasized the complementary nature of the company's platform, citing its unmatched product and service offerings for businesses of all types and sizes. He highlighted that virtually every business has a need that Cintas is continually deepening its value propositions to meet, particularly within its four focused verticals: healthcare, hospitality, education, and state and local government.
The company's gross margin grew 11.8% over the prior year to 49.8%, just below its all-time high set in Q1. Operating income of 23.1% and as a percent of revenue was an all-time record, increasing by 18.4% over the prior year. Diluted EPS grew robustly by 21.1% to $1.09. These impressive earnings growth figures reflect the company's operational excellence in sourcing, supply chain initiatives, route optimization, energy efficiency, and technology-enabled processes.
Cintas' strong cash flow generation has allowed it to focus on strategic investments in its customers and employee partners, positioning itself for long-term value creation. The company continues to leverage its SAP system to standardize processes across its operations, improving the way employees work and getting products to customers faster, which enhances customer experience.
Looking ahead, Cintas has updated its financial expectations for fiscal 2025, reflecting its strong momentum and confidence in its outlook. The company now expects annual revenue growth of 6.9% to 7.5%, with an organic growth rate of 7.0% to 7.7%. Diluted EPS expectations have been revised upward to $4.28 to $4.34, representing a growth rate of 12.9% to 14.5%.
Cintas' differentiated culture, superior products and services, and industry-best talent position the company to deliver meaningful value creation in fiscal 2025 and beyond. The company remains focused on delivering outstanding customer experiences and making appropriate investments in its business to sustain growth.
