UniFirst Delivers Strong Q2 2025 Results: Improved Profitability, Cash Flows, and Operational Execution
The UniFirst Corporation has reported a strong second quarter of fiscal year 2025, with consolidated revenues increasing by 1.9% from the same period in fiscal 2024 to $602.2 million. On an organic basis, this represents a 2.3% growth.
President and Chief Executive Officer Steven Sintros praised the company's performance, stating that their investments in the business are starting to show returns in several areas, including improved profitability, cash flows, and overall operational execution. He also thanked all of UniFirst's team partners for their hard work and dedication to delivering excellent service to customers.
UniFirst serves a wide range of industries, providing uniforms, workwear, facility services, First Aid and Safety, cleanroom products, and other services designed to help employees do their jobs successfully and safely. The company's goal is to partner with its customers to ensure that it provides the right programs, products, and services for their businesses and teams.
During the quarter, operating income increased by 11.7% compared to the same period in fiscal 2024, while adjusted EBITDA rose by 6.3%. These improvements were driven primarily by the company's Core Laundry Operations, which saw benefits in merchandise and plant production expenses. However, higher healthcare costs and ongoing investments in top-line growth and efficiency initiatives partially offset these gains.
UniFirst also reported significant improvements in its operating cash flow, with a year-to-date increase of 20.2% compared to the same period a year ago. From a top-line perspective, the company saw positive trends during the quarter, including higher new business installations and expanded national account relationships. UniFirst's revenue-related leading indicators, such as contract renewals and Net Promoter Score (NPS) scores, also continued to trend favorably.
Despite some weakness in net wearer levels for existing customers compared to the same period last year, customer retention improved significantly during the quarter. Sintros expressed confidence in UniFirst's ability to capture significant opportunities and drive shareholder value over time.
The company continues to execute its strategy by investing in people, technology, and infrastructure to support growth and improve profitability. While it acknowledges that this process will take time, UniFirst remains optimistic about its prospects for future success.
