Revenue for the quarter ended February 28 2026 reached $622.5 million, surpassing consensus estimates of roughly $615 million and $621 million, a beat of about $7 million or 1.1% YoY. Diluted earnings per share were $1.13, missing the consensus estimate of $1.21, while adjusted EPS of $1.25 exceeded the adjusted estimate of $1.22. Operating income fell to $26.0 million, a decline of 16.7% from $31.2 million in the same quarter a year earlier, and net income dropped to $20.5 million, down 16.3% from $24.5 million year‑over‑year.
Operating margin contracted to 4.2% from 5.2% in the prior year, reflecting the impact of planned investments in growth and digital transformation as well as merger‑related costs such as ERP implementation, shareholder engagement, and legal expenses. Adjusted EBITDA margin eased to 10.7% from 11.4%, underscoring the short‑term profitability pressure that the company is accepting in pursuit of long‑term synergies with Cintas.
Revenue growth was driven primarily by the Uniform & Facility Service Solutions segment, which expanded modestly, while the First Aid & Safety Solutions segment grew 12.2% but remained loss‑making. The Other segment contributed a smaller share of revenue, and the company did not provide a detailed breakdown of each segment’s profitability.
Management emphasized that the company is “delivering solid results in the second quarter as we continued to take meaningful actions to invest in growth and deliver operational efficiencies. Our differentiated, service‑driven model continues to build loyalty amongst new and existing customers as they recognize our commitment to reliability, accountability and sustained relationships.” The statement highlights the company’s focus on service quality and customer retention amid the ongoing acquisition.
The company will not provide forward guidance or hold a quarterly conference call because the Cintas transaction is still in progress and is expected to close in the second half of 2026. UniFirst’s balance sheet remains strong, with $157.5 million in cash and no long‑term debt, and the company continues to pay a quarterly dividend of $0.365 per share.
Market reaction to the earnings was muted, with trading volume falling below the 20‑day average, indicating that investors are cautiously weighing the modest revenue growth against the short‑term margin compression and the uncertainty surrounding the pending acquisition.
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