UniFirst Q2 Revenue Up 3.4% to $622.5M While EPS Misses at $1.13
UniFirst reported Q2 revenue of $622.5M, up 3.4% year-over-year and 1.26% above estimates, while diluted EPS fell to $1.13 versus $1.21 consensus and $1.31 prior-year. Operating margin slid to 4.2% from 5.2% as adjusted EBITDA declined to $66.8M, reflecting $3M ERP costs and merger-related expenses.
1. Q2 Financial Results
UniFirst posted Q2 fiscal 2026 revenue of $622.5 million, up 3.4% year-over-year and 1.26% above estimates. Diluted EPS was $1.13, below the $1.21 consensus and down from $1.31 in the prior-year quarter.
2. Margin Pressure and Costs
Operating margin declined to 4.2% from 5.2% last year, while adjusted EBITDA fell to $66.8 million from $68.9 million. Net income decreased to $20.5 million from $24.5 million as the company absorbed approximately $3.0 million of ERP initiative costs and additional legal and shareholder engagement expenses.
3. Merger-Related Expenses
Expenses tied to the pending $5.5 billion acquisition by Cintas include proxy and legal costs, reflecting management’s investments to position UniFirst for integration. The transaction, valued at $310 per share through $155 cash and 0.7720 Cintas shares, is expected to close in H2 2026 subject to approvals.