UNF•UNF•UniFirst reported fiscal Q3 revenues of $634.4 million, up 3.9% year over year, while net income declined to $19.9 million (EPS $1.09) from $39.7 million ($2.13) due to $20.7 million in merger-related costs. Adjusted EPS of $2.17 topped consensus by $0.24, driven by organic growth in its core service segment.
UniFirst's fiscal third quarter consolidated revenues rose 3.9% year over year to $634.4 million, driven by organic growth in its core service segment. Operating income declined to $23.0 million (3.6% margin) from $48.2 million (7.9% margin) a year ago, while net income fell to $19.9 million (EPS $1.09 vs $2.13). Adjusted EBITDA totaled $82.6 million, compared with $85.8 million, and adjusted EBITDA margin narrowed to 13.0% from 14.1%.
Results included $20.7 million of transaction-related costs for the proposed Cintas merger and $5.2 million of ERP project expenses, compared to $1.0 million ERP costs in the prior year. These items reduced operating income by $26.0 million, adjusted EBITDA by $5.2 million and diluted EPS by $1.08 in the quarter.
In the Uniform & Facility Service Solutions segment, revenues increased 3.9% to $575.7 million with organic growth of 3.6%, though operating margin dropped to 3.4% due to the merger and ERP costs offsetting lower merchandise expenses. The Other nuclear solutions segment saw revenues rise 4.4% to $27.8 million with operating income of $4.9 million and adjusted EBITDA of $5.8 million, reflecting seasonal project activity.
UniFirst shareholders approved the merger terms, offering $155.00 in cash plus 0.7720 Cintas shares per UniFirst share, with expected closing in H2 2026 pending regulatory approval. The company held $168.9 million in cash and equivalents, carries no long-term debt, and declared a quarterly dividend of $0.365 per share.
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