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UniFirst Posts Q1 Growth With Tighter Margins as It Reaffirms 2026 Outlook

Planned growth spending plus ERP costs pressured margins, with a $275-per-share Cintas bid still under review.

Overview

  • Revenue rose 2.7% to $621.3 million, with adjusted EPS of $1.97 and GAAP diluted EPS of $1.89, and shares fell after the release.
  • Operating margin declined to 7.3% from 9.2% and adjusted EBITDA margin to 13.3%, reflecting planned investments along with higher healthcare and legal expenses.
  • ERP “Key Initiative” costs totaled about $2.3 million for the quarter, reducing net income by $1.7 million and diluted EPS by $0.09.
  • Full‑year guidance was reaffirmed at $2.475 billion to $2.495 billion in revenue and $6.58 to $6.98 in EPS, which includes roughly $7 million of ERP expenses.
  • The company ended the quarter with $129.5 million in cash and no long‑term debt, repurchased $31.7 million of stock, and paid a $0.365 quarterly dividend.