Overview
- Consolidated revenue rose 2.7% to $621.3 million, with GAAP EPS of $1.89 and adjusted EPS of about $1.98.
- The company reaffirmed fiscal 2026 guidance for $2.475–$2.495 billion in revenue and $6.58–$6.98 in EPS.
- Operating margin declined to 7.3% from 9.2% and adjusted EBITDA margin to 13.3% from 15.5% due to planned growth spending and a digital transformation.
- Liquidity remained strong with $129.5 million in cash and no long-term debt, alongside $31.7 million in share repurchases, $8.9 million of remaining authorization, and a $0.365 quarterly dividend.
- Core Uniform & Facility Services revenue increased 2.4% to $565.9 million, First Aid & Safety grew 15.3% to $30.2 million, Other decreased 2.9% to $25.2 million, and ERP costs were $2.3 million in the quarter with about $7.0 million planned for fiscal 2026.