UNF · UniFirst Corporation

UniFirst Corporation reported mixed second quarter fiscal 2026 results, with revenue growth offset by declining profitability metrics. Consolidated revenues increased 3.4% to $622.5 million, primarily driven by organic growth in the core Uniform & Facility Service Solutions segment, which saw revenues rise 3.2% to $568.8 million. However, operating income declined to $26.0 million from $31.2 million in the prior year period, with operating margin contracting to 4.2% from 5.2%. Similarly, net income decreased to $20.5 million from $24.5 million, and diluted EPS fell to $1.13 from $1.31. Management attributed the margin pressure to planned investments in growth and digital transformation initiatives, as well as specific costs including $3.0 million related to the enterprise resource planning project and approximately $4.5 million in combined costs for shareholder engagement/proxy matters and legal expenses related to an employee matter. The First Aid & Safety Solutions segment showed strong revenue growth of 12.2% but recorded an operating loss, while the Other segment (nuclear solutions) experienced a revenue decline due to project wind-down and fewer reactor outages. More significantly, the company announced it has entered into a definitive agreement for Cintas Corporation to acquire UniFirst, with shareholders receiving $155.00 in cash and 0.7720 Cintas shares per UniFirst share. The transaction is expected to close in the second half of calendar 2026, subject to shareholder approval and regulatory clearances. As a result of this pending transaction, UniFirst has ceased providing financial guidance and hosting quarterly conference calls. The company maintains a strong balance sheet with $157.5 million in cash, cash equivalents and short-term investments and no long-term debt outstanding as of February 28, 2026.