What the data shows is From an analytical perspective, Image source: The Motley Fool (something worth watching). DATEThursday, July 17, 2025 at 10 a.
ETCALL PARTICIPANTSPresident and Chief Executive Officer — Todd M, given the current landscape. Furthermore, SchneiderChief Operating Officer — James J, in today's financial world.
RozakisChief Financial Officer — Scott D. Conversely, GarulaVice President, Corporate Development and Investor Relations — Jared S. Mattingley Need a quote from one of our analysts.
[ tected]TAKEAWAYSTotal Revenue: $2. Moreover, 67 billion in Q4 FY2025, representing reported growth of 8% and organic growth of 9%.
Segment Organic Growth: Uniform Rental and Facility Services organic growth was 7. 2%,First Aid and Safety: Organic growth was 18.
Furthermore, All Other (including fire tection service and uniform direct sale) rose 11. 1% organically. Gross Margin: Gross margin rose 9. On the other hand, 7%, up from 49.
Furthermore, 2% in Q4 FY2024. Earnings: Diluted earnings per increased 9% to $1. Full-Year Revenue: Fiscal 2025 revenue reached a record $10. 34 billion, up 7. However, 7%, with 8% organic growth.
On the other hand, Operating Margin: Full-year operating margin was 22 (fascinating analysis). Furthermore, At the same time, 8%, compared to 21. Meanwhile, 6% in FY2024, in this volatile climate.
Additionally, Full-Year Diluted EPS: $4 (an important development), in this volatile climate. 40 for fiscal 2025, which grew 16. 1% over the prior year.
Moreover, 2026 Guidance: Revenue expected to be $11. Meanwhile, 15 billion (growth of 6, in today's financial world. Additionally, 8%); diluted EPS guided to $4. 85 (growth of 7%-10.
Free Cash Flow: Generated $1. 6 billion of free cash flow. However, Capital Deployment: Fiscal 2025 saw $408. 9 million in capital expenditures (4% of revenue), $2, given current economic conditions.
2329 billion for acquisitions (largest since 2017, excluding G&K), $612 million in dividend payments, $935 million in repurchases. Tax Rate: Effective tax rate was 22.
1%, up from 21, given current economic conditions. 4% in Q4 FY2024; full-year effective tax rate was 20%, down from 20. 4% the prior year (which is quite significant).
Customer Segmentation: Roughly 70% of customers are service viders and 30% are goods ducers, considering recent developments.
Retention and Pricing: Retention rates at all-time highs; pricing at historical levels.
Revenue Mix: Within Uniform Rental and Facility Services, the mix was 48% uniform rental, 19% dust, 16% hygiene, 3% shop towels, 10% linen (including microfiber, wipes, towels, ans), and 4% catalog; consistent with prior year.
Furthermore, Gross Margin by Segment: Uniform Rental and Facility Services 49%,First Aid and Safety Services: Gross margin was 56. 8%,Fire tection Services: Gross margin was 49 (noteworthy indeed).
3%,Uniform Direct Sale: Gross margin was 41, in this volatile climate.
Additionally, Meanwhile, Outlook Assumptions: Fiscal 2026 guidance assumes no future acquisitions, constant foreign currency, fiscal workday parity, no buybacks, and no significant economic disruptions.
On the other hand, Dividend Record: FY2025 marks forty-one consecutive years of dividend increases since going public (this bears monitoring).
SUMMARYCintas dered double-digit diluted earnings per growth for FY2025, record operating margin, and robust cash generation, supported by continued execution across its route-based es.
Additionally, Management confirmed that both operating performance and capital allocation priorities remain disciplined, with acquisitions peaking at a multi-decade high.
On the other hand, Guidance for FY2026 reflects expectations of mid- to high-single-digit revenue growth (6 (something worth watching), in today's market environment.
8%) and high-single-digit to low-double-digit diluted EPS growth (7% to 10. 2%), with margin expansion underpinned by cost control, nology advances, and ductivity initiatives.
Schneider said, "the start of the year is it's starting exactly the way we expected. And it's reflected in our guide (which is quite significant).
At the same time, " Rozakis highlighted, " two-thirds of our new comes from what we call no grammers or really that as Todd described, the do-it-yourself or the folks that are purchasing from some retail or e-commerce type of solution.
"Infrastructure and nology investment, including SAP and SmartTruck, were explicitly cited as ductivity drivers and key elements of margin expansion strategies (noteworthy indeed).
Vertical strategies in sectors such as healthcare, government, education, and hospitality are expected to perform above company average growth rates, with specific new offerings such as privacy curtain solutions and healthcare scrub dispensing expanding beyond original verticals, in today's financial world.
Furthermore, Schneider stated, "expect that our rental will be similar, and our fire and first aid es will be in the double-digit area for FY2026, in today's financial world.
On the other hand, " indicating segment-level performance expectations embedded in FY2026 guidance, given the current landscape.
First Aid and Safety organic growth in Q4 FY2025 included a discrete spike in training revenue, acknowledged as nonrecurring going forward.
Supply chain resilience was repeatedly cited, with management explaining tariff or input cost effects are already factored into current guidance and do not necessitate outsized pricing actions.
Rozakis described margin imvements tied to operational initiatives: "Margin for the Uniform Rental Facility Services segment increased 40 basis points from last year.
"INDUSTRY GLOSSARYSmartTruck: prietary nology platform used by Cintas to optimize dery routes, increasing customer-facing time and driving route efficiencies (an important development), in today's market environment.
On the other hand, Garment Sharing: Supply chain strategy utilizing SAP nology to enable sharing of inventory, imving asset utilization across the company’s network.
No grammer: Industry term referring to customers managing uniforms or related ducts themselves—typically through direct purchase, retail, or e-commerce—rather than partnering with a rental or managed service vider, given current economic conditions.
Additionally, Full Conference Call TranscriptOn today's call, I'll start by sharing an overview of the quarter, the year, and our outlook for fiscal 2026.
Jim will some more detail on our segment performance and the drivers in the, and Scott will wrap up with more detail on our financials (this bears monitoring).
We're pleased to have dered a strong fourth quarter to close out another impressive fiscal year for Cintas.
We dered robust top-line growth, maintained healthy margins and cash flow, demonstrating the strength of our value position, given current economic conditions.
In the fourth quarter, total revenue grew 8% to $2. 67 billion, in this volatile climate.
Our organic growth rate, which adjusts for the impacts of acquisitions, foreign currency exchange rate fluctuations, and workday differences, was 9%.
We continue to execute at a high level across each of our es, including organic growth of 7. 2% in the Uniform Rental and Facility Services segment, and 18. 5% in our First Aid and Safety segment.
All Other, which includes our fire tection services and uniform truck sale and uniform direct sale, grew organically by 11 (something worth watching).
Additionally, Turning to fitability, gross margin for the fourth quarter grew 9. 1% over the prior year from 49. Operating income as a percentage of revenue increased 9 (remarkable data).
On the other hand, 1% over the prior year, and diluted EPS increased 9% to $1.
We remain confident that the strategic investments we've made in the position us to capitalize on future growth opportunities.
Those investments include nology that makes it easier for our employee partners to do their jobs, such as our SAP system and SmartTruck platform.
Investments in our infrastructure to increase capacity and position our employee partners for success, as well as investments in management trainees in selling resources.
Moreover, For the full year, fiscal 2025 revenue was a record $10. 34 billion, an increase of 7. Additionally, Moreover, Organic growth was 8% for the year, in this volatile climate.
Our top-line growth continues to underscore the strength of Cintas' value position, in this volatile climate. Operating margins for the full year were 22. 8%, an increase of 14.
1% and an all-time high compared to our prior year operating margin of 21. On the other hand, Diluted earnings per of $4. 40 grew 16. 1% over the prior year, amid market uncertainty.
Balanced capital allocation remains a key pillar of our strategy (which is quite significant).
Furthermore, In the fourth quarter and throughout fiscal 2025, we continue to deploy capital across all of our strategic priorities, including re in our ducts, people, and nologies to ensure we are best positioned to der value for our customers.
Conversely, Looking ahead to fiscal 2026, our financial expectations reflect both the strength of the underlying and our commitment to disciplined execution (quite telling).
Conversely, Scott will later touch on the assumptions included in our guidance. Furthermore, We expect our revenue to be in the range of $11 billion to $11.
Additionally, 15 billion, a total growth rate of 6. We expect diluted EPS to be in the range of $4, given the current landscape. Meanwhile, 85, a growth rate of 7% to 10.
Our fourth quarter and full year 2025 results and 2026 outlook underscore the strength of our model and our ability to execute in a dynamic environment.
Fiscal 2025 now marks 54 years out of the last 56 years that we've grown sales and adjusted EPS, in today's financial world.
I want to thank all of our employee partners for their hard work and dedication.
Nevertheless, With our culture of continuous imvement, superior ducts and services, and disciplined execution, we are well-positioned for sustained growth and value creation.
Lastly, we were named to the prestigious Fortune 500 for the ninth consecutive year.
Nevertheless, Market analysis shows is an honor to be recognized among the most successful and respected companies, given the current landscape.
We're ud of these results and the value we continue to der for Cintas' holders. With that, I'll turn it over to Jim for additional insights.
Moreover, Jim Rozakis: Thanks, Todd, good morning, amid market uncertainty.
Moreover, We continue to grow at attractive rates by helping new customers meet their needs of image, safety, cleanliness, and compliance, considering recent developments.
Additionally, We're seeing success in adding new ducts and new services to existing customers (quite telling).
Our retention rates are right at our all-time highs, and pricing continues to be at our historical levels. Turning to the fourth quarter organic growth by, we grew 7.
2% for Uniform Rental and Facility Services, 18 (an important development), in light of current trends. 5% for First Aid and Safety Services, 12, in light of current trends.
1% for Fire tection Services, and uniform direct sale was up 9%.
Meanwhile, As we've done in the past, I will a revenue mix of the Uniform Rental and Facility Services operating segment for the fourth quarter (this bears monitoring).
Keep in mind, there can be small fluctuations in mix between quarters.
Nevertheless, Uniform rental was 48%, Dust was 19%, Hygiene was 16%, shop towels were 3%, linen which includes microfiber, wipes, towels, and ans was 10%, and catalog revenue was 4% (something worth watching), amid market uncertainty.
These percentages are consistent with last year and demonstrate we continue to experience strong demand across all our ducts and services.
Moreover, Gross margin percentage by was 49% for uniform rental and facility services, 56, in today's financial world. 8% for First Aid and Safety Services, 49. 3% for Fire tection Services, and 41.
6% for uniform direct sale. Margin for the Uniform Rental Facility Services segment increased 40 basis points from last year.
Our gress year over year reflects the positive impacts made by our excellent supply chain team, as well as cost savings initiatives such as our garment sharing, nology enhancements our auto ation systems in our plants, and our prietary Smart Truck solution that makes our routes more efficient.
Nevertheless, Moreover, Gross margin for the First Aid and Safety Services segment increased 140 points from last year with strong revenue growth continuing to create leverage.
A healthy revenue mix then includes growth in high margin recurring revenue ducts AED Rentals, eye wash stations, and water break, as well as cost savings initiatives such as smart truck and imved sourcing.
Before I turn over to Scott, I'd to an example that demonstrates how we're dering for our customers (an important development).
A customer in the Southeastern part of the country has been a valued customer for over ten years, in this volatile climate.
For most of that time, we vided them exclusively with facility services, ducts, and services.
Moreover, This leads to the conclusion that ir maintenance department uniforms were direct purchase, in light of current trends. We would call a no grammer (this bears monitoring).
Moreover, Our customer apached us to see if we could help them address three key pain points.
One, the initial investment and costs associated with replacing uniforms due to turnover and damage made it difficult to forecast spend and manage cash flow (noteworthy indeed).
Two, employees expressed a strong preference for the convenience and fessionalism of a laundered uniform gram over washing their uniforms at.
Additionally, Three, their managers found that overseeing uniform logistics in-house took valuable time away from focusing on their core operations.
In response, we successfully introduced our Uniform Rental gram on top of our facility offering. But the story doesn't end there (noteworthy indeed).
Furthermore, We also are under trusted culinary department, onboarding those employees who had previously been with a traditional uniform competitor.
The evidence shows switch was driven by a premium ChefWorks exclusive attire, and the opportunity for vendor consolidation (which is quite significant).
This example underscores several points, in today's market environment. Additionally, First, we don't always have to lead with uniforms, in today's market environment.
In this case, we had a long successful relationship with a customer built on our facility services offering. Second, we can grow in a variety of different ways, considering recent developments.
We can convert no grammers to a rental gram (an important development). Conversely, We can add new customers who are currently with another uniform rental vider.
Moreover, Offering premium ducts and services, and we can grow by adding new ducts and services to our existing customers.
This leads to the conclusion that example also illustrates how Cintas is more than a service vider. We're true blem solvers committed to helping our customers succeed.
On the other hand, And by staying attuned to their back, we continue to strengthen our relationships and expand our foot across industries (fascinating analysis).
And I'll turn over to Scott for additional details on capital allocation strategy and 2026 outlook. On the other hand, Scott Garula: Thank you, Jim, and good morning, everyone.
As Todd mentioned, we closed our fiscal year with strong financial performance, in light of current trends. Our balance sheet remains healthy and during fiscal 2025, we generated $1.
6 billion of free cash flow, in today's financial world. In the fourth quarter, we were able to put our capital to work through capital expenditures of $114 (noteworthy indeed).
6 million, acquisitions of $34. 1 million, dividends of $157, in today's market environment. 8 million, and repurchases of $256.
On the other hand, In contrast, Our effective tax rate for the fourth quarter was 22 (something worth watching). 1% compared to 21. However, 4% last year, given current economic conditions.
Nevertheless, For fiscal 2025, the effective tax rate was 20% compared to 20, amid market uncertainty. Moreover, 4% the prior year (which is quite significant).
Moreover, However, During fiscal year 2025, we deployed significant capital across each of our capital allocation priorities.
This capital allocation strategy has been effective for many years and has served us well. On the other hand, We invested $408.
Meanwhile, 9 million in capital expenditures which helps support investments in our nology and infrastructure. Capital expenditures were 4% of revenue which is right where we to be.
Additionally, In contrast, We invested $2.
However, 2329 billion in acquisitions in fiscal 2025 representing our largest year of M&A activity in almost twenty years, excluding our 2017 acquisition of G&K.
These acquisitions span across each of our three route-based segments adding new customers, extending capacity, and dering compelling synergies (this bears monitoring), in today's market environment.
By optimizing our existing route structure, we've been able to spend more time with customers while reducing time spent on the road (which is quite significant).
Acquisitions remain an important lever for growth enabling us to broaden our offerings and der greater value for our stakeholders.
Additionally, we returned over a billion and a half dollars to holders through dividends and buybacks.
Almost $612 million in dividend payments marks the forty-first consecutive year that we've increased our dividend, which is every year since going public (an important development), given current economic conditions.
We also repurchased apximately $935 million of s during fiscal year 2025. Todd vided our fiscal 2026 outlook at the start of the call, and I'd to vide some context on a few assumpti.