UniFirst shares sink after quarterly profit decline, next-year guidance

Shares of UniFirst (NYSE:UNF) plunged as much as 11% Wednesday after the uniform and facility services company reported lower quarterly profit, overshadowing better-than-expected earnings and revenue.

The company posted earnings of $2.23 a share, topping Wall Street’s estimate of $2.07 per share, while revenue came in at $614.4 million, above expectations for $607 million.

Despite the beat, net income fell to $41.0 million, or $2.23 a share, from $44.6 million, or $2.39 a share, a year earlier. UniFirst said the decline reflected lower operating margins and ongoing investments in technology and growth initiatives.

Operating margin slipped to 8.1%, down from 8.4% a year earlier, while adjusted earnings before interest, taxes, depreciation and amortization margin fell to 14.3% from 14.9%. The company cited costs tied to its enterprise resource planning (ERP) and customer relationship management (CRM) projects, which reduced quarterly net income by about $1.1 million, or $0.05 a share.

Revenue dropped 4% year over year, largely due to an extra week in the prior-year quarter. Excluding that effect, sales rose 3.4%, driven by 2.9% organic growth in its core uniform and facility service solutions business.

Chief Executive Steven Sintros said the company delivered “a solid fourth quarter” as it continued executing on its strategic plan but acknowledged ongoing investments and restructuring weighed on short-term profitability.

Looking ahead to fiscal 2026, UniFirst (NYSE:UNF) forecast earnings per share between $6.58 and $6.98, below its fiscal 2025 result of $7.98, and projected revenue between $2.475 billion and $2.495 billion. Management said next year’s results will be pressured by higher depreciation, amortization and stock-based compensation tied to its ongoing digital transformation.