UniFirst Corporation (NYSE: UNF) has released its financial results for the second quarter of fiscal 2025, ending March 1, 2025. The company showed growth in consolidated revenues and net income despite some shortfalls.
Financial Results for Q2
In Q2 FY 2025, UniFirst reported consolidated revenues of $602.2 million, a 1.9% increase compared to the same period last year. Operating income rose by 11.7%, reaching $31.2 million. Net income increased by 19.6% to $24.5 million, while diluted earnings per share rose by 20.2% to $1.31. The company’s core laundry operations segment saw revenue growth of 1.5%, with organic growth at 1.9%.
Key Initiatives and Their Impact
The company focuses on customer relationship management and enterprise resource planning projects. These initiatives decreased operating income and adjusted EBITDA by $1.9 million and net income by $1.6 million. Diluted EPS was reduced by $0.09. These projects, although temporarily affecting financial metrics, are critical for long-term growth.
Outlook for Fiscal Year 2025
UniFirst expects revenue between $2.422 billion and $2.432 billion. The company is confident in improved operating income, particularly in the core laundry operations, despite the negative impact of the Canadian dollar exchange rate. The costs related to the Key Initiatives are expected to be approximately $12.0 million. UniFirst emphasizes strategic initiatives and investments to enhance shareholder value.
UniFirst continues to exhibit steady financial growth and remains confident in its strategic initiatives, reinforcing its market position.
