Cintas Corporation Q4 FY2025 earnings call

• Cintas delivered strong Q4 and full year 2025 results with robust top-line growth, healthy margins, and cash flow.
• Investments in technology (SAP system, SmartTruck platform), infrastructure, and management trainees to position for future growth.
• Segment performance: Uniform Rental and Facility Services had 7.2% organic growth, First Aid and Safety Services 18.5% organic growth, and All Other 11.1% organic growth.
• Capital allocation: Deployed capital across strategic priorities, including $2.2329 billion in acquisitions in fiscal 2025, returned over $1.5 billion to shareholders via dividends and share buybacks.

In the fourth quarter, total revenue grew 8% to $2.67 billion. Organic growth was 9%. Uniform Rental and Facility Services had organic growth of 7.2%, with revenue mix in Q4: Uniform rental 48%, Dust 19%, Hygiene 16%, shop towels 3%, linen 10%, catalog revenue 4%. First Aid and Safety Services had organic growth of 18.5%. All Other (including fire protection services, uniform truck sale, uniform direct sale) had organic growth of 11.1%. Gross margin for Q4 was 49.7% for Uniform Rental and Facility Services, 56.8% for First Aid and Safety Services, 49.3% for Fire Protection Services, and 41.6% for uniform direct sale. For full year 2025, revenue was $10.34 billion, an increase of 7.7% with organic growth of 8%. Operating margins were 22.8%, an all-time high, and diluted earnings per share were $4.40, up 16.1%.

• Fiscal 2026 revenue expected in range of $11 billion to $11.15 billion, growth rate 6.4% to 7.8%.
• Diluted EPS expected in range of $4.71 to $4.85, growth rate 7% to 10.2%.
• Guidance assumes no future acquisitions, constant foreign currency exchange rate, effective tax rate 20%, and no significant economic disruptions.

• Macro uncertainties such as tariff impacts and input cost challenges.
• Costs associated with SAP implementation in fire protection services.
• Uncertainty in the macro environment affecting customer behavior and business operations.

Q: George Tong from Goldman Sachs asked about the overall selling environment, sales cycles, and client sentiment.

A: Todd and Jim discussed customer behavior, uncertainty creating opportunities, and the strength of Cintas' value proposition over 54 of the last 56 years.

Q: Jasper Bibb from Truist Securities inquired about the cadence of the 2026 outlook and ad stops.

A: Todd responded on the guide being consistent with expectations and the broad customer base being in a good spot.

Q: Tim Mulrooney from William Blair asked about business lines picking up beyond expectations in Q4.

A: Todd mentioned discrete one-time benefits in First Aid and Uniform Direct Sale businesses contributing to the strong Q4 performance.