UniFirst Corporation Q4 FY2025 earnings call

• Fiscal 2025 had solid top-line performance, modestly exceeding expectations on top-line and in line on profit. - Organizational changes included Kelly Rooney joining as COO, unifying operations and introducing UniFirst Way. - Sales organization realigned with direct oversight moving to sales team. - Investments in sales (tiered selling model) and service (strengthening teams) to accelerate growth. - ERP implementation ongoing, with investments peaking over next couple of years. - First Aid and Safety Solutions segment saw ~10% growth in 2025 and expected double-digit expansion in 2026.

Uniform and Facility Service Solutions: Q4 2025 revenues were $560,100,000, a 4.4% decrease from 2024; organic growth (excluding certain factors) was ~2.9%. First Aid and Safety Solutions: 2025 revenues increased to $31,100,000 with 12.4% organic growth. Other segment: 2025 revenues were $23,300,000, a 5.3% decrease from 2024 due to lower nuclear activity.

• Fiscal 2026 revenues expected between $2,475,000,000 and $2,495,000,000; diluted EPS between $6.58 and $6.98. - Uniform and Facility Service Solutions organic growth expected at 2.6%; margins impacted by tariffs, sales/service investments, and ERP costs. - First Aid and Safety Solutions expected to grow ~10% in 2026. - Other segment revenues forecast down 16.3% in 2026 due to nuclear service wind-down and cyclical factors.

• Tariffs with dynamic trade regulations impacting short to medium-term profitability. - Employment cycles affecting wearer numbers and growth rates. - Volatility in Other segment (nuclear services) due to seasonality and project timings. - Impact of ERP implementation costs peaking over next couple of years.

Q: Can you confirm the puts and takes to the guided 2.6% organic for Uniform Facility Services?

A: Organic growth affected by employment headwinds and investments, with momentum expected to build in following years.

Q: How to size the puts and takes for margins in 2026?

A: Tariffs, sales/service investments, service investments, and ERP implementation costs impact margins, with offsets from operational efficiency but 2026 as transitional year.

Q: When will benefits from sales and service investments occur?

A: Sales/service investments start building in 2026, with ERP benefits emerging in 2027 and beyond.

Q: Expectations on pricing and manufacturing clients?

A: Pricing environment fluid due to tariffs and inflation fatigue; manufacturing client impact nuanced with no big momentum seen yet.

Q: Clarification on sales/service investments vs ERP costs?

A: $7M key initiative costs specific to ERP; sales/service investments are ahead of revenue growth to accelerate future growth.

Q: Trajectory of margins in 2026 and nuclear segment impact?

A: Margins follow historical trajectory with second quarter impact from costs; nuclear segment softness expected in first quarter due to project wind-down.