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UniFirst: UniFirst's Q1 FY2026 Earnings: Steady Progress Amidst Planned Investments

UniFirst reported revenues of $621.3 million for the first quarter of fiscal year 2026, a 2.7% increase from the prior year period. However, operating income and adjusted EBITDA declined year-over-year due to planned investments in growth and higher healthcare claims and legal costs. The company's earnings per share (EPS) came in at $1.98, slightly below estimates of $2.05. The Uniform and Facility Service Solutions segment delivered solid organic growth of 2.4%, while the First Aid and Safety Solutions segment grew 15.3%, driven by investments in the First Aid van business.

UNF

USD 203.3

0.64%

A-Score: 4.6/10

Publication date: January 7, 2026

Full Report

Author: Analystock.ai

📋 Highlights
  • Revenue Growth Q1 revenue rose to $621.3 million, a 2.7% increase YoY.
  • Segment Performance First Aid and Safety Solutions grew 15.3%, driven by van business investments, while Uniform and Facility Services grew 2.4% organically.
  • Financial Strength Balance sheet remains robust with no long-term debt, and $32 million in stock repurchases during the quarter.
  • Full-Year Guidance Reaffirmed $2.475B–$2.495B revenue and $6.58–$6.98 diluted EPS, including $7M in Key Initiative costs.

Segment Performance

The company's segment performance was a mixed bag, with the Uniform and Facility Service Solutions segment delivering steady organic growth, while the First Aid and Safety Solutions segment drove significant growth. The company is making investments in its sales and services organizations to drive growth and improve operating leverage, including adding to the sales team and expanding capacity and stability.

Guidance and Outlook

UniFirst reaffirmed its full-year fiscal 2026 guidance, with a consolidated revenue range of $2.475 billion to $2.495 billion and fully diluted earnings per share between $6.58 and $6.98. The company expects to see steady improvement in the next couple of years, with a goal of achieving mid-single-digit organic growth and high teens adjusted EBITDA margins in the long term. Analysts estimate next year's revenue growth at 4.2%, indicating a slight acceleration in growth.

Valuation and Financial Position

UniFirst's financial position remains robust, with a solid balance sheet and no long-term debt. The company's valuation metrics, including a P/E Ratio of 25.45 and EV/EBITDA of 11.05, suggest that the market is pricing in steady growth and profitability. The company's return on equity (ROE) stands at 6.45%, while its return on invested capital (ROIC) is 5.26%. The dividend yield is 0.72%, indicating a relatively stable return for shareholders.

Key Initiatives and Margin Improvement

The company is making progress on its growth model, with strong new account sales and improved customer retention. UniFirst expects an inflection point in '27 for margin improvement initiatives, including enabling global inventory sharing and implementing operational improvements. The full impact of these initiatives won't be immediate, but they expect to start seeing benefits in '27. The ERP implementation is on track, with core financial foundations being implemented this year and supply chain-centric enhancements coming online in '27.

UniFirst's A-Score