UniFirst Corporation (NYSE:UNF) reported stronger-than-expected third-quarter earnings on Tuesday, with its adjusted EPS of $2.13 edging past the consensus estimate of $2.10. Despite revenue coming in slightly below expectations, the stock rose 0.64% in pre-market trading.
For the quarter ended May 31, UniFirst generated $610.8 million in revenue—a 1.2% year-over-year increase but just shy of the $614.5 million analysts had projected. Net income rose 4.3% to $39.7 million, up from $38.1 million a year ago.
The company’s Core Laundry Operations, which remains its largest business unit, posted $533.2 million in revenue, marking a 0.9% uptick with organic growth of 1.1%. The Specialty Garments segment increased 0.5% to $47.8 million, while the First Aid division led growth with a 9.1% jump.
“The results for our third quarter were largely in line with our expectations,” said Steven Sintros, UniFirst President and Chief Executive Officer. “It is rewarding to see our recent investments beginning to yield measurable returns, evidenced by gross margin improvement and more effective execution across the business.”
UniFirst raised its full-year adjusted EPS guidance to a range of $7.60–$8.00, citing reduced costs tied to key company initiatives—now estimated at $7.5 million for fiscal 2025. The revenue forecast remains unchanged at $2.422–$2.432 billion.
Quarterly margins improved thanks to lower merchandise and production expenses relative to revenue. However, gains were partially offset by increased healthcare claims and $5.7 million in advisory and legal expenses. The company also booked a $2.8 million gain from the sale of a non-core property during the quarter.