UniFirst Shareholders Approve Cintas Acquisition as Margins Compress
Consolidated revenues rose 3.4% to $622.5 million in the second quarter.
UniFirst (UNF), the commercial laundry and facility services provider, reported second-quarter revenues of $622.5 million.
The results arrived as the company transitioned toward a merger. Shareholders approved a pending acquisition by Cintas Corporation on June 11, 2026, with more than 99% of votes cast in favor. Under the terms of the agreement, shareholders will receive $155.00 in cash and 0.7720 shares of Cintas stock for each share held.
Revenue growth accelerated slightly to 3.4% year-over-year, up from 2.7% in the first quarter. However, profitability declined as the company funded strategic shifts. Operating margin compressed to 4.2%, down from 7.3% in the first quarter and 8.1% in the fourth quarter of the previous fiscal year.
Adjusted EBITDA margin followed a similar downward trajectory, falling to 10.7% in the second quarter from 13.3% in the first quarter and 14.3% in the prior year's fourth quarter. The company attributed the margin pressure to planned investments in growth and digital transformation.
Costs associated with the company's enterprise resource planning "Key Initiative" rose to $3.0 million in the second quarter. This represented an increase from $2.3 million in the first quarter and $1.4 million in the fourth quarter of the previous year.
Performance varied across business lines. First Aid & Safety Solutions revenue grew 12.2% year-over-year to $30.8 million, though this pace slowed from 15.3% in the first quarter. Revenue in the nuclear solutions segment fell 1.9% to $22.9 million, continuing a decline from the previous two quarters.
UniFirst ceased providing financial guidance and hosting quarterly conference calls starting in the second quarter due to the pending Cintas transaction.
The company also halted its share repurchase program in the second quarter. This followed a period in which it had repurchased $31.7 million of its own stock during the first quarter.