Unifirst (NYSE:UNF) Announces Earnings Results

Unifirst (NYSE:UNF) posted its earnings results on Wednesday. The textile maker reported $1.89 earnings per share for the quarter, missing the consensus estimate of $2.17 by ($0.28), Briefing.com reports. Unifirst had a net margin of 6.10% and a return on equity of 7.11%. During the same quarter last year, the business posted $2.31 EPS. The business’s revenue was up 2.7% on a year-over-year basis. Unifirst updated its FY 2026 guidance to 6.580-6.980 EPS.

Here are the key takeaways from Unifirst’s conference call:

• Revenues rose to $621.3 million, up 2.7% year-over-year, with Uniform & Facility organic growth of 2.4% and First Aid & Safety revenue up 15.3%, driven by van operations and small acquisitions.
• Profitability declined as Q1 operating income fell to $45.3 million (from $55.5M), Adjusted EBITDA to $82.8 million (from $94M), and EPS to $1.89 (from $2.31) due to planned growth investments plus higher healthcare claims and legal costs.
• Management reaffirmed full-year FY2026 guidance of $2.475B–$2.495B revenue and EPS of $6.58–$6.98, noting guidance assumes roughly $7M of key-initiative costs and excludes future share buybacks.
• Company is investing in a tiered sales/service model, the UniFirst Way operating framework, and an ERP/digital transformation expected to drive margin inflection (management expects clearer benefits in 2027), but near-term margin pressure will continue.
• Balance sheet and capital return actions remain supportive: $129.5 million cash/short-term investments, no long-term debt, ~$31.7M of share repurchases in Q1 (~$77M over two quarters), an increased dividend, and four small First Aid acquisitions.

Unifirst Price Performance

UNF traded down $5.50 during trading hours on Wednesday, hitting $197.65. 195,589 shares of the stock were exchanged, compared to its average volume of 213,488. The stock has a market cap of $3.58 billion, a price-to-earnings ratio of 24.81 and a beta of 0.72. The stock has a 50-day simple moving average of $173.84 and a 200-day simple moving average of $172.89. Unifirst has a 12 month low of $147.66 and a 12 month high of $232.14.

Unifirst Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, January 2nd. Investors of record on Friday, December 5th were given a dividend of $0.365 per share. The ex-dividend date of this dividend was Friday, December 5th. This represents a $1.46 annualized dividend and a dividend yield of 0.7%. This is an increase from Unifirst’s previous quarterly dividend of $0.35. Unifirst’s dividend payout ratio is currently 18.30%.

Trending Headlines about Unifirst

Here are the key news stories impacting Unifirst this week:

• Positive Sentiment: Top-line stability: Q1 revenue grew modestly (~+2.7% YoY) and was essentially in line with estimates; gross profit was slightly higher year-over-year, showing demand held up. Unifirst Corporation (UNF) Releases Q1 2026 Earnings
• Positive Sentiment: Recent quarter sales/seasonal beats: some outlets flagged quarterly sales that topped estimates, which supports the view that demand is not collapsing. UniFirst’s (NYSE:UNF) Q4 CY2025 Sales Top Estimates
• Neutral Sentiment: Company release: UniFirst provided a formal press release with detailed Q1 results and its FY2026 guidance (EPS range and revenue point), useful for modeling but the guidance disappointed consensus EPS. UniFirst Announces Financial Results for the First Quarter of Fiscal 2026
• Neutral Sentiment: Revenue guidance was left roughly in line with consensus (company reiterated a ~ $2.5B revenue level), so upside/ downside risk to top-line forecasts is limited based on the guidance disclosure.
• Negative Sentiment: EPS miss and margin compression: reported quarterly EPS missed Street estimates (reports show ~ $1.89–$1.98 vs. estimates around $2.08–$2.17), with operating profit and net income down materially YoY, signaling margin pressure. UniFirst Q1 Earnings Details
• Negative Sentiment: Guidance shortfall: FY2026 EPS guidance (6.580–6.980) is below consensus (~7.03), which is a primary driver of the stock decline as investors re-rate forward earnings.
• Negative Sentiment: Cash flow and cost pressure: operating cash flow weakened sharply while capex rose, reducing near-term cash generation and raising concerns about margins and liquidity. Unifirst Corporation (UNF) Releases Q1 2026 Earnings
• Negative Sentiment: Market reaction: coverage and market summaries note shares fell after the release and guidance, reflecting the combination of the EPS miss and conservative guidance. US Stocks Edge Higher; UniFirst Shares Fall After Q1 Results

Institutional Investors Weigh In On Unifirst

Institutional investors and hedge funds have recently bought and sold shares of the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in Unifirst by 4.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 8,966 shares of the textile maker’s stock valued at $1,560,000 after purchasing an additional 397 shares during the last quarter. AQR Capital Management LLC increased its stake in shares of Unifirst by 13.4% in the first quarter. AQR Capital Management LLC now owns 5,069 shares of the textile maker’s stock valued at $882,000 after purchasing an additional 599 shares during the period. Mercer Global Advisors Inc. ADV bought a new stake in shares of Unifirst during the third quarter valued at approximately $299,000. Tower Research Capital LLC TRC raised its holdings in shares of Unifirst by 248.5% during the second quarter. Tower Research Capital LLC TRC now owns 1,488 shares of the textile maker’s stock valued at $280,000 after buying an additional 1,061 shares during the last quarter. Finally, CIBC Bancorp USA Inc. acquired a new position in shares of Unifirst during the third quarter worth approximately $269,000. Institutional investors and hedge funds own 78.17% of the company’s stock.

Wall Street Analyst Weigh In

UNF has been the topic of several analyst reports. Zacks Research upgraded Unifirst from a “strong sell” rating to a “hold” rating in a report on Monday, December 22nd. UBS Group set a $182.00 price objective on shares of Unifirst in a research report on Thursday, October 23rd. Barclays reduced their target price on shares of Unifirst from $152.00 to $145.00 and set an “underweight” rating on the stock in a research report on Thursday, October 23rd. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Unifirst in a report on Wednesday, October 8th. Four research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Reduce” and a consensus target price of $174.75.

Unifirst Company Profile

UniFirst Corporation (NYSE: UNF) is a leading provider of customized uniform rental and facility service programs in North America and Europe. The company specializes in the rental, laundering and maintenance of workwear, corporate apparel and protective garments for a broad range of industries, including manufacturing, automotive, hospitality, healthcare and food processing. UniFirst also offers a suite of facility service products such as entrance mats, restroom supplies, wipers, mops and hygienic services designed to help customers maintain clean and safe environments.

In addition to its core uniform rental business, UniFirst has expanded its product portfolio to include safety and first-responder gear, flame-resistant clothing, high-visibility apparel and personal protective equipment (PPE).