UniFirst Corporation (NYSE: UNF) reported results for its fiscal 2026 third quarter ended May 30, 2026, with revenues rising 3.9% to $634.4 million from $610.8 million a year earlier, while net income fell to $19.9 million from $39.7 million as costs tied to its proposed merger with Cintas Corporation reduced quarterly earnings.
The Wilmington, Massachusetts-based company reported the quarter against the backdrop of its pending acquisition by Cintas. Under a definitive agreement announced on March 11, 2026, UniFirst shareholders will receive $155 in cash and 0.7720 shares of Cintas stock for each UniFirst share they own.
#Merger and ERP Costs Reduce Operating Income to $23 Million
Third quarter results included approximately $20.7 million of costs associated with the proposed merger, consisting primarily of legal, advisory and other professional service fees.
Results also included approximately $5.2 million of costs related to the company's enterprise resource planning project, up from $1 million in the prior year period. Together, the two cost items reduced operating income by $26 million and diluted earnings per share by $1.08 in the quarter.
Operating income was $23 million, down from $48.2 million in the third quarter of fiscal 2025, and operating margin narrowed to 3.6% from 7.9% in the prior year period.
Diluted earnings per share was $1.09, compared with $2.13 a year earlier. The quarterly tax rate was 18.5%, down from 25.7% in the prior year period.
Adjusted EBITDA was $82.6 million, compared with $85.8 million in the third quarter of fiscal 2025, with Adjusted EBITDA margin of 13% versus 14.1%.
"We delivered solid growth and profitability in the third quarter, reflecting the continued strength of our service-driven business and the disciplined execution of our team," Steven Sintros, President and Chief Executive Officer, UniFirst, said in the earnings release.
#Core Uniform Segment Grows 3.9% as Margins Narrow
Revenues in the Uniform & Facility Service Solutions segment, the company's largest, increased 3.9% to $575.7 million from $554.3 million in the prior year period. Organic growth, which excludes the effect of acquisitions and fluctuations in the Canadian dollar, was 3.6%. The segment's Adjusted EBITDA margin was 13.4%, down from 14.3% in the third quarter of fiscal 2025.
The company said new customer account acquisitions were solid during the quarter and customer retention rates continued to improve, building on year-to-date progress in both areas.
Segment operating margin was 3.4%, compared with 7.8% in the prior period. The company said merger and enterprise resource planning costs, both recorded to this segment, reduced its operating margin by 4.5% in the quarter.
The Other segment, which consists of the company's nuclear solutions business, posted revenue growth of 4.4% to $27.8 million. The company attributed the increase to growth in its European operations, partially offset by the continued wind-down of a large refurbishment project and fewer reactor outages.
#FTC Issues Second Request in Review of Cintas Merger
UniFirst shareholders approved the proposed merger at a special meeting on June 11, 2026. On the same date, UniFirst and Cintas each received a Second Request for additional information from the Federal Trade Commission as part of its review of the transaction. The companies said they are cooperating with the FTC and continue to work through the regulatory review process.
UniFirst ended the quarter with $168.9 million in cash, cash equivalents and short-term investments and no long-term debt outstanding as of May 30, 2026. The company did not repurchase any shares during the quarter and declared a quarterly cash dividend of $0.365 per Common Stock share and $0.292 per Class B share on April 14, 2026.
UniFirst supplies and services uniform and workwear programs across North America, operating more than 270 service locations and serving over 300,000 customer locations. The pending transaction would see the company acquired by Cintas, its counterparty under the March 2026 merger agreement.
Due to the pending transaction, UniFirst is no longer providing financial guidance or hosting quarterly conference calls regarding its financial results.
The company said the transaction is expected to close in the second half of calendar 2026, subject to satisfaction or waiver of customary closing conditions and receipt of required regulatory approvals, with the ongoing FTC review among the key factors in that timeline.