Cintas' Q4 Earnings Surpass Estimates, Revenues Increase Y/Y

Cintas Corporation CTAS reported fourth-quarter fiscal 2025 (ended May 31, 2025) earnings of $1.09 per share, which beat the Zacks Consensus Estimate of $1.07. The bottom line rose 9% year over year despite an increase in operating costs.

Total revenues of $2.67 billion outperformed the consensus estimate of $2.63 billion. The top line rose 8% year over year, driven by higher segmental revenues. Organic sales were up 9% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

In fiscal 2025, CTAS reported net revenues of $10.34 billion, which increased 7.7% year over year. The company’s adjusted earnings were $4.40 per share, up 16.1% year over year.

Cintas’ Segmental Results

The company has two reportable segments, Uniform Rental and Facility Services and First Aid and Safety Services. Other businesses like Uniform Direct Sale and Fire Protection Services are included in All Other. Quarterly sales data is briefly discussed below.

Revenues from the Uniform Rental and Facility Services segment (representing 76.1% of the quarter’s net sales) totaled $2.03 billion, up 6.3% year over year. Our estimate for segmental revenues was $2.02 billion.

Revenues from the First Aid and Safety Services segment (representing 12.2% of the quarter’s net sales) totaled $324.4 million, up 16.8% year over year. Our estimate for segmental revenues was $313.1 million.

Revenues from All Other business (representing 11.7% of the quarter’s net sales) totaled $312.6 million, up 10.8% year over year. Our estimate for segmental revenues was $289 million.

CTAS’ Margin Profile

Cintas’ cost of sales (comprising costs related to uniform rental and facility services and others) increased 6.9% year over year to $1.34 billion. It represented 50.3% of net sales. Gross profit increased 9.1% to $1.33 billion. The gross margin was 49.7% compared with 49.2% in the year-ago period. Our estimate for the gross margin was pegged at 49.9%.

Selling and administrative expenses totaled $728.5 million, reflecting a 9.1% increase from the year-ago figure. It represented 27.3% of net sales. Operating income increased 9.1% year over year to $597.5 million. The operating margin was 22.4% compared with 22.2% in the year-ago quarter. Interest expenses decreased 0.1% to $24.1 million.

Cintas’ Balance Sheet & Cash Flow

Exiting fiscal 2025, Cintas had cash and cash equivalents of $264 million compared with $342 million at the end of the year-ago fiscal year. Long-term debt was about $2.42 billion compared with $2.03 billion at the end of the year-ago fiscal year. 

In fiscal 2025, CTAS generated net cash of $2.17 billion from operating activities, up 4.7% from the year-ago period. Capital expenditures in the same period totaled $408.9 million, down 0.1% year over year. Free cash flow increased 5.9% year over year to $1.76 billion.

The company repurchased shares worth $934.8 million compared with $700 million in the year-ago period. Dividend payments totaled $611.6 million, up 15.2% year over year.

CTAS’ FY26 Guidance

For fiscal 2026, Cintas expects revenues to be in the range of $11-$11.15 billion. The midpoint of the guided range — $11.08 billion — lies above the Zacks Consensus Estimate of $11.02 billion. Earnings per share are estimated to be in the range of $4.71-$4.85. The midpoint of the guided range — $4.78 — lies below the consensus estimate of $4.87.

Cintas predicts net interest expenses of approximately $98 million. This compares with interest expenses of $101.1 million recorded in fiscal 2025. The effective tax rate is expected to be 20%.

CTAS’ Zacks Rank & Other Stocks to Consider

Cintas currently carries a Zacks Rank #2 (Buy). Some other top-ranked companies are discussed below.

AZZ Inc. AZZ currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

AZZ delivered a trailing four-quarter average earnings surprise of 8.1%. In the past 60 days, the Zacks Consensus Estimate for AZZ’s fiscal 2026 earnings has increased 4.9%.

Broadwind, Inc. BWEN presently sports a Zacks Rank of 1. The company delivered a trailing four-quarter average earnings surprise of 61.1%.

In the past 60 days, the consensus estimate for BWEN’s 2025 earnings has remained steady.

Alarm.com Holdings, Inc. ALRM presently carries a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 15.7%.

The Zacks Consensus Estimate for ALRM’s 2025 earnings has remained steady in the past 60 days.

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This article originally published on Zacks Investment Research (zacks.com).

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