Vestis Corporation reported fiscal fourth‑quarter revenue of $712.0 million, a 4.1% year‑over‑year increase that was largely driven by an extra week of operations adding $51.6 million. When the additional week is excluded, revenue actually fell 3.5% compared with the same period a year earlier, highlighting an underlying organic decline in demand across its service portfolio.
Operating income dropped to $17.6 million from $29.8 million a year earlier, reflecting margin pressure from lost business and the net impact of improved selling, general and administrative costs. Adjusted earnings per share were $0.03, matching the consensus estimate of $0.03 but falling short of higher analyst expectations of $0.058 and $0.39. GAAP earnings per share were a loss of $0.10, underscoring the company’s near‑term profitability challenges.
The company unveiled a multi‑year transformation plan focused on commercial excellence, operational excellence, and asset & network optimization. Management projects the plan to deliver at least $75 million in annual operating cost savings by the end of fiscal 2026, with implementation costs estimated at $25–$30 million and substantial progress expected by the end of 2027.
Guidance for fiscal 2026 signals caution: revenue is expected to be flat to down 2% year‑over‑year, while the company emphasizes continued focus on profitability through cost discipline and the transformation initiatives. The outlook reflects concerns about near‑term demand headwinds while maintaining confidence in long‑term operational improvements.
"We ended fiscal 2025 in a good position to advance our strategic priorities as we enter fiscal 2026," said President and CEO Jim Barber. "The transformation plan is a critical step toward improving operating leverage, supporting the balance sheet and unlocking the full potential of our business," added CFO Kelly Janzen.
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