Vestis Corporation

Vestis reported fiscal third-quarter results that mark a turning point in its effort to prove its uniform and workplace supply business can become more profitable. Adjusted EBITDA climbed to about $81 million, up roughly $15 million or 23% year over year, and revenue per pound rose to $1.42, the first year-over-year increase since the company separated from Aramark. Net income swung to $11 million from a $0.7 million loss a year earlier, and the company raised its full-year free cash flow guidance to a range of $160 million to $170 million, up from $120 million to $150 million previously. Total revenue was about $662 million, down 1.8% year over year, and net debt stood at $1.2 billion at quarter-end. Management acknowledged a meaningful gap between its strongest and weakest markets and plans to address it with more customized, market-by-market execution.

Vestis Corporation reported fiscal third quarter 2026 adjusted EBITDA of approximately $81 million, up 23% year-over-year on a covenant adjusted basis, and raised its full-year free cash flow guidance to a range of $160 million to $170 million from $120 million to $150 million previously. Revenue for the quarter was approximately $662 million, down 1.8% year-over-year, driven by a 4.5% reduction in volume as the company intentionally exited low-quality business, while revenue per pound increased $0.04 or approximately 3% to $1.42, the first year-over-year increase since Vestis became a public company. Net income increased by $11.7 million to $11 million compared to a net loss of $0.7 million in the prior year, and adjusted EBITDA margin expanded to 12.2% from 9.8% a year ago. The company also announced an outsourcing agreement expected to generate approximately $10 million in annualized cost savings beginning in fiscal 2027, and said it expects fiscal 2026 adjusted EBITDA in the range of $310 million to $315 million.