The EPS miss is largely mechanical from deal costs, but the core business showed solid organic growth (4.6% in Uniform segment) and improving retention. The stock will trade on merger arb dynamics, not quarterly fundamentals. Watch for FTC clearance or timing agreement extension as the Dec 11, 2026 deadline approaches.
Price Chart
Executive Summary
UniFirst reported Q4 fiscal 2026 GAAP diluted EPS of $1.90, missing the $2.25 consensus by 15.6%, on revenue of $645.0M, slightly below the $648.0M estimate. The miss was driven by $14.4M in merger-related costs and $2.8M in ERP costs, which together reduced EPS by $0.71. The pending Cintas acquisition (expected close by year-end 2026) overshadows quarterly results, as the company has suspended guidance and conference calls.
Key Financial Metrics
Key Facts
- Q4 GAAP diluted EPS of $1.90 missed consensus of $2.25 by 15.6%
- Q4 revenue of $645.0M grew 5.0% YoY but missed $648.0M consensus
- Operating income fell to $41.7M from $49.6M YoY; operating margin contracted to 6.5% from 8.1%
- Adjusted EBITDA margin improved to 14.7% from 14.3% YoY, helped by lower merchandise costs
- Merger-related costs of $14.4M and ERP costs of $2.8M reduced EPS by $0.71 in the quarter
- Full-year GAAP diluted EPS fell to $6.02 from $7.98 YoY; revenue grew 3.7% to $2.523B
- Cash and equivalents totaled $192.1M with no long-term debt; $8.9M remaining under buyback authorization
- FTC timing agreement prevents deal close before Dec 11, 2026; CCB SIR certified; deal expected by year-end
Financial Impact
GAAP EPS miss of $0.35 vs consensus ($1.90 actual vs $2.25 estimate); revenue miss of ~$3M
Risk Factors
- FTC or CCB could block or delay the Cintas merger, creating downside to the arb spread
- Merger-related costs will continue to depress reported earnings until deal close
- First Aid segment remains unprofitable (-$1.5M operating loss) despite 13% revenue growth
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-066610 |
| Document: unf-20261021.htm | 0001628280-26-066610 |
| Document: 0001628280-26-066610-index-headers.html | 0001628280-26-066610 |
| Document: 0001628280-26-066610-index.html | 0001628280-26-066610 |
| Document: 0001628280-26-066610.txt | 0001628280-26-066610 |
| 8-K Data (Synthetic) | 0001628280-26-066610 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 6d ago | 8-K | $274.00 | awaiting T+20 | — | $250.72 (+8.50%) |
Oct 13, 2026 14d ago | Press Release | $258.08 | awaiting T+20 | — | $250.72 (−2.85%) |
Oct 8, 2026 19d ago | SC 13G/A | $259.60 | awaiting T+20 | — | $250.72 (−3.42%) |
Aug 28, 2026 8w ago | 8-K | $281.88 $259.44 | ▼ −7.96% | ▼ −8.22% | $250.72 (−11.05%) |
Jul 1, 2026 16w ago | 8-K | $266.54 $301.19 | ▲ +13.00% | ▲ +15.19% | $250.72 (−5.94%) |
Jul 1, 2026 16w ago | Press Release | $266.54 $301.19 | ▲ +13.00% | ▲ +15.19% | $250.72 (−5.94%) |
Jun 12, 2026 19w ago | 8-K | $264.83 $271.78 | ▲ +2.62% | ▲ +0.84% | $250.72 (−5.33%) |
Jun 12, 2026 19w ago | Press Release | $264.83 $271.78 | ▲ +2.62% | ▲ +0.84% | $250.72 (−5.33%) |
Jun 11, 2026 19w ago | Institutional Cluster | $275.65 $270.87 | ▼ −1.73% | ▼ −3.62% | $250.72 (−9.04%) |
May 11, 2026 24w ago | DEFM14A | $252.35 $270.48 | ▲ +7.18% | ▲ +7.49% | $250.72 (−0.65%) |
US Market Status
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