Vestis Enjoys 2Q Cash Flow via ‘The Plan’

ATLANTA – A focus on service, operating performance, and cost discipline helped Vestis Corporation, a provider of uniforms and workplace supplies, generate strong cash flow in the second quarter.

The company posted net Income of $2.6 million, or 2 cents a share, on sales of $659.4 million, compared to a loss of $27.8 million, or 21 cents a share, on sales of $655 million in the same quarter last year.

The company repaid $34 million of debt, and has available liquidity of $344.5 million, including $50.3 million in cash and cash equivalents on hand, at the end of the quarter

“During the second quarter, Vestis continued to advance its strategic transformation through targeted initiatives aimed at enhancing operating leverage and profitability,” said Jim Barber, President and CEO. “Our focus on service, operating performance, and cost discipline is delivering results, culminating in a return to profitable growth.”

Given this momentum, Vestis is raising its full‑year fiscal 2026 Adjusted EBITDA and Free Cash Flow guidance, and reaffirming its expectations for sequential improvements in adjusted EBITDA as we move through the year.

“We generated strong cash flow during the second quarter, further strengthening our financial flexibility and supporting our deleveraging priorities,” continued Barber. “Measurable improvements in our service quality, productivity, and on‑time delivery are creating a new standard of excellence for our customers. At a strategic level, we are allocating capital toward the highest return, highest impact areas of our business, while continuing to reduce debt in support of improved balance sheet optionality, focusing on fundamentals that drive long‑term value creation.”

During its fiscal first quarter of 2026, the Company launched a strategic business transformation plan (“the Plan”) designed to make the Company more customer focused, agile and efficient – while positioning it for long-term profitable growth. Once fully implemented, the Plan is expected to generate annual operating cost savings of at least $75 million by the end of fiscal 2026 and to enhance revenue.

During the fiscal second quarter, the company made further progress in its implementation of critical decision support tools which have begun to enable stronger strategic pricing execution.

During the fiscal second quarter, the Company divested two non-operating properties for total proceeds of $6.5 million which were used to reduce outstanding indebtedness. Vestis is actively marketing several additional non-operating properties for sale to optimize its asset footprint and service network.

The Company is updating its outlook for fiscal 2026. The Company now expects fiscal 2026 Adjusted EBITDA* to be in the range of $295 million to $325 million and fiscal 2026 Free Cash Flow* to be in the range of $120 million to $150 million. The Company continues to expect fiscal 2026 revenue to be between flat to down 2% as compared to normalized fiscal 2025 revenue excluding the impact of the additional operating week.

The company has assets of $2.9 billion, and liabilities of $2 billion.

Vestis provides uniform services and workplace supplies to a broad range of North American customers from Fortune 500 companies to locally owned small businesses across a broad set of end sectors. The Company’s comprehensive service offering primarily includes a full-service uniform rental program, floor mats, towels, linens, managed restroom services, first aid supplies, and cleanroom and other specialty garment processing.