Vestis Earnings Call Transcripts
Fiscal Year 2026
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Adjusted EBITDA grew 23% year-over-year with margin expansion, driven by disciplined pricing, improved product mix, and operational excellence. Free cash flow guidance was raised, and transformation initiatives are delivering cost savings and improved revenue quality.
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Second quarter saw adjusted EBITDA rise 19% year-over-year to $74.5 million, with improved operating leverage and cost control. Guidance for full-year adjusted EBITDA and free cash flow was raised, and a return to top-line growth is expected in Q4 2026.
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Q1 2026 saw sequential EBITDA improvement and strong operational gains, despite a 3% revenue decline driven by product mix shifts. Guidance for 2026 is reaffirmed, with ongoing transformation expected to drive cost and revenue per pound improvements.
Fiscal Year 2025
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Q4 2025 normalized revenue declined 3.5% year-over-year, with adjusted EBITDA at $65M and gross margin down 366 bps. A multi-year transformation plan aims for $75M in cost savings by 2026, with 2026 revenue expected flat to down 2% and adjusted EBITDA guidance of $285M–$315M.
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Q3 revenue declined 3.5% year-over-year due to higher churn and lower pricing on new contracts, with gross margin and adjusted EBITDA also down. Leadership is focused on value-based pricing, cost efficiency, and operational improvements, with near-term trends expected to persist.
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Q2 revenue and margins declined due to seasonality, customer volume adjustments, and a one-time bad debt expense, but new business momentum and operational improvements are driving sequential revenue growth. Guidance is now quarterly, with a focus on deleveraging and customer service.
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Q1 2025 revenue was $684M, flat sequentially, with adjusted EBITDA of $81.2M and improved customer retention. FY 2025 guidance is reaffirmed, expecting sequential growth, margin expansion, and strong new business wins, despite FX headwinds and leadership transitions.
Fiscal Year 2024
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Fiscal 2024 results met or exceeded expectations, with $2.8B revenue and $353M adjusted EBITDA. Operational improvements, national account wins, and cost initiatives support 2025 guidance for stable revenue and margin expansion, with growth accelerating in the year's second half.
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Third quarter revenue declined 1.6% year-over-year to $698 million, with adjusted EBITDA margin at 12.4% and improved customer retention. Full-year guidance was reaffirmed, and a $250 million AR facility will reduce net debt and improve leverage.