Vestis Earnings Call Transcripts
Fiscal Year 2026
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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.