<span item_type="fundamental" item_id="af05afc7fa87dbe82e5594b6c6ffba8a" counter_id="ST/US/VSTS" env="prod"></span><span item_type="announcement" item_id="647514216563938305" env="prod"></span><p>Revenue: As of FY2026 Q2, the actual value is USD 659.44 M, beating the estimate of USD 655.98 M.</p><p>EPS: As of FY2026 Q2, the actual value is USD 0.02, meeting the estimate of USD 0.02.</p><p>EBIT: As of FY2026 Q2, the actual value is USD 47.84 M.</p><p></p><p>Vestis Corporation operates in two reportable segments: United States and Canada, both providing uniforms and workplace supplies. The company initiated a multi-year business transformation and restructuring plan in the first quarter of fiscal 2026, aiming to enhance operational efficiency, improve execution, and strengthen long-term performance through Operational Excellence, Commercial Excellence, and Asset and Network Optimization <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1967649/000162828026033871/vsts-20260403.htm"></span>.</p><h4>Consolidated Financial Performance</h4><ul><li><strong>Revenue</strong>: Total revenue decreased by -0.9% to $659.4 million for the three months ended April 3, 2026, compared to $665.2 million for the same period in 2025. For the six months ended April 3, 2026, total revenue decreased by -1.9% to $1,322.8 million, compared to $1,349.0 million in 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1967649/000162828026033871/vsts-20260403.htm"></span>.</li><li><strong>Operating Income (Loss)</strong>: Operating income for the three months ended April 3, 2026, was $26.8 million, a 412.5% increase from an operating loss of -$8.6 million in 2025. For the six months ended April 3, 2026, operating income was $43.4 million, a 98.6% increase from $21.8 million in 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1967649/000162828026033871/vsts-20260403.htm"></span>.</li><li><strong>Net Income (Loss)</strong>: Net income for the three months ended April 3, 2026, was $2.6 million, an improvement of $30.4 million compared to a net loss of -$27.8 million in 2025. For the six months ended April 3, 2026, net loss was -$3.8 million, an improvement of $23.2 million compared to a net loss of -$27.0 million in 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1967649/000162828026033871/vsts-20260403.htm"></span>.</li></ul><h4>Segmented Revenue and Operating Income</h4><h5>United States Segment</h5><ul><li><strong>Revenue</strong>: For the three months ended April 3, 2026, revenue was $598.9 million, a -1.2% year-over-year (YoY) decrease, with Uniforms revenue declining by -$10.4 million, offset by a $3.2 million increase in Workplace Supplies. For the six months ended April 3, 2026, revenue was $1,201.8 million, a -2.1% YoY decrease, with Uniforms revenue declining by -$28.5 million and Workplace Supplies increasing by $2.6 million <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1967649/000162828026033871/vsts-20260403.htm"></span>.</li><li><strong>Operating Income</strong>: For the three months ended April 3, 2026, operating income was $49.8 million, a 168.3% YoY increase, with an operating income margin of 8.3% (up from 3.1% in 2025). For the six months ended April 3, 2026, operating income was $86.0 million, a 12.3% YoY increase, with an operating income margin of 7.2% (up from 6.2% in 2025) <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1967649/000162828026033871/vsts-20260403.htm"></span>.</li></ul><h5>Canada Segment</h5><ul><li><strong>Revenue</strong>: For the three months ended April 3, 2026, revenue was $60.5 million, a 2.3% YoY increase, including a positive foreign exchange impact of $2.7 million, and Workplace Supplies revenue increased by $1.4 million. For the six months ended April 3, 2026, revenue was $121.0 million, a -0.2% YoY decrease, net of a positive foreign exchange impact of $2.9 million, with Uniforms revenue declining by -$1.1 million and Workplace Supplies increasing by $0.9 million <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1967649/000162828026033871/vsts-20260403.htm"></span>.</li><li><strong>Operating Income</strong>: For the three months ended April 3, 2026, operating income was $1.9 million, a -6.3% YoY decrease, with an operating income margin of 3.2% (down from 3.5% in 2025). For the six months ended April 3, 2026, operating income was $4.1 million, a 2.9% YoY increase, with an operating income margin of 3.4% (up from 3.3% in 2025) <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1967649/000162828026033871/vsts-20260403.htm"></span>.</li></ul><h4>Cash Flow Summary (Six Months Ended)</h4><ul><li><strong>Net cash provided by operating activities</strong>: $95.9 million in 2026, a significant increase from $10.4 million in 2025, primarily due to improved management and collections of accounts receivable, increased utilization of the A/R Facility, strategic shifts in inventory management, and changes in accounts payable and accrued expenses <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1967649/000162828026033871/vsts-20260403.htm"></span>.</li><li><strong>Net cash used in investing activities</strong>: -$15.3 million in 2026, compared to net cash provided of $9.2 million in 2025, mainly due to net proceeds of $36.8 million from the sale of an equity investment in 2025, partially offset by lower property and equipment purchases and reduced acquisition-related investments in 2026 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1967649/000162828026033871/vsts-20260403.htm"></span>.</li><li><strong>Net cash used in financing activities</strong>: -$60.1 million in 2026, compared to -$22.4 million in 2025, including proceeds from long-term borrowings of $75.0 million and payments of long-term borrowings of -$116.0 million in 2026 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1967649/000162828026033871/vsts-20260403.htm"></span>.</li></ul><h4>Capital Expenditures</h4><ul><li><strong>Total Capital Expenditures</strong>: For the three months ended April 3, 2026, total capital expenditures were $12.7 million ($11.8 million for US, $0.9 million for Canada), compared to $13.5 million ($12.6 million for US, $0.9 million for Canada) for the three months ended March 28, 2025. For the six months ended April 3, 2026, total capital expenditures were $22.1 million ($20.7 million for US, $1.4 million for Canada), compared to $28.2 million ($26.9 million for US, $1.3 million for Canada) for the six months ended March 28, 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1967649/000162828026033871/vsts-20260403.htm"></span>.</li></ul><h4>Debt and Liquidity</h4><ul><li><strong>Long-Term Borrowings</strong>: Total principal debt was $1,127.5 million as of April 3, 2026, down from $1,168.5 million as of October 3, 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1967649/000162828026033871/vsts-20260403.htm"></span>.</li><li><strong>Cash and Cash Equivalents</strong>: $50.3 million as of April 3, 2026 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1967649/000162828026033871/vsts-20260403.htm"></span>.</li><li><strong>Revolving Credit Facility</strong>: There were no borrowings outstanding, with $294.2 million available for borrowing as of April 3, 2026 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1967649/000162828026033871/vsts-20260403.htm"></span>.</li></ul><h4>Outlook and Strategy</h4><p>Vestis Corporation’s multi-year business transformation plan is expected to generate at least $75 million in annual operating cost savings by the end of fiscal 2026 and be substantially complete by the end of fiscal 2027. The company is focused on debt reduction and financial stability, as its credit agreement restricts dividends and share repurchases until at least after October 2, 2026, or until a specific net leverage ratio is met. An energy surcharge was implemented in the second fiscal quarter of 2026 to mitigate the impact of elevated energy costs on operating results <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1967649/000162828026033871/vsts-20260403.htm"></span>.</p>

Vestis | 10-Q: FY2026 Q2 Revenue Beats Estimate at USD 659.44 M