Vestis Q3 revenue misses estimates on lower volumes

Vestis

11/08/2026 12:11

Overview
Uniforms and workplace supplies provider's fiscal Q3 revenue declined 1.8% yr/yr, missing analyst expectations
Adjusted net income for fiscal Q3 beat analyst expectations
Company raised full-year 2026 free cash flow outlook by $30 mln, citing strong execution

Outlook
Vestis raises FY 2026 Free Cash Flow outlook to $160 mln-$170 mln
Company maintains FY 2026 revenue outlook of flat to down 2% vs normalized 2025 revenue
Vestis sees FY 2026 Adjusted EBITDA of $310 mln-$315 mln, up $2.5 mln at midpoint

Result Drivers
LOWER VOLUME OFFSET BY PRICING - Co said a 4.5% decline in pounds processed weighed on revenue, but was partly offset by improved pricing and product mix
OPERATIONAL IMPROVEMENTS - Co cited reduced operating expenses and improved plant productivity, including a 9% gain in plant productivity and lower cost of services
PRICING INITIATIVES - Co said pricing and segmentation initiatives led to a 3% increase in revenue per pound and year-over-year revenue growth in its Canadian segment

Company press release: ID:nBwDqsqba

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$661.66 mln
$668.99 mln (6 Analysts)
Q3 Adjusted Net Income
Beat
$24.20 mln
$14.69 mln (3 Analysts)
Q3 Net Income
 
$11.05 mln
 
Q3 Adjusted EBITDA
 
$80.90 mln
 
Q3 Operating Expenses
 
$624.42 mln
 
Q3 Operating Income
 
$37.25 mln
 
Q3 Pretax Profit
 
$14.34 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the personal services peer group is "buy."
Wall Street's median 12-month price target for Vestis Corporation is $10.00, about 27.9% below its August 10 closing price of $13.87
The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 20 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)