Cintas Shares Rise Slightly After Surpassing Q2 Earnings Expectations and Upgraded Full-Year Outlook

CINCINNATI - Uniform rental and facility services provider Cintas Corporation (NASDAQ:CTAS) reported second-quarter earnings that exceeded expectations on Thursday. The company recorded strong revenue growth and margin expansion. Following the results, CTAS shares rose 1.6%.

For the quarter ending November 30, the company reported adjusted earnings per share of $1.09, surpassing analysts’ estimates of $1.01. Revenue increased 7.8% year-over-year to $2.56 billion, in line with expectations.

Cintas' President and CEO Todd M. Schneider stated, "Cintas delivered strong results in the second quarter. We achieved solid revenue and earnings growth on a year-over-year basis, excellent margin expansion, and robust cash generation."

Gross margin increased from 48.0% in the same quarter last year to 49.8%, aided by lower energy costs. Operating income rose by 18.4% to $591.4 million.

The company’s largest business segment, uniform rental and facility services, saw revenue climb 7.6% to $1.99 billion. The first aid and safety services division reported revenue of $299.4 million, growing by 12.4%.

Looking ahead, Cintas raised its full-year earnings forecast. The company now expects earnings per share for the fiscal year 2025 to be between $4.28 and $4.34, higher than the previous range of $4.17 to $4.25 and the analyst consensus of $4.24.

Annual revenue is projected to be between $10.26 billion and $10.32 billion, representing a slight increase from the previous range of $10.22 billion to $10.32 billion.

Schneider added, "We believe that Cintas' differentiated culture, superior products and services, and the industry's best talent will continue to create significant value in fiscal year 2025 and beyond."

The company also announced a quarterly dividend of $0.39 per share, which will be paid on December 13, representing a 14.9% increase from last year.