01—Abstract
Summary
Summary of the 10-Q filed April 3, 2025. Cited figures are marked; the original filing is the authoritative source.
Cintas Corporation (CTAS) reported strong financial results for the nine months ended February 28, 2025, demonstrating robust revenue growth and improved profitability.
Total revenue for the period increased by 7.7% to $7.67 billiona, driven by consistent performance across its Uniform Rental and Facility Services, as well as its First Aid and Safety Services segments. This growth was supported by both new business acquisition and deeper penetration into existing customer relationships, alongside strategic price increases. The company also showcased enhanced operational efficiency, with operating income rising to $1.76 billion, representing a 23.0% margin, up from 21.3% in the prior year's comparable period.
This margin expansion was attributed to improvements in gross margins through efficient inventory management and optimized routing, as well as better control over selling and administrative expenses. Net income saw a significant increase of 17.9% to $1.36 billionb, translating to diluted earnings per share of $3.31, up 18.6% year-over-year. Cintas also maintained a strong liquidity position, with substantial cash flow from operations, and continued to return value to shareholders through dividends and share repurchases.
02—Key points
Key Highlights
- Total revenue for the nine months ended February 28, 2025, increased by 7.7% to $7.67 billion, with organic revenue growth of 7.7%.
- Operating income for the nine-month period rose to $1.76 billion, resulting in an operating margin of 23.0%, an improvement from 21.3% in the prior year.
- Net income for the nine months increased by 17.9% to $1.36 billion.
- Diluted earnings per share (EPS) grew by 18.6% to $3.31 for the nine-month period.
- The Uniform Rental and Facility Services segment saw revenue growth of 7.0%, with a gross margin improvement to 49.5%.
- The First Aid and Safety Services segment delivered strong revenue growth of 13.2%, with gross margin improving to 57.3%.
- Net cash provided by operating activities was $1.53 billion for the nine months, indicating strong operational cash generation.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2025, Cintas Corp kept $0.18.
- Revenue$2.61B100.0%
- Cost of revenue−$1.29B49.4%
- Gross profit$1.32B50.6%
- Operating costs−$709.5M27.2%
- Operating income$609.9M23.4%
- Interest, other & tax−$146.4M5.6%
- Net income$463.5M17.8%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed April 3, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $2.61B$2.41B | +8.4% |
| Cost of Revenue | $1.29B— | — |
| Gross Profit | $1.32B— | — |
| SG&A Expenses | $709.49M$667.05M | +6.4% |
| Operating Income | $609.85M$520.80M | +17.1% |
| Net Income | $463.50M$397.58M | +16.6% |
| EPS (Basic) | $1.14$0.98 | +16.3% |
| EPS (Diluted) | $1.13$0.96 | +17.7% |
| Shares Outstanding (Basic) | 403.77M405.91M | −0.5% |
| Shares Outstanding (Diluted) | 410.31M412.75M | −0.6% |
05—Questions
Frequently Asked Questions
What was Cintas' revenue growth and how was it driven?
Cintas reported a 7.7% increase in total revenue to $7.67 billion for the nine months ended February 28, 2025, compared to the same period in the prior year. This growth was primarily driven by an organic revenue increase of 7.7%, fueled by new business acquisition, penetration of additional products and services into existing customers, and strategic price increases across its segments. Acquisitions also contributed positively to revenue growth.
How did Cintas' profitability evolve during the period?
Profitability improved significantly. Operating income increased to $1.76 billion, with operating margins expanding to 23.0% from 21.3% in the prior year. This was driven by improved gross margins due to operational efficiencies (like the SmartTruck initiative and inventory management) and favorable sales mix, coupled with selling and administrative expenses growing at a slower rate than revenue. Net income rose by 17.9% to $1.36 billion, leading to a 18.6% increase in diluted EPS to $3.31.
What is the company's liquidity and capital allocation strategy?
Cintas maintains a strong liquidity position, generating $1.53 billion in net cash from operating activities for the nine months ended February 28, 2025. The company continues to return capital to shareholders through dividends, which increased in declaration, and substantial share repurchases under its authorized programs. While acquisitions remain a strategic objective, the company expects operating cash flows to be sufficient for its operations and expansion activities, complemented by its $2.0 billion revolving credit facility.
Are there any significant impacts from acquisitions or foreign currency?
Acquisitions had a positive impact on revenue growth, contributing 0.7% to the overall increase for the nine-month period. Foreign currency exchange rate fluctuations had a minor negative impact of 0.2% on total revenue. The company also noted a negative impact of 0.5% due to one less workday in the nine months ended February 28, 2025, compared to the prior year's period.
06—Continue