Cintas delivered fourth-quarter results that were in line with Wall Street’s expectations, posting steady revenue growth across its core businesses. Management credited strong execution in its route-based businesses, with CEO Todd Schneider highlighting, "Each of our three route-based businesses had strong revenue growth in the quarter." The company’s focus on operational efficiency, supply chain management, and customer retention supported healthy margins despite a competitive environment. Management pointed to productivity improvements and cross-selling efforts as key drivers of the quarter’s performance, while also noting that the company continues to generate growth even when broader employment trends soften.
Is now the time to buy CTAS? Find out in our full research report (it’s free for active Edge members).
Cintas (CTAS) Q4 CY2025 Highlights:
- Revenue: $2.8 billion vs analyst estimates of $2.76 billion (9.3% year-on-year growth, 1.4% beat)
- EPS (GAAP): $1.22 vs analyst estimates of $1.19 (2% beat)
- Adjusted EBITDA: $783.2 million vs analyst estimates of $766.7 million (28% margin, 2.2% beat)
- The company slightly lifted its revenue guidance for the full year to $11.19 billion at the midpoint from $11.12 billion
- EPS (GAAP) guidance for the full year is $4.85 at the midpoint, roughly in line with what analysts were expecting
- Operating Margin: 23.4%, in line with the same quarter last year
- Market Capitalization: $76.44 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Cintas’s Q4 Earnings Call
- Timothy Mulrooney (William Blair) asked about the impact of labor market softening on Cintas’ customer base. CEO Todd Schneider explained that the company’s vertical mix and focus on industries with stable employment, like healthcare and government, help buffer against broader employment declines.
- Manav Patnaik (Barclays) questioned how Cintas maintains high growth during downturns. Schneider and COO James Rozakis outlined the company’s playbook, emphasizing flexibility through new business acquisition, robust cross-selling, and M&A optionality, rather than reliance on any one lever.
- Andrew Steinerman (JPMorgan) sought details on year-over-year changes in growth from existing customers and acquisition contributions. Schneider described current customer growth as stable to slightly positive, while CFO Scott Gurule clarified that recent acquisitions added a modest impact to second-half revenue.
- Jasper Bibb (Truist Securities) inquired about sourcing and tariff cost trends. Schneider said tariffs are being managed as expected, with supply chain optionality mitigating most impacts and pricing strategy remaining focused on long-term value.
- Jason Haas (Wells Fargo) asked about the timing of ERP implementation costs in the Fire Protection segment. Schneider indicated that additional costs are expected as the rollout continues, with full margin normalization likely after fiscal year 2027, according to Gurule.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be watching (1) the pace of cross-selling and vertical penetration, especially in healthcare and government; (2) the impact of ongoing technology and automation investments on operational efficiency and margin stability; and (3) the company’s ability to sustain all-time high retention rates amidst economic uncertainty. Execution on M&A and integration, as well as tariff and sourcing cost management, will also be important markers of success.
Cintas currently trades at $191.09, up from $187.37 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).
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