Vestis Corp (VSTS) FY2025 10-K Annual Report
Vestis Corp (VSTS) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Dec 2, 2025. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
Vestis Corp FY2025 10-K Analysis
Business Overview
- • Core business: uniform rentals and workplace supplies across US and Canada, servicing 300,000+ customers with recurring rental contracts
- • New emphasis: multi-year business transformation and restructuring plan initiated in Q1 2026 to improve profitability and cash flow
- • Strategic shift: accelerated growth strategy with focus on commercial excellence, operational excellence, and asset/network optimization
- • Quantitative highlight: approx. 18,150 employees, $2.7 billion revenue in FY 2025, 95% revenue from recurring rental business
- • Noteworthy event: completed spin-off from Aramark on Sept 30, 2023, with NYSE listing under ticker "VSTS" starting Oct 2, 2023
Management Discussion & Analysis
- • Revenue $2,734.8M, down 2.5% YoY (-$71.0M); excluding 53rd week, down 4.4% or $122.6M; uniform revenue fell $105.6M, workplace supplies $17.0M
- • Operating margin 2.4% vs 5.6% in fiscal 2024; operating income $64.4M down 59.2% YoY (-$93.5M)
- • Best performing segment: Canada with operating income $9.0M, up 9.7%, margin 3.6% vs 3.3%; worst performing: US segment income $154.0M down 41.8%, margin 6.2% vs 10.4%
- • Net loss $40.2M vs net income $21.0M prior year; interest expense down $34.3M due to lower debt and rates; SG&A and costs contained but bad debt and severance increased
- • Liquidity: $1.8B credit facility with refinancing completed; restructuring plan launched targeting $75M annual savings by FY26 end, costing $25-30M; management cautious on inflation, labor, and currency risks impacting future results
Risk Factors
- • Regulatory risk: U.S. tariffs imposed in FY2025 increased raw material costs, with uncertain future tariff changes potentially disrupting supply chains and raising expenses
- • Macroeconomic threat: Fuel and energy prices rose due to Ukraine and Middle East conflicts, pressuring operating margins and increasing cost volatility
- • Operational vulnerability: Single-source suppliers and ongoing global supply chain disruptions cause delivery delays, higher substitution rates, and inflate costs for raw materials and products
- • Competitive risk: Price-sensitive uniform rental market with national and regional competitors may force price reductions, eroding revenue and profits
- • Financial risk: Goodwill impairment risk heightened by sustained share price decline and declining financial performance, with potential for significant charges impacting results
Vestis Corp FY2025 Key Financial MetricsXBRL
Revenue
$2.7B
▼ -2.5% YoY
Net Income
-$40M
▼ -291.8% YoY
Operating Margin
2.4%
▼ -327bp YoY
Net Margin
-1.5%
▼ -222bp YoY
ROE
-4.6%
▼ -697bp YoY
Total Assets
$2.9B
▼ -0.9% YoY
EPS (Diluted)
$-0.31
▼ -293.7% YoY
Operating Cash Flow
$64M
▼ -86.4% YoY
Source: XBRL data from Vestis Corp FY2025 10-K filing on SEC EDGAR. All figures in USD.
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