Vestis (VSTS) Q4 2025 Earnings
How Did VSTS Stock React to Q4 2025 Earnings?
S&P 500 over the same 30 days: +0.91%.
Did VSTS Beat Earnings? Q4 2025 Results
No. Vestis reported Q4 2025 earnings of $0.03 a share on Dec 1, 2025, missing the $0.06 consensus estimate by 48.3%. Revenue was $712.0M against a $690.7M estimate.
Vestis Corporation delivered a sharply disappointing fiscal Q4 2025, posting adjusted EPS of just $0.03 against a consensus estimate of $0.39, a miss of 92.31%, even as revenue of $712.01 million edged 3.60% above analyst expectations and rose 4.0% year over year. The headline revenue figure, however, was flattered by a 53rd operating week worth roughly $51.60 million; strip that out and normalized revenue actually declined 3.5%, a reflection of persistent customer losses that dragged rental revenue down $18.10 million on a comparable basis. Adjusted EBITDA fell to $64.66 million from $80.55 million a year earlier, with margins compressing 269 basis points to 9.1%, while net leverage climbed to 4.72x as free cash flow shrank to just $5.77 million for the full year. In response, CEO Jim Barber unveiled a multi-year transformation plan targeting at least $75.00 million in annual cost savings by end of fiscal 2026, with the company guiding full-year adjusted EBITDA of $285.00 million to $315.00 million despite flat to down 2% revenue expectations, a cautious outlook that nonetheless sent shares up roughly 8.6% as investors bet on eventual execution.
- Extra 53rd operating week added approximately $51.6 million in Q4 revenue
- Net impact of lost business drove rental revenue decline of $18.1 million on a normalized basis
- Direct sales declined $5.0 million or 13.6% on a normalized basis
- SG&A cost reductions of $13.3 million including lower selling and administrative costs
- Higher variable plant costs due to adverse product mix shifts
- Foreign exchange negative impact of $0.8 million from Canadian business
“We ended fiscal 2025 in a good position to advance our strategic priorities as we enter fiscal 2026. Over the past several months, we have taken a close look at our commercial strategy as well as our operations and identified the actions needed to strengthen performance, unlock operating leverage, and better serve our customers. As a result, we have launched a comprehensive business transformation plan anchored on three strategic pillars: Commercial Excellence, Operational Excellence, and Asset & Network Optimization. We have already begun executing initiatives under the plan, and we anticipate these improvements will be progressively realized throughout fiscal 2026 as we advance our multi-year transformation.”
Vestis CEO, on the earnings call
What Was Vestis's Outlook in Q4 2025?
For fiscal year 2026, Vestis expects revenue to be flat to down 2% compared to normalized fiscal 2025 revenue. Adjusted EBITDA is expected to be in the range of $285 million to $315 million. Free cash flow is expected to be in the range of $50 million to $60 million. The company anticipates quarterly sequential Adjusted EBITDA growth of approximately 5% starting with Q2 FY2026, with Q1 FY2026 expected to increase approximately 7% to 10% over Q4 FY2025. The multi-year strategic transformation plan is expected to generate annual operating cost savings of at least $75 million by the end of fiscal 2026, with total restructuring costs estimated at $25 million to $30 million. The plan is expected to be substantially complete by the end of 2027.
VSTS YoY Financials
| Metric | Q4 2025 | Q4 2024 | Year over year |
|---|---|---|---|
| Revenue | $712.0M | $684.3M | +4.1% |
| Gross Profit | $178.9M | $197.0M | −9.2% |
| Operating Income | $17.6M | $29.8M | −40.8% |
VSTS Revenue by Segment
VSTS Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.