Cintas Corporation (Nasdaq: CTAS) provides a range of services and products, including uniform rental, facility services, first aid products, and fire protection services to over one million businesses.

For the third quarter of fiscal 2025, Cintas experienced significant growth, indicating it is in a rise condition. Total revenue increased 8.4% year-over-year to $2.61 billion, with an organic growth rate of 7.9%. Segment performance varied, with Uniform Rental and Facility Services achieving 7% organic growth, First Aid and Safety Services growing by 15%, and Fire Protection Services by 10.6%. Conversely, Uniform Direct Sales decreased by 2.3%. Gross margin improved by 11.1% over the previous year to reach 50.6%, an all-time high, while operating income increased by 17.1% to $609.9 million. Operating income as a percentage of revenue reached 23.4%, with a $15 million gain on the sale of property influencing this result. Without this gain, operating income as a percent of revenue stood at 22.8%.

In terms of earnings, diluted earnings per share (EPS) grew 17.7% to $1.13, reflecting the positive impact of operational efficiencies. Excluding the gain on the property sale, adjusted EPS was $1.10. Free cash flow for the first nine months of the fiscal year rose 14.5% compared to the same period last year. In response to market conditions, Cintas has updated its annual revenue expectations, narrowing the range for total revenue from $10.255 billion to $10.32 billion, to a revised range of $10.28 billion to $10.305 billion.

The company has also raised its annual diluted EPS guidance from a range of $4.28 to $4.34 to a new range of $4.36 to $4.40, suggesting a growth rate of 15% to 16.1%. The updated organic revenue growth guidance is set to fall between 7.4% to 7.7%. Cintas continues to focus on investments back into the business, with capital expenditures amounting to $99.9 million in the third quarter.

Selling and administrative expenses as a percentage of revenue were reported at 27.2%, down from 27.7% in the previous year when adjusted for a one-time settlement from that period. The company is experiencing strong cash flow generation, allowing for strategic acquisitions in its route-based segments. As part of its capital allocation strategy, Cintas paid a quarterly cash dividend of $0.39 per share and maintains an opportunistic share buyback approach, although no buybacks occurred in the third quarter.

Cintas has engaged in disciplined M&A activities and maintains a keen focus on technology initiatives to further drive growth and efficiency. It remains positioned to leverage continued growth opportunities while sustaining operational excellence across its business segments.