Vestis Reports Strong Q2 Results, Raises Full-Year Adjusted EBITDA and Free Cash Flow Guidance

summarizeSummary

Vestis Corp announced strong fiscal Q2 2026 results, including a return to net income and significant Adjusted EBITDA growth, leading to a substantial increase in its full-year Adjusted EBITDA and Free Cash Flow guidance.

check_boxKey Events

• Strong Q2 2026 Financial Performance

  The company reported net income of $2.6 million ($0.02 per diluted share) for Q2 2026, a significant improvement from a net loss of $(27.8) million in the prior year. Adjusted EBITDA increased by 19% year-over-year to $74.5 million, with an 11.3% margin.

• Substantially Raised Full-Year 2026 Outlook

  Vestis increased its full-year 2026 Adjusted EBITDA guidance to a range of $295 million to $325 million (a 3% increase at the midpoint) and its Free Cash Flow guidance to $120 million to $150 million (a 145% increase at the midpoint).

• Debt Reduction and Liquidity

  The company repaid $34 million of debt during the quarter and reported available liquidity of $344.5 million, including $50.3 million in cash and cash equivalents.

• Progress on Strategic Transformation Plan

  Vestis reported early benefits from its multi-year business transformation plan, including an 11% improvement in plant productivity, a 270 bps improvement in on-time deliveries, and a 4% reduction in customer complaints. The in-year benefit from the plan for fiscal 2026 is now estimated at $50 million, up from $40 million.

auto_awesomeAnalysis

Vestis Corp reported a significant turnaround in its fiscal second quarter 2026, moving from a net loss to positive net income and achieving a 19% year-over-year increase in Adjusted EBITDA. The company also substantially raised its full-year 2026 guidance for both Adjusted EBITDA and Free Cash Flow, with the latter seeing a remarkable 145% increase at the midpoint. This indicates strong execution of its strategic transformation plan and improved financial health, following a net loss and revenue decline in Q1 2026.