Vestis (NYSE:VSTS) Announces Earnings Results

Vestis (NYSE:VSTS) posted its quarterly earnings data on Tuesday. The company reported $0.18 earnings per share for the quarter, topping analysts’ consensus estimates of $0.10 by $0.08, FiscalAI reports. The firm had revenue of $661.66 million during the quarter, compared to analysts’ expectations of $668.94 million. Vestis had a negative net margin of 0.20% and a positive return on equity of 7.30%.

Here are the key takeaways from Vestis’ conference call:

• Adjusted EBITDA rose 23% year over year to $80.9 million, while margin expanded to 12.2% from 9.8% on higher revenue per pound, productivity gains, and lower operating expenses.
• Third-quarter revenue declined 1.8% to approximately $662 million as pounds processed fell 4.5%, reflecting the intentional exit of low-quality volume; management expects revenue to remain flat to down 2% for fiscal 2026.
• Revenue per pound increased $0.04, or about 3%, marking the first year-over-year improvement since Vestis became public, driven by pricing discipline, product mix improvements, and reduced linen concentration.
• Management raised fiscal 2026 free cash flow guidance to $160 million-$170 million from $120 million-$150 million, citing stronger collections, working-capital execution, and balance-sheet management; the company also repaid $30 million of term-loan debt.
• Vestis expects approximately $10 million in annualized savings beginning in fiscal 2027 from outsourcing corporate support functions, while further upside is expected from improving underperforming market centers, expanding Market Development Representatives, and restoring volume growth in 2027.

Vestis Stock Up 2.0%

Shares of NYSE VSTS opened at $14.16 on Thursday. The stock has a market cap of $1.87 billion, a PE ratio of -283.14 and a beta of 0.97. The company has a quick ratio of 1.69, a current ratio of 2.13 and a debt-to-equity ratio of 1.44. Vestis has a 52-week low of $3.98 and a 52-week high of $16.90. The business has a 50-day moving average price of $14.23 and a 200 day moving average price of $10.74.

Analysts Set New Price Targets

Several equities analysts have commented on the stock. William Blair upgraded shares of Vestis from a “market perform” rating to an “outperform” rating in a research note on Tuesday, May 12th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Vestis in a research report on Friday, August 7th. Robert W. Baird boosted their price objective on Vestis from $15.00 to $16.00 and gave the stock a “neutral” rating in a research report on Wednesday. Zacks Research downgraded shares of Vestis from a “strong-buy” rating to a “hold” rating in a research note on Monday. Finally, Stifel Nicolaus increased their price objective on shares of Vestis from $11.00 to $14.00 and gave the company a “hold” rating in a research report on Wednesday. One research analyst has rated the stock with a Buy rating, three have issued a Hold rating and four have given a Sell rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Reduce” and a consensus price target of $10.86.

Institutional Investors Weigh In On Vestis

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. State of Wyoming grew its stake in Vestis by 10.4% in the 4th quarter. State of Wyoming now owns 15,145 shares of the company’s stock valued at $101,000 after acquiring an additional 1,428 shares during the last quarter. Captrust Financial Advisors grew its position in shares of Vestis by 15.6% in the second quarter. Captrust Financial Advisors now owns 20,599 shares of the company’s stock valued at $118,000 after purchasing an additional 2,787 shares during the last quarter. Mariner LLC grew its position in shares of Vestis by 3.2% in the third quarter. Mariner LLC now owns 123,981 shares of the company’s stock valued at $562,000 after purchasing an additional 3,798 shares during the last quarter. EverSource Wealth Advisors LLC increased its stake in shares of Vestis by 471.9% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 5,456 shares of the company’s stock worth $31,000 after purchasing an additional 4,502 shares in the last quarter. Finally, PNC Financial Services Group Inc. increased its stake in shares of Vestis by 147.1% during the 4th quarter. PNC Financial Services Group Inc. now owns 8,006 shares of the company’s stock worth $53,000 after purchasing an additional 4,766 shares in the last quarter. Hedge funds and other institutional investors own 97.40% of the company’s stock.

About Vestis

Vestis Corporation provides uniform rentals and workplace supplies in the United States and Canada. Its products include uniform options, such as shirts, pants, outerwear, gowns, scrubs, high visibility garments, particulate-free garments, and flame-resistant garments, as well as shoes and accessories; and workplace supplies, including managed restroom supply services, first-aid supplies and safety products, floor mats, towels, and linens. The company serves manufacturing, hospitality, retail, food processing, food service, pharmaceuticals, healthcare, automotive, and cleanroom industries.