Aramark (ARMK) Q2 2025 Earnings Report

Aramark reported a resilient QQ2 2025 with organic revenue of $4.28 billion, up 3% year over year, driven by a 1% rise in US FSS and a 10% rise in International. The quarter featured record AOI profitability for a second quarter in global FSS history and over 20% adjusted EPS growth on a constant-currency basis, supported by strong operating leverage and supply-chain discipline. Management signaled continued momentum into the second half of fiscal 2025, highlighting a robust pipeline, high client retention (above 98% in US and international), and new client wins totaling $760 million year-to-date, underpinning a target of net new growth of 4%–5% for the year. The company maintained its full-year guidance, expecting acceleration in Q3 and a solid exit-rate into fiscal 2026, while navigating tariff dynamics and inflation in a largely insulated business model.

On the balance sheet and cash flow front, Aramark generated $256 million of operating cash flow in Q2 and $141 million of free cash flow, with year-to-date free cash flow outperforming the prior year by $64 million. Net debt stood at $5.92 billion with gross debt at $6.84 billion, and leverage was anticipated near 3x by year-end after a proactive capital-allocation program that included debt-maturity extensions and equity repurchases totaling around $140 million since November. These dynamics support a stable liquidity profile and prudent capital deployment going forward.