Cintas Corp (CIT.DE) Q4 2024 Earnings Report

Cintas Corp reported a strong Q4 FY2024, with revenue of $2.471B, up 8.2% year over year and 2.7% quarter over quarter. Gross profit reached $1.173B for a gross margin of 47.5%, while operating income was $547.6M, producing an operating margin of 22.16%. Net income totaled $414.3M, or $1.02 per share (basic), with diluted EPS of $1.00. EBITDA stood at $668.2M (EBITDA margin ~27.0%). The quarter demonstrated solid profitability alongside efficient cash conversion, underscored by free cash flow of $591.1M and operating cash flow of $693.0M.

From a capital allocation perspective, Cintas generated substantial cash, returning $231.9M through share repurchases and $137.6M via dividends, while capex remained moderate at $101.9M. The balance sheet remains robust: total assets of $9.48B, total liabilities of $5.17B, and total stockholders’ equity of $4.32B. Liquidity indicators were solid (current ratio ~1.12, cash ratio ~0.19) with a healthy interest coverage (~22.7x).

Despite the lack of explicit quarterly guidance in the provided materials, the results imply continued demand for essential services in the uniforms, facility services, and safety product spaces. The company’s leverage metrics stayed within a manageable range (net debt $2.33B; debt to capitalization ~0.382; payout ratio ~33%), supporting a constructive near-term view as long as cost discipline and pricing power persist. Key risks include wage inflation pressure, input costs, and competitive intensity, which management will need to navigate to sustain margin momentum.