Cintas delivered a robust start to fiscal 2025 (quarter ended August 31, 2024), underscored by solid organic growth, margin expansion and meaningful cash flow generation. Total revenue reached a quarterly record of $2.50 billion, up 6.8% year over year, with same-day growth of 8.4% and an organic growth rate of 8.0% after adjusting for acquisitions, FX and one fewer workday. Gross margin climbed to 50.1% (up 140 bps YoY) and operating margin reached a record 22.4% of revenue, up 100 bps YoY, supporting an 18.3% rise in diluted EPS to $1.10 (reflecting the 4-for-1 stock split). Free cash flow increased 62.4% YoY to $466.7 million, enabling continued capital returns and investments in technology, Six Sigma initiatives, and route optimization.
Management raised the full-year guidance for fiscal 2025: revenue to $10.22–$10.32 billion (6.5–7.5% growth) with organic growth of 7.0–8.1%, and diluted EPS to $4.17–$4.25 (10.0–12.1% growth). The company highlighted strength across its four verticals—healthcare, hospitality, education, and state/local government—and noted continued momentum in first aid and safety and fire protection services, with the rental business performing “right where we like them to be.” The narrative also emphasized investments in technology (including SmartTruck and SAP), partnerships (Verizon, Google, SAP), and ongoing capital allocation via dividends and stock repurchases. While the near-term margin trajectory benefits from operating leverage and supply chain optimization, management cautioned that SAP implementation could exert some SG&A pressure in fiscal 2025, particularly within the fire protection segment. The quarter also featured a strategic 4-for-1 stock split to broaden ownership accessibility and a notable dividend increase of 15.6%.
Overall, the combination of a diversified service platform, strong cash flow, and a favorable long-run addressable market supports a constructive investment thesis, albeit with near-term execution risks related to technology implementations and potential macro volatility.