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Vestis (VSTS) investor relations material
Vestis Q1 2026 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Q1 2026 revenue was $663.4 million, down 3% year-over-year, with a net loss of $6.4 million and adjusted EBITDA of $70.4 million (10.6% margin), reflecting sequential improvement and the launch of a strategic transformation plan targeting $75 million in annual cost savings by year-end 2026.
Operational improvements included a 7% increase in plant productivity, a 3% rise in on-time deliveries, and a 12% reduction in customer complaints year-over-year.
Commercial initiatives advanced decision support tools, strategic pricing, and local customer engagement, with new Market Development Representatives introduced.
Asset optimization included marketing non-core properties for sale, with proceeds intended for debt repayment.
No dividends were paid, and restrictions on dividends and share repurchases remain until leverage targets are met.
Financial highlights
Revenue declined by $20.4 million year-over-year, with rental revenue down $17.9 million and direct sales down $2.7 million; adjusted EBITDA margin was 10.6%, down from 11.9% in Q1 2025 but up 150 bps sequentially.
Net loss was $6.4 million compared to net income of $0.8 million in Q1 2025; adjusted EPS was $0.10 per diluted share.
Cost per pound improved by $0.02 year-over-year, equating to $10 million in adjusted EBITDA savings.
Free cash flow was $28.3 million, with $12.7 million benefit from working capital improvements; adjusted free cash flow excluding transformation costs was $42.9 million.
Net debt at quarter-end was $1.29 billion, with $316.7 million in available liquidity and no maturities until 2028.
Outlook and guidance
Fiscal 2026 revenue is expected to be flat to down 2% versus 2025, with adjusted EBITDA guidance reaffirmed at $285–$315 million and free cash flow guidance at $50–$60 million.
Sequential quarterly adjusted EBITDA improvements of about 5% are anticipated starting Q2.
Effective tax rate for 2026 projected at 25–30%.
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