UniFirst Corp (NYSE:UNF) stock rose 0.77% (As on April 2, 11:36:36 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the second quarter of FY 26. Operating income and Adjusted EBITDA were $26.0 million and $66.8 million, respectively, compared to $31.2 million and $68.9 million, respectively, in the second quarter of fiscal 2025. Operating margin was 4.2% compared to 5.2% in the prior year period, reflecting planned investments in growth and digital transformation initiatives. Net income was $20.5 million compared to $24.5 million in the prior year period. Adjusted EBITDA margin was 10.7% compared to 11.4% in the prior year period. The Company’s results for the second quarter of fiscal 2026 and 2025 included approximately $3.0 million and $1.9 million, respectively, of costs related to its enterprise resource planning project, which is expected to enhance long-term growth, scalability, operating efficiency and profitability.

Meanwhile, UNF announced that they have entered into a definitive agreement under which Cintas will acquire UniFirst for $310.00 per share in cash and stock, representing an enterprise value of approximately $5.5 billion. The combined company will deliver innovative products and outstanding services to approximately 1.5 million business customers across North America. The transaction is expected to close in the second half of calendar 2026, subject to customary closing conditions, approval by UniFirst shareholders and the receipt of certain regulatory approvals.

Moreover, Uniform & Facility Service Solutions revenues increased 3.2% to $568.8 million compared to $551.4 million in the prior year period. As a result of the Company’s strategic investments in growth, new customer account acquisitions surpassed those of the corresponding period last year, and customer retention rates also demonstrated improvement. First Aid & Safety Solutions revenues increased 12.2% to $30.8 million compared to $27.5 million in the prior year period. The segment’s results again reflected the investments the Company has made to drive growth and improve profitability in its First Aid van business.

UNF in the second quarter of FY 26 has reported the adjusted earnings per share of $1.13, beating the analysts’ estimates for the adjusted earnings per share of $1.08, according to analysts polled by FactSet. The company had reported the adjusted revenue growth of 3.4 percent to $622.5 million in the second quarter of FY 26, beating the analysts’ estimates for revenue of $615.3 million. This is driven by organic growth in the core Uniform & Facility Service Solutions segment.