EarningsQ3 2026 Earnings Report
MX:VSTS Q3 2026 EPS Results
Actual EPS$3.09
Consensus EPS$1.70
Beat/MissBeat by +$1.39
One Year Ago EPS-$0.17
MX:VSTS Q3 2026 Revenue Results
Actual Revenue$11.34B
Expected Revenue$11.47B
Beat/MissMissed by -$124.83M
YoY Revenue Growth-1.80%
Earnings Announcement Details
QuarterQ3 2026
Date08/11/2026
TimeBefore Open
Conference CallTuesday, August 11, 2026
MX:VSTS Upcoming Earnings
Vestis Corporation's next earnings date is estimated for December 2, 2026, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:VSTS Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed marked operational and financial progress: material adjusted EBITDA growth, margin expansion, positive net income and stronger cash generation leading to an upward revision of free cash flow guidance. Improvements in pricing execution, product mix, plant productivity and cost control underpin these gains. However, management acknowledged notable challenges — a meaningful performance gap across market centers (quadrant underperformance), intentional volume exits that weighed on revenue, elevated net debt and ongoing transformation costs. The tone is constructive and management provided concrete initiatives (outsourcing savings, targeted CapEx, MDR ramp, quadrant remediation) to convert improvements into sustainable growth. On balance, the positive financial momentum and raised guidance appear to outweigh the remaining execution and network risks, contingent on management delivering the planned quadrant upgrades and field recovery.Company Guidance
Adjusted EBITDA Growth and Margin Expansion
Adjusted EBITDA for Q3 was $80.9M, up roughly $15M or ~23% year-over-year (covenant adjusted). Adjusted EBITDA margin expanded to 12.2% from ~9.8% a year ago (≈+240 bps). Implied Q4 adjusted EBITDA range is $84M–$89M.
Turned Net Income Positive
Net income in Q3 was $11.0M versus a net loss of $0.7M in the prior-year quarter, an increase of ~$11.7M year-over-year.
Revenue per Pound Improvement and Better Mix
Revenue per pound rose to $1.42, up $0.04 year-over-year (~+3%) and +$0.05 sequentially; linen concentration decreased ~6% year-over-year, reflecting a higher-value product mix.
Volume Optimization (Quality over Quantity)
Pounds processed declined ~4.5% year-over-year (≈22M pounds), driven by intentional exits of lower-margin volume (the exited volume carried ~ $0.55 revenue/pound), which management says improved overall revenue quality.
Cost Reductions and Productivity Gains
Cost of services decreased by roughly $15M year-over-year; SG&A declined ~ $7M (~6%) year-over-year. Plant productivity improved ~9%, on-time delivery improved 80 bps and customer complaints declined 74 bps, contributing to lower operating costs.
Strong Cash Flow and Raised Free Cash Flow Guidance
Q3 operating cash flow was $65M and free cash flow was $47M; adjusted free cash flow was $56M (excludes transformation cash spend). Full-year free cash flow guidance was raised to $160M–$170M (midpoint $165M), a ~22% increase from the prior midpoint.
Transformation Progress and Realized Savings
Year-to-date transformation initiatives contributed roughly $30M of in-year cost savings toward a ~$50M target. Q3 transformation cash expenditures were ~$8.5M (third-party costs and severance). Management expects remaining in-year benefits (~$20M) in Q4.
Outsourcing Agreement and Future Run-Rate Savings
Signed an outsourcing agreement to streamline corporate support functions, expected to generate ~ $10M in annualized cost savings beginning in FY2027, with some benefits appearing in Q4 FY2026.
Balance Sheet & Liquidity
Ended Q3 with net debt of ~$1.2B, principal bank debt ~$1.1B, repaid $30M term loan in the quarter, and available liquidity of ~ $352M (≈$294M undrawn revolver + ~$58M cash). No debt maturities until 2028.
Targeted Capital Investments
Q3 capital investment was $23M (including $18M cash), YTD capex $62M (including $40M cash). Installed 30 new industrial washers/dryers YTD and on pace for ~60 by year-end; fleet investments via $5M new finance leases in Q3.
Operational and Commercial Discipline Evident
Management highlighted improved pricing discipline, strengthened customer segmentation, expanded market development reps (MDRs) and a culture shift (management incentive bonus accruals added) intended to sustain gains and drive future profitable growth.
MX:VSTS Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed