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what it is
Vestis rents uniforms and workplace supplies to businesses in the U.S. and Canada.
how it gets paid
Last year Vestis made $2.7B in revenue. Uniform rental and laundering was the main engine at $1.35B, or 50% of sales.
why growth slowed
Revenue fell 2.5% last year. Revenue fell 3% vs. prior year. The company also posted $16.6M of operating income and a $6.4M net loss.
what just happened
Vestis missed with $663.4M of revenue and a $0.05 loss per share.
At a glance
C+ balance sheet — struggling to keep the lights on
3.9% return on capital — nothing to write home about
$0.16 fy2024 eps est
$6M fy2024 rev est
10.6% operating margin
xvary composite: 23/100 — weak
What they do
Vestis rents uniforms and workplace supplies to businesses in the U.S. and Canada.
Your staff still needs clean shirts, fresh mats, and weekly pickup. Vestis serves 19,600 employees and a mix of manufacturing, healthcare, food, and retail customers. The absurd part is that a laundry route business still pulled in $2.7B last year.
How they make money
$2.7B
annual revenue · their business grew -2.5% last year
Uniform rental and laundering
$1.35B
2.0%
Mats and floor care
$486M
2.5%
Towels and linens
$405M
3.0%
Restroom, first-aid, and safety supplies
$243M
+1.0%
Customized direct-sale uniforms
$216M
1.5%
The products that matter
rents and services work uniforms
Uniform Rental
$2.2B · 80% of revenue
this is the engine of the company: $2.2B of the $2.7B revenue base. if this segment does not stabilize, the turnaround story does not exist.
80% of revenue
sells and rents workplace supplies
Workplace Supplies
$550M · 20% of revenue
this $550M segment gives vestis more wallet share with existing customers, but it also declined 2.5% last year. cross-selling only matters if customers stay and spend.
20% of revenue
Key numbers
$2.7B
annual revenue
You are paying about $1B for a business that brought in $2.7B. That gap is the whole argument for the stock.
10.6%
operating margin
For every $1,000 of sales, Vestis keeps about $106 before interest and taxes. Debt makes that thin cushion feel thinner.
$1.3B
long-term debt
This is the overhang. A $1.3B debt stack leaves less room for mistakes when revenue is already slipping.
3.9%
return on capital
That is weak for a company this leveraged. You are taking debt risk for a low-return business.
Financial health
C+
strength
- balance sheet grade C+ — weak — may struggle to fund operations
- risk rank 5 — safer than 5% of stocks
- price stability 5 / 100
- long-term debt $1.3B (56% of capital)
C+ — balance sheet grade and long-term debt are flagged. this stock carries more risk than average.
Total return vs. market
Return history isn't available for VSTS right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Vestis missed with $663.4M of revenue and a $0.05 loss per share.
Revenue fell 3% vs. prior year. The company also posted $16.6M of operating income and a $6.4M net loss.
$663.4M
revenue
-$0.05
eps
$16.6M
operating income
the number that mattered
$663.4M mattered because it was 3% lower than last year and left less room for the $1.3B debt load.
source: company earnings report, 2026
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What could go wrong
the #1 risk is uniform-rental revenue continuing to slide after the aramark spin.
high
persistent revenue decline
annual revenue fell 2.5% last year, and q1 2026 revenue of $663.4M still missed expectations by 13.13%.
if the top line keeps slipping, management is left selling cost cuts as the whole thesis. that works until it does not.
high
high leverage
long-term debt is $1.3B, equal to 56% of capital, while the balance sheet is graded C+.
that debt load reduces flexibility. a business trying to turn around usually wants more breathing room than this.
med
litigation overhang
grabar law office is investigating claims on behalf of shareholders, and o'neill v. vestis is active in delaware chancery court.
legal costs are not the only issue. management attention is finite, and a turnaround already demands all of it.
med
no capital return cushion
the dividend is 0.0%, and share repurchases are suspended until after oct. 2, 2026, or until leverage improves.
you are relying on business improvement alone. there is no yield and no buyback support to paper over weak execution.
$1.3B of long-term debt against a $2.7B revenue base means vestis does not get many more quarters like q1 2026 for free.
source: institutional data · regulatory filings · risk analysis
Pay attention to
the metric
quarterly revenue versus $663.4M
this is the cleanest scoreboard on the turnaround. if revenue stays below the latest quarterly level, cost cuts are just buying time.
next report
q2 2026 earnings
the next earnings print is where management has to show that the post-spin cleanup is showing up in the numbers, not just in the script.
legal
o'neill v. vestis and shareholder claims
a major update out of delaware chancery court could matter even if the operating business improves. legal overhangs rarely help a fragile multiple.
balance sheet
leverage and the buyback freeze
repurchases are suspended until after oct. 2, 2026, or until leverage improves. if that policy changes, management is telling you the balance sheet finally has room again.
Analyst rankings
short-term outlook
limited
in human-speak: there is not a strong analyst ranking signal here, so you have to judge the business directly.
earnings setup
fragile
the latest quarter missed EPS forecasts by 62.96%. the bar is low, but vestis is still tripping over it.
revenue setup
under pressure
analysts are looking at a $2.7B revenue base that just shrank 2.5% last year. until that line flattens, optimism is doing most of the work.
source: institutional data
Institutional activity
institutional ownership data for VSTS is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$6
current price
n/a
target midpoint · n/a from current
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