Vestis Corp. remains a hold as fundamentals are weak and revenue continues to decline, justifying its discounted valuation. FY25 revenue, adjusted for the extra week, fell 3.5% y/y; gross margin contracted 366 bps, and net loss reached $40.2 million. FY26 guidance implies margin stabilization via a $75 million cost savings program, but the full benefit materializes in FY27.
Vestis (VSTS) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.
Vestis Corp. faces ongoing sales declines, margin compression, and elevated leverage, with no quick turnaround expected. Its cost savings program targets $75 million by 2026, but material EBITDA and earnings improvements are only likely in fiscal 2027. Leverage remains problematic at 4.7x EBITDA, with minimal, highly adjusted earnings and persistent execution risk.
| Trading Companies & Distributors Industry | Industrials Sector | James Jay Barber Jr. CEO | XFRA Exchange | US29430C1027 ISIN |
| US Country | 19,600 Employees | 21 Feb 2025 Last Dividend | - Last Split | 5 Oct 2023 IPO Date |
Vestis Corporation is a reputable provider of uniform rentals and workplace supplies across the United States and Canada. Since its establishment in 1936, the company has been committed to offering a broad range of product options tailored to meet the diverse needs of industries such as manufacturing, hospitality, retail, food processing, service sectors, pharmaceuticals, healthcare, automotive, and cleanroom environments. Headquartered in Roswell, Georgia, Vestis Corporation leverages its extensive experience and industry knowledge to deliver high-quality, reliable solutions that enhance workplace functionality and safety.