3 Reasons We Love Cintas (CTAS)

Cintas delivered fourth-quarter results that were in line with Wall Street’s expectations, posting steady revenue growth across its core businesses. Management credited strong execution in its route-based businesses, with CEO Todd Schneider highlighting, "Each of our three route-based businesses had strong revenue growth in the quarter." The company’s focus on operational efficiency, supply chain management, and customer retention supported healthy margins despite a competitive environment. Management pointed to productivity improvements and cross-selling efforts as key drivers of the quarter’s performance, while also noting that the company continues to generate growth even when broader employment trends soften.

Cintas (CTAS) Q4 CY2025 Highlights:

• Revenue: $2.8 billion vs analyst estimates of $2.76 billion (9.3% year-on-year growth, 1.4% beat)
• EPS (GAAP): $1.22 vs analyst estimates of $1.19 (2% beat)
• Adjusted EBITDA: $783.2 million vs analyst estimates of $766.7 million (28% margin, 2.2% beat)
• The company slightly lifted its revenue guidance for the full year to $11.19 billion at the midpoint from $11.12 billion
• EPS (GAAP) guidance for the full year is $4.85 at the midpoint, roughly in line with what analysts were expecting
• Operating Margin: 23.4%, in line with the same quarter last year
• Market Capitalization: $76.44 billion

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Cintas’s Q4 Earnings Call

• Timothy Mulrooney (William Blair) asked about the impact of labor market softening on Cintas’ customer base. CEO Todd Schneider explained that the company’s vertical mix and focus on industries with stable employment, like healthcare and government, help buffer against broader employment declines.
• Manav Patnaik (Barclays) questioned how Cintas maintains high growth during downturns. Schneider and COO James Rozakis outlined the company’s playbook, emphasizing flexibility through new business acquisition, robust cross-selling, and M&A optionality, rather than reliance on any one lever.
• Andrew Steinerman (JPMorgan) sought details on year-over-year changes in growth from existing customers and acquisition contributions. Schneider described current customer growth as stable to slightly positive, while CFO Scott Gurule clarified that recent acquisitions added a modest impact to second-half revenue.
• Jasper Bibb (Truist Securities) inquired about sourcing and tariff cost trends. Schneider said tariffs are being managed as expected, with supply chain optionality mitigating most impacts and pricing strategy remaining focused on long-term value.
• Jason Haas (Wells Fargo) asked about the timing of ERP implementation costs in the Fire Protection segment. Schneider indicated that additional costs are expected as the rollout continues, with full margin normalization likely after fiscal year 2027, according to Gurule.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will be watching (1) the pace of cross-selling and vertical penetration, especially in healthcare and government; (2) the impact of ongoing technology and automation investments on operational efficiency and margin stability; and (3) the company’s ability to sustain all-time high retention rates amidst economic uncertainty. Execution on M&A and integration, as well as tariff and sourcing cost management, will also be important markers of success.

Cintas currently trades at $191.09, up from $187.37 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).

Looking back on industrial & environmental services stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including ABM and its peers.

Growing regulatory pressure on environmental compliance and increasing corporate ESG commitments should buoy the sector for years to come. On the other hand, environmental regulations continue to evolve, and this may require costly upgrades, volatility in commodity waste and recycling markets, and labor shortages in industrial services. As for digitization, a theme that is impacting nearly every industry, the increasing use of data, analytics, and automation will give rise to improved efficiency of operations. Conversely, though, the benefits of digitization also come with challenges of integrating new technologies into legacy systems.

The 8 industrial & environmental services stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady as they are up 3.3% on average since the latest earnings results.

ABM

With roots dating back to 1909 as a window washing company, ABM Industries provides integrated facility management, infrastructure, and mobility solutions across various sectors including commercial, manufacturing, education, and aviation.

ABM reported revenues of $2.30 billion, up 5.4% year on year. This print exceeded analysts’ expectations by 1%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts’ EPS estimates and full-year EPS guidance in line with analysts’ estimates.

“ABM finished the year on a high note with record quarterly revenue, supported by 4.8% organic growth. Excluding prior year self-insurance adjustments, fourth quarter adjusted EPS, adjusted EBITDA and adjusted EBITDA margin all exceeded our expectations, reflecting strong volume, favorable mix, and the benefits of our cost discipline and restructuring actions. Our performance was led by exceptional results in Technical Solutions, where the team successfully delivered numerous projects in a complex construction environment. Aviation and Manufacturing & Distribution also posted strong revenue growth, each benefiting from recent client wins and customer expansions, while Business & Industry and Education generated improved margins, demonstrating the resiliency of their end markets and continued focus on operational efficiency," said Scott Salmirs, President and Chief Executive Officer.

Unsurprisingly, the stock is down 9% since reporting and currently trades at $41.64.

Read our full report on ABM here, it’s free for active Edge members.

Best Q3: Tetra Tech

With a 50-year legacy of "Leading with Science" and operations on all seven continents, Tetra Tech provides high-end consulting and engineering services focused on water management, environmental solutions, and sustainable infrastructure for government and commercial clients worldwide.

Tetra Tech reported revenues of $1.16 billion, up 1.6% year on year, outperforming analysts’ expectations by 10.7%. The business had a strong quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.

Tetra Tech pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 6% since reporting. It currently trades at $34.41.

Weakest Q3: Vestis

Operating a network of more than 350 facilities with 3,300 delivery routes serving customers weekly, Vestis provides uniform rentals, workplace supplies, and facility services to over 300,000 business locations across the United States and Canada.

Vestis reported revenues of $686.2 million, flat year on year, exceeding analysts’ expectations by 2.1%. Still, it was a softer quarter as it posted a significant miss of analysts’ EPS estimates.

As expected, the stock is down 1.1% since the results and currently trades at $6.65.

Read our full analysis of Vestis’s results here.

Cintas

Starting as a family business collecting and cleaning shop rags in Cincinnati, Cintas provides corporate identity uniforms, facility services, and safety products to over one million businesses across North America.

Cintas reported revenues of $2.8 billion, up 9.3% year on year. This number topped analysts’ expectations by 1.4%. It was a satisfactory quarter as it also put up a narrow beat of analysts’ revenue estimates.

The stock is up 1.5% since reporting and currently trades at $190.20.

Read our full, actionable report on Cintas here, it’s free for active Edge members.

Pitney Bowes

With a century-long history dating back to 1920 and processing over 15 billion pieces of mail annually, Pitney Bowes provides shipping, mailing technology, logistics, and financial services to businesses of all sizes.

Pitney Bowes reported revenues of $459.7 million, down 8% year on year. This print lagged analysts' expectations by 1.7%. Overall, it was a slower quarter as it also logged a miss of analysts’ revenue estimates and EPS in line with analysts’ estimates.

Pitney Bowes scored the highest full-year guidance raise but had the slowest revenue growth among its peers. The stock is down 4.4% since reporting and currently trades at $10.72.

Read our full, actionable report on Pitney Bowes here, it’s free for active Edge members.