Vestis Reports Q2 2026 Results: Full Earnings Call Transcript

On Tuesday, Vestis (NYSE: VSTS ) discussed second-quarter financial results during its earnings call.

The full transcript is provided below.

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The full earnings call is available at Summary Vestis Corp reported a second quarter adjusted EBITDA of approximately $75 million, a 19% year-over-year increase, marking the first growth in over two years.

The company executed well on its Business Transformation Plan, improving operational metrics such as on-time delivery and plant productivity, while reducing cost per pound by 2 cents.

Revenue for the quarter was $659 million, down 0.9% year-over-year, but strategic pricing and product mix improvements helped maintain revenue per pound at $1.37.

Vestis Corp sold two inactive properties for $6.5 million to repay debt and is marketing additional properties to optimize its network and strengthen its balance sheet.

The company raised its full-year fiscal 2026 guidance for adjusted EBITDA to a range of $295 million to $325 million and expects free cash flow between $120 million and $150 million.

Full Transcript OPERATOR Welcome to the Vestis Corp fiscal second quarter 2026 earnings conference call.

At this time, all participants have been placed on a listen-only mode and the floor will be open for your questions following the presentation.

If you would like to ask a question at that time, please press star one on your telephone keypad.

If at any point your question has been answered, you may remove yourself from the queue by pressing star two.

To enable others to hear your questions clearly, we ask that you pick up your handset for best sound quality.

Lastly, if you should require operator assistance, please press 0.

I would now like to turn the call over to Stefan Neely with Advisors.

Stefan Neely Thank you, Operator, and thank you all for joining us on the call this morning.

Leading the call with me today is Jim Barber, President and Chief Executive Officer, and Adam Dolan, Interim Chief Financial Officer.

Also with us on the call today is Bill Seward, Chief Operating Officer.

Jim and Adam will provide prepared remarks and then we will open the line to questions.

Before I turn the call over to Jim, I want to remind everyone that today's discussion contains forward-looking statements about future business and financial expectations.

The Private Securities Litigation Reform Act of 1995 provides a safe harbor from civil litigation for such forward-looking statements.

Actual results may differ significantly from those projected in today's forward-looking statements due to various risks and uncertainties, including the risks described in our periodic reports filed with the Securities and Exchange Commission.

Except as required by law, we undertake no obligation to update our forward-looking statements.

This call will include the discussion of certain non-GAAP financial measures.

Reconciliation of these measures to the closest GAAP financial measure is included in our quarterly earnings press release and corresponding supplemental materials, which are available at ir.vestis.com.

With that, I would like to turn the call over to Jim.

Jim Barber, President and CEO Thank you, Stefan, and good morning everyone.

Thanks for joining us.

I'm very proud of the progress our team delivered in the second quarter.

Our results reflect continued momentum and disciplined execution against our business transformation plan.

Importantly, the quarter marked a meaningful inflection point for Vestis, delivering our first year-over-year adjusted EBITDA growth in more than two years and our first improvement in operating leverage since becoming a public company.

This performance demonstrates the impact of an enterprise-wide focus on execution and on managing every dollar of the business down to the penny as we work to compound value over time.

Second quarter adjusted EBITDA was approximately $75 million, an increase of nearly $12 million or 19% year over year on a covenant-adjusted basis.

That improvement was driven by a 2 cent improvement in operating leverage comprised of a 2 cent reduction in cost per pound.

Guided by the initiatives laid out in our Business Transformation Plan, we are continuing to strengthen the foundation for sustained profitability and value creation.