Vestis Corporation · NYSE:VSTS

Vestis — Q2 2026 Earnings Presentation

28 slides from Vestis's earnings presentation, May 12, 2026

  1. Slide 1: Second Quarter 2026 Results

    Second Quarter 2026 Results May 12th, 2026

  2. Slide 2: Notes to Investors

    Notes to Investors Non-GAAP Financial Measures Vestis reports its financial results in accordance with U.S. GAAP, but in this presentation and the non-GAAP reconciliations that follow, Vestis also uses the following non-GAAP measures: Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income (Los

  3. Slide 3: Second Quarter 2026 Executive Summary

    ▶ Second quarter results reflect strong progress in Fiscal 2026 ▶ Revenue of $659.4 million on decreased total volume1 ▶ Adjusted EBITDA2 of $74.5 million ▶ Free Cash Flow2 of $45.6 million ▶ Adjusted Free Cash Flow2 of $56.6 million ▶ Adjusted EPS2 of $0.16 per diluted share ▶ Available liquidity2

  4. Slide 4: 2Q 2026 Financial Summary

    2Q 2026 Financial Summary Revenue $s in Millions $665 $659 Revenue of $659.4 million o A decrease of $5.8 million year over year or 0.9% o Revenue decline net a benefit from foreign exchange on currency of F2Q25 F2Q26 $2.7 million o Total volume2 decreased 1.2% Covenant Adjusted EBITDA1,3 / Adjusted

  5. Slide 5: 2Q 2026 Financial Reconciliations

    2Q 2026 Financial Reconciliations Revenue 2Q Revenue Reconciliation $s in Millions Lower volume of 1.2% in pounds processed negatively impacting revenue Decline of $5.8M or 0.9% Chart Title Flat revenue per pound1 compared to F2Q25 $665.2 $5.8 $659.4 and F1Q26 Year over year revenue decline of $5.8

  6. Slide 6: 2Q 2026 Revenue Metrics

    2Q 2026 Revenue Metrics Revenue Change Improving Linen Product Mix $s in Millions % of Pounds processed by our facilities $665.2 $659.4 F1Q25 vs. F1Q26 Up 7% Progress (0.9)% towards a more F2Q25 vs. F2Q26 Up 4% favorable F2Q25 F2Q26 F1Q26 vs. F2Q26 Down 2% product mix Improving Revenue per Pound2 Co

  7. Slide 7: 2Q 2026 Cost and Operating Leverage Metrics

    2Q 2026 Cost and Operating Leverage Metrics Adjusted Operating Expenses1 Operating Leverage1 $s in Millions Change $s in Dollars $602.6 $584.9 (2.9)% F2Q25 $1.37 Less $1.24 Equals $0.13 F2Q25 F2Q26 Revenue per Cost per Operating Pound1 Pound1 Leverage1 Volume2 $1.22 In Millions of Pounds F2Q26 $1.37

  8. Slide 8: Operating Working Capital, Cash Flow and Liquidity

    Operating Working Capital, Cash Flow and Liquidity Operating Working Capital1,2 Free Cash Flow 1 $s in Millions $s in Millions 45.6 Operating Working Capital1,2 250 200.0% $28 200 150.0% 150 $15 100.0% $8 100 50 50.0% 0 0.0% $(7) Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 F2Q25 F3Q25 F4Q25 F1Q26 F2Q26 Operating

  9. Slide 9: Updated Fiscal 2026 Outlook

    Updated Fiscal 2026 Outlook Previous – FY 2026 Outlook Current Outlook Updates Include FY 2025 (in Millions) Low Mid High Actual Revenue outlook is compared to Revenue Growth (4.4)% (2.0)% (1.0)% Flat normalized fiscal 2025 revenue of $2.683 billion, excluding the impact of Adjusted EBITDA1 $272.62

  10. Slide 10: 2Q 2026 Strategic Business Transformation Plan Update

    2Q 2026 Strategic Business Transformation Plan Update Operational Excellence Commercial Excellence Asset & Network Optimization Improve Operating Leverage Stabilize & Grow Revenue Align Footprint For Growth Continued improvements in on-time Further progress in implementation of Sold two non-operatin

  11. Slide 11: Q&A

    Q&A

  12. Slide 12: Appendix

    Appendix

  13. Slide 13: Non-GAAP Financial Measures

    Non-GAAP Financial Measures Vestis reports its financial results in accordance with U.S. GAAP, but in this presentation and the non-GAAP reconciliations that follow, Vestis also uses the following non-GAAP measures: Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income (Loss), Adjusted Basic

  14. Slide 14: Non-GAAP Financial Measures, continued

    Non-GAAP Financial Measures, continued Free Cash Flow and Adjusted Free Cash Flow Free Cash Flow represents net cash provided by operating activities adjusted for purchases of property and equipment and other items. Free Cash Flow is presented because it reflects the cash generated from operations a

  15. Slide 15: Non-GAAP Financial Measures, continued

    Non-GAAP Financial Measures, continued Operating Leverage per Pound (“Operating Leverage”) Operating Leverage represents Revenue per Pound less Cost per Pound. Management uses this metric as a supplemental indicator of unit-level profitability trends. The metric helps management assess operational e

  16. Slide 16: Operational Metrics and Definitions

    Operational Metrics and Definitions In addition to the non-GAAP financial measures described above, Vestis uses certain operational metrics to evaluate business performance, monitor trends, and support internal decision-making. These operational metrics are derived using a combination of U.S. GAAP f

  17. Slide 17: Non-GAAP Reconciliations / Adjusted EBITDA

    Non-GAAP Reconciliations / Adjusted EBITDA Individual Fiscal Quarters Referenced ($ in Thousands) Consolidated Consolidated Consolidated Consolidated Six Months Three Months Ended Six months ended Trailing Twelve Months Ended Ended April 3, March 28, April 3, March 28, April 3, October 3, October 3,

  18. Slide 18: Non-GAAP Reconciliations / Adjusted Operating Expenses

    Non-GAAP Reconciliations / Adjusted Operating Expenses ($ in Thousands) Three Months Ended Year to-Date Ended April 3, March 28, April 3, March 28, 2026 2025 2026 2025 Operating Expenses $ 632,658 $ 673,819 $ 1,279,468 $ 1,327,200 Depreciation and Amortization (34,568) (35,882) (68,909) (72,818) Cov

  19. Slide 19: Historical Revenue & Cost per Pound

    Historical Revenue & Cost per Pound Revenue per Pound $s per pound of volume processed $1.49 $1.45 $1.44 $1.43 $1.41 $1.38 $1.37 $1.37 $1.37 $1.37 F1Q24 F2Q24 F3Q24 F4Q24 F1Q25 F2Q25 F3Q25 F4Q25* F1Q26 F2Q26 Cost per Pound $s per pound of volume processed $1.28 $1.27 $1.26 $1.26 $1.24 $1.24 $1.24 $1

  20. Slide 20: Historic Revenue per Pound and Cost per Pound and Operating Leverage

    Historic Revenue per Pound and Non-GAAP Reconciliations/ Cost per Pound and Operating Leverage ($ in Millions) F1Q24 F2Q24 F3Q24 F4Q24 F1Q25 F2Q25 F3Q25 F4Q25* F1Q26 F2Q26 Revenue $ 717.9 $ 705.4 $ 698.2 $ 684.3 $ 683.8 $ 665.2 $ 673.8 $ 660.4 $ 663.4 $ 659.4 Adjusted Operating Expenses (Non-GAAP) 6

  21. Slide 21: Non-GAAP Reconciliations / Investments in Capital Assets

    Non-GAAP Reconciliations / Investments in Capital Assets ($ in Thousands) Fiscal 2026 Fiscal 2025 Q1 Q2 Year-to-date Q1 Q2 Year-to-date Investments in property and equipment $9,386 $12,690 $22,076 $14,732 $13,510 $28,242 New Finance Leases 5,391 11,991 17,382 12,932 9,808 22,740 Investments in Capit

  22. Slide 22: Operational Metrics / Product Dollar Mix

    Operational Metrics / Product Dollar Mix ($ in Thousands) Three months ended Year-to-date Ended April 3, March 28, April 3, March 28, (as reported) 2026 2025 2026 2025 United States: Uniforms $222,721 37.2 % $233,145 38.5 % $450,382 37.5 % $478,923 39.0 % Workplace Supplies 376,187 62.8 % 372,929 61

  23. Slide 23: Non-GAAP Reconciliations / Free Cash Flow

    Non-GAAP Reconciliations / Free Cash Flow Individual Fiscal Quarters Referenced ($ in Millions) F1Q25 F2Q25 F3Q25 F4Q25 F1Q26 F2Q26 Adj EBITDA $81.2 $47.6 $64.0 $64.7 $70.4 $74.5 (1) Cash interest (26.6) (23.7) (24.1) (32.2) (23.0) (21.1) Cash tax (5.6) (0.7) (14.4) (5.7) (4.4) (2.2) (2) Impacts fro

  24. Slide 24: Non-GAAP Reconciliations / Adjusted Free Cash Flow

    Non-GAAP Reconciliations / Adjusted Free Cash Flow Individual Fiscal Quarters Referenced ($ in Thousands) Three months ended Six Months Ended April 3, 2026 March 28, 2025 April 3, 2026 March 28, 2025 Net cash provided by operating activities $ 58,251 $ 6,658 $ 95,938 $ 10,438 Purchases of property a

  25. Slide 25: Non-GAAP Reconciliations / Operating Working Capital and Return on Working Capital

    Non-GAAP Reconciliations / Operating Working Capital and Return on Working Capital Individual Fiscal Quarters Referenced ($ in Millions) F1Q25 F2Q25 F3Q25 F4Q25 F1Q26 F2Q26 Accounts Receivable $ 187.2 $ 162.4 $ 175.8 $ 162.3 $ 153.0 $ 149.5 Inventory 170.0 199.7 187.0 179.0 169.1 175.0 Accounts Paya

  26. Slide 26: Operational Metrics / Total Liquidity

    Operational Metrics/Total Liquidity ($ in Millions) F1Q25 F2Q25 F3Q25 F4Q25 F1Q26 F2Q26 (1) Excess availability on revolving credit facility $ 294.7 $ 264.3 $ 266.3 $ 268.2 $ 275.2 $ 294.2 Cash on Hand 18.6 28.8 23.7 29.7 41.5 50.3 Total Liquidity $ 313.3 $ 293.1 $ 290.0 $ 297.9 $ 316.7 $ 344.5 1) E

  27. Slide 27: Non-GAAP Reconciliations / Adjusted EPS

    Non-GAAP Reconciliations / Adjusted EPS (in thousands, except per share amounts) Consolidated Consolidated Three Months Ended Year-to-date Ended April 3, March 28, April 3, March 28, 2026 2025 2026 2025 Net Income (Loss) $ 2,596 $ (27,830) $ (3,795) $ (26,998) Adjustments: Amortization expense 6,693

  28. Slide 28: ©2025 Vestis. All rights reserved.

    ©2025 Vestis. All rights reserved.

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