Vestis Corporation · NYSE:VSTS

Vestis — Q1 2026 Earnings Presentation

25 slides from Vestis's earnings presentation, Feb 10, 2026

  1. Slide 1: First Quarter 2026 Results

    First Quarter 2026 Results February 10, 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 Basic Earnings Per Share (“EPS”), Adjusted Diluted EPS,

  3. Slide 3: First Quarter 2026 Executive Summary

    ▶ First quarter results reflect a solid start to our Fiscal 2026 ▶ Revenue of $663 million on consistent total volume1 ▶ Adjusted EBITDA2 of $70.4 million ▶ Free Cash Flow2 of $28.3 million ▶ Adjusted Free Cash Flow2 of $42.9 million ▶ Adjusted EPS2 of $0.10 per diluted share ▶ Available liquidity2

  4. Slide 4: 1Q 2026 Financial Summary

    1Q 2026 Financial Summary Revenue $s in Millions $684 $663 Revenue of $663.4 million o A decrease of $20.4 million year over year or 3.0% o Consistent total volume2 F1Q25 F1Q26 o Rental revenue decreased $17.9 million Adjusted EBITDA1 o Direct sales decreased $2.7 million $s in Millions & % of Reven

  5. Slide 5: 1Q 2026 Revenue Reconciliation

    1Q 2026 Revenue Reconciliation $s in Millions $683.8 $0.2 $663.4 $(17.9) $(2.7) F1Q25 Rental Direct Foreign F1Q26 Revenue Revenue Sales Exchange Revenue First quarter revenue down 3% over prior year on flat total Revenue dollar product mix remained stable while volume volume2, business retention of

  6. Slide 6: 1Q 2026 Adjusted EBITDA Reconciliation

    1Q 2026 Adjusted EBITDA1 Reconciliation $s in Millions $81.2 $5.7 $70.4 $3.0 $0.9 $(20.4) F1Q25 Revenue Cost of Service SG&A (Reported) Net Addbacks F1Q26 Adj. EBITDA 1 Adj. EBITDA 1 Cost of service improvement driven by lower merchandise SG&A (reported) improvement of $0.9 million on lower and deli

  7. Slide 7: 1Q 2026 Revenue Metrics

    1Q 2026 Revenue Metrics Revenue Change $s in Millions Revenue Dollar Product Mix Concentration F1Q263 % of Revenue $s $684 $663 (3)% 38% 62% +1% Workplace Supplies versus F1Q25 F1Q25 F1Q26 Uniforms Workplace Supplies (Includes Linen) Volume1 Product Mix Volume Shift F1Q25 to F1Q26 In Millions of Pou

  8. Slide 8: 1Q 2026 Cost and Operating Leverage Metrics

    1Q 2026 Cost and Operating Leverage Metrics Adjusted Operating Expenses1 Operating Leverage1 $s in Millions Change $s in Dollars $603 $593 (2)% F1Q25 $1.41 Less $1.24 Equals $0.17 F1Q25 F1Q26 Revenue per Cost per Operating Pound1 Pound1 Leverage1 Volume2 $1.22 In Millions of Pounds F1Q26 $1.37 Less

  9. Slide 9: 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 Operating Working Capital1,2 $28 250 200% 200 $16 150% 150 $8 100% 100 50% 50 0 0% $(7) Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 $(11) F1Q25 F2Q25 F3Q25 F4Q25 F1Q26 Operating Working C

  10. Slide 10: 1Q 2026 Strategic Business Transformation Plan Update

    1Q 2026 Strategic Business Transformation Plan Update Operational Excellence Commercial Excellence Asset & Network Optimization Improve Operating Leverage Stabilize & Grow Revenue Align Footprint For Growth Operational metric improvement in Advanced critical decision support Undertook market studies

  11. Slide 11: Q&A

    Q&A

  12. Slide 12: Appendix

    Appendix

  13. Slide 13: Non-GAAP Measures

    Non-GAAP 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 EPS, Adjus

  14. Slide 14: Non-GAAP Measures, continued

    Non-GAAP Measures, continued Net Leverage Ratio, Net Debt, Covenant Adjusted EBITDA and Trailing Twelve Months Covenant Adjusted EBITDA Net Leverage Ratio is defined in Vestis’ credit agreement and is calculated as consolidated total indebtedness in excess of unrestricted cash (referred to herein as

  15. Slide 15: Other Operational Metrics

    Other Operational Metrics Business Retention We calculate retention by annualizing the average weekly revenue attributed to lost customers identification numbers for the trailing 52 weeks and dividing it by the recurring rental revenue for the same period. We calculate recurring rental revenue as ba

  16. Slide 16: Non-GAAP Reconciliations / Adjusted EBITDA

    Non-GAAP Reconciliations / Adjusted EBITDA Individual Fiscal Quarters Referenced January 2, October 3, June 27, March 28, December 27, ($ in Thousands) 2026 2025 2025 2025 2024 Net Income (Loss) $ (6,391) $ (12,549) $ (676) $ (27,830) $ 832 Adjustments: Depreciation and Amortization 34,341 35,343 34

  17. Slide 17: Non-GAAP Reconciliations / Adjusted Operating Expenses

    Non-GAAP Reconciliations / Adjusted Operating Expenses ($ in Thousands) Three Months Ended January 2, December 27, 2026 2024 Operating Expenses $ 646,810 $ 653,381 Depreciation and Amortization (34,341) (36,936) Share-Based Compensation (2,343) (5,180) (1) Severance (5,452) (4,393) Transformation Co

  18. Slide 18: Revenue per pound and Non-GAAP Reconciliation/ Cost per Pound and Operating Leverage

    Revenue per pound and Non-GAAP Reconciliation/ Cost per Pound and Operating Leverage ($ in Thousands) Three Months Ended January 2, December 27, 2026 2024 (In thousands) Revenue $ 663,388 $ 683,780 Adjusted Operating Expenses (Non-GAAP) 593,020 602,499 Pounds Processed 485,000 486,000 Amounts per Po

  19. Slide 19: Operational Metrics / Product Dollar Mix

    Operational Metrics / Product Dollar Mix ($ in Thousands) Three months ended January 2, December 27, 2026 2024 Revenue Mix % Revenue Mix % Change in Mix United States: Δ in Mix Uniforms $ 227,661 38% $ 245,778 40% (2)% Workplace Supplies 375,240 62% 375,938 60% 2% Total United States 602,901 100% 62

  20. Slide 20: Non-GAAP Reconciliations / Free Cash Flow

    Non-GAAP Reconciliations / Free Cash Flow Individual Fiscal Quarters Referenced ($ in Millions) F1Q25 F2Q25 F3Q25 F4Q25 F1Q26 Adj EBITDA $81.2 $47.6 $64.0 $64.7 $70.4 (1) Cash interest (26.6) (23.7) (24.1) (28.9) (23.0) Cash tax (5.6) (0.7) (14.4) (5.7) (4.4) Impacts from operating working capital(2

  21. Slide 21: Non-GAAP Reconciliations / Adjusted Free Cash Flow

    Non-GAAP Reconciliations / Adjusted Free Cash Flow Individual Fiscal Quarters Referenced ($ in Thousands) Three months ended January 2, 2026 December 27, 2024 Net Cash Provided by Operating Activities $ 37,687 $ 3,780 Purchases of Property and Equipment and Other $ (9,386) $ (14,732) Free Cash Flow

  22. Slide 22: Non-GAAP Reconciliations / Operating Working Capital and Return on Working Capital

    Non-GAAP Reconciliations / Operating Working Capital1 and Return on Working Capital2 Individual Fiscal Quarters Referenced ($ in Millions) F1Q25 F2Q25 F3Q25 F4Q25 F1Q26 Accounts Receivable 187.2 162.4 175.8 162.3 153.0 Inventory 170.0 199.7 187.0 179.0 169.1 Accounts Payable 164.9 150.8 156.7 158.4

  23. Slide 23: Operational Metrics/Total Liquidity

    Operational Metrics/Total Liquidity ($ in Millions) 1) Excess availability is defined as undrawn revolver capacity less letters of credit issued in accordance with the Company’s Credit Agreement. ©2025 Vestis. All rights reserved. 23

  24. Slide 24: Non-GAAP Reconciliation / Adjusted EPS

    Non-GAAP Reconciliation / Adjusted EPS (in thousands, except per share amounts) Consolidated Three Months Ended January 2, December 27, 2026 2024 Net Income (Loss) $ (6,391) $ 832 Adjustments: Amortization expense 6,693 6,766 Share-Based Compensation 2,343 5,180 Severance 5,452 4,393 Transformation

  25. Slide 25: ©2025 Vestis. All rights reserved.

    ©2025 Vestis. All rights reserved.

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