Aramark

ARMK

Equity

ISIN null / Valor 22330332

New York Stock Exchange, Inc (2025-10-20)

USD 38.76+0.08%

Aramark
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About company

Aramark is a leading global provider of food services, facilities management, and uniform solutions, serving a diverse range of clients across sectors such as education, healthcare, sports and entertainment, and business facilities. The company operates in numerous countries, delivering tailored services that include catering, facility maintenance, and uniform supply to enhance operational efficiency and customer experiences. Aramark emphasizes compliance and ethical practices through comprehensive training programs that cover areas like anti-corruption, human rights, and workplace safety, supported by mechanisms such as an anonymous hotline for reporting potential violations. By focusing on delivering integrated solutions and maintaining high standards of integrity, Aramark supports its clients in creating functional and welcoming environments.

Summarized from source with an LLMView SourceSector: Consumer Services

Revenue Growth

Consolidated revenue reached $4.6 billion in the third quarter, marking a 6% increase compared to the same period last year. Organic revenue growth, excluding currency translation effects, rose by over 5%, driven by expansions in both the FSS United States and International segments. This growth was supported by higher base business volume, new client acquisitions, and exceptional client retention rates.

Profitability Enhancements

Operating income increased by 13% to $183 million, while adjusted operating income surged by 19% to $230 million. These gains reflect Aramark's ability to manage above-unit costs effectively, expand supply chain capabilities, and leverage higher revenue levels. The operating income margin improved by 20 basis points, and the adjusted operating income margin rose by 60 basis points compared to the prior year.

Strong Earnings Performance

GAAP earnings per share grew by 24% to $0.27, and adjusted earnings per share increased by 29% to $0.40. The robust earnings performance was driven by the company's focus on profitable growth and operational excellence across all segments.

Business Momentum and Client Retention

Aramark is experiencing accelerated business momentum heading into the fiscal fourth quarter, highlighted by significant new client wins, including one of the largest in its history within the Sports & Entertainment sector. The company's client retention rate remains exceptionally high, exceeding 97% in both the FSS United States and International segments.

Cash Flow and Capital Management

Net cash provided by operating activities was $77 million, and free cash flow was a use of $34 million, aligning with the business's seasonal patterns. Aramark repaid $62 million of its Term Loan B and repurchased $31 million of its common stock in the third quarter. The company maintains a strong cash position with over $1.4 billion in cash availability and continues to prioritize strategic investments, debt repayment, dividends, and stock repurchases.

Summarized from source with an LLMView Source

Key figures

-2.29%1Y

12.1%3Y

34.7%5Y

Performance

29.7%1Y

33.5%3Y

33.7%5Y

Volatility