CINTAS CORP
For the period ended Feb 28, 2025. Filed Apr 3, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Feb 28, 2025 · Filed Apr 3, 2025
CTAS$222.36-1.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-11-30; filed 2025-01-08.
0000723254-25-000003
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-02-28; filed 2025-04-03.
0001628280-25-016483
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 83 previous paragraphs and 82 current paragraphs.
35 unchanged; 43 reworded; 4 added; 5 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 7 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (4)
Current report
Selling and administrative expenses increased $42.4 million, or 6.4%, in the three months ended February 28, 2025, compared to the three months ended February 29, 2024. Selling and administrative expenses as a percent of revenue were 27.2% for the three months ended February 28, 2025, compared to 27.7% for the three months ended February 29, 2024. We recorded a gain of $15.0 million on a sale of property and equipment in the three months ended February 28, 2025, and we recorded $15.0 million in costs associated with a tentative legal settlement in the three months ended February 29, 2024, both of which impacted all segments by the same percent of revenue. Excluding those items, selling and administrative expenses as a percent of revenue increased for the three months ended February 28, 2025, compared to the three months ended February 29, 2024. The resulting increase as a percent of revenue was due in part to investments in technology and an increase in legal and professional expenses as a percent of revenue.
Current report
Selling and administrative expenses for the Uniform Rental and Facility Services reportable operating segment increased $26.0 million in the three months ended February 28, 2025, compared to the three months ended February 29, 2024. Selling and administrative expenses as a percent of revenue for the three months ended February 28, 2025 were 25.8%, compared to 26.4% in the three months ended February 29, 2024. Excluding the items noted previously, selling and administrative expenses as a percent of revenue increased for the three months ended February 28, 2025, compared to the three months ended February 29, 2024. The resulting increase as a percent of revenue was primarily due to investments in technology and an increase in legal and professional expenses as a percent of revenue.
Current report
Selling and administrative expenses increased $10.6 million in the three months ended February 28, 2025, compared to the three months ended February 29, 2024. Selling and administrative expenses as a percent of revenue for the three months ended February 28, 2025 were 33.3%, compared to 34.3% for the three months ended February 29, 2024. Excluding the items noted previously, selling and administrative expenses as a percent of revenue increased for the three months ended February 28, 2025, compared to the three months ended February 29, 2024. The resulting increase as a percent of revenue was primarily due to investments in selling resources.
Current report
Selling and administrative expenses increased $136.0 million, or 7.0%, for the nine months ended February 28, 2025, compared to the nine months ended February 29, 2024, but improved as a percent of revenue from 27.4% for the nine months ended February 29, 2024, to 27.2% for the nine months ended February 28, 2025. In the nine months ended February 28, 2025, we recorded a gain on a sale of property and equipment and in the nine months ended February 29, 2024, we recorded costs associated with a tentative legal settlement, both of which impacted all segments by the same percent of revenue. Excluding those items, selling and administrative expenses as a percent of revenue increased for the nine months ended February 28, 2025, compared to the nine months ended February 29, 2024. The resulting increase as a percent of revenue was primarily due to investments in technology.
Removed paragraphs (5)
Previous report
Selling and administrative expenses increased $43.4 million, or 6.8%, in the three months ended November 30, 2024, compared to the three months ended November 30, 2023. Selling and administrative expenses as a percent of revenue were 26.8% for the three months ended November 30, 2024, compared to 27.0% for the three months ended November 30, 2023. The improvement as a percent of revenue is primarily due to a decrease in employee-partner related expenses as a percent of revenue.
Previous report
Selling and administrative expenses increased $9.5 million in the three months ended November 30, 2024, compared to the three months ended November 30, 2023. Selling and administrative expenses as a percent of revenue for the three months ended November 30, 2024 were 32.2%, compared to 32.6% for the three months ended November 30, 2023. The improvement as a percent of revenue was primarily due to a decrease in employee-partner related expenses as a percent of revenue.
Previous report
Selling and administrative expenses increased $93.5 million, or 7.3%, for the six months ended November 30, 2024, compared to the six months ended November 30, 2023. Selling and administrative expenses were the same as a percent of revenue for both the six months ended November 30, 2024 and 2023, at 27.2%.
Previous report
Selling and administrative expenses for the Uniform Rental and Facility Services reportable operating segment increased $60.8 million but decreased as a percent of revenue for the six months ended November 30, 2024 to 25.7%, compared to 25.8% for the six months ended November 30, 2023. As a percent of revenue, expenses were largely consistent as compared to the six months ended November 30, 2023.
Previous report
(1)Variable rate debt instrument. The rate presented is the variable borrowing rate at November 30, 2024.
Reworded paragraphs (43)
Previous wording
Cintas classifies its business into two reportable operating segments and places the remainder of its operating segments in an All Other category. Cintas’ two reportable operating segments are Uniform Rental and Facility Services and First Aid and Safety Services. The Uniform Rental and Facility Services reportable operating segment consists of the rental and servicing of uniforms and other garments including flame resistant clothing, mats, mops and shop towels and other ancillary items. In addition to these rental items, restroom cleaning services and supplies and the sale of items from our catalogs to our customers on route are included within this reportable operating segment. The First Aid and Safety Services reportable operating segment consists of first aid and safety products and services. The remainder of Cintas’ business, which consists of the Fire Protection Services operating segment and the Uniform Direct Sales operating segment, is included in All Other. These operating segments consist of fire protection products and services and the direct sale of uniforms and related items. Cintas evaluates operating segment performance based on revenue and operating income. Revenue and operating income for the six months ended November 30, 2024 and 2023, for the two reportable operating segments and All Other are presented in Note 11 entitled Segment Information of “Notes to Consolidated Condensed Financial Statements.”
Current wording
Cintas classifies its business into two reportable operating segments and places the remainder of its operating segments in an All Other category. Cintas’ two reportable operating segments are Uniform Rental and Facility Services and First Aid and Safety Services. The Uniform Rental and Facility Services reportable operating segment consists of the rental and servicing of uniforms and other garments including flame resistant clothing, mats, mops and shop towels and other ancillary items. In addition to these rental items, restroom cleaning services and supplies and the sale of items from our catalogs to our customers on route are included within this reportable operating segment. The First Aid and Safety Services reportable operating segment consists of first aid and safety products and services. The remainder of Cintas’ business, which consists of the Fire Protection Services operating segment and the Uniform Direct Sales operating segment, is included in All Other. These operating segments consist of fire protection products and services and the direct sale of uniforms and related items. Cintas evaluates operating segment performance based on revenue and operating income. Revenue and operating income for the nine months ended February 28, 2025 and February 29, 2024, for the two reportable operating segments and All Other are presented in Note 11 entitled Segment Information of “Notes to Consolidated Condensed Financial Statements.”
Previous wording
Total revenue increased 7.8% to $2,561.8 million for the three months ended November 30, 2024, compared to $2,377.2 million for the three months ended November 30, 2023. The organic revenue growth rate, which adjusts for the impact of acquisitions and foreign currency exchange rate fluctuations, was 7.1%. Revenue growth was positively impacted by 0.7% due to acquisitions.
Current wording
Total revenue increased 8.4% to $2,609.2 million for the three months ended February 28, 2025, compared to $2,406.2 million for the three months ended February 29, 2024. The organic revenue growth rate, which adjusts for the impact of acquisitions and foreign currency exchange rate fluctuations, was 7.9%. Revenue growth was positively impacted by 0.9% due to acquisitions and negatively impacted by 0.4% due to foreign currency exchange rate fluctuations.
Previous wording
Uniform Rental and Facility Services reportable operating segment revenue was $1,990.4 million for the three months ended November 30, 2024, compared to $1,850.5 million for the three months ended November 30, 2023, which was an increase of 7.6%. The organic revenue growth rate for this reportable operating segment was 6.9%. Revenue growth in the Uniform Rental and Facility Services reportable operating segment was positively impacted by 0.7% due to acquisitions. Revenue growth was a result of new business, the penetration of additional products and services into existing customers and price increases, partially offset by lost business. New business growth resulted from an increase in the number and productivity of sales representatives.
Current wording
Uniform Rental and Facility Services reportable operating segment revenue was $2,021.1 million for the three months ended February 28, 2025, compared to $1,876.6 million for the three months ended February 29, 2024, which was an increase of 7.7%. The organic revenue growth rate for this reportable operating segment was 7.0%. Revenue growth in the Uniform Rental and Facility Services reportable operating segment was positively impacted by 1.1% due to acquisitions and negatively impacted by 0.4% due to foreign currency exchange rate fluctuations. Revenue growth was a result of new business, the penetration of additional products and services into existing customers and price increases, partially offset by lost business.
Previous wording
Other revenue, consisting of revenue from the First Aid and Safety Services reportable operating segment and All Other, increased 8.5% for the three months ended November 30, 2024, compared to the three months ended November 30, 2023, from $526.6 million to $571.4 million. The organic revenue growth rate for other revenue was 8.0%. Revenue growth was positively impacted by 0.5% due to acquisitions.
Current wording
Other revenue, consisting of revenue from the First Aid and Safety Services reportable operating segment and All Other, increased 11.0% for the three months ended February 28, 2025, compared to the three months ended February 29, 2024, from $529.5 million to $588.0 million. The organic revenue growth rate for other revenue was 10.7%. Revenue growth was positively impacted by 0.4% due to acquisitions and negatively impacted by 0.1% due to foreign exchange rate fluctuations.
Previous wording
Cost of uniform rental and facility services consists primarily of production expenses, delivery expenses and the amortization of in service inventory, including uniforms, mats, shop towels and other ancillary items. Cost of uniform rental and facility services increased $39.8 million, or 4.1%, for the three months ended November 30, 2024, compared to the three months ended November 30, 2023. Cost of uniform rental and facility services improved as a percent of revenue, decreasing from 52.6% for the three months ended November 30, 2023, to 50.9% for the three months ended November 30, 2024. This improvement as a percent of revenue was primarily due to efficiency gains in energy and in-service inventory usage and improved leverage of fixed costs.
Current wording
Cost of uniform rental and facility services consists primarily of production expenses, delivery expenses and the amortization of in service inventory, including uniforms, mats, shop towels and other ancillary items. Cost of uniform rental and facility services increased $49.5 million, or 5.2%, for the three months ended February 28, 2025, compared to the three months ended February 29, 2024. Cost of uniform rental and facility services improved as a percent of revenue, decreasing from 51.2% for the three months ended February 29, 2024, to 50.0% for the three months ended February 28, 2025. This improvement as a percent of revenue was primarily due to more efficient usage of in-service inventory and more efficient routing due to our SmartTruck initiative.
Previous wording
Cost of other consists primarily of cost of goods sold (predominantly first aid and safety products, personal protective equipment, uniforms and fire protection products), delivery expenses and distribution expenses in the First Aid and Safety Services reportable operating segment and All Other. Cost of other increased $9.6 million, or 3.7%, for the three months ended November 30, 2024, compared to the three months ended November 30, 2023 as a result of higher other revenue. Cost of other improved as a percent of revenue, decreasing from 49.6% for three months ended November 30, 2023, to 47.4% for the three months ended November 30, 2024. The improvement in cost of sales as a percent of revenue was primarily due to a favorable sales mix and sourcing and productivity initiatives in the First Aid and Safety Services reportable operating segment, as well as improved leverage of fixed costs for both the First Aid and Safety Services reportable operating segment and All Other.
Current wording
Cost of other consists primarily of cost of goods sold (predominantly first aid and safety products, personal protective equipment, uniforms and fire protection products), delivery expenses and distribution expenses in the First Aid and Safety Services reportable operating segment and All Other. Cost of other increased $22.0 million, or 8.5%, for the three months ended February 28, 2025, compared to the three months ended February 29, 2024. Cost of other improved as a percent of revenue, decreasing from 48.7% for three months ended February 29, 2024, to 47.6% for the three months ended February 28, 2025. The improvement in cost of sales as a percent of revenue was primarily due to a favorable sales mix and sourcing and productivity initiatives in the First Aid and Safety Services reportable operating segment.
Previous wording
Operating income was $591.4 million, or 23.1% of revenue, for the three months ended November 30, 2024, compared to $499.7 million, or 21.0% of revenue, for the three months ended November 30, 2023. The improvement in operating income as a percent of revenue was primarily due to operating leverage from revenue growth, sourcing and productivity initiatives, and efficiency gains in energy and in-service inventory usage.
Current wording
Operating income was $609.9 million, or 23.4% of revenue, for the three months ended February 28, 2025, compared to $520.8 million, or 21.6% of revenue, for the three months ended February 29, 2024. The improvement in operating income as a percent of revenue was primarily due to operating leverage from revenue growth, sourcing and productivity initiatives, in-service inventory usage, and the changes in selling and administrative expenses noted above.
Previous wording
Net interest expense (interest expense less interest income) was $25.7 million for the three months ended November 30, 2024, which was fairly consistent as compared to $25.8 million for the three months ended November 30, 2023.
Current wording
Net interest expense (interest expense less interest income) was $23.4 million for the three months ended February 28, 2025, compared to $24.6 million for the three months ended February 29, 2024. The change was primarily due to a decrease in the average amount of outstanding debt during the three months ended February 29, 2025.
Previous wording
Cintas’ effective tax rate was 20.7% and 20.9% for the three months ended November 30, 2024 and 2023, respectively. The effective tax rate in both periods was impacted by certain discrete items, primarily the tax accounting impact for stock-based compensation.
Current wording
Cintas’ effective tax rate was 21.0% and 19.9% for the three months ended February 28, 2025 and February 29, 2024, respectively. The effective tax rate in both periods was impacted by certain discrete items, primarily the tax accounting impact for stock-based compensation.
Previous wording
Net income was $448.5 million for the three months ended November 30, 2024, an increase of 19.7%, compared to the three months ended November 30, 2023. Diluted earnings per share were $1.09 for the three months ended November 30, 2024, which was an increase of 21.1% compared to the three months ended November 30, 2023. Diluted earnings per share increased primarily due to the increase in net income.
Current wording
Net income was $463.5 million for the three months ended February 28, 2025, an increase of 16.6% compared to the three months ended February 29, 2024. Diluted earnings per share were $1.13 for the three months ended February 28, 2025, which was an increase of 17.7% compared to the three months ended February 29, 2024. Diluted earnings per share increased primarily due to the increase in net income.
Previous wording
Uniform Rental and Facility Services reportable operating segment revenue was $1,990.4 million for the three months ended November 30, 2024 compared to $1,850.5 million for the three months ended November 30, 2023. The organic revenue growth rate for the reportable operating segment was 6.9%. The cost of uniform rental and facility services increased $39.8 million, or 4.1%. The reportable operating segment’s gross margin was $976.4 million. Gross margin as a percent of revenue was 49.1% for the three months ended November 30, 2024 compared to 47.4% for the three months ended November 30, 2023. The improvement in gross margin was primarily the result of efficiency gains in energy and in-service inventory usage and improved leverage of fixed costs.
Current wording
Uniform Rental and Facility Services reportable operating segment revenue was $2,021.1 million for the three months ended February 28, 2025, compared to $1,876.6 million for the three months ended February 29, 2024. The organic revenue growth rate for the reportable operating segment was 7.0%. The cost of uniform rental and facility services increased $49.5 million, or 5.2%. The reportable operating segment’s gross margin was $1,011.5 million. Gross margin as a percent of revenue was 50.0% for the three months ended February 28, 2025, compared to 48.8% for the three months ended February 29, 2024. The improvement in gross margin was primarily the result of more efficient usage of in-service inventory and more efficient routing due to our SmartTruck initiative.
Previous wording
Income before income taxes increased $72.7 million, or 18.2%, for the Uniform Rental and Facility Services reportable operating segment for the three months ended November 30, 2024, compared to the three months ended November 30, 2023. Income before income taxes was 23.7% of the reportable operating segment's revenue compared to the three months ended November 30, 2023 of 21.6% of revenue. The improvement in income before income taxes was a result of the expansion in gross margin in addition to the improvement in selling and administrative expenses as a percent of revenue noted above.
Current wording
Income before income taxes increased $69.1 million, or 16.4%, for the Uniform Rental and Facility Services reportable operating segment for the three months ended February 28, 2025, compared to the three months ended February 29, 2024. Income before income taxes was 24.2% of the reportable operating segment's revenue compared to the three months ended February 29, 2024 of 22.4% of revenue. The improvement in income before income taxes was a result of the expansion in gross margin in addition to the improvement in selling and administrative expenses as a percent of revenue noted above.
Previous wording
First Aid and Safety Services reportable operating segment revenue increased from $266.4 million to $299.4 million, or 12.4%, for the three months ended November 30, 2024, over the three months ended November 30, 2023. The organic revenue growth rate for the reportable operating segment was 12.3%. First Aid and Safety Services reportable operating segment revenue was positively impacted by 0.1% due to acquisitions. The increase in revenue was driven by many factors including increases in new business sold by sales representatives, penetration of additional products and services into existing customers, price increases and strong customer retention.
Current wording
First Aid and Safety Services reportable operating segment revenue increased from $262.6 million to $301.8 million, or 14.9%, for the three months ended February 28, 2025, over the three months ended February 29, 2024. The organic revenue growth rate for the reportable operating segment was 15.0%. First Aid and Safety Services reportable operating segment revenue was positively impacted by 0.1% due to acquisitions and negatively impacted by 0.2% due to foreign currency exchange rate fluctuations. The increase in revenue was driven by many factors including increases in new business sold by sales representatives, penetration of additional products and services into existing customers, price increases and strong customer retention.
Previous wording
Cost of first aid and safety services for the three months ended November 30, 2024, increased $6.8 million, or 5.6%, compared to the three months ended November 30, 2023. The gross margin as a percent of revenue was 57.3% for the three months ended November 30, 2024, compared to the gross margin as a percent of revenue of 54.5% in the three months ended November 30, 2023. The improvement in gross margin as a percent of revenue was primarily driven by a favorable sales mix, sourcing and productivity initiatives, as well as improved leverage of fixed costs and a reduction in energy expense as a percent of revenue.
Current wording
Cost of first aid and safety services for the three months ended February 28, 2025, increased $14.8 million, or 12.8%, compared to the three months ended February 29, 2024. The gross margin as a percent of revenue was 57.0% for the three months ended February 28, 2025, compared to the gross margin as a percent of revenue of 56.3% in the three months ended February 29, 2024. The improvement in gross margin as a percent of revenue was primarily driven by a favorable sales mix and sourcing and productivity initiatives.
Previous wording
Income before income taxes for the First Aid and Safety Services reportable operating segment increased $16.7 million to $75.2 million for the three months ended November 30, 2024, compared to the three months ended November 30, 2023. Income before income taxes was 25.1% of the reportable operating segment’s revenue compared to the three months ended November 30, 2023 of 22.0%. The increase in income before income taxes was primarily due to the previously discussed improvements in gross margin, in addition to the improvement in selling and administrative expenses as a percent of revenue noted above.
Current wording
Income before income taxes for the First Aid and Safety Services reportable operating segment increased $13.8 million to $71.5 million for the three months ended February 28, 2025, compared to the three months ended February 29, 2024. Income before income taxes was 23.7% of the reportable operating segment’s revenue compared to the three months ended February 29, 2024 of 22.0%. The increase in income before income taxes was primarily due to the previously discussed improvements in gross margin, in addition to the change in selling and administrative expenses as a percent of revenue noted above.
Previous wording
Total revenue increased 7.3% to $5,063.4 million for the six months ended November 30, 2024, compared to $4,719.5 million for the six months ended November 30, 2023. Total organic revenue growth was 7.6%. Organic growth adjusts for the impact of acquisitions, workday differences and foreign currency exchange rate fluctuations. Revenue growth was positively impacted by 0.6% due to acquisitions, negatively impacted by 0.8% due to one less workday in the six months ended November 30, 2024 compared to the six months ended November 30, 2023, and negatively impacted by 0.1% due to foreign currency exchange rate fluctuations.
Current wording
Total revenue increased 7.7% to $7,672.5 million for the nine months ended February 28, 2025, compared to $7,125.7 million for the nine months ended February 29, 2024. Total organic revenue growth was also 7.7%. Organic growth adjusts for the impact of acquisitions, workday differences and foreign currency exchange rate fluctuations. Revenue growth was positively impacted by 0.7% due to acquisitions, negatively impacted by 0.5% due to one less workday in the nine months ended February 28, 2025 compared to the nine months ended February 29, 2024, and negatively impacted by 0.2% due to foreign currency exchange rate fluctuations.
Previous wording
Uniform Rental and Facility Services reportable operating segment revenue was $3,924.2 million for the six months ended November 30, 2024, compared to $3,677.4 million in the six months ended November 30, 2023, which was an increase of 6.7%. Organic revenue growth for this reportable operating segment was 7.0%. Uniform Rental and Facility Services reportable operating segment revenue was positively impacted by 0.7% due to acquisitions, negatively impacted by 0.8% due to one less workday in the six months ended November 30, 2024 compared to the six months ended November 30, 2023, and negatively impacted by 0.2% due to foreign currency exchange rate fluctuations. Revenue growth was a result of new business, the penetration of additional products and services into existing customers and price increases, partially offset by lost business. New business growth resulted from an increase in the number and productivity of sales representatives.
Current wording
Uniform Rental and Facility Services reportable operating segment revenue was $5,945.4 million for the nine months ended February 28, 2025, compared to $5,554.0 million in the nine months ended February 29, 2024, which was an increase of 7.0%. Organic revenue growth for this reportable operating segment was also 7.0%. Uniform Rental and Facility Services reportable operating segment revenue was positively impacted by 0.8% due to acquisitions, negatively impacted by 0.6% due to one less workday in the nine months ended February 28, 2025 compared to the nine months ended February 29, 2024, and negatively impacted by 0.2% due to foreign currency exchange rate fluctuations. Revenue growth was a result of new business, the penetration of additional products and services into existing customers and price increases, partially offset by lost business.
Previous wording
Other revenue, consisting of revenue from the First Aid and Safety Services reportable operating segment and All Other, was $1,139.1 million for the six months ended November 30, 2024, compared to $1,042.1 million for the six months ended November 30, 2023, which was an increase of 9.3%. Organic growth for other revenue was 9.7%. Revenue growth was positively impacted by 0.4% due to acquisitions and negatively impacted by 0.8% due to one less workday in the six months ended November 30, 2024 compared to the six months ended November 30, 2023.
Current wording
Other revenue, consisting of revenue from the First Aid and Safety Services reportable operating segment and All Other, was $1,727.1 million for the nine months ended February 28, 2025, compared to $1,571.7 million for the nine months ended February 29, 2024, which was an increase of 9.9%. Organic growth for other revenue was 10.1%. Revenue growth was positively impacted by 0.5% due to acquisitions and negatively impacted by 0.6% due to one less workday in the nine months ended February 28, 2025 compared to the nine months ended February 29, 2024, and negatively impacted by 0.1% due to foreign currency exchange rate fluctuations.
Previous wording
Cost of uniform rental and facility services consists primarily of production expenses, delivery expenses and the amortization of in service inventory, including uniforms, mats, shop towels and other ancillary items. Cost of uniform rental and facility services increased $73.4 million, or 3.8%, for the six months ended November 30, 2024, compared to the six months ended November 30, 2023, primarily due to increased sales volume in each of the underlying operating segments. Cost of uniform rental and facility services improved as a percent of revenue, decreasing from 52.3% for the six months ended November 30, 2023, to 50.8% for the six months ended November 30, 2024. This improvement as a percent of revenue was primarily due to efficiency gains in energy and in-service inventory usage and improved leverage of fixed costs.
Current wording
Cost of uniform rental and facility services consists primarily of production expenses, delivery expenses and the amortization of in service inventory, including uniforms, mats, shop towels and other ancillary items. Cost of uniform rental and facility services increased $122.9 million, or 4.3%, for the nine months ended February 28, 2025, compared to the nine months ended February 29, 2024. Cost of uniform rental and facility services improved as a percent of revenue, decreasing from 51.9% for the nine months ended February 29, 2024, to 50.5% for the nine months ended February 28, 2025. This improvement as a percent of revenue was primarily due to more efficient usage of in-service inventory and more efficient routing due to our SmartTruck initiative.
Previous wording
Cost of other consists primarily of cost of goods sold (predominantly first aid and safety products, personal protective equipment, uniforms, and fire protection products), delivery expenses and distribution expenses in the First Aid and Safety Services reportable operating segment and All Other. Cost of other increased $24.7 million, or 4.8%, for the six months ended November 30, 2024, compared to the six months ended November 30, 2023. Cost of other improved as a percent of revenue, decreasing from 49.4% for six months ended November 30, 2023, to 47.3% for the six months ended November 30, 2024. The improvement in cost of sales as a percent of revenue was primarily due to a favorable sales mix and sourcing and productivity initiatives in the First Aid and Safety Services reportable operating segment as well as improved leverage of fixed costs for both the First Aid and Safety Services reportable operating segment and All Other.
Current wording
Cost of other consists primarily of cost of goods sold (predominantly first aid and safety products, personal protective equipment, uniforms, and fire protection products), delivery expenses and distribution expenses in the First Aid and Safety Services reportable operating segment and All Other. Cost of other increased $46.8 million, or 6.1%, for the nine months ended February 28, 2025, compared to the nine months ended February 29, 2024. Cost of other improved as a percent of revenue, decreasing from 49.2% for nine months ended February 29, 2024, to 47.4% for the nine months ended February 28, 2025. The improvement in cost of sales as a percent of revenue was primarily due to a favorable sales mix and sourcing and productivity initiatives in the First Aid and Safety Services reportable operating segment.
Previous wording
Operating income was $1,152.4 million, or 22.8% of revenue, for the six months ended November 30, 2024, compared to $1,000.2 million, or 21.2% of revenue, for the six months ended November 30, 2023. The improvement in operating income as a percent of revenue was primarily due to the previously mentioned improvements in gross margin.
Current wording
Operating income was $1,762.3 million, or 23.0% of revenue, for the nine months ended February 28, 2025, compared to $1,521.0 million, or 21.3% of revenue, for the nine months ended February 29, 2024. The improvement in operating income as a percent of revenue was primarily due to the previously mentioned improvements in gross margin, in addition to the change in selling and administrative expenses as a percent of revenue noted above.
Previous wording
Net interest expense (interest expense less interest income) was $50.1 million for the six months ended November 30, 2024, which was fairly consistent as compared to $49.9 million for the six months ended November 30, 2023.
Current wording
Net interest expense (interest expense less interest income) was $73.5 million for the nine months ended February 28, 2025, compared to $74.5 million for the nine months ended February 29, 2024. The reduction was primarily due to a decrease in the average amount of outstanding debt during the nine months ended February 29, 2025.
Previous wording
Cintas’ effective tax rate was 18.3% and 20.1% for the six months ended November 30, 2024 and 2023, respectively. The effective tax rate in both periods was impacted by certain discrete items, primarily the tax accounting impact for stock-based compensation.
Current wording
Cintas’ effective tax rate was 19.2% and 20.0% for the nine months ended February 28, 2025 and February 29, 2024, respectively. The effective tax rate in both periods was impacted by certain discrete items, primarily the tax accounting impact for stock-based compensation.
Previous wording
Net income for the six months ended November 30, 2024, increased $140.8 million, or 18.5%, compared to the six months ended November 30, 2023. Diluted earnings per share was $2.19 for the six months ended November 30, 2024, which was an increase of 19.7% compared to the six months ended November 30, 2023. Diluted earnings per share increased primarily due to the increase in net income.
Current wording
Net income for the nine months ended February 28, 2025, increased $206.7 million, or 17.9%, compared to the nine months ended February 29, 2024. Diluted earnings per share was $3.31 for the nine months ended February 28, 2025, which was an increase of 18.6% compared to the nine months ended February 29, 2024. Diluted earnings per share increased primarily due to the increase in net income.
Previous wording
Uniform Rental and Facility Services reportable operating segment revenue increased 6.7% to $3,924.2 million for the six months ended November 30, 2024, compared to $3,677.4 million for the six months ended November 30, 2023. Organic revenue growth for this reportable operating segment was 7.0%. This increase in revenue was driven by many factors including new business sold by sales representatives, penetration of additional products and services into existing customers, price increases and strong customer retention.
Current wording
Uniform Rental and Facility Services reportable operating segment revenue increased 7.0% to $5,945.4 million for the nine months ended February 28, 2025, compared to $5,554.0 million for the nine months ended February 29, 2024. Organic revenue growth for this reportable operating segment was also 7.0%. This increase in revenue was driven by many factors including new business sold by sales representatives, penetration of additional products and services into existing customers, price increases and strong customer retention.
Previous wording
Cost of uniform rental and facility services increased $73.4 million, or 3.8%, for the six months ended November 30, 2024 over the six months ended November 30, 2023. The reportable operating segment’s gross margin was $1,929.0 million, or 49.2% of revenue, for the six months ended November 30, 2024, compared to the gross margin of 47.7% for the six months ended November 30, 2023. The improvement in gross margin was primarily the result of efficiency gains in energy and in-service inventory usage and improved leverage of fixed costs.
Current wording
Cost of uniform rental and facility services increased $122.9 million, or 4.3%, for the nine months ended February 28, 2025 over the nine months ended February 29, 2024. The reportable operating segment’s gross margin was $2,940.5 million, or 49.5% of revenue, for the nine months ended February 28, 2025, compared to the gross margin of 48.1% for the nine months ended February 29, 2024. This improvement as a percent of revenue was primarily due to more efficient usage of in-service inventory and more efficient routing due to our SmartTruck initiative.
Previous wording
Selling and administrative expenses for the Uniform Rental and Facility Services reportable operating segment increased $27.3 million in the three months ended November 30, 2024 compared to the three months ended November 30, 2023. Selling and administrative expenses as a percent of revenue for the three months ended November 30, 2024 were 25.3% compared to the 25.8% in the three months ended November 30, 2023. The improvement as a percent of revenue was primarily due to a decrease in employee-partner related expenses as a percent of revenue.
Current wording
Selling and administrative expenses for the Uniform Rental and Facility Services reportable operating segment increased $86.8 million but decreased as a percent of revenue for the nine months ended February 28, 2025 to 25.8%, compared to 26.0% for the nine months ended February 29, 2024. Excluding the items noted previously, selling and administrative expenses as a percent of revenue increased for the nine months ended February 28, 2025, compared to the nine months ended February 29, 2024. The resulting increase as a percent of revenue was primarily due to investments in technology.
Previous wording
Income before income taxes increased $112.7 million, or 14.0%, for the Uniform Rental and Facility Services reportable operating segment for the six months ended November 30, 2024, compared to the six months ended November 30, 2023. Income before income taxes was 23.4% of the reportable operating segment’s revenue, compared to 21.9% for the six months ended November 30, 2023. The improvement as a percent of revenue was primarily a result of the improvement in gross margin.
Current wording
Income before income taxes increased $181.7 million, or 14.8%, for the Uniform Rental and Facility Services reportable operating segment for the nine months ended February 28, 2025, compared to the nine months ended February 29, 2024. Income before income taxes was 23.7% of the reportable operating segment’s revenue, compared to 22.1% for the nine months ended February 29, 2024. The improvement as a percent of revenue was primarily a result of the improvement in gross margin.
Previous wording
First Aid and Safety Services reportable operating segment revenue increased from $527.1 million to $591.9 million, or 12.3%, for the six months ended November 30, 2024, over the six months ended November 30, 2023. Organic revenue growth for this reportable operating segment was 13.2%. First Aid and Safety Services reportable operating segment revenue was positively impacted by 0.1% due to acquisitions, negatively impacted by 0.9% due to one less workday in the six months ended November 30, 2024 compared to the six months ended November 30, 2023, and negatively impacted by 0.1% due to foreign currency exchange rate fluctuations. This increase in revenue was driven by many factors including new business sold by sales representatives, penetration of additional products and services into existing customers, price increases and strong customer retention.
Current wording
First Aid and Safety Services reportable operating segment revenue increased from $789.7 million to $893.7 million, or 13.2%, for the nine months ended February 28, 2025, over the nine months ended February 29, 2024. Organic revenue growth for this reportable operating segment was 13.8%. First Aid and Safety Services reportable operating segment revenue was positively impacted by 0.1% due to acquisitions, negatively impacted by 0.5% due to one less workday in the nine months ended February 28, 2025 compared to the nine months ended February 29, 2024, and negatively impacted by 0.2% due to foreign currency exchange rate fluctuations. This increase in revenue was driven by many factors including new business sold by sales representatives, penetration of additional products and services into existing customers, price increases and strong customer retention.
Previous wording
Cost of first aid and safety services increased $15.6 million, or 6.6%, for the six months ended November 30, 2024, compared to the six months ended November 30, 2023, due to higher sales volume. The gross margin as a percent of revenue was 57.5% for the six months ended November 30, 2024, which was an increase of 230 basis points compared to the gross margin as a percent of revenue of 55.2% in the six months ended November 30, 2023. The improvement in gross margin was primarily driven by a favorable sales mix, sourcing and productivity initiatives, as well as improved leverage of fixed costs and a reduction in energy expense as a percent of revenue.
Current wording
Cost of first aid and safety services increased $30.4 million, or 8.7%, for the nine months ended February 28, 2025, compared to the nine months ended February 29, 2024, due to higher sales volume. The gross margin as a percent of revenue was 57.3% for the nine months ended February 28, 2025, compared to the gross margin as a percent of revenue of 55.6% in the nine months ended February 29, 2024. The improvement in gross margin as a percent of revenue was primarily driven by a favorable sales mix and sourcing and productivity initiatives.
Previous wording
Selling and administrative expenses increased $20.8 million but decreased as a percent of revenue to 32.7%, for the six months ended November 30, 2024, compared to 32.8% for the six months ended November 30, 2023. As a percent of revenue, expenses were largely consistent as compared to the six months ended November 30, 2023.
Current wording
Selling and administrative expenses increased $31.4 million but decreased as a percent of revenue to 32.9%, for the nine months ended February 28, 2025, compared to 33.3% for the nine months ended February 29, 2024. Excluding the items noted previously, selling and administrative expenses as a percent of revenue for the nine months ended February 28, 2025 was the same as selling and administrative expenses as a percent of revenue for the nine months ended February 29, 2024.
Previous wording
Income before income taxes for the First Aid and Safety Services reportable operating segment was $146.5 million for the six months ended November 30, 2024, compared to $118.1 million for the six months ended November 30, 2023. Income before income taxes, at 24.8% of the reportable operating segment’s revenue, increased 240 basis points compared to the six months ended November 30, 2023 primarily due to the improvements in gross margin.
Current wording
Income before income taxes for the First Aid and Safety Services reportable operating segment was $218.0 million for the nine months ended February 28, 2025, compared to $175.8 million for the nine months ended February 29, 2024. Income before income taxes, at 24.4% of the reportable operating segment’s revenue, increased 210 basis points compared to the nine months ended February 29, 2024 primarily due to the improvements in gross margin, in addition to the change in selling and administrative expenses as a percent of revenue noted above.
Previous wording
The following is a summary of our cash flows and cash and cash equivalents as of and for the six months ended November 30:
Current wording
The following is a summary of our cash flows and cash and cash equivalents as of and for the nine months ended:
Previous wording
Cash and cash equivalents as of November 30, 2024 and 2023, include $63.7 million and $40.7 million, respectively, that is located outside of the U.S.
Current wording
Cash and cash equivalents as of February 28, 2025 and February 29, 2024, include $34.2 million and $52.4 million, respectively, that is located outside of the U.S.
Previous wording
Net cash provided by operating activities was $908.1 million for the six months ended November 30, 2024, compared to $729.6 million for the six months ended November 30, 2023. The increase from the prior fiscal year was primarily due to an increase in net income and favorable changes in working capital, specifically accounts payable and accrued compensation and related liabilities. These improvements were partially offset by unfavorable changes in working capital, specifically, uniforms and other rental items in service, income taxes and prepaid expenses and other current assets.
Current wording
Net cash provided by operating activities was $1,530.2 million for the nine months ended February 28, 2025, compared to $1,386.7 million for the nine months ended February 29, 2024. The increase from the prior fiscal year was primarily due to an increase in net income and favorable changes in working capital, specifically accounts payable and accrued compensation and related liabilities. These improvements were partially offset by unfavorable changes in working capital, specifically, inventories, net, uniforms and other rental items in service, and accounts receivable, net.
Previous wording
Net cash used in investing activities includes capital expenditures, purchases of investments and cash paid for acquisitions of businesses. Capital expenditures were $194.3 million and $200.5 million for the six months ended November 30, 2024 and 2023, respectively. Capital expenditures in the six months ended November 30, 2024, included $141.2 million for the Uniform Rental and Facility Services reportable operating segment and $25.3 million for the First Aid and Safety Services reportable operating segment. Cash paid for acquisitions of businesses was $154.9 million and $74.0 million for the six months ended November 30, 2024 and 2023, respectively. The acquisitions during both the six months ended November 30, 2024 and 2023, occurred in our Uniform Rental and Facility Services reportable operating segment, our First Aid and Safety Services reportable operating segment and our Fire Protection operating segment, which is included in All Other. In addition, during the six months ended November 30, 2024, Cintas received cash proceeds of $5.9 million related to the sale of property and equipment. Net cash used in investing activities also includes $7.1 million and $7.5 million of purchases of investments during the six months ended November 30, 2024 and 2023, respectively.
Current wording
Net cash used in investing activities includes capital expenditures, purchases of investments and cash paid for acquisitions of businesses. Capital expenditures were $294.3 million and $307.6 million for the nine months ended February 28, 2025 and February 29, 2024, respectively. Capital expenditures in the nine months ended February 28, 2025, included $219.3 million for the Uniform Rental and Facility Services reportable operating segment and $37.7 million for the First Aid and Safety Services reportable operating segment. Cash paid for acquisitions of businesses was $198.8 million and $185.0 million for the nine months ended February 28, 2025 and February 29, 2024, respectively. The acquisitions during both the nine months ended February 28, 2025 and February 29, 2024, occurred in our Uniform Rental and Facility Services reportable operating segment, our First Aid and Safety Services reportable operating segment and our Fire Protection Services operating segment, which is included in All Other. In addition, during the nine months ended February 28, 2025, Cintas received cash proceeds of $24.0 million related to the sale of property and equipment. Net cash used in investing activities also includes $7.1 million and $7.6 million of purchases of investments during the nine months ended February 28, 2025 and February 29, 2024, respectively.
Previous wording
Net cash used in financing activities was $776.9 million and $485.8 million for the six months ended November 30, 2024 and 2023, respectively. The increase in cash used in financing activities was due to the increase in share buyback activity, an increase in dividends paid and a decrease in the net issuance of commercial paper. This increase in cash used in financing activities was partially offset by a decrease in payments of debt in the six months ended November 30, 2024.
Current wording
Net cash used in financing activities was $1,150.6 million and $879.5 million for the nine months ended February 28, 2025 and February 29, 2024, respectively. The increase in cash used in financing activities was due to the increase in share buyback activity and an increase in dividends paid. This increase in cash used in financing activities was partially offset by a decrease in payments of debt in the nine months ended February 28, 2025.
Previous wording
Cintas announced on July 27, 2021, July 26, 2022, and July 23, 2024, that the Board of Directors (the Board) authorized share buyback programs for $1.5 billion, $1.0 billion and $1.0 billion, respectively. None of the share buyback programs have an expiration date. The following table summarizes the share buyback activity by program for the six months ended November 30:
Current wording
Cintas announced on July 27, 2021, that the Board of Directors (the Board) authorized a $1.5 billion share buyback program, which was completed during the fourth quarter of fiscal year 2024. On July 26, 2022 and July 23, 2024, Cintas announced that the Board authorized new share buyback programs for $1.0 billion. Neither of the outstanding share buyback programs have an expiration date. The following table summarizes the share buyback activity by program for the nine months ended:
Previous wording
During the six months ended November 30, 2024 and 2023, Cintas issued $181.0 million and $210.0 million, net of commercial paper, respectively. During the six months ended November 30, 2023, Cintas repurchased, and subsequently retired, $13.5 million of its 6.15%, 30-year senior notes. The following table summarizes Cintas' outstanding debt:
Current wording
During the nine months ended February 29, 2024, Cintas repurchased, and subsequently retired, $13.5 million of its 6.15%, 30-year senior notes. The following table summarizes Cintas' outstanding debt:
Previous wording
(2)Cintas assumed these senior notes with the acquisition of G&K Services, Inc. (G&K) in the fourth quarter of fiscal 2017, and they were recorded at fair value. The interest rate shown above is the effective interest rate until repayment in fiscal 2025.
Current wording
(1)Cintas assumed these senior notes with the acquisition of G&K Services, Inc. (G&K) in the fourth quarter of fiscal 2017, and they were recorded at fair value. The interest rate shown above is the effective interest rate until repayment in fiscal 2025.
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